An internal report explains why Instagram is struggling to keep up with TikTok

Hello, tech friends. I'm Jordan Parker Erb, writing to you from New York — but thinking about my home state, Montana.

While I was visiting last month, I put together a guide to the state and, more specifically, what not to do while vacationing there. If you're looking to book a trip out west this fall, let this serve as a helping hand.

In today's tech news — that's why we're all really here, isn't it? — we're taking a closer look at Instagram Reels, which according to an internal report obtained by the Wall Street Journal, is flagging in comparison to its competitor, TikTok.

Let's get started.

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1. Instagram Reels are floundering. Instagram has long been trying to make the short-form video feature a hit. But according to an internal report reviewed by the Wall Street Journal, Reels are falling flat — and Instagram has a long way to go before it can make a dent in rival TikTok's market share.

• Of the 11 million creators on the platform, only about 20.7% post on Reels each month, and "most Reels users have no engagement whatsoever," the document says.
• Whereas TikTok users cumulatively spend 197.8 million hours watching videos on the platform each day, Instagram users spend 17.6 million hours a day watching Reels — less than one-tenth of the time spent on TikTok.
• Part of the problem, according to the report, is that Reels struggles to bring in original content; Nearly a third of all videos are created elsewhere and then uploaded to Instagram.

Get a closer look at what's going on with Reels.

In other news:

2. Peloton founder John Foley stepped down as executive chairman. Yesterday, Foley severed his last ties with the embattled fitness company, a move that comes after a tumultuous few months for the company's former CEO.

3. DTC brands that once shunned Walmart are now flocking to the megaretailer. A few years ago, trendy direct-to-consumer brands were turning to Target for their wholesale retail debut, snubbing Walmart as a "bargain basement." Now, brands like Billie and Bubble are turning to Walmart. We explain why.

4. Seeing a lot of hate tweets on your timeline? It could be the weather. According to a new study, when the weather gets too hot or too cold, the number of hateful tweets increases — but online anger levels off between 54-70 degrees Fahrenheit. Here's what else the study found.

5. Tanium insiders wonder if the startup is preparing to be acquired. Current and former employees said that the $9 billion company is tightening its belt and cutting jobs as internal hopes for an IPO fade — and some say it's angling for an acquisition by Microsoft.

6. A hotel worker said someone left an unreleased Meta VR headset in a hotel room. A Facebook user posted photos and a video showing what appears to be Meta's unreleased Quest Pro virtual reality headset, which Mark Zuckerberg has hyped up to Joe Rogan. Check out the video of the device.

7. Snap declared augmented reality a "strategic priority" — but still laid off AR staffers. When CEO Evan Spiegel announced Snap would be cutting 20% of staff, he sent a letter detailing the company's priorities moving forward, which included AR. But Insider found Snap still laid off at least 15 workers involved in AR projects. Employees explain how the team was impacted and what could come next.

8. A Tesla exec laid out the company's next five years. At an invite-only conference, Martin Viecha broke down what to expect when it comes to a cheaper electric vehicle, a robotaxi service, and other potential future products. Here's what he said.

Odds and ends:

9. Apple just gave owners of older iPhones a great reason not to upgrade. The iPhone 14, announced last week, runs on the same A15 Bionic processor as the iPhone 13 — meaning it won't perform any better or faster than its predecessor. Everything you'll want to know before deciding whether to upgrade.

10. Airlines like United and American are betting on electric air taxis. As part of its commitment to hit net-zero emissions by 2050, much of the aviation industry is investing in electric aircrafts, which could change the way we get around and between cities. Here are the eight companies they're partnering with.

What we're watching today:

• Twitter is set to host a special meeting for stockholders to vote on the proposed acquisition of the company by Elon Musk.
• Twitter whistleblower Peiter "Mudge" Zatko will testify to the Senate Judiciary Committee at 10 a.m. ET.
• Digital Asset Summit 2022 starts today in New York City.
• SaaStr Annual, an event for cloud and SaaS founders, VCs, and execs, is happening in San Francisco this week.
• The AI Hardware Summit kicks off today in Santa Clara, California.
• Open Source Summit Europe starts today virtually and in Dublin, Ireland.

Keep updated with the latest tech news throughout your day by checking out The Refresh from Insider, a dynamic audio news brief from the Insider newsroom. Listen here.

Curated by Jordan Parker Erb in New York. (Feedback or tips? Email jerb@insider.com or tweet @jordanparkererb.) Edited by Hallam Bullock (tweet @hallam_bullock) in London.