Categories
Apple Inc Barr, William P computer security Computers and the Internet Cook, Timothy D Corporate Social Responsibility iPhone Justice Department Naval Air Station Pensacola Shooting (2019) privacy Software Uncategorized United States Politics and Government

Apple Takes a (Cautious) Stand Against Opening a Killer’s iPhones

SAN FRANCISCO — Apple is privately preparing for a legal fight with the Justice Department to defend encryption on its iPhones while publicly trying to defuse the dispute, as the technology giant navigates an increasingly tricky line between its customers and the Trump administration.

Timothy D. Cook, Apple’s chief executive, has marshaled a handful of top advisers, while Attorney General William P. Barr has taken aim at the company and asked it to help penetrate two phones used by a gunman in a deadly shooting last month at a naval air station in Pensacola, Fla.

Executives at Apple have been surprised by the case’s quick escalation, said people familiar with the company who were not authorized to speak publicly. And there is frustration and skepticism among some on the Apple team working on the issue that the Justice Department hasn’t spent enough time trying to get into the iPhones with third-party tools, said one person with knowledge of the matter.

The situation has become a sudden crisis at Apple that pits Mr. Cook’s longstanding commitment to protecting people’s privacy against accusations from the United States government that it is putting the public at risk. The case resembles Apple’s clash with the F.B.I. in 2016 over another dead gunman’s phone, which dragged on for months.

This time, Apple is facing off against the Trump administration, which has been unpredictable. The stakes are high for Mr. Cook, who has built an unusual alliance with President Trump that has helped Apple largely avoid damaging tariffs in the trade war with China. That relationship will now be tested as Mr. Cook confronts Mr. Barr, one of the president’s closest allies.

“We are helping Apple all of the time on TRADE and so many other issues, and yet they refuse to unlock phones used by killers, drug dealers and other violent criminal elements,” Mr. Trump said Tuesday in a post on Twitter. “They will have to step up to the plate and help our great Country.”

Apple declined to comment on the issue on Tuesday. Late Monday, after Mr. Barr had complained that the company had provided no “substantive assistance” in gaining access to the phones used in the Pensacola shooting, Apple said it rejected that characterization. It added that “encryption is vital to protecting our country and our users’ data.”

But Apple also offered conciliatory language, in a sign that it did not want the showdown to intensify. The company said it was working with the F.B.I. on the Pensacola case, with its engineers recently holding a call to provide technical assistance.

“We will work tirelessly to help them investigate this tragic attack on our nation,” Apple said.

At the heart of the tussle is a debate between Apple and the government over whether security or privacy trumps the other. Apple has said it chooses not to build a “backdoor” way for governments to get into iPhones and to bypass encryption because that would create a slippery slope that could damage people’s privacy.

The government has argued it is not up to Apple to choose whether to provide help, as the Fourth Amendment allows the government to violate individual privacy in the interest of public safety. Privacy has never been an absolute right under the Constitution, Mr. Barr said in a speech in October.

Mr. Cook publicly took a stand on privacy in 2016 when Apple fought a court order from the F.B.I. to open the iPhone of a gunman involved in a San Bernardino, Calif., mass shooting. The company said it could open the phone in a month, using a team of six to 10 engineers. But in a blistering, 1,100-word letter to Apple customers at the time, Mr. Cook warned that creating a way for the authorities to gain access to someone’s iPhone “would undermine the very freedoms and liberty our government is meant to protect.”

Bruce Sewell, Apple’s former general counsel who helped lead the company’s response in the San Bernardino case, said in an interview last year that Mr. Cook had staked his reputation on the stance. Had Apple’s board not agreed with the position, Mr. Cook was prepared to resign, Mr. Sewell said.

The San Bernardino case was bitterly contested by the government and Apple until a private company came forward with a way to break into the phone. Since then, Mr. Cook has made privacy one of Apple’s core values. That has set Apple apart from tech giants like Facebook and Google, which have faced scrutiny for vacuuming up people’s data to sell ads.

“It’s brilliant marketing,” Scott Galloway, a New York University marketing professor who has written a book on the tech giants, said of Apple. “They’re so concerned with your privacy that they’re willing to wave the finger at the F.B.I.”

Mr. Cook’s small team at Apple is now aiming to steer the current situation toward an outside resolution that doesn’t involve the company breaking its own security, even as it prepares for a potential legal battle over the issue, said the people with knowledge of the thinking.

Some of the frustration within Apple over the Justice Department is rooted in how police have previously exploited software flaws to break into iPhones. The Pensacola gunman’s phones were an iPhone 5 and an iPhone 7 Plus, according to a person familiar with the investigation who declined to be named because the detail was confidential.

Those phones, released in 2012 and 2016, lack Apple’s most sophisticated encryption. The iPhone 5 is even older than the device in the San Bernardino case, which was an iPhone 5C.

Security researchers and a former senior Apple executive who spoke on the condition of anonymity said tools from at least two companies, Cellebrite and Grayshift, have long been able to bypass the encryption on those iPhone models.

Cellebrite said in an email that it helps “thousands of organizations globally to lawfully access and analyze” digital information; it declined to comment on an active investigation. Grayshift declined to comment.

Cellebrite’s and Grayshift’s tools exploit flaws in iPhone software that let them remove limits on how many passwords can be tried before the device erases its data, the researchers said. Typically, iPhones allow 10 password attempts. The tools then use a so-called brute-force attack, or repeated automated attempts of thousands of passcodes, until one works.

“The iPhone 5 is so old, you are guaranteed that Grayshift and Cellebrite can break into those every bit as easily as Apple could,” said Nicholas Weaver, a lecturer at the University of California, Berkeley, who has taught iPhone security.

Chuck Cohen, who recently retired as head of the Indiana State Police’s efforts to break into encrypted devices, said his team used a $15,000 device from Grayshift that enabled it to regularly get into iPhones, particularly older ones, though the tool didn’t always work.

In the San Bernardino case, the Justice Department’s Office of Inspector General later found the F.B.I. had not tried all possible solutions before trying to force Apple to unlock the phone. In the current case, Mr. Barr and other Justice Department officials have said they have exhausted all options, though they declined to detail exactly why third-party tools have failed on these phones as the authorities seek to learn if the gunman acted alone or coordinated with others.

“The F.B.I.’s technical experts — as well as those consulted outside of the organization — have played an integral role in this investigation,” an F.B.I. spokeswoman said. “The consensus was reached, after all efforts to access the shooter’s phones had been unsuccessful, that the next step was to reach out to start a conversation with Apple.”

Security researchers speculated that in the Pensacola case, the F.B.I. might still be trying a brute-force attack to get into the phones. They said major physical damage may have impeded any third-party tools from opening the devices. The Pensacola gunman had shot the iPhone 7 Plus once and tried destroying the iPhone 5, according to F.B.I. photos.

The F.B.I. said it fixed the iPhones in a lab so that they would turn on, but the authorities still couldn’t bypass their encryption. Security researchers and the former Apple executive said any damage that prevented third-party tools from working would also preclude a solution from Apple.

A Justice Department spokeswoman said in an email: “Apple designed these phones and implemented their encryption. It’s a simple, ‘front-door’ request: Will Apple help us get into the shooter’s phones or not?”

While Apple has closed loopholes that police have used to break into its devices and resisted some law enforcement requests for access, it has also routinely helped police get information from phones in cases that don’t require it to break its encryption. Apple has held seminars for police departments on how to quickly get into a suspect’s phone, and it has a hotline and dedicated team to aid police in time-sensitive cases.

In the past seven years, Apple has also complied with roughly 127,000 requests from American law enforcement agencies for data stored on its computer servers. Such data is unencrypted and access is possible without a customer’s passcode.

In 2016, when the standoff between Apple and the government was at its most acrimonious, Mr. Cook said Congress should pass a law to decide the boundaries between public safety and technological security. In court filings, Apple even identified an applicable law, the Communications Assistance for Law Enforcement Act.

On Monday, Mr. Barr said the Trump administration had revived talks with Congress to come up with such a law.

Jack Nicas reported from San Francisco, and Katie Benner from Washington.

Categories
Agarwal, Ritesh Budget Travel Corporate Social Responsibility Hotels and Travel Lodgings India Oyo (Oravel Stays Pvt Ltd) SOFTBANK Corporation Start-ups Uncategorized Venture Capital

At SoftBank’s Jewel in India: ‘Toxic’ Culture and Troubling Incidents

NEW DELHI — Oyo, a start-up that offers budget hotel rooms, has grown into one of India’s most valuable private companies and aims to be the world’s largest hotel chain by 2023.

But at least part of Oyo’s rise in India was built on practices that raise questions about the health of its business, according to financial filings, court documents and interviews with 20 current and former employees, as well as others familiar with the start-up’s operations. Many spoke on the condition of anonymity for fear of retaliation from the company.

Oyo offers rooms from unavailable hotels, such as those that have left its service, according to the company’s chief executive and nine of the current and former employees. That has the effect of inflating the number of rooms listed on Oyo’s site.

Thousands of the rooms are from unlicensed hotels and guesthouses, its executives have acknowledged. To deter trouble from the authorities over the illegal rooms, Oyo sometimes gives free lodging to the police and other officials, according to nine of the current and former employees and internal WhatsApp messages viewed by The New York Times.

Oyo has also imposed extra fees on hotels and declined to pay the hotels the full amounts they claimed they were owed, according to interviews with hotel owners and employees, emails, legal complaints and other documents viewed by The Times. Some hotel operators have sought to file criminal complaints against Oyo, which said it withheld payments primarily over the hotels’ customer service issues.

“It’s a bubble that will burst,” said Saurabh Mukhopadhyay, a former Oyo operations manager in northern India who left the company in September.

It would also be another black eye for SoftBank, which is Oyo’s biggest investor and owns half the start-up’s stock. Masayoshi Son, SoftBank’s chief executive, has hailed Oyo as a jewel of his company’s $100 billion Vision Fund, even as he recently wrote off billions of dollars on other investments like WeWork.

“This is the only company which went global at this scale from India,” Satish Meena, a senior forecaster for the research firm Forrester in New Delhi, said of Oyo. “But as of now, there are serious doubts about the business model.”

SoftBank declined to comment.

Ritesh Agarwal, Oyo’s chief executive, acknowledged in a recent interview that some of his company’s room listings included hotels that it no longer worked with. He said Oyo left those listings up and marked them as “sold out” as it tried to woo the hotels back.

Aditya Ghosh, Oyo’s head of India operations, also said in an interview that many hotels lacked required licenses, leaving them vulnerable to the occasional government raid. He denied that Oyo gave free rooms to officials.

Mr. Ghosh dismissed what he called “noise” from hotels about extra fees and nonpayment of bills. “The disagreement is about the penalties we charge on customer service failure,” he said.

He added that nearly 80 percent of Oyo’s employees had been at the company for less than a year, so training has been a challenge. “We have just grown very, very fast,” he said.

Founded in 2013 by Mr. Agarwal, then a 19-year-old student, Oyo set out to organize India’s budget hotels, which have traditionally been small, family-run enterprises. The company coaxes the hotels to become Oyo-branded destinations that list exclusively through its website; it then markets those rooms online to travelers and takes a cut of each stay. The start-up also runs some hotels itself.

Oyo is trying to expand globally and now offers more than 1.2 million rooms in 80 countries, including the United States. It employs more than 20,000 people and has raised more than $2.5 billion in funding. Mr. Agarwal has become a business star, hobnobbing with India’s prime minister, Narendra Modi.

But as Oyo has grown, its losses have mushroomed. The company expects to lose money through at least 2021, according to recent government filings. Some efforts to expand in countries like Japan have flopped.

In December, SoftBank and Mr. Agarwal put another $1.5 billion into Oyo to accelerate its expansion. The funding, negotiated over the summer, valued the company at $8 billion.

At the same time, two other big investors, Sequoia Capital and Lightspeed Venture Partners, reduced their holdings. The venture capital firms, which both hold board seats at Oyo, sold $1.5 billion of their stock — about half their stakes — to Mr. Agarwal. He borrowed money to buy the shares and paid the venture firms a price that valued Oyo at $10 billion.

Lightspeed and Sequoia declined to comment.

The current and former workers said that Oyo was never an easy place to work but that pressure increased over the last year.

Mohammad Jahanzeb Gul, who joined the start-up in January 2019 and supervised 23 Oyo properties, said that during the nine months he was there, he sometimes spent all day and night in front of a computer to meet deadlines.

“The culture is really very toxic,” he said.

Mr. Mukhopadhyay, who began working at Oyo in August 2018, said employees were under so much pressure to add new rooms that they brought hotels online that lacked air-conditioning, water heaters or electricity. He and eight others said their managers had asked them to engage in a monthly shell game of briefly inserting these unavailable properties into Oyo’s listings — complete with fake photographs — to help impress investors.

Mr. Ghosh, who left the India job this week and joined Oyo’s board, said that some hotels open in stages and that “there is no padding.”

Saurabh Sharma, who worked for Oyo from 2014 to 2018 as an operations manager, said the company sometimes deliberately withheld payments from hotel owners — a practice that half a dozen other current and former employees also described.

In some cases, they said, the start-up wanted to squeeze the hotel owners into renegotiating contracts that it deemed unprofitable. In others, Oyo wanted to save money and figured that most owners would not press for full payment.

“If 1,000 people shout, we will pay 200,” Mr. Sharma said Oyo managers had told him.

In a police complaint filed in November, Betz Fernandez, owner of the Roxel Inn in Bangalore, said Oyo owed him $49,000 and acted with “intention to cheat and cause wrongful loss” by charging him for nonexistent guests and refusing to pay the contracted minimum monthly payment. Oyo said the dispute was in arbitration.

Oyo’s oversight of its workers was also sometimes so lax that employees brazenly stole from it, said four people who were involved in the start-up’s fraud-fighting efforts.

Because Oyo hotels are popular with unmarried couples looking for places for their trysts, one scheme involved workers at properties run directly by the start-up colluding to keep the guests checked in after they left. The workers then cleaned and resold the rooms for cash to other guests and pocketed the money, the people said.

Oyo has conducted surprise raids at some properties, seizing employee cellphones and checking rooms and records for evidence, they said.

An Oyo spokeswoman said it investigates all fraud accusations and had in some instances fired employees.

Executives have also asked employees to paper over troubling incidents, some workers said.

Mr. Mukhopadhyay said that one night last June, a long-term guest at an Oyo-run property in Noida, near New Delhi, called him. She said three men had raped her in her room.

The next morning, Mr. Mukhopadhyay and another Oyo employee were summoned to the police station, where they pleaded with the guest not to register a formal complaint. Oyo’s legal team also instructed them not to tell anyone about the incident because it could hurt the company’s image, he said. The guest withdrew the complaint and moved out.

In a telephone interview, the guest confirmed Mr. Mukhopadhyay’s account. Oyo disputed some details and said any decision to file a complaint was up to the guest. The Noida police said they had no record of a complaint.

To placate the authorities over unlicensed properties, Oyo managers also gave the police and other government officials free rooms on request, current and former employees said. They said the details were recorded in dedicated WhatsApp groups, one of which The Times reviewed.

Mr. Ghosh said, “We do not encourage or involve ourselves in any kind of bribery or graft.”

Mr. Mukhopadhyay said Oyo’s growth practices contributed to his decision to leave.

“There’s something called integrity,” he said. “I can’t compromise on that.”

Categories
Biobot Analytics Inc Computers and the Internet Corporate Social Responsibility Delivery Services DynamiCare Health Entrepreneurship Food Greenhouse Gas Emissions Lemontree Foods Inc Mobile Applications Nonprofit Organizations OpenAQ Opioids and Opiates Pear Therapeutics Inc Pinterest Propel Inc Social Media Start-ups Two Thousand Nineteen Uncategorized

The 2019 Good Tech Awards

Two years ago, I started what has become one of my favorite annual traditions. Instead of a year-end column rounding up all the dubious and objectionable things technology companies did over the last year — a true fish-in-a-barrel assignment — I highlighted some examples of “good tech.” I wanted to give kudos to the kinds of tech projects that don’t always make headlines but that improve people’s lives in tangible ways.

I’ll admit, handing out awards for good technology in 2019 feels a little like congratulating Godzilla for not destroying all of Tokyo. There was plenty of bad tech news to write about this year: Facebook’s foibles, Amazon’s aggression, SoftBank’s stumbles. But to me, the tech industry’s very public shortfalls make celebrating its quieter successes even more important. The tech industry, after all, is not a monolith, and many engineers and entrepreneurs work on projects that help society. So here, with no further ado, are this year’s winners.

To OpenAQ, for educating us about the air we breathe.

Air pollution is a vastly underestimated problem. Polluted air is linked to one in eight deaths worldwide, and studies have shown that bad air quality can cause cognitive impairment in young people and increase the risk of dementia and Alzheimer’s disease in the elderly. But until recently, there was no good source of air quality data that researchers and activists could rely on.

Christa Hasenkopf, an atmospheric scientist, decided to fix that. She and a software developer started OpenAQ, an open-source platform that collects air quality data from governments and international organizations in a single place and makes it free and accessible. Want to know how the nitrogen dioxide levels in Hyderabad, India, compare with those in Kampala, Uganda? OpenAQ can tell you. Want to build an app that alerts people in your city when air quality dips below a healthy threshold? You can do that, too.

The company says it has processed 188 million air quality measurements this year, making it a powerful weapon for policymakers, environmental groups and concerned citizens trying to clean up the air.

To DynamiCare Health, Biobot Analytics and Pear Therapeutics, for using tech to address the opioid crisis.

Few public health problems in the United States have proved as intractable as the opioid epidemic. But in 2019, three Massachusetts start-ups used technology to chip away at it.

DynamiCare Health, based in Boston, has built a mobile app meant to help keep recovering users of opioids and other drugs on the wagon. The app — already in use in eight addiction treatment systems across the country — allows users to test their breath and saliva remotely, check into group meetings and therapy sessions, and earn money on an electronic debit card by meeting their sobriety goals.

Biobot, a company started by two graduates of the Massachusetts Institute of Technology, analyzes sewage samples to determine the opioid use levels in a given neighborhood. (Opioid use leaves telltale byproducts called metabolites, which can be chemically detected in urine.) Once this data is collected, public health officials can use it to set priorities for treatment programs, detect spikes in use in a neighborhood and monitor the effectiveness of prevention programs over time.

Pear Therapeutics, another Boston outfit, makes “digital therapeutics” — essentially apps that use cognitive behavioral therapy techniques to help recovering addicts stick with their treatment programs. Its anti-opioid program, Reset-O, was cleared by the Food and Drug Administration late last year and can now be prescribed by doctors in conjunction with other treatments.

To Lemontree, Goodr and Propel, for helping feed the hungry.

Lemontree, a nonprofit food-delivery app based in New York, was started by Alex Godin, an entrepreneur who sold a workplace collaboration start-up to Meetup several years ago. The company sells Blue Apron-style meal kits to low-income families for $3 apiece. Meal kits are packed by volunteers, and they can be bought with food stamps.

Goodr, described by its founder, Jasmine Crowe, as a “food delivery app in reverse,” is a platform based in Atlanta that helps save some of the 72 billion pounds of food wasted in the United States every year and give it to people in need. Restaurants sign up on the site to have their excess food picked up and donated to local nonprofits and homeless shelters. Goodr operates in six cities, including Chicago, Miami and Philadelphia, and says it has diverted 2.1 million pounds of food and provided 1.8 million meals since 2017.

Propel, a Brooklyn start-up, is the creator of Fresh EBT, a popular app that helps low-income users manage their food stamps and other benefits. After doing battle with a larger government contractor last year, Propel recovered this year and says more than two million households use it every month.

To Pinterest, for taking a stand against social media toxicity.

When you think of Pinterest, you probably picture mood boards, D.I.Y. hacks and mommy-bloggers. But the social network spent much of 2019 doing the kinds of tough, principled work that its bigger rivals often neglected.

In August, the company announced that users searching for vaccine-related information would be shown results from authoritative sources like the World Health Organization and the Centers for Disease Control and Prevention, rather than being led down rabbit holes filled with misinformation. The company also introduced a “compassionate search” experience, which offers mental health advice and exercises to users whose behavior indicates they might be feeling anxious or depressed, such as people who search for things like “sad quotes” or who look up terms relating to self-harm. And in December, Pinterest joined other wedding websites in announcing that it would limit the promotion of wedding venues that were once slave plantations.

Pinterest hasn’t always operated flawlessly. But while its competitors were giving grandiose speeches and supplicating at the White House, the company’s content-moderation choices stood out as an example of a social network with a moral compass.

To Big Tech’s climate activists, for pressuring executives to walk the walk.

In a year when climate change was the subject of mass global demonstrations, Silicon Valley’s silence could have been deafening. Tech companies like Amazon, Microsoft and Google count fossil fuel companies and anti-environmental groups among their customers — a fact that doesn’t sit well with some employees. Those employees made their dissatisfaction known this year, joining climate strikes and walkouts and publicly calling on their own executives to do more to fight climate change.

In April, more than 4,200 Amazon employees sent an open letter to Jeff Bezos, the company’s chief executive, urging him to end the company’s contracts with oil and gas companies and commit to ambitious carbon-reduction goals. Amazon later announced a plan to become carbon neutral by 2040.

To Gypsy Guide, for enlightening my summer road trip.

If I’m being honest, the best app I used in 2019 wasn’t TikTok or some new A.I.-powered facial recognition app. It was Gypsy Guide, a simple, understated app that gives guided audio tours of national parks and other tourist destinations. The app uses your phone’s GPS to track your route through a park, and it narrates relevant facts as you drive past them. My wife and I drove through Yellowstone and the Grand Tetons this summer, and Gypsy Guide (which could really use a new name) quickly became our car soundtrack.

Gypsy Guide is not the slickest app in the world, and it’s not making anyone a billionaire. But it kept us entertained for hours, and it taught me things I wouldn’t have known. (Did you know that a concave depression in a mountain caused by a glacier’s erosion is called a “cirque”? Me neither.) It was a good reminder that not every tech start-up has to address some deep, existential need to be worthwhile. There are simpler pleasures, too.

Categories
Amazon.com Inc Campbellsville (Ken) Corporate Social Responsibility e-commerce Factories and Manufacturing Fruit of the Loom Inc Labor and Jobs Relocation of Business Shopping and Retail Tax Credits, Deductions and Exemptions Uncategorized Wages and Salaries

Prime Anchor: An Amazon Warehouse Town Dreams of a Better Life

Image
Credit…Andrew Spear for The New York Times

In Campbellsville, Ky., the tech giant’s influences abound. The profits, not so much.


CAMPBELLSVILLE, Ky. — In the late 1990s, the town of Campbellsville in central Kentucky suffered a powerful jolt when its Fruit of the Loom textile plant closed. Thousands of jobs making underwear went to Central America, taking the community’s pride with them.

Unemployment hit 28 percent before an unlikely savior arrived as the century was ending: a madly ambitious start-up that let people buy books, movies and music through their computers.

Amazon leased a Fruit of the Loom warehouse about a mile from the factory and converted it into a fulfillment center to speed its packages to Indianapolis and Nashville and Columbus. Its workers, many of them Fruit veterans, earned less than what the textile work had paid but the digital excitement was overwhelming.

Twenty years later, Amazon is one of the world’s most highly valued companies and one of the most influential. Jeff Bezos, Amazon’s founder, has accumulated a vast fortune. In Seattle, Amazon built a $4 billion urban campus, redefining a swath of the city.

The outcome has been different in Campbellsville, the only sizable community in Taylor County. The county population has stalled at 25,000. Median household income has barely kept pace with inflation. Nearly one in five people in the county lives in poverty, more than in 2000.

Over the last 20 years, Amazon’s stock price has soared. But household income in Taylor County has barely kept pace with inflation.

Taylor Co., Ky.

median income

Amazon

stock price

National

median income

Cumulative changes since 2000

Taylor County, Ky.

median income

Amazon

stock price

National

median income

Cumulative change since 2000

Cumulative change since 2000

Taylor County, Ky.

median income

Amazon

stock

price

National

median income

Cumulative change since 2000

Cumulative change since 2000

Income figures are adjusted for inflation.

Sources: Census Bureau, via Federal Reserve (income data); Refinitiv (stock prices)

By Karl Russell

The divergent fates offer a window into what towns can give to tech behemoths over decades — and what exactly they get in return. Campbellsville’s warehouse was among the first of what are now an estimated 477 Amazon fulfillment centers, delivery stations and other outposts around the country. That makes Campbellsville, with 11,415 inhabitants, a case study for what may happen elsewhere as Amazon continues expanding.

Brenda Allen, Campbellsville’s mayor, said: “Amazon has had a really good business here for 20 years. They haven’t been disappointed at all. And we’re glad they’re here.”

But, she added, “I really would feel better if they would contribute to our needs.”

In central Kentucky, Amazon has reaped benefits, including a type of tax break that critics label “Paying Taxes to the Boss.” In the arrangement, 5 percent of Amazon workers’ paychecks, which would ordinarily be destined for the county and the state, go to Amazon itself. The company netted millions of dollars from this incentive over a decade.

While that tax break has run out, Campbellsville itself still gets no tax money from Amazon. The warehouse is just outside the town limits. The city school system, which is its own taxing authority, does get revenue from Amazon. Both the city and the county school systems recently raised their tax rates because of revenue shortfalls. (The city increase had to be rescinded for procedural reasons.)

No one wants Amazon to leave, though. It is Campbellsville’s largest private employer. Its online mall has given the town’s shoppers access to a paradise of goods.

Less visibly, Amazon shapes the local economy, including which businesses survive and which will not be coming to town at all. It supplies small-screen entertainment every night, influences how the schools and the library use technology and even determined the taxes everyone pays.

“We were a company town with Fruit of the Loom, and we’re becoming a company town again,” said Betty J. Gorin, a local historian.

Amazon said it was not solely responsible for Campbellsville’s vitality. It pointed out other big local employers, including a hospital and a Baptist university. “Amazon is not the only barometer,” it said.

The company said it had spent $53 million remodeling its warehouse “to benefit employees.” The facility now includes a classroom for training workshops and, it said, “on-site college classes.” Amazon declined a request for a tour.

Some cities and towns are now weighing the costs of Amazon versus the benefits. The nationwide total of all state and local subsidies for the company over 20 years is $2.8 billion, according to Good Jobs First, which tracks tax breaks for corporations.

Activists protested New York’s plan to give Amazon billions of dollars in tax breaks, causing the company to abandon its plans this year to move into Queens. (Amazon began opening new offices in Manhattan this month without any incentives.) Maryland residents rejected a proposed warehouse last summer, citing concerns about noise pollution, traffic and safety.

In Campbellsville, the relationship between Amazon and the citizens is facing some questions as it enters middle age.

“The needle has not moved in the last two decades on the quality of life in Kentucky, especially in places like Campbellsville. What does that tell you?” said Jason Bailey of the Kentucky Center for Economic Policy, a research and advocacy group.

He called the state “a fiscal mess because of tax giveaways to Amazon and other companies.” Kentucky has had 20 rounds of budget cuts since 2008, he said.

In 1948, a Kentucky underwear company set up an outpost in the basement of the old Campbellsville armory with five employees. This eventually became the largest single male-underwear plant in the world, with 4,200 workers producing 3.6 million garments a week.

The money was good, especially for women and African-Americans who had few other opportunities. Fruit, as it was eventually called, built the first public tennis courts and paid the city $250,000 in 1965 to expand the wastewater disposal plant. Factory executives spurred the creation of a country club and the public swimming pool.

The easy times ended with the North American Free Trade Agreement, which took effect in 1994. Amazon’s arrival five years later offered a second chance. Campbellsville was more than 40 miles from the nearest interstate, but it had a 570,000-square-foot modern warehouse and thousands of eager workers who knew how to hustle.

To woo Amazon, the local fiscal court passed the payroll tax measure, which opened up the state coffers. Amazon’s workers, like other employees in the county, would pay a 1 percent payroll tax and a 4 percent state income tax. But that money went directly to Amazon as a reward for bringing in jobs.

This type of tax break was first developed in Kentucky and is now widespread. Amazon’s incentives totaled $19 million over 10 years, including exemption from the state’s corporate income tax. The company said it had ultimately received “less than half” that amount, though it declined to explain the discrepancy.

The enthusiasm with which yesterday’s workers embraced tomorrow’s economy was a big story that drew national attention. Making underwear was not sexy. Selling things online was.

Arlene Dishman began working at Fruit in 1970. She said she had earned as much as $15 an hour — the equivalent of about $100 now — sewing necklines on V-neck T-shirts. “You can’t hardly turn that money down,” she said.

Her starting rate at Amazon was just $7.50 an hour, but she relished creating a digital outpost in Campbellsville. “We felt responsible for a lot of the success of Amazon,” she said. “We were just so proud.”

She became a trainer, worked with Mr. Bezos himself when he came to town, was promoted to management. These were years of turmoil at Amazon, as the dot-com bubble burst in the early 2000s. Pressure ramped up.

“I worked on the third floor,” Ms. Dishman said. “No air-conditioning. I would have people on the line pass out, constantly.”

As a manager, she said, she was too understanding, which was her undoing.

“I had worked with these people for so many years at Fruit that when a situation came up that management was not liking, I had a tendency to take the workers’ side,” she said. She left after three years.

David Joe Perkins, who worked for Fruit for 24 years and then for Amazon, said he also took pride in being part of the e-commerce start-up.

“We treated it like our company,” he said. “I have personally worked with Jeff Bezos. I actually liked the guy.”

What Mr. Perkins did not like were Amazon’s managers.

“My manager called me into the office one day and said, ‘Dave, your performance is not what it needs to be.’ I said, ‘How can I improve?’ He said, ‘You don’t fire enough people.’”

Several months later, Mr. Perkins was let go with little explanation.

Both Mr. Perkins, 64, and Ms. Dishman, 71, have Amazon Prime accounts. Ms. Dishman’s daughter works for Amazon as a data analyst. Ms. Dishman even thought about returning to the warehouse during last year’s holidays to earn a little Christmas money. She did not follow through.

Just about everyone in Campbellsville remains grateful to Amazon for coming and hiring people. Those workers take their paychecks and spend at least some of the money around town.

There are not as many workers as people think, though.

When Amazon arrived, it said it would employ 1,000 people full time within two years. That’s still the official total from the Kentucky Cabinet for Economic Development, a state agency, and in Mrs. Gorin and Jeremy Johnson’s two-volume history of the town, published this year. Team Taylor County, which solicits new industries for the community, puts the number of workers at 1,350.

Amazon said in October that the total was 655 full-time workers.

“I’m shocked,” Mrs. Gorin said.

Kelly Cheeseman, an Amazon spokeswoman, said the “head count started to shift” at the warehouse “around 2016 to 2017.” She said automation — the deepest fear of every community with an Amazon warehouse — had nothing to do with it.

“We regularly balance capacity across the network,” Ms. Cheeseman said. In November, Amazon said full-time workers had risen to 700.

Amazon said that the money it paid in wages was an investment in Campbellsville and that it had contributed “$15 million in taxes to Taylor County” over the last 20 years. It declined to break down the numbers further.

Records and interviews indicate that Amazon paid to the city school system about $350,000 in taxes this year. The company paid the county an additional $410,000 in property taxes.

Good Jobs First, the group that analyzes tax benefits for corporations, thinks that is not enough.

“What has Amazon really done for the community?” asked Greg LeRoy, the center’s executive director. “It’s not like it’s a tech lab, diffusing intellectual property or spinning off other businesses. It’s a warehouse.”

Ms. Allen, the mayor, wants more money to pay the town’s bills.

“The people in Seattle are getting rich,” she said. “They don’t care what happens to the people in Campbellsville, not really.”

In the 1970s and 1980s, life in Campbellsville revolved around Fruit. Townspeople learned not to be near downtown when the plant let out at 4 p.m. and traffic briefly became overwhelming. When Fruit shut down for the first two weeks in July every year, the town was so dead that other industries in the area scheduled their vacations for the same time. Fruit officials were active in the Chamber of Commerce, civic clubs and associations.

Amazon is not like that.

“Amazon is everywhere and nowhere,” Mrs. Gorin said. “This town runs on Amazon, but their employees are not in positions of political power.”

Amazon is linked into the community in other ways that often end up benefiting Amazon. In 2016, the company donated 25 Kindle Fire tablets to Campbellsville kindergarten and first grade classrooms. It also donated $2,500 in “content.” The town schools are increasingly buying supplies from Amazon for a total of about $50,000 in the last fiscal year, records show.

“We want to do business with those in our community, those paying local taxes,” said Chris Kidwell, finance director for Campbellsville Independent Schools. “It’s kind of a good-neighbor policy.”

The county school system, with 2,800 students, is dealing with state budget cuts. One way it has made up some of the shortfalls is by selling corporate sponsorships. Taylor Regional Hospital bought the naming rights to the health services room; Campbellsville University did the same for an education center. Amazon is not a corporate sponsor.

“We’re proud to have them in our community, and we would be proud to have them as a corporate sponsor,” said Laura Benningfield, the assistant superintendent.

Last spring, the local library was the recipient of a $10,000 gift from Amazon for science and technology education. Amazon planned to supply whatever the library wanted by ordering the material through its own site. As this article was being reported and Amazon was emphasizing what it had done for the town, the company just sent the library the cash.

“We’re on the receiving end of a blessing,” said Tammy Snyder, the town librarian. The library, like other public institutions in Kentucky, is dealing with the state’s largely unfunded pension system. Proposed changes that involve the library’s paying significantly more “will bankrupt us,” she said.

Justin Harden, 35, said he had no illusions about Amazon. He and his wife, Kendal, recently opened Harden Coffee, a popular meeting spot, on Main Street.

“If they can figure out a way to cut me out and take my business, they’ll totally do it,” he said. “They would destroy me, absolutely. But I am a 100 percent supporter of Amazon. I have five kids. We get stuff from Amazon almost every day.”

He paused, acknowledging his own contradictions. “That’s why they’re winning,” he said.

A pile of rubble on Campbellsville’s southern approach marks the ruins of the Fruit plant.

The property is owned by Danny and Sandy Pyles, commercial contractors who run an excavating company in nearby Columbia. They bought the textile factory with other investors a decade ago with the goal of building a retail complex called Campbellsville Marketplace.

The graffiti-covered shell was torn down, and a Louisville developer, Hogan Real Estate, cobbled together a deal. Kroger, the country’s largest supermarket chain, would close its two Campbellsville stores. It would then become the Marketplace anchor tenant with a 123,000-square-foot superstore.

Work was supposed to start within weeks. Then, on June 16, 2017, Amazon announced that it was buying the upscale grocery chain Whole Foods. Kroger shares slumped. Its deal in Campbellsville was put on hold, then abandoned. Hogan chased other possible anchors — Menards, Meijer, Home Depot — but none were interested. (Kroger declined to comment.)

“We used to talk about the Walmart Effect when you saw vacant storefronts in these small towns,” said Justin Phelps of Hogan. “Now it’s the Amazon Effect.”

Pyles Excavating is a good Amazon customer. The company needed a muffler recently for a track hoe. It would have cost $1,200 from a dealer. On Amazon, it was half that.

“The internet has brought the world to our fingertips,” Mr. Pyles said.

The Pyleses recently bought out the other investors in the Fruit site. Their investment is now more than $2 million.

“It really is a great piece of property, but right now it’s a reminder of the day Campbellsville literally shut down,” said Sandy Pyles, the daughter of a Fruit worker and relative of many others. “It’s a sadness.”

They would like a Whole Foods there, but know the town is too small to support it. Mr. Pyles has another idea: an Amazon Go store. These are experimental outlets with no cashiers.

That would put local competitors who still needed humans at a disadvantage while adding hardly any jobs. But it would be an investment by one of the world’s richest companies in one of the towns where it began.

“Amazon is the future,” he said. “We’d like to be part of that.”