The next smartphone revolution, happy airline passengers, and managing the regulators

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The Next Smartphone Revolution
The smartphone wars are supposed to be in the last round, down to a limited number of platforms globally and carriers in each market. Nope. An Andreessen Horowitz chart we saw via a Benedict Evans tweet predicts that the market for smartphones worldwide will double by 2020. Commenting on it, Fred Wilson opines that this second mobile revolution “may be an opportunity for US-based VCs like me. But more likely it will be an opportunity for VCs and early stage investors who have had the courage and foresight to set up shop in these emerging locations.” We’ve previously identified this as “the biggest business opportunity on the planet.” Local and regional players are uniquely positioned to understand the next generation of services worth building — yet another proof point to our thesis that Silicon Valley won’t always be the epicenter of entrepreneurship.

Turns Out Airline Passengers Don’t Want To be Treated Like Cattle
What happens when companies stop treating their customers poorly? You’re finding out if you fly Ryanair, the European discount carrier with a CEO notorious for calling his customers “stupid” and treating them accordingly. A dramatic turnaround in the company’s fortunes (WSJ) is being attributed to cutting fees, easing restrictions, and “telling staff to be less confrontational.” The company still has a long way to go in treating its employees better (the company chose to leave its Copenhagen base rather than follow local labor laws), but passengers, at least, are responding positively to the changes.

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Embrace’s Simple Solution Has Saved 150,000 Lives … So Far

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At TEDIndia in 2009 Jane Chen, cofounder and CEO of Embrace Innovations, asked the audience to close their eyes and imagine what might fit in their hands — an apple, a wallet, something small. Next came an image of a premature baby, not much larger than the hands holding it. According to the World Health Organization, 15 million babies are born premature each year. Embrace notes that more than one million die within the first month. For those who survive, some will suffer severe long-term health problems — diabetes, heart disease, low IQ. Chen said, “many of these problems could be prevented if these babies were just kept warm.” To date, Embrace Innovations has helped 150,000 babies across 10 countries with its simple, cost-effective infant warmers and an interesting business model — it’s both a nonprofit and a for-profit social enterprise.

Embrace’s first infant warmer — it looks like a tiny sleeping bag — started as a class project at Stanford University in 2007. The course, Design for Extreme Affordability, challenges teams of MBAs and engineers to develop affordable technologies for people living on less than a dollar a day. That year, Stanford asked students to design an intervention for neonatal hypothermia. It needed to cost one percent of what a traditional incubator cost (in the U.S., that’s about $20,000). Chen, along with Linus Liang, Naganand Murty, and Rahul Panicker, designed the Embrace Infant Warmer to help premature and underweight babies in the developing world. Together they founded Embrace and registered as a 501(c)(3) non-profit in 2008. Then they moved to India.

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Politicians Wearing Company Logos May Change the Politics-Business Relationship

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There’s an amazing petition circulating in California. Created by John Cox, a businessman who’s run for Congress, the Name All Sponsors California Accountability Reform (that’s NASCAR!) would require politicians to wear the logos of their top 10 donor companies and organizations.

There are also petitions floating around the Internet to do things like have the comic-book character Deadpool host Saturday Night Live or deport Donald Trump to Mexico but those petitions aren’t binding. In California, where there are ballot propositions, this could become law. So far, 40,000 signatures have been collected. 365,880 are needed by June 28 to get the petition onto the ballot this fall.

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Are Apple’s Privacy Policies Insanely Great?

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The wealthiest corporation in the world and the most powerful government in the world are fighting over a single smartphone. And the future of our social compact with both corporations and government may hang in the balance.

While the U.S. government says it cares about just one phone — an iPhone 5c used by one of the San Bernardino terrorists that it wants decrypted — Apple says a judicial order to create a special operating system for the government creates a backdoor that threatens all of its customers’ privacy. It maintains it’s challenging an order from a federal judge to protect “tens of millions of American citizens.”

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Night Mayors and the Serious Business of Having Fun

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A new job title has emerged in cities around the world to advocate for night owls and young creatives. Night mayors encourages drunk people to keep it down, nurture the arts, and instigate neighborhood revitalization. Some appointed, some elected, night mayors act as an intermediary between nightlife industries and government.

In many cities, the solutions to noisy, disruptive bars have been curfews, raids, or closing businesses outright. Yet nightlife in the U.S. generates tens of billions of dollars a year. And as more people move to cities, nightlife can be directly tied to the larger economy. A robust nightlife attracts “a lot of young creative people and they are followed by the creative industries.”

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Patrolling the Skies with Drone-Attacking Eagles and GoPro Vultures

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Typically, when people in cities talk about carcass-eating vultures, it’s a joke about lawyers or developers or something, not flying scavengers.

In Lima, Peru, a team of actual vultures equipped with GoPros and GPSs are locating illegally dumped trash. The birds don’t just help spot areas where trash needs to be removed. Their work can help reduce disease or keep poisonous chemicals from contaminating local water, particularly in poor neighborhoods. A similar approach may be helpful in other cities with trash dumping problems, like Beirut and Bangalore. This idea came from U.N.-backed climate talks that focus on what cities can do to reduce climate change. Those talks, which started last year in Lima, continue this fall.

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How To Save Capitalism From Itself

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Robert Reich’s Saving Capitalism: For the Many, Not the Few is a readable rant that — should you disagree with Reich’s central premise — will elicit eye-rolls and summary dismissal. But while his well-known political ideology (he served as Secretary of Labor under Clinton) is on constant display, I found Reich’s book both timely and important.

I am drawn to any work that posits a better way forward, and as you might expect, I agree with Reich far more often than not. You have to be willfully ignorant to pretend our current economic system is equitable (Reich argues we’re in the “second Gilded Age”) or capable of creating long-term increasing returns. And while many in our industry cling to libertarian fantasies in which technologic silver bullets solve our every social need, back here on earth we need to do better than pine for the singularity. Fixing income inequality and the loss of the middle class requires hard policy choices and a re-framing of the problems at hand.

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