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4chan, Airbnb, Amazon Mechanical Turk, asset-backed security, barriers to entry, Berlin Wall, big-box store, bitcoin, blockchain, citizen journalism, collaborative consumption, congestion charging, Credit Default Swap, crowdsourcing, data acquisition, David Brooks, don't be evil, gig economy, Hacker Ethic, income inequality, informal economy, invisible hand, Jacob Appelbaum, Jane Jacobs, Jeff Bezos, Khan Academy, Kibera, Kickstarter, license plate recognition, Lyft, Marc Andreessen, Mark Zuckerberg, move fast and break things, move fast and break things, natural language processing, Netflix Prize, Network effects, new economy, Occupy movement, openstreetmap, Paul Graham, peer-to-peer, peer-to-peer lending, Peter Thiel, pre–internet, principal–agent problem, profit motive, race to the bottom, Ray Kurzweil, recommendation engine, rent control, ride hailing / ride sharing, sharing economy, Silicon Valley, Snapchat, software is eating the world, South of Market, San Francisco, TaskRabbit, The Nature of the Firm, Thomas L Friedman, transportation-network company, Uber and Lyft, Uber for X, ultimatum game, urban planning, WikiLeaks, winner-take-all economy, Y Combinator, Zipcar
Gambetta, Diego, and Michael Bacharach. “Trust in Signs.” In Trust in Society, 148–84, n.d. Gannes, Liz. “Competition Brings Lyft, Sidecar and Uber Closer to Cloning Each Other.” AllThingsD. Accessed May 22, 2015. http://allthingsd.com/20131116/competition-brings-lyft-sidecar-and-uber-closer-to-cloning-each-other-and-cabs/. ———. “Lyft Sells Zimride Carpool Service to Rental-Car Giant Enterprise.” AllThingsD, July 12, 2013. http://allthingsd.com/20130712/lyft-sells-zimride-carpool-service-to-rental-car-giant-enterprise/. ———. “Zimride Turns Regular Cars Into Taxis With New Ride-Sharing App, Lyft,” May 22, 2012. http://allthingsd.com/20120522/zimride-turns-regular-cars-into-taxis-with-new-ride-sharing-app-lyft/. Gans, Joshua. “Is Uber Really in a Fight to the Death?” Digitopoly, November 25, 2014. http://www.digitopoly.org/2014/11/25/is-uber-really-in-a-fight-to-the-death/.
Chapter 4 1 Shaheen, “Transportation Network Companies and Ridesourcing.” 2 Gansky, The Mesh: Why the Future of Business Is Sharing. 3 Bardhi and Eckhardt, “Access-Based Consumption: The Case of Car Sharing.” 4 University of Chicago Press Journals, “Sharing Isn’t Always Caring.” 5 Kell, “Avis to Buy Car-Sharing Service Zipcar.” 6 Zipcar, “Green Benefits.” 7 Sadowski, “Hey, Ride-Sharing Services. Stop Greenwashing!” 8 Schor, “Debating the Sharing Economy.” 9 Gannes, “Zimride Turns Regular Cars Into Taxis With New Ride-Sharing App, Lyft.” 10 Gustin, “Lyft-Off: Car-Sharing Start-Up Raises $60 Million Led by Andreessen Horowitz.” 11 Ibid. 12 Gannes, “Zimride Turns Regular Cars Into Taxis With New Ride-Sharing App, Lyft.” 13 Gannes, “Lyft Sells Zimride Carpool Service to Rental-Car Giant Enterprise.” 14 Gannes, “Competition Brings Lyft, Sidecar and Uber Closer to Cloning Each Other.” 15 Lawler, “A Look Inside Lyft’s Financial Forecast For 2015 And Beyond.” 16 D’Onfro, “Uber CEO Founded The Company Because He Wanted To Be A ‘Baller In San Francisco.’” 17 Meelen and Frenken, “Stop Saying Uber Is Part Of The Sharing Economy.” 18 Scola, “The Black Car Company That People Love to Hate.” 19 Kalanick, “Uber Policy White Paper 1.0.” 20 Hall and Krueger, “An Analysis of the Labor Market for Uber’s Driver-Partners in the United States.” 21 Geron, “California Becomes First State To Regulate Ridesharing Services Lyft, Sidecar, UberX.” 22 Ferguson, “Recent Transportation Network Company Ordinances.” 23 California Public Utilities Commission, “Transportation Network Companies.” 24 Hirsch, “Taxi Trouble.” 25 Watters, “The MOOC Revolution That Wasn’t.” 26 Trafford, “Is John Tory Facing an Uber Battle at City Hall?”
But there were limits to the number of inter-city rides that students would take, and Zimride had bigger ambitions. In 2012, Zimride launched Lyft, an app that paired riders and passengers for short-distance rides (within a city, rather than between cities).9 The idea sounds like a carpool ride-matching service, but Lyft made another decision to scale up their offering: it made it possible for drivers to earn enough on a ride that they would undertake journeys that they would not otherwise take. Instead of picking up someone who is going their way and sharing the expenses of the journey (as in carpooling), Lyft drivers would find out where your rider wanted to go and take them there (for money). At first, Lyft maintained its community feel. Lyft cars were identified by a large and kind-of-corny big pink moustache. Riders were expected to sit up front, and rides would start with a fist-bump: quite a different practice compared to traditional North American taxi rides.
The Upstarts: How Uber, Airbnb, and the Killer Companies of the New Silicon Valley Are Changing the World by Brad Stone
Affordable Care Act / Obamacare, Airbnb, AltaVista, Amazon Web Services, Andy Kessler, autonomous vehicles, Burning Man, call centre, Chuck Templeton: OpenTable, collaborative consumption, East Village, fixed income, Google X / Alphabet X, housing crisis, inflight wifi, Jeff Bezos, Justin.tv, Kickstarter, Lyft, Marc Andreessen, Mark Zuckerberg, Menlo Park, Necker cube, obamacare, Paul Graham, peer-to-peer, Peter Thiel, race to the bottom, rent control, ride hailing / ride sharing, Ruby on Rails, Sand Hill Road, self-driving car, semantic web, sharing economy, side project, Silicon Valley, Silicon Valley startup, Skype, South of Market, San Francisco, Startup school, Steve Jobs, TaskRabbit, Tony Hsieh, transportation-network company, Uber and Lyft, Uber for X, Y Combinator, Y2K, Zipcar
“Lyft Will Launch in Brooklyn & Queens,” Lyft Blog, July 8, 2014, https://blog.lyft.com/posts/2014/7/8/lyft-launches-in-new-yorks-outer-boroughs. 26. Brady Dale, “Lyft Launch Party with Q-Tip, Without Actually Launching,” Technical.ly Brooklyn, July 14, 2014, http://technical.ly/brooklyn/2014/07/14/lyft-brooklyn-launches/. 27. “Lyft Launches in NYC,” Lyft Blog, July 25, 2014, https://blog.lyft.com/posts/2014/7/25/lyft-launches-in-nyc. 28. Casey Newton, “This Is Uber’s Playbook for Sabotaging Lyft,” Verge, August 26, 2014, http://www.theverge.com/2014/8/26/6067663/this-is-ubers-playbook-for-sabotaging-lyft. 29. In September 2012, I washed cars for the Cherry service in San Francisco and was mentored and reviewed by an older washer, Kenny Chen. “Brad needs to look out for traffic,” he wrote; Brad Stone, “My Life as a TaskRabbit,” Bloomberg.com, September 13, 2012, http://www.bloomberg.com/news/articles/2012-09-13/my-life-as-a-taskrabbit. 30.
retorted Kalanick, who later couldn’t recall whether he was joking or if he had been responding to an actual rumor. For a brief period in 2014, Lyft had been ready to throw in the towel, and representatives approached Uber about combining the companies. Kalanick and Emil Michael went to dinner with Lyft president John Zimmer and Andreessen Horowitz partner John O’Farrell to discuss a deal, according to three people who were privy to the conversations. The meal was friendly, despite the heated rivalry. But Lyft’s expectations were high. In exchange for selling Lyft to Uber, Lyft’s backers wanted an 18 percent stake in Uber. Uber offered 8 percent; Kalanick wasn’t a fan of mergers to begin with and wasn’t about to hand over a fifth of his prize. Neither party would budge, and the talks fell apart. Lyft recovered quickly. That spring, with unconventional sources of capital now flooding into Silicon Valley, it raised $250 million from a consortium of investors that included hedge fund Coatue Management, Chinese e-commerce giant Alibaba, and the Founders Fund, the investment vehicle of PayPal co-founder Peter Thiel, and it expanded into twenty-four new U.S. cities, thirteen of which were midsize markets where Uber did not yet operate.21 The battle was on again.
“We feel Lyft is coming in here to take us out of business,” Nancy Soria of the New York Association of Independent Taxi Drivers told the tech blog Technical.ly.26 Later that night, Zimmer and Estrada heard the TLC was preparing an injunction. On a conference call with general counsel Kristin Sverchek and Lyft’s outside lawyer, an impassioned Zimmer argued that they should go ahead anyway and wanted to get himself arrested for the cause. The lawyers laughed—but he was serious. Together they persuaded him that it would be a bad idea. “I don’t want to think about you in jail,” Sverchek told him. “It’s not something I can stomach.” Backed into a corner, Lyft caved. For the first time in its history, Lyft introduced a service using professional drivers instead of regular people driving their own cars.27 In New York, Lyft would look like the original incarnation of Uber, deploying only licensed drivers. From there the battle between Uber and Lyft devolved further. In public, they accused each other of slogging—ordering and canceling rides and proffering rewards to each other’s drivers to defect.28 In private, an even more rancorous struggle played out.
The Sharing Economy: The End of Employment and the Rise of Crowd-Based Capitalism by Arun Sundararajan
3D printing, additive manufacturing, Airbnb, Amazon Mechanical Turk, autonomous vehicles, barriers to entry, basic income, bitcoin, blockchain, Burning Man, call centre, collaborative consumption, collaborative economy, collective bargaining, commoditize, corporate social responsibility, cryptocurrency, David Graeber, distributed ledger, employer provided health coverage, Erik Brynjolfsson, ethereum blockchain, Frank Levy and Richard Murnane: The New Division of Labor, future of work, George Akerlof, gig economy, housing crisis, Howard Rheingold, information asymmetry, Internet of things, inventory management, invisible hand, job automation, job-hopping, Kickstarter, knowledge worker, Kula ring, Lyft, Marc Andreessen, megacity, minimum wage unemployment, moral hazard, moral panic, Network effects, new economy, Oculus Rift, pattern recognition, peer-to-peer, peer-to-peer lending, peer-to-peer model, peer-to-peer rental, profit motive, purchasing power parity, race to the bottom, recommendation engine, regulatory arbitrage, rent control, Richard Florida, ride hailing / ride sharing, Robert Gordon, Ronald Coase, Second Machine Age, self-driving car, sharing economy, Silicon Valley, smart contracts, Snapchat, social software, supply-chain management, TaskRabbit, The Nature of the Firm, total factor productivity, transaction costs, transportation-network company, two-sided market, Uber and Lyft, Uber for X, universal basic income, Zipcar
Might the same hold true for our future regulatory structures? Lyft—Hospitality in Transportation A few blocks down the street from Airbnb’s shiny new corporate headquarters at 888 Brannan in San Francisco’s SoMa district is a small building at 568 Brannan, the site of Lyft’s original offices. In it’s simplest form, Lyft is a chauffeured car, on demand. You open the app, you tell it where you are, it shows you cars nearby, you request a car, and you get picked up in a few minutes. In a more sophisticated use case, you turn on your Lyft app when you drive to work, put in your destination, and others who might want to travel a similar route can pay you a little for a seat in your car. Carpooling on demand, but flexibly, on your own schedule. Over the years, my Lyft drivers have included stand-up comedians, software engineers, deejays, schoolteachers, a retired CIO, a digital marketing executive between jobs, and numerous college students.
(Noticing the branded corporate swag I was carrying from a different company at the end of our meeting, Emily grabbed one of these pink mustaches from an office cabinet and tossed it to me before I left. It is still in my office, and has attracted many a puzzled look from my students over the years.) My first Lyft driver was an artist who was driving her car to earn some extra money while she pursued her art. There was no formal fare in 2012, since Lyft was not yet legally allowed to offer “taxi” service, but instead, the app suggested a “donation” to my driver in exchange for her being nice enough to come to where I was, pick me up, and give me a ride. A high point of the visit was the opportunity I got to try on a Lyft employee’s Halloween costume. He had dressed up as a Lyft car, using a skillfully constructed cardboard contraption. Three years later, Lyft had raised over a billion dollars in venture capital (including $100 million from the legendary investor Carl Icahn) and was in 60 cities around the United States.
Over the years, my Lyft drivers have included stand-up comedians, software engineers, deejays, schoolteachers, a retired CIO, a digital marketing executive between jobs, and numerous college students. Taking a Lyft is a completely different customer experience from hailing a cab. You sit in the front seat and have a conversation with a peer. It is like getting a ride with a new acquaintance. I visited Lyft at 568 Brannan in fall 2012 at the invitation of Emily Castor, an early employee who is currently their self-described “resident transportation wonk,” and who was kind enough back then to accelerate my approval as a Lyft passenger so that I could use their service to get to the meeting. The car that came to pick me up was instantly recognizable, adorned with Lyft’s giant pink mustache. (Noticing the branded corporate swag I was carrying from a different company at the end of our meeting, Emily grabbed one of these pink mustaches from an office cabinet and tossed it to me before I left.
3D printing, Airbnb, Amazon Web Services, Andy Kessler, banking crisis, barriers to entry, basic income, Benevolent Dictator For Life (BDFL), bitcoin, blockchain, Burning Man, business climate, call centre, car-free, cloud computing, collaborative consumption, collaborative economy, collective bargaining, commoditize, congestion charging, creative destruction, crowdsourcing, cryptocurrency, decarbonisation, don't be evil, Elon Musk, en.wikipedia.org, ethereum blockchain, Ferguson, Missouri, Firefox, frictionless, Gini coefficient, hive mind, income inequality, index fund, informal economy, Intergovernmental Panel on Climate Change (IPCC), Internet of things, Jane Jacobs, Jeff Bezos, jimmy wales, job satisfaction, Kickstarter, Lean Startup, Lyft, means of production, megacity, Minecraft, minimum viable product, Network effects, new economy, Oculus Rift, openstreetmap, optical character recognition, pattern recognition, peer-to-peer, peer-to-peer lending, peer-to-peer model, Richard Stallman, ride hailing / ride sharing, Ronald Coase, Ronald Reagan, Satoshi Nakamoto, Search for Extraterrestrial Intelligence, self-driving car, shareholder value, sharing economy, Silicon Valley, six sigma, Skype, smart cities, smart grid, Snapchat, sovereign wealth fund, Steve Crocker, Steve Jobs, Steven Levy, TaskRabbit, The Death and Life of Great American Cities, The Future of Employment, The Nature of the Firm, transaction costs, Turing test, turn-by-turn navigation, Uber and Lyft, Zipcar
The skills, knowledge, and precise expertise found among peers give big companies immediate access to local partners, because the peers are the already established partners in these collaborations. Take Lyft, a website and mobile app that lets car owners turn their personal cars into taxis. Lyft’s platform aggregates the excess capacity available in both the owners’ free time and their idle cars to create a service that offers rides seven days a week, twenty-four hours a day. Lyft does what companies can do best: It performs criminal and driving background checks on the drivers, provides insurance, negotiates with regulators, markets the service to customers, and ensures quality and consistency. Lyft also built the easy-to-use app and collects the payments. Taken together, what Lyft does is beyond the talents, time, or budget of any single individual. Likewise, the peers—in this case, individual car owners and drivers acting as free agents—do what is expensive and difficult for the company.
6 BlaBlaCar raised $100 million in July 2014. 2014 proved to be a banner year for companies using this collaborative approach: over $3 trillion raised. Lyft raised $250 million, and Uber an astounding $3 billion. These are the companies that cracked the kernel platform-building stage, are experiencing the exuberant growth of the everybody-welcome stage, and are therefore the ones who raised the most money. While a good fraction of the value is likely the result of a bubble, the potential of the three Peers Inc miracles to deliver—based on fast-paced growth, fast learning, and speedy low-cost localization—is worth a lot to investors. In the summer of 2014, I was at a roundtable meeting at the Aspen Institute. One of the participants suggested that the huge valuations for Peers Inc companies gives these startups large amounts of “cheap” capital to play with, and therefore the ability to buy growth rather than earn it. Lyft and Uber are fierce competitors in the new app-based medallion-free taxi market.
Both have experienced fast growth and expansion in the few years since their founding (Uber in 2009, Lyft in 2012). And now both are engaged in price wars, each reducing fares to attract passengers and lowering their commissions to attract peer drivers. Neither has any competitive intellectual property. Uber’s competitive advantage was once in the deals it had negotiated with local limo companies and individual drivers. But nothing prevents drivers from agreeing to drive for both companies or prospective passengers from having both apps on their smartphones. It is my experience with Zipcar and its competitors that customers choose based on a combination of convenience (the technology), price, and proximity. Both Uber and Lyft have business models and apps that appear to work; can the market sustain both? Buying (bribing) users too early in a company’s life cycle will just eat up a lot of money and won’t produce anything lasting.
The End of Traffic and the Future of Transport: Second Edition by David Levinson, Kevin Krizek
2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, 3D printing, American Society of Civil Engineers: Report Card, autonomous vehicles, barriers to entry, Bay Area Rapid Transit, big-box store, Chris Urmson, collaborative consumption, commoditize, crowdsourcing, DARPA: Urban Challenge, dematerialisation, Elon Musk, en.wikipedia.org, Google Hangouts, Induced demand, intermodal, invention of the printing press, jitney, John Markoff, labor-force participation, lifelogging, Lyft, means of production, megacity, Menlo Park, Network effects, Occam's razor, oil shock, place-making, Ray Kurzweil, rent-seeking, ride hailing / ride sharing, Robert Gordon, self-driving car, sharing economy, Silicon Valley, Skype, smart cities, technological singularity, Tesla Model S, the built environment, Thomas Kuhn: the structure of scientific revolutions, transaction costs, transportation-network company, Uber and Lyft, Uber for X, urban renewal, women in the workforce, working-age population, Yom Kippur War, zero-sum game, Zipcar
(Though it would not be exactly fixed routes, one could imagine regular runs with a known coterie of passengers). This is at a lower rate than the traditional single party taxi-like service. While these services are at the time of this writing only in San Francisco and New York, Lyft now claims that Lyft Line comprises 50% of Lyft's rides in San Francisco and 30% in New York.191 (Not all of Lyft Line customers wind up in a shared ride, they just indicate a willingness to for a lower fare, and get the lower fare regardless of whether another passenger can be found). The ease of making ride requests and payments is what drives many folks to choose Uber or Lyft over traditional taxis. We suspect differentiating status and class is another important element. Users are hip enough and wealthy enough to use the new technology and not have to sit where others from other classes have sat before.
You might have thought ridesharing was the same as carpooling. And it is, if you think of modern ridesharing drivers as your friends giving you a lift (or in the name of one company a Lyft), not for money, but for a voluntary donation or paying for half the costs, like the carpooling service and app Carma enables. Whether this attempt to skirt the rules and regulations of taxis succeeds is a battle to be fought out in thousands of local markets globally. In markets where an agreement has been reached, the donation results in an actual charge and the process—enabled by smartphones—is taking off.189 The car you get with Lyft (or UberX) is the driver's personal car, not a fleet vehicle; it varies. David's first Lyft ride and Kevin's second UberX was in a Mercedes. Kevin's first UberX ride was at the San Francisco Airport from Rafaello who telephoned saying he was in the white Prius at the stop-light by the end of the airport terminal.
Kevin proceeded to the supposed Prius and open the back door to enter the car—much to a woman's astonishment and disdain. He walked to the next white Prius and fortunately found Rafaello (and the correct car). These social dynamics matter to services like Lyft. In contrast with traditional taxis, the passenger sits shotgun (in the front row passenger seat), and is expected to have a conversation with the driver (which happens in some taxis, though not always). Anecdotally, it appears people who drive for Lyft are more likely to be (though not universally) American citizens or long-term residents, and since they own their own car, less likely to be poor, recently landed immigrants who comprise the taxi drivers in many cities. Lyft is in many ways simply an app with a back-end (rather, 'cloud-based') dispatch service. They claim to be a "transport network company whose mobile-phone application facilitates peer-to-peer ridesharing by enabling passengers who need a ride to request one from drivers who have a car."
Platform Revolution: How Networked Markets Are Transforming the Economy--And How to Make Them Work for You by Sangeet Paul Choudary, Marshall W. van Alstyne, Geoffrey G. Parker
3D printing, Affordable Care Act / Obamacare, Airbnb, Alvin Roth, Amazon Mechanical Turk, Amazon Web Services, Andrei Shleifer, Apple's 1984 Super Bowl advert, autonomous vehicles, barriers to entry, big data - Walmart - Pop Tarts, bitcoin, blockchain, business process, buy low sell high, chief data officer, Chuck Templeton: OpenTable, clean water, cloud computing, connected car, corporate governance, crowdsourcing, data acquisition, data is the new oil, digital map, discounted cash flows, disintermediation, Edward Glaeser, Elon Musk, en.wikipedia.org, Erik Brynjolfsson, financial innovation, Haber-Bosch Process, High speed trading, information asymmetry, Internet of things, inventory management, invisible hand, Jean Tirole, Jeff Bezos, jimmy wales, John Markoff, Khan Academy, Kickstarter, Lean Startup, Lyft, Marc Andreessen, market design, Metcalfe’s law, multi-sided market, Network effects, new economy, payday loans, peer-to-peer lending, Peter Thiel, pets.com, pre–internet, price mechanism, recommendation engine, RFID, Richard Stallman, ride hailing / ride sharing, Robert Metcalfe, Ronald Coase, Satoshi Nakamoto, self-driving car, shareholder value, sharing economy, side project, Silicon Valley, Skype, smart contracts, smart grid, Snapchat, software is eating the world, Steve Jobs, TaskRabbit, The Chicago School, the payments system, Tim Cook: Apple, transaction costs, two-sided market, Uber and Lyft, Uber for X, winner-take-all economy, zero-sum game, Zipcar
In early 2015, both Uber and Lyft began experimenting with a new ride-sharing service that complements their familiar call-a-taxi business model. The new services, known as UberPool and Lyft Line, allow two or more passengers traveling in the same direction to find one another and share a ride, thereby reducing their cost while increasing the revenues enjoyed by the driver. Lyft cofounder Logan Green says that ride-sharing was always part of the Lyft idea. The initial version of Lyft, he explains, was designed to attract an initial customer base “in every market.” Having achieved that, he continues, “Now we get to play that next card and start matching up people to take rides.”3 Uber isn’t taking the competition lightly. To try to ensure that its ride-sharing service out-competes Lyft’s, Uber has joined the bidding for Here, a digital mapping service owned by Nokia that is the chief alternative to Google Maps.
And the greater the winner-take-all forces, the more vicious the platform competition. In the market for ride-sharing transportation services, the absence of distinct user needs and the presence of strong network effects explains the fierce rivalry between Uber and Lyft. Each side has ruthlessly poached the other’s drivers by offering referral bounties and cash incentives. Some of the alleged tactics border on the unethical. For example, Lyft has accused Uber of ordering, then cancelling, more than 5,000 rides in order to clog the Lyft service. Uber denied the specific charge. But there’s no doubt that both companies are convinced that only one is likely to survive their rivalry, and that each is determined to do whatever it takes to be the one left standing.23 As we’ve seen, the nature of competition in the world of platforms is very different from that in the world of traditional pipeline businesses.
Varian, “The Art of Standards Wars,” California Management Review 41, no. 2 (1999): 8–32. 22. Bill Gurley, “All Revenue Is Not Created Equal: Keys to the 10X Revenue Club,” Above the Crowd, May 24, 2011, http://abovethecrowd.com/2011/05/24/all-revenue-is-not-created-equal-the-keys-to-the-10x-revenue-club/. 23. Douglas MacMillan, “The Fiercest Rivalry in Tech: Uber vs. Lyft,” Wall Street Journal, August 11, 2014; C. Newton, “This is Uber’s Playbook for Sabotaging Lyft,” The Verge, August 26, 2014, http://www.theverge .com/2014/8/26/6067663/this-is-ubers-playbook-for-sabotaging-lyft. CHAPTER 11: POLICY 1. Kevin Boudreau and Andrei Hagiu, Platform Rules: Multi-Sided Platforms as Regulators (Cheltenham, UK: Edward Elgar, 2009), 163–89. 2. Malhotra and Van Alstyne, “The Dark Side of the Sharing Economy.” 3. Felix Gillette and Sheelah Kolhatkar, “Airbnb’s Battle for New York,” Businessweek, June 19, 2014, http://www.bloomberg .com/bw/articles/2014-06-19/airbnb-in-new-york-sharing-startup-fights-for-largest-market. 4.
3D printing, Airbnb, Amazon Web Services, barriers to entry, bitcoin, blockchain, business process, Chuck Templeton: OpenTable, Clayton Christensen, collaborative economy, commoditize, crowdsourcing, cryptocurrency, data acquisition, frictionless, game design, hive mind, Internet of things, invisible hand, Kickstarter, Lean Startup, Lyft, M-Pesa, Marc Andreessen, Mark Zuckerberg, means of production, multi-sided market, Network effects, new economy, Paul Graham, recommendation engine, ride hailing / ride sharing, shareholder value, sharing economy, Silicon Valley, Skype, Snapchat, social graph, social software, software as a service, software is eating the world, Spread Networks laid a new fibre optics cable between New York and Chicago, TaskRabbit, the payments system, too big to fail, transport as a service, two-sided market, Uber and Lyft, Uber for X, Wave and Pay
This has naturally led to intense competition between the two companies, and Uber infamously resorted to a playbook to create interaction failure on Lyft using questionable tactics. Uber decided to target interaction failure on Lyft by contracting third-party agents to use disposable phones to hail Lyft taxies. Before the Lyft taxi arrived at its pickup location, the Uber-contracted agent would cancel the ride. With so many cancelations on the Lyft platform, drivers would become frustrated driving for Lyft and, in some cases, switch to Uber. A smaller number of drivers on the Lyft platform meant longer waiting times for traveler. This would, in turn, frustrate travelers, eventually spurring them to abandon the platform. When multihoming costs are low, producers and consumers may easily participate on multiple platforms.
Producers and consumers who experience interaction failure become discouraged from participating further and eventually abandon the platform. THE UBER–LYFT WAR Interaction failure is especially important for on-demand platforms. Imagine a consumer requesting a service and never being served with a solution. Imagine, in turn, a producer receiving a request and preparing to fulfill that request, only to find that the request is canceled. In both cases, the respective consumer or producer may become discouraged and decide to abandon the platform. In some of the largest cities, drivers drive for both Uber and Lyft, as well as other competitors. It’s not uncommon for these drivers to switch between the two platforms multiple times a day. With a limited supply of drivers in a city and the cost for a driver to connect to an additional platform being so small, drivers multihome on both Uber and Lyft. This has naturally led to intense competition between the two companies, and Uber infamously resorted to a playbook to create interaction failure on Lyft using questionable tactics.
For more details, please visit http://platformthinkinglabs.com/about/sangeet-choudary/ TABLE OF CONTENTS Preface 1.0 AN INTRODUCTION TO INTERACTION-FIRST BUSINESSES 1.1 Building The Next Big Thing 1.2 The Platform Manifesto 1.3 The Rise Of The Interaction-First Business 1.4 The Platform Stack 1.5 The Inner Workings Of Platform Scale Conclusion 2.0 DESIGNING THE INTERACTION-FIRST PLATFORM Introduction 2.1 The New New Value 2.2 Uber’s Drivers, Google’s Crawlers And GE's Machines 2.3 Building An Interaction-First Platform Business 2.4 Uber, Etsy, And The Internet Of Everybody 2.5 Personalization Mechanics 2.6 The Core Interaction 2.7 Pull-Facilitate-Match 2.8 The Platform Canvas 2.9 Emergence 3.0 BUILDING INTERACTION-FIRST PLATFORMS Introduction 3.1 Interaction Drivers 3.2 Building User Contribution Systems 3.3 Frictionless Like Instagram 3.4 The Creation Of Cumulative Value 3.5 The Traction-Friction Matrix 3.6 Sampling Costs 3.7 Trust Drives Interaction 3.8 Uber Vs. Lyft And Interaction Failure 3.9 Interaction Ownership And The TaskRabbit Problem 4.0 SOLVING CHICKEN-AND-EGG PROBLEMS Introduction 4.1 A Design Pattern For Sparking Interactions 4.2 Activating The Standalone Mode 4.3 How Paypal And Reddit Faked Their Way To Traction 4.4 Every Producer Organizes Their Own Party 4.5 Bringing In The Ladies 4.6 The Curious Case Of New Payment Mechanisms 4.7 Drink Your Own Kool Aid 4.8 Beg, Borrow, Steal And The World Of Supply Proxies 4.9 Disrupting Craigslist 4.10 Starting With Micromarkets 4.11 From Twitter To Tinder 5.0 VIRALITY: SCALE IN A NETWORKED WORLD Introduction 5.1 Transitioning To Platform Scale 5.2 Instagram’s Moonshot Moment 5.3 Going Viral 5.4 Architecting Diseases 5.5 A Design-First Approach To Viral Growth 5.6 Building Viral Engines 5.7 The Viral Canvas 6.0 REVERSE NETWORK EFFECTS Introduction 6.1 A Scaling Framework For Platforms 6.2 Reverse Network Effects 6.3 Manifestations Of Reverse Network Effects 6.4 Designing The Anti-Viral, Anti-Social Network Epilogue Platform Scale (n): Business scale powered by the ability to leverage and orchestrate a global connected ecosystem of producers and consumers toward efficient value creation and exchange.
Terms of Service: Social Media and the Price of Constant Connection by Jacob Silverman
23andMe, 4chan, A Declaration of the Independence of Cyberspace, Airbnb, airport security, Amazon Mechanical Turk, augmented reality, basic income, Brian Krebs, California gold rush, call centre, cloud computing, cognitive dissonance, commoditize, correlation does not imply causation, Credit Default Swap, crowdsourcing, don't be evil, drone strike, Edward Snowden, feminist movement, Filter Bubble, Firefox, Flash crash, game design, global village, Google Chrome, Google Glasses, hive mind, income inequality, informal economy, information retrieval, Internet of things, Jaron Lanier, jimmy wales, Kevin Kelly, Kickstarter, knowledge economy, knowledge worker, late capitalism, license plate recognition, life extension, lifelogging, Lyft, Mark Zuckerberg, Mars Rover, Marshall McLuhan, mass incarceration, meta analysis, meta-analysis, Minecraft, move fast and break things, move fast and break things, national security letter, Network effects, new economy, Nicholas Carr, Occupy movement, optical character recognition, payday loans, Peter Thiel, postindustrial economy, prediction markets, pre–internet, price discrimination, price stability, profit motive, quantitative hedge fund, race to the bottom, Ray Kurzweil, recommendation engine, rent control, RFID, ride hailing / ride sharing, self-driving car, sentiment analysis, shareholder value, sharing economy, Silicon Valley, Silicon Valley ideology, Snapchat, social graph, social web, sorting algorithm, Steve Ballmer, Steve Jobs, Steven Levy, TaskRabbit, technoutopianism, telemarketer, transportation-network company, Turing test, Uber and Lyft, Uber for X, universal basic income, unpaid internship, women in the workforce, Y Combinator, Zipcar
In the case of Lyft, potential drivers have to apply for work through their Facebook accounts. Once a driver is approved, he receives a fluffy pink mustache to affix to the front of his car. Customers call for a Lyft car through a smartphone app, choosing a driver by looking at his name, his rating, and photos of him and his car. Once the customer gets inside, the driver is supposed to offer his passenger a fist bump. For a while, Lyft passengers didn’t pay a fare—since that would have made Lyft seem too much like a taxi company, exposing them to certain municipal regulations—and instead were asked to offer a suggested donation. Later, Lyft instituted minimum fares and a “Prime Time amount,” its euphemism for ratcheting up fares during busy hours. After each ride, customers rate the driver, and drivers who have average ratings below 4.5 stars will be fired. In what’s supposed to represent a quid pro quo, customers get rated as well, meaning that you might not receive future rides if you accrue a bad score.
Nov. 12, 2013. blog.sfgate.com/techchron/2013/11/12/internet-axiom-github-airbnb. 235 “Prime Time amount”: Salvador Rodriguez. “Lyft Also Will Instate Fares in California, Ditching Donation System.” Los Angeles Times. Nov. 15, 2013. latimes.com/business/technology/la-fi-tn-lyft-minimum-fares-california-20131115,0,1699156.story. 235 Rating drivers: “A Sense of Place.” Economist. Oct. 25, 2012. economist.com/news/special-report/21565007-geography-matters-much-ever-despite-digital-revolution-says-patrick-lane. 236 “That’s part of the strategy”: Alyson Shontell. “My Nightmare Experience as a TaskRabbit Drone.” Business Insider. Dec. 7, 2011. businessinsider.com/confessions-of-a-task-rabbit-2011-12. 236 deactivating drivers’ accounts: Rachel Swan. “Chopped Livery: StartUps Revolutionize the Cab Industry.” SF Weekly. March 27, 2013. sfweekly.com/2013-03-27/news/uber-lyft-sidecar-cabs-sfmta. 238 San Francisco evictions: Steven T.
The sharing economy includes some online labor outlets, such as TaskRabbit, in which independent contractors perform menial tasks, such as fetching groceries or assembling furniture, for small fees. Companies such as Lyft, Uber, and Sidecar provide taxi-type services, but they almost never call themselves taxi or transportation companies. This is because the transportation industry is highly regulated, something that Uber would like to disrupt. Government, with its pernicious regulatory apparatus, is simply making the market inefficient and costing consumers and businesspeople in both cash and intimacy with one another. (For a time, Travis Kalanick, Uber’s founder, used a cropped cover of Ayn Rand’s Atlas Shrugged for his Twitter avatar before replacing it with a drawing of Alexander Hamilton’s face. Promoting individual economic liberty is presented as part of the company’s mandate.) In the case of Lyft, potential drivers have to apply for work through their Facebook accounts.
Affordable Care Act / Obamacare, Airbnb, Al Roth, Black Swan, buy low sell high, Chuck Templeton: OpenTable, Credit Default Swap, cross-subsidies, crowdsourcing, disintermediation, diversified portfolio, experimental economics, George Akerlof, Goldman Sachs: Vampire Squid, income inequality, index fund, information asymmetry, Jean Tirole, Kenneth Arrow, Lean Startup, Lyft, Marc Andreessen, Mark Zuckerberg, market microstructure, Martin Wolf, McMansion, Menlo Park, Metcalfe’s law, moral hazard, multi-sided market, Network effects, patent troll, Paul Graham, Peter Thiel, pez dispenser, ride hailing / ride sharing, Robert Metcalfe, Sand Hill Road, sharing economy, Silicon Valley, social graph, supply-chain management, TaskRabbit, The Market for Lemons, too big to fail, trade route, transaction costs, two-sided market, Uber for X, ultimatum game, Y Combinator
In fact, this is one of the oldest roles for middlemen there is. The Truckless Trucking Company * * * Long before there was Lyft and before there was Uber, and well before mobile devices or even the Internet, there was C. H. Robinson. The company, founded back in 1905, in 2014 ranked #220 on the Fortune 500, the annual list of the highest-grossing companies in the United States. Its annual revenues of $12.7 billion put C. H. Robinson just ahead of household brands Toys ‘R’ Us and Nordstrom and well above Facebook and Harley-Davidson. If you haven’t heard of this behemoth from Eden Prairie, Minnesota, it’s only because its customers are other businesses: rather than arranging rides for busy urbanites, as Lyft and Uber do, C. H. Robinson acts as freight broker for companies that need to quickly find truckload capacity to carry freight from one factory, warehouse, or retailer to another.
“One way to look at middlemen,” Maples says, “is that because of the advent of the Internet, the world has become more ‘inter-networked.’”14 More people, companies, and products are connected than ever. In this highly connected world, “things and entities that accelerate connections are going to be more valuable,” Maples believes.15 This idea is self-evident when you think of core Internet technologies and social networking tools that speed up our personal connections; it is also true of middleman businesses Maples has backed, such as Chegg, Lyft, and TaskRabbit, that speed up connections between buyers and sellers. Perhaps more surprisingly, it is also true of many human middlemen, including venture capitalists like Maples himself: great at spotting high-potential entrepreneurial ideas, effective venture capitalists (VCs) command the space between entrepreneurs and the limited partners (LPs) who entrust VCs with their capital. For the LPs, a venture capitalist connects their investment dollars with business ideas capable of generating high returns; for the entrepreneurs with these promising ideas, the venture capitalist channels the LPs’ dollars toward the ideas and also helps entrepreneurs quickly form other important connections—to talent, to trusted advisors, and, if all goes well, all the way to the stock market.16 The rest of us benefit, too, whenever we enjoy the products and services of innovative entrepreneurial ventures, because without the VCs, the most high-flying companies might never get off the ground.
Bridges as Two-Sided Markets * * * Lacking both experience and theoretical knowledge, she didn’t realize that the bridge she was trying to build had the interesting properties of what economists call a two-sided market. These days, two-sided markets (sometimes called two-sided networks or two-sided platforms) are everywhere because many of today’s Internet start-ups are middlemen businesses of exactly this type: whether you’re talking about connecting homeowners with guests (Airbnb) or drivers with fares (Lyft and Uber) workers with small jobs (TaskRabbit) restaurants with diners wanting take-out meals (GrubHub, Eat24) or doctors with patients (ZocDoc), you’re describing a two-sided market. At the same time, and maybe not coincidentally, the study of two-sided markets has become a popular field among academics, with many opinions about what counts as a two-sided market. One researcher I talked to, economist Marc Rysman of Boston University, told me there have been so many papers proposing their own definitions that he was “almost embarrassed to have participated in that literature.”35 Under some definitions, just about any market is two-sided, but such an inclusiveness makes the label useless.
Street Smart: The Rise of Cities and the Fall of Cars by Samuel I. Schwartz
2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, active transport: walking or cycling, Affordable Care Act / Obamacare, American Society of Civil Engineers: Report Card, autonomous vehicles, car-free, City Beautiful movement, collaborative consumption, congestion charging, crowdsourcing, desegregation, Enrique Peñalosa, Ford paid five dollars a day, Frederick Winslow Taylor, if you build it, they will come, Induced demand, intermodal, invention of the wheel, lake wobegon effect, Loma Prieta earthquake, Lyft, Masdar, megacity, meta analysis, meta-analysis, moral hazard, Nate Silver, oil shock, Productivity paradox, Ralph Nader, rent control, ride hailing / ride sharing, Rosa Parks, self-driving car, skinny streets, smart cities, smart grid, smart transportation, the built environment, the map is not the territory, transportation-network company, Uber and Lyft, Uber for X, Unsafe at Any Speed, urban decay, urban planning, urban renewal, walkable city, Wall-E, white flight, white picket fence, Works Progress Administration, Yogi Berra, Zipcar
You don’t have to spend ten years learning the commuting ropes to know whether the train or bus you’re on is an express or a local, or even when it’s going to show up. You just need a smartphone. Smartphones are also all that’s needed to take advantage of other revolutionary new transportation options: ridesharing services like Via, car-sharing like Zipcar, and—especially—dispatchable taxi services like Uber and Lyft.c However, these and other cool new businesses didn’t create Millennial distaste for driving. They just exploited it. The question remains: why do Millennials find the automobile so much less desirable than their parents, grandparents, and great-grandparents did? Woodbridge, Virginia, is a small suburb about twenty miles south of Washington, DC. Many of the fifty-five thousand residents commute to Washington each day and return home to the leafy suburbs replete with cul-de-sacs and single-family homes.
(In fact, my professor brother, forty years after rejecting me as a physics has-been, invited me to a physics PhD candidate’s defense of her thesis, which mathematically described the flow of traffic on highways. Now who’s the scientist?) Actually, although Uber is often described as a ridesharing company, the “sharing” part is a little disingenuous. In fact, the only sharing that applies to most of the trips taken by travelers using Uber or Lyft (though not VIA) comes from the drivers sharing their cars with passengers. What these companies actually do is ride-matching.d The basic structure of the business is fairly simple. Drivers pass background checks (of themselves and their cars; in some places, like New York, they are also required to have a specialized license). They are given either dedicated phones or apps for their existing phones.
(A few earlier incarnations confuse matters, but that’s when the mobile app at the center of the service, which handled reservations, payment, and driver ratings, went live.) At the time, the base fee was $8 plus $5 a mile and a $15 minimum. Two years later, the company launched the UberX program which expanded the service to offer “sharing” for essentially any driver who could pass the background check and owned an acceptable car. That was when things started to heat up. Competitors like Sidecar (launched January of 2012) and Lyft (founded summer of 2012 as an extension of an earlier city-to-city ridesharing service known as Zimride) noticed the potential upside for a business that could extract revenue from travelers without actually investing in anything as expensive as buses, trains, or even cars; all that they needed were software algorithms and marketing. Though the California Public Utilities Commission, under pressure from existing taxi services, shut them all down, it allowed them to reopen the following year as what the state of California now calls “Transportation Network Companies.”
Machine, Platform, Crowd: Harnessing Our Digital Future by Andrew McAfee, Erik Brynjolfsson
3D printing, additive manufacturing, AI winter, Airbnb, airline deregulation, airport security, Albert Einstein, Amazon Mechanical Turk, Amazon Web Services, artificial general intelligence, augmented reality, autonomous vehicles, backtesting, barriers to entry, bitcoin, blockchain, book scanning, British Empire, business process, carbon footprint, Cass Sunstein, centralized clearinghouse, Chris Urmson, cloud computing, cognitive bias, commoditize, complexity theory, computer age, creative destruction, crony capitalism, crowdsourcing, cryptocurrency, Daniel Kahneman / Amos Tversky, Dean Kamen, discovery of DNA, disintermediation, distributed ledger, double helix, Elon Musk, en.wikipedia.org, Erik Brynjolfsson, ethereum blockchain, everywhere but in the productivity statistics, family office, fiat currency, financial innovation, George Akerlof, global supply chain, Hernando de Soto, hive mind, information asymmetry, Internet of things, inventory management, iterative process, Jean Tirole, Jeff Bezos, jimmy wales, John Markoff, joint-stock company, Joseph Schumpeter, Kickstarter, law of one price, Lyft, Machine translation of "The spirit is willing, but the flesh is weak." to Russian and back, Marc Andreessen, Mark Zuckerberg, meta analysis, meta-analysis, moral hazard, multi-sided market, Myron Scholes, natural language processing, Network effects, new economy, Norbert Wiener, Oculus Rift, PageRank, pattern recognition, peer-to-peer lending, performance metric, Plutocrats, plutocrats, precision agriculture, prediction markets, pre–internet, price stability, principal–agent problem, Ray Kurzweil, Renaissance Technologies, Richard Stallman, ride hailing / ride sharing, risk tolerance, Ronald Coase, Satoshi Nakamoto, Second Machine Age, self-driving car, sharing economy, Silicon Valley, Skype, slashdot, smart contracts, Snapchat, speech recognition, statistical model, Steve Ballmer, Steve Jobs, Steven Pinker, supply-chain management, TaskRabbit, Ted Nelson, The Market for Lemons, The Nature of the Firm, Thomas L Friedman, too big to fail, transaction costs, transportation-network company, traveling salesman, two-sided market, Uber and Lyft, Uber for X, Watson beat the top human players on Jeopardy!, winner-take-all economy, yield management, zero day
Akerlof, “Writing the ‘The Market for “Lemons”’: A Personal and Interpretive Essay,” Nobelprize.org, November 14, 2003, http://www.nobelprize.org/nobel_prizes/economic-sciences/laureates/2001/akerlof-article.html. 207 “if this paper were correct”: Ibid. 207 50 million rides per month: Eric Newcomer, “Lyft Is Gaining on Uber as It Spends Big for Growth,” Bloomberg, last modified April 14, 2016, https://www.bloomberg.com/news/articles/2016-04-14/lyft-is-gaining-on-uber-as-it-spends-big-for-growth. 208 In 2013, California passed regulations: Tomio Geron, “California Becomes First State to Regulate Ridesharing Services Lyft, Sidecar, UberX,” Forbes, September 19, 2013, http://www.forbes.com/sites/tomiogeron/2013/09/19/california-becomes-first-state-to-regulate-ridesharing-services-lyft-sidecar-uberx/#6b22c10967fe. 208 by August 2016, BlaBlaCar still did not require them: BlaBlaCar, “Frequently Asked Questions: Is It Safe for Me to Enter My Govt.
The great majority of Uber’s ride suppliers were not professional chauffeurs; they were simply people who wanted to make money with their labor and their cars. So how did this huge market overcome severe information asymmetries? In 2013, California passed regulations mandating that transportation network companies (TNCs) such as Uber and Lyft conduct criminal background checks on their drivers. These checks certainly provided some reassurance, but they were not the whole story. After all, UberX and its competitor Lyft both grew rapidly before background checks were in place, and by August 2016, BlaBlaCar still did not require them for its drivers. Instead, these companies used their platforms’ user interfaces to overcome the information asymmetries that plagued their markets. In particular, they asked all parties to rate each other after each transaction, and they prominently displayed everyone’s cumulative ratings.§ In addition, TNCs typically keep detailed records of each trip, using data from phones’ GPS sensors.
Our favorite label for such platforms, which we first heard from artificial intelligence rock star Andrew Ng, is “O2O,” which means “online to offline.” We like this shorthand because it captures the heart of the phenomenon: the spread from the online world to the offline world of network effects, bundles of complements, and at least some of the economics of free, perfect, and instant. By the end of 2016, O2O platforms existed in a wide range of industries: Lyft and Uber for urban transportation, Airbnb for lodging, Grubhub and Caviar for food delivery, Honor for in-home health care, and many others. All of these companies are working to productively (and eventually profitably) bring together the economics of bits with those of atoms. Very often the physical inventory being offered on these platforms is perishable, as with spaces in exercise studios or nights of lodging, but sometimes it’s not.
Airbnb, Atul Gawande, business process, Checklist Manifesto, cloud computing, crowdsourcing, Firefox, Google Chrome, Google Hangouts, Inbox Zero, job automation, Lyft, remote working, side project, Skype, speech recognition, turn-by-turn navigation
For example: Uber (www.worktravel.co/uber) currently operates in cities in 55 countries. Here's the full list: www.worktravel.co/ubercities. Note: if you use the link www.worktravel.co/uber to sign up to Uber, you'll get a free ride (worth up to about $15). My Taxi (www.worktravel.co/mytaxi) does the same thing as Uber, but has presence in Spain – where Uber is currently banned. There's also Lyft (www.worktravel.co/lyft), but that currently only operates in certain US cities. Gett (www.worktravel.co/gett) is similar to Lyft and Uber, but the pricing remains consistent (there's no "surge pricing", and you can book cabs in advance. Gett currently operates in the USA, UK, Israel and Russia – but many other countries are coming on board soon. There are also city-specific taxi apps; have a search for "taxi app [city]" and see what comes up (or ask a local).
CHAPTER 1: SETTLE IN FAST Maps, directions and notekeeping Google Keep (note-taking app): www.worktravel.co/keep Google Maps: www.worktravel.co/gmaps Google Maps – how to store destinations as favourites: www.worktravel.co/mapfaves Google Maps Directions: www.worktravel.co/directions Google Maps list of offline maps: www.worktravel.co/offlinemaps Google Maps - how to download an offline map: www.worktravel.co/offlinemaps2 OsmAnd (offline maps with navigation): www.worktravel.co/osmand Here Maps (offline maps): www.worktravel.co//here Taxis Uber (taxi app): www.worktravel.co/uber Uber (list of cities): www.worktravel.co/ubercities MyTaxi (taxi app): www.worktravel.co/mytaxi Lyft (taxi app): www.worktravel.co/lyft Gett (taxi app): www.worktravel.co/gett Languages/translation Google Translate: www.worktravel.co/gtranslate XE (currency conversion): www.worktravel.co/xe Anki (flashcard app): www.worktravel.co/anki Duolingo (language learning): www.worktravel.co/duolingo Michel Thomas (language learning): www.worktravel.co/michel Money/cost of living Numbeo (cost of living in different cities): www.worktravel.co/numbeo GlobeTipping (global tipping app for iPhone): www.worktravel.co/globetipping Global Tip Calculator Pro (global tipping app for Android): www.worktravel.co/globalpro SIM cards Prepaid with Data (info on SIM cards around the world): www.worktravel.co/prepaid TripAdvisor forum (search for info on "monthly prepaid SIM 3G": www.worktravel.co/taforum Lonely Planet forum (has useful Q&As about SIMs around the world): www.worktravel.co/planetforum Restaurant, cafe, attraction, etc. reviews and info Foursquare (good for Europe): www.worktravel.co/foursquare Yelp (good for US and Europe): www.worktravel.co/yelp Spotted by Locals: www.worktravel.co/spotted Tabelog (Japan): www.worktravel.co/tabelog Vayable (marketplace where locals offer unique tours): www.worktravel.co/vayable) Receive mail Poste Restante (Wikipedia page): www.worktravel.co/post Amazon Lockers: www.worktravel.co/locker DHL Packstations (pickup lockers in Germany): www.worktravel.co/packstation Doddle (pickup lockers in the UK): www.worktravel.co/doddle My Pick Box (pickup lockers in Spain): www.worktravel.co/pickup Parcel (get all mail delivered to a unique address, which they'll then deliver at a convenient time): www.worktravel.co/parcel Mail-forwarding services UK Postbox: www.worktravel.co/ukpost Earth Class Mail (USA): www.worktravel.co/earthclass ClevverMail (Germany): www.worktravel.co/clevver Aussie Mail Man: www.worktravel.co/aussie Find/make friends Find A Nomad: www.worktravel.co/findanomad Create Your Nomadtopia: www.worktravel.co/topia ShareDesk (coworking spaces): www.worktravel.co/sharedesk Fitness Walking/cycling/running: OsmAnd (offline maps): www.worktravel.co/osmand Ride With GPS (routes): www.worktravel.co/gps Lanyard (for holding phone and following route while running/cycling): www.worktravel.co/lanyard Apartment-friendly exercise videos: Fitness Blender: www.worktravel.co/blender DDP Yoga: www.worktravel.co/ddp Do You Yoga: www.worktravel.co/yoga Focus T25: www.worktravel.co/t25 Sleek Technique: www.worktravel.co/sleek Community fitness: Project Awesome (London): www.worktravel.co/awesome November Project (USA): www.worktravel.co/november CHAPTER 2: GET TO GRIPS WITH MONEY AND TAXES Credit/debit card charges If you're from the UK… Comparison of debit card fees: www.worktravel.co/ukdebit Comparison of credit card fees: www.worktravel.co/ukcredit Best specialist travel credit cards: www.worktravel.co/uktravelcredit Info about travel debit cards: www.worktravel.co/uktraveldebit Supercard (still in testing phase at the time of writing, and only currently available for UK residents): www.worktravel.co/supercard Number26 (still in testing phase at the time of writing, and also available throughout the rest of Europe): www.worktravel.co/26 If you're from the US… List of credit cards that don't charge a foreign transaction fee: www.worktravel.co/ustravelcredit List of banks and their debit card transaction/ATM fees: www.worktravel.co/ustraveldebit Info about avoiding credit/debit card transaction fees: www.worktravel.co/avoidfees Charles Schwab (reimburses ATM fees): www.worktravel.co/schwab If you're from Australia… Info on credit/debit cards and fees: www.worktravel.co/finder More info in the book if you're from anywhere else!
The Corruption of Capitalism: Why Rentiers Thrive and Work Does Not Pay by Guy Standing
3D printing, Airbnb, Albert Einstein, Amazon Mechanical Turk, Asian financial crisis, asset-backed security, bank run, banking crisis, basic income, Ben Bernanke: helicopter money, Bernie Sanders, Big bang: deregulation of the City of London, bilateral investment treaty, Bonfire of the Vanities, Bretton Woods, Capital in the Twenty-First Century by Thomas Piketty, carried interest, cashless society, central bank independence, centre right, Clayton Christensen, collapse of Lehman Brothers, collective bargaining, credit crunch, crony capitalism, crowdsourcing, debt deflation, declining real wages, deindustrialization, Doha Development Round, Donald Trump, Double Irish / Dutch Sandwich, ending welfare as we know it, eurozone crisis, falling living standards, financial deregulation, financial innovation, Firefox, first-past-the-post, future of work, gig economy, Goldman Sachs: Vampire Squid, Growth in a Time of Debt, housing crisis, income inequality, information retrieval, intangible asset, invention of the steam engine, investor state dispute settlement, James Watt: steam engine, job automation, John Maynard Keynes: technological unemployment, labour market flexibility, light touch regulation, Long Term Capital Management, lump of labour, Lyft, manufacturing employment, Mark Zuckerberg, market clearing, Martin Wolf, means of production, mini-job, Mont Pelerin Society, moral hazard, mortgage debt, mortgage tax deduction, Neil Kinnock, non-tariff barriers, North Sea oil, Northern Rock, nudge unit, Occupy movement, offshore financial centre, oil shale / tar sands, open economy, openstreetmap, patent troll, payday loans, peer-to-peer lending, Plutocrats, plutocrats, Ponzi scheme, precariat, quantitative easing, remote working, rent control, rent-seeking, ride hailing / ride sharing, Right to Buy, Robert Gordon, Ronald Coase, Ronald Reagan, savings glut, Second Machine Age, secular stagnation, sharing economy, Silicon Valley, Silicon Valley startup, Simon Kuznets, sovereign wealth fund, Stephen Hawking, Steve Ballmer, structural adjustment programs, TaskRabbit, The Chicago School, The Future of Employment, the payments system, Thomas Malthus, Thorstein Veblen, too big to fail, Uber and Lyft, Uber for X, Y Combinator, zero-sum game, Zipcar
A feature of all these companies is that they require full access to their clients’ bank accounts and other personal data, which they use to determine whether to provide loans, what interest rate to charge and for how long to lend. THE PLATFORM DEBT MACHINE The misnamed ‘sharing economy’ is also fostering indebtedness. App-based taxi services, such as Uber and Lyft, have tie-ups with lenders that enable drivers to buy vehicles on credit. Big car companies are becoming involved. In January 2016, General Motors announced a deal with Lyft, under which it would supply rental vehicles to Lyft drivers. In 2015, Ford introduced a pilot scheme in London and six US cities allowing customers buying cars on credit to rent them out through peer-to-peer car rental platform companies. The idea is that customers will be more likely to buy a car through Ford Credit, and keep up regular instalments, if they can earn extra income by renting it out.
In 2015, it had 1.5 million listings, ranging from spare beds to castles in 34,000 cities and over 190 countries, and had more rooms on its books than some of the world’s largest hotel chains. On the retail side, one and a half million ‘makers’ sell jewellery, clothing and accessories through the online marketplace Etsy, giving small-scale artisans access to buyers all over the world. Some platforms are in direct competition with older forms of service. These include Uber, its US rival Lyft and imitators elsewhere such as GrabTaxi, operating in Southeast Asia, Ola in India and Didi Kuaidi in China. BlaBlaCar, a French start-up originally called Covoiturage, is a car-sharing platform that enables drivers making long journeys to share the cost by ‘selling’ empty seats. BlaBlaCar does not compete with taxis, since its average trip is 200 miles (320 kilometres). However, it could be said to compete with coaches and trains.
The platforms maximise profits through ownership and control of the technological apparatus, protected by patents and other forms of intellectual property rights, and by the exploitation of labour through tasking and unpaid work. Labour brokers are rentiers, earning a lot for doing little, if we accept their claim that they are just providing technology to put clients in touch with ‘independent contractors’ of services. Thus, Uber and rival Lyft insist they are technology, not transport companies. As platform-based tasking expands, it will be appreciated just how isolated the precariat is in this zone, in constant competition with one another. The atomisation drives down wages and transfers costs, risk and uncertainty onto the precariat. So far at least, taskers have had minimal means or opportunities to coalesce.41 The ‘sharing economy’ has a cultural dimension as well.
Throwing Rocks at the Google Bus: How Growth Became the Enemy of Prosperity by Douglas Rushkoff
3D printing, activist fund / activist shareholder / activist investor, Airbnb, algorithmic trading, Amazon Mechanical Turk, Andrew Keen, bank run, banking crisis, barriers to entry, bitcoin, blockchain, Burning Man, business process, buy low sell high, California gold rush, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, centralized clearinghouse, citizen journalism, clean water, cloud computing, collaborative economy, collective bargaining, colonial exploitation, Community Supported Agriculture, corporate personhood, corporate raider, creative destruction, crowdsourcing, cryptocurrency, disintermediation, diversified portfolio, Elon Musk, Erik Brynjolfsson, ethereum blockchain, fiat currency, Firefox, Flash crash, full employment, future of work, gig economy, Gini coefficient, global supply chain, global village, Google bus, Howard Rheingold, IBM and the Holocaust, impulse control, income inequality, index fund, iterative process, Jaron Lanier, Jeff Bezos, jimmy wales, job automation, Joseph Schumpeter, Kickstarter, loss aversion, Lyft, Marc Andreessen, Mark Zuckerberg, market bubble, market fundamentalism, Marshall McLuhan, means of production, medical bankruptcy, minimum viable product, Naomi Klein, Network effects, new economy, Norbert Wiener, Oculus Rift, passive investing, payday loans, peer-to-peer lending, Peter Thiel, post-industrial society, profit motive, quantitative easing, race to the bottom, recommendation engine, reserve currency, RFID, Richard Stallman, ride hailing / ride sharing, Ronald Reagan, Satoshi Nakamoto, Second Machine Age, shareholder value, sharing economy, Silicon Valley, Snapchat, social graph, software patent, Steve Jobs, TaskRabbit, The Future of Employment, trade route, transportation-network company, Turing test, Uber and Lyft, Uber for X, unpaid internship, Y Combinator, young professional, zero-sum game, Zipcar
Feeding more activity to the ledger simply cedes more of humanity and business alike to a growth-centric industrial model that was invented to thwart us to begin with. That’s the problem with any of the many new ways we have of earning income through previously off-the-books activities. On the one hand, they create thrilling new forms of peer-to-peer commerce. eBay lets us sell our attic junk. Web site Airbnb lets us rent out our extra bedrooms to travelers. Smartphone apps Uber and Lyft let us use our vehicles to give people rides, for money. Unlike many of the other platforms we’ve looked at so far, these opportunities don’t lead to power-law distributions, because a car or home can be hired only by one person at a time. As long as you’re listed on the network and have decent reviews, you should do as well as anyone else. From the consumer’s side, these apps are amazing. If you need a ride, you can open Uber and see a map of the area along with tiny icons for the available cars.
Their ads show people sharing an extra bedroom and a place at the family table, but the statistics reveal that the vast majority (87 percent) of hosts leave their homes in order to rent them.37 Homes become amateur hotels, as the original residents try to live off the arbitrage between the rent they pay, the rent they earn, and the cost of living somewhere other than home. Even if you are having trouble finding work in the digital economy, you no longer have an excuse for being entirely off the books. Just don’t let the landlord find out what you’re doing. Likewise, the amateur taxi networks of Uber and Lyft are great ways for otherwise “underemployed” vehicle owners to make a few extra bucks. There’s no reason now to leave a worthwhile asset or hour off the books—even if the underemployed are really underpaid freelancers working a whole lot of hours already. These apps are not about sharing space in a vehicle—like driving a friend to the train station—they’re about monetizing unemployed people’s time and stuff.
Perhaps—but with a twist: the new businesses of the digital era aren’t stand-alone companies like stores or manufacturers but, as they say, entire platforms. This makes them capable of reconfiguring their whole sectors almost overnight. They aren’t just the operators—they are the environment. To become an entire environment, however, a platform must win a rather complete monopoly of its sector. Uber can’t leverage anything if it’s just one of several competing ride-sharing apps. That’s why the company must behave so aggressively. Uber’s rival, Lyft, documented over 5,000 canceled calls made to its drivers by Uber recruiters, allegedly in an effort to get drivers to change platforms.26 It’s not that there’s too little market share to go around; it’s that Uber doesn’t mean to remain a taxi-hailing application. In order to become our delivery service, errand runner, and default app for every other transportation-related function, Uber first has to own ride-sharing completely.
3D printing, A Declaration of the Independence of Cyberspace, AI winter, Airbnb, Albert Einstein, Amazon Web Services, augmented reality, bank run, barriers to entry, Baxter: Rethink Robotics, bitcoin, blockchain, book scanning, Brewster Kahle, Burning Man, cloud computing, commoditize, computer age, connected car, crowdsourcing, dark matter, dematerialisation, Downton Abbey, Edward Snowden, Elon Musk, Filter Bubble, Freestyle chess, game design, Google Glasses, hive mind, Howard Rheingold, index card, indoor plumbing, industrial robot, Internet Archive, Internet of things, invention of movable type, invisible hand, Jaron Lanier, Jeff Bezos, job automation, John Markoff, Kevin Kelly, Kickstarter, lifelogging, linked data, Lyft, M-Pesa, Marc Andreessen, Marshall McLuhan, means of production, megacity, Minecraft, multi-sided market, natural language processing, Netflix Prize, Network effects, new economy, Nicholas Carr, old-boy network, peer-to-peer, peer-to-peer lending, personalized medicine, placebo effect, planetary scale, postindustrial economy, recommendation engine, RFID, ride hailing / ride sharing, Rodney Brooks, self-driving car, sharing economy, Silicon Valley, slashdot, Snapchat, social graph, social web, software is eating the world, speech recognition, Stephen Hawking, Steven Levy, Ted Nelson, the scientific method, transport as a service, two-sided market, Uber for X, Watson beat the top human players on Jeopardy!, Whole Earth Review, zero-sum game
Our attention has moved away from stocks of solid goods to flows of intangibles, like copies. We value not only the atoms in a thing, but their immaterial arrangement and design and, even more, their ability to adapt and flow in response to our needs. Formerly solid products made of steel and leather are now sold as fluid services that keep updating. Your solid car parked in a driveway has been transformed into a personal on-demand transportation service supplied by Uber, Lyft, Zip, and Sidecar—which are improving faster than automobiles are. Grocery shopping is no longer a hit-or-miss affair; now a steady flow of household replenishables streams into our homes uninterrupted. You get a better telephone every few months because a flow of new operating systems install themselves on your smartphone, adding new features and new benefits that in the past would have required new hardware.
Anyone who wants to earn some money can drive, so there are often more Uber drivers than taxis, especially during peak demand times. And to make it vastly cheaper (in normal use), if you are willing to share a ride, Uber will match two or three riders going to approximately the same place at the same time to split the fare. These UberPool shared-ride fares might be one quarter the cost of a taxi. Relying on Uber (or its competitors, like Lyft) is a no-brainer. While Uber is well known, the same on-demand “access” model is disrupting dozens of other industries, one after another. In the past few years thousands of entrepreneurs seeking funding have pitched venture capitalists for an “Uber for X,” where X is any business where customers still have to wait. Examples of X include: three different Uber for flowers (Florist Now, ProFlowers, BloomThat), three Uber for laundry, two Uber for lawn mowing (Mowdo, Lawnly), an Uber for tech support (Geekatoo), an Uber for doctor house calls, and three Uber for legal marijuana delivery (Eaze, Canary, Meadow), plus a hundred more.
Hire a company to drive you to your destination (taxi). 3. Rent a company-owned car, drive yourself (Hertz rental). 4. Hire a peer to drive you to your destination (Uber). 5. Rent a car from a peer, drive yourself (RelayRides). 6. Hire a company to drive you with shared passengers along a fixed route (bus). 7. Hire a peer to drive you with shared passengers to your destination (Lyft Line). 8. Hire a peer to drive you with shared passengers going to a fixed destination (BlaBlaCar). There are variations upon the variations. Hire the service Shuddle to pick up someone else, like a child at school; some call it an Uber for kids. Sidecar is like Uber, except it runs a reverse auction. You set the price you are willing to pay and let drivers bid to pick you up. There are dozens of emerging companies (like SherpaShare) aimed at serving the drivers instead of riders, helping them manage more than one system and optimizing their routes.
The Age of Stagnation by Satyajit Das
9 dash line, accounting loophole / creative accounting, additive manufacturing, Airbnb, Albert Einstein, Alfred Russel Wallace, Anton Chekhov, Asian financial crisis, banking crisis, Berlin Wall, bitcoin, Bretton Woods, BRICs, British Empire, business process, business process outsourcing, call centre, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, Clayton Christensen, cloud computing, collaborative economy, colonial exploitation, computer age, creative destruction, cryptocurrency, currency manipulation / currency intervention, David Ricardo: comparative advantage, declining real wages, Deng Xiaoping, deskilling, disintermediation, Downton Abbey, Emanuel Derman, energy security, energy transition, eurozone crisis, financial innovation, financial repression, forward guidance, Francis Fukuyama: the end of history, full employment, gig economy, Gini coefficient, global reserve currency, global supply chain, Goldman Sachs: Vampire Squid, happiness index / gross national happiness, Honoré de Balzac, hydraulic fracturing, Hyman Minsky, illegal immigration, income inequality, income per capita, indoor plumbing, informal economy, Innovator's Dilemma, intangible asset, Intergovernmental Panel on Climate Change (IPCC), Jane Jacobs, John Maynard Keynes: technological unemployment, Kenneth Rogoff, knowledge economy, knowledge worker, labour market flexibility, labour mobility, light touch regulation, liquidity trap, Long Term Capital Management, low skilled workers, Lyft, Mahatma Gandhi, margin call, market design, Marshall McLuhan, Martin Wolf, Mikhail Gorbachev, mortgage debt, mortgage tax deduction, new economy, New Urbanism, offshore financial centre, oil shale / tar sands, oil shock, old age dependency ratio, open economy, passive income, peak oil, peer-to-peer lending, pension reform, Plutocrats, plutocrats, Ponzi scheme, Potemkin village, precariat, price stability, profit maximization, pushing on a string, quantitative easing, race to the bottom, Ralph Nader, Rana Plaza, rent control, rent-seeking, reserve currency, ride hailing / ride sharing, rising living standards, risk/return, Robert Gordon, Ronald Reagan, Satyajit Das, savings glut, secular stagnation, seigniorage, sharing economy, Silicon Valley, Simon Kuznets, Slavoj Žižek, South China Sea, sovereign wealth fund, TaskRabbit, The Chicago School, The Great Moderation, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, the market place, the payments system, The Spirit Level, Thorstein Veblen, Tim Cook: Apple, too big to fail, total factor productivity, trade route, transaction costs, unpaid internship, Unsafe at Any Speed, Upton Sinclair, Washington Consensus, We are the 99%, WikiLeaks, Y2K, Yom Kippur War, zero-coupon bond, zero-sum game
The economy that benefits everyone focuses on transport (Uber, Lyft, Sidecar, GetTaxi, Hailo), short-term accommodation (Airbnb, HomeAway), small tasks (TaskRabbit, Fiverr), grocery-shopping services (Instacart), home-cooked meals (Feastly), on-demand delivery services (Postmates, Favor), pet transport (DogVacay, Rover), car rental (RelayRides, Getaround), boat rental (Boatbound), and tool rental (Zilok). Its cheerleaders frame the sharing economy in lofty utopian terms: it's not business, but a social movement, transforming relationships between people in a new form of Internet intimacy. Customers are not getting cheap services, but being helped by new, interesting friends. Providers are engaged in rich and diverse work, gaining valuable independence and flexibility. Lyft's slogan is “Your Friend with a Car.” Airbnb and Feastly urge hosts and guests to share photos and communicate to build trust.
Some things remain the same. Researchers have found that, accounting for other variables, Airbnb guests pay black hosts less than they do white ones.8 The sharing economy, in reality, relies on disintermediating existing businesses and minimizing regulatory costs. Amateur chauffeurs, chefs, and personal assistants now perform, at a lower cost, work once undertaken by full-time professionals. Airbnb, Lyft, and others do not always comply with regulations designed to ensure a minimum level of skill, standard of performance, safety and security, and insurance coverage. Taxi and hire-car drivers have protested about services that undercut their often regulated charges and livelihoods. There have been anecdotes about orgies in Airbnb-rented properties, and accidents or assaults involving ride-sharing drivers.
Uber has obtained financing of more than US$1.5 billion, valuing the business at US$40 billion—a higher valuation than traditional car hire companies such as Hertz and Avis, and publicly listed transport companies such as Delta Air Lines, American Airlines, and United Continental. Airbnb has a higher value than all but the biggest hotel chains. Given the high stakes, competition is fierce, unethical, and unsavory. Uber has admitted trying to disrupt Lyft's fundraising efforts. It does not welcome criticism, allegedly considering spending a million dollars to hire researchers to uncover information on the personal lives of reporters critical of its service in order to discredit them. TaskRabbit makes it difficult for the bunnies to communicate with each other, preventing them from organizing or unionizing. In the latest technology gold rush, venture capital investors are speculating on businesses that effectively broker arrangements between customers and workers, betting that low prices will create mass markets for services once reserved for the wealthy.
The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies by Erik Brynjolfsson, Andrew McAfee
2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, 3D printing, access to a mobile phone, additive manufacturing, Airbnb, Albert Einstein, Amazon Mechanical Turk, Amazon Web Services, American Society of Civil Engineers: Report Card, Any sufficiently advanced technology is indistinguishable from magic, autonomous vehicles, barriers to entry, basic income, Baxter: Rethink Robotics, British Empire, business intelligence, business process, call centre, Chuck Templeton: OpenTable, clean water, combinatorial explosion, computer age, computer vision, congestion charging, corporate governance, creative destruction, crowdsourcing, David Ricardo: comparative advantage, digital map, employer provided health coverage, en.wikipedia.org, Erik Brynjolfsson, factory automation, falling living standards, Filter Bubble, first square of the chessboard / second half of the chessboard, Frank Levy and Richard Murnane: The New Division of Labor, Freestyle chess, full employment, game design, global village, happiness index / gross national happiness, illegal immigration, immigration reform, income inequality, income per capita, indoor plumbing, industrial robot, informal economy, intangible asset, inventory management, James Watt: steam engine, Jeff Bezos, jimmy wales, job automation, John Markoff, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Joseph Schumpeter, Kevin Kelly, Khan Academy, knowledge worker, Kodak vs Instagram, law of one price, low skilled workers, Lyft, Mahatma Gandhi, manufacturing employment, Marc Andreessen, Mark Zuckerberg, Mars Rover, mass immigration, means of production, Narrative Science, Nate Silver, natural language processing, Network effects, new economy, New Urbanism, Nicholas Carr, Occupy movement, oil shale / tar sands, oil shock, pattern recognition, Paul Samuelson, payday loans, price stability, Productivity paradox, profit maximization, Ralph Nader, Ray Kurzweil, recommendation engine, Report Card for America’s Infrastructure, Robert Gordon, Rodney Brooks, Ronald Reagan, Second Machine Age, self-driving car, sharing economy, Silicon Valley, Simon Kuznets, six sigma, Skype, software patent, sovereign wealth fund, speech recognition, statistical model, Steve Jobs, Steven Pinker, Stuxnet, supply-chain management, TaskRabbit, technological singularity, telepresence, The Bell Curve by Richard Herrnstein and Charles Murray, The Signal and the Noise by Nate Silver, The Wealth of Nations by Adam Smith, total factor productivity, transaction costs, Tyler Cowen: Great Stagnation, Vernor Vinge, Watson beat the top human players on Jeopardy!, winner-take-all economy, Y2K
Some services bring these two models together and let people offer a combination of labor and assets over the Internet. When Andy needed to have his motorcycle towed to another state in 2010, he found the right person for the job—someone with both time and a trailer on their hands—on uShip. Lyft, founded in 2011, allows people to effectively turn their cars into taxis whenever they want, giving crosstown rides to others. In an effort to avoid opposition from taxi regulators and other authorities, Lyft does not set fees or rates. It instead suggests to customers a ‘donation’ that they should offer to the person who just gave them a lift. As the story of Lyft highlights, there are many legal and regulatory issues that will need to be resolved as the peer economy grows. While we certainly acknowledge the need to ensure public safety, we hope that regulation in this new area will not be stifling and that the peer economy will continue to grow.
Kintinuous Kiva Klapper, Leora Kline, Patrick Knack Kochan, Tom Kopecky, Karen Kremer, Michael Krieger, Mike Krueger, Alan Krugman, Paul Kurzweil, Ray Kuznets, Simon labor: capital replacement of churn in crowdsourcing of demand elasticity and digital partnerships with digitization and; see also “winner-take-all” markets incentives for input limits on non-digitized recessions and skill matrix for see also employment; productivity; wages labor, skilled: benefits of technology for contribution of immigration to creation of labor, unskilled: declining wages of technology’s replacement of Laeven, Luc Lakhani, Karim land taxes Leiserson, William Leonard, John Leontief, Wassily Levine, Uri Levy, Frank Lickel, Charles LIDAR Liebling, A. J. Lindbergh, Charles LinkedIn Lionbridge living standards, calculation of Lohr, Steve London, congestion charging in Longitude Prize Loria, Roberto Luca, Michael Ludd, Ned Luddite Fallacy Lusardi, Annamaria Lyft machine-to-machine (M2M) communication Macintosh Madigan, Kathleen Mandel, Michael Mankiw, Greg manufacturing: automation in importance of infrastructure to inelastic demand in organizational coinventions in U.S. employment in wages in maps, digital Marberry, Mike Marbles, Jenna Mariel boatlift Marshall, Alfred Marx, Karl massive online open courses (MOOCs) McAfee, Andrew McCarthy, John McDevitt, Ryan McFadden, Daniel McKinsey Mechanical Turk medicine: AI use in automation in diagnostic Memorial Sloan-Kettering Cancer Center “meta-ideas,” Michel, Jean-Baptiste Microsoft Milgrom, Paul military, U.S., robot use by Minsky, Marvin MIT, Computer Science and Artificial Intelligence Lab at Mitchell, Tom Mitra, Sugata MITx Monster.com Montessori, Maria Monthly Labor Review Moore, Gordon Moore’s Law in business in computing persistence of spread of Moravec, Hans Moravec’s paradox Morris, Ian mortgages Mullis, Kary multidimensional poverty index Munster, Gene Murnane, Richard Murray, Charles music, digitization of Nader, Ralph Narrative Science NASA National Academy of Sciences National Association of Realtors National Bureau of Economic Research National Review Nature of Technology, The (Arthur) Neiman, Brent New Digital Age, The (Schmidt and Cohen) New Division of Labor, The (Levy and Murnane) Newell, Al new growth theory New York Times Next Convergence, The (Spence) Nike Nixon, Richard Nordhaus, William numbers: development of large Occupy movement oDesk Oh, Joo Hee Olshansky, S.
Matchmakers: The New Economics of Multisided Platforms by David S. Evans, Richard Schmalensee
Airbnb, Alvin Roth, big-box store, business process, cashless society, Chuck Templeton: OpenTable, creative destruction, Deng Xiaoping, if you build it, they will come, information asymmetry, Internet Archive, invention of movable type, invention of the printing press, invention of the telegraph, invention of the telephone, Jean Tirole, John Markoff, Lyft, M-Pesa, market friction, market microstructure, mobile money, multi-sided market, Network effects, Productivity paradox, profit maximization, purchasing power parity, QR code, ride hailing / ride sharing, sharing economy, Silicon Valley, Snapchat, Steve Jobs, Tim Cook: Apple, transaction costs, two-sided market, Uber for X, Victor Gruen, winner-take-all economy
It can’t make up for this deficit by having many restaurants that aren’t relevant to the people making the reservations. OpenTable’s “go narrow/go deep” strategy worked because it ultimately secured critical mass in cities where it had signed up enough popular restaurants and engaged enough diners that the positive indirect network effects between these two kinds of customers ignited further growth on both sides. Lyft, Yelp, Instacart, and other businesses that provide local services have followed similar strategies. But the point also applies to multisided platforms that are trying to differentiate their offerings. If a mall developer decides to create a high-end shopping mall, it must get high-end stores to lease space at the mall, and it must persuade well-off shoppers to go to the mall. Packing the mall with people who aren’t able to shop at expensive stores won’t help it persuade high-end stores to lease space, and renting space to downscale stores won’t attract high-end shoppers.
They used to act as intermediaries between people looking to travel and travel-related businesses such as airlines and hotels. Two-sided matchmakers operating from the Cloud, such as Expedia, offer more efficient and cheaper alternatives. According to the US Bureau of Labor Statistics, there were forty-four travel agents for every hundred thousand people in the United States in 2000. That had declined by 55 percent, to only twenty per hundred thousand people in 2014.33 Uber, along with similar companies such as Lyft and Didi Kuaidi, has created a great deal of value for consumers and drivers. But the traditional taxicab business is threatened as a result. Taxi drivers worldwide are protesting and trying to stop these new matchmakers. If they don’t, the traditional taxi business will likely go into terminal decline. This may already have begun. The prices of taxi medallions—which provide a permanent right to drive a taxicab in some cities—are falling.34 Medallion prices declined 23 percent in New York City between 2013 and 2015.35 In part III of this book, we present case studies of two major examples of creative destruction.
Streetfight: Handbook for an Urban Revolution by Janette Sadik-Khan, Seth Solomonow
autonomous vehicles, bike sharing scheme, call centre, car-free, carbon footprint, clean water, congestion charging, crowdsourcing, digital map, edge city, Edward Glaeser, en.wikipedia.org, Enrique Peñalosa, Hyperloop, Induced demand, Jane Jacobs, Loma Prieta earthquake, Lyft, New Urbanism, place-making, self-driving car, sharing economy, the built environment, The Death and Life of Great American Cities, the High Line, transportation-network company, Uber and Lyft, urban decay, urban planning, urban renewal, urban sprawl, walkable city, white flight, Works Progress Administration, Zipcar
While we adapt our cities to a new age and update the legacy hardware of our streets to serve more varied purposes, the software also needs updating to help us use our streets more efficiently. If this book does nothing else but remind planners to follow the people, then they should also be able to see how new technologies are driving a new, shared economy in transportation that holds the key to creating safer, more accessible, and softer streets. With a couple of clicks we can get a ride with Uber or Lyft, grab a shared bike or car, or navigate a city we’ve never been in before. New smartphone apps are making it possible to avoid traffic jams, locate bus and subway services, and walk to points of interest. These software bits are much less expensive than the atoms of hard infrastructure and are dramatically increasing the rate of innovation on our streets, giving way to a bigger vision with mobility on demand and changing the way we travel in our cities.
A future with autonomous vehicles, delivery drones, and unified payment systems is on the near-term horizon. This wave of change has landed on our streets, and these changes will advance how we get around cities and use our streets. A smartphone can eliminate the anxiety of getting around, whether you’re in Boston, Bangalore, or Buenos Aires. But these new apps also pose big questions. While new transportation services like Uber and Lyft (called transportation network companies or TNCs in transport-speak), or shared-vehicle services like Car2Go, Zipcar, and Bridj, are using technology to dramatically lower the operating and entry costs for taxi and car services, they raise questions about social equity, safety, and the true costs of these popular services. Without a regulatory framework, cities could see outcomes that run counter to goals of mobility, sustainability, accessibility, and social equity.
The organizing principle is based on the view that how you get around is something that is provided for you—a service—instead of something you have to own, like a car. If all channels of public transportation—buses, trains, taxis, car pools, and car share—are integrated, citizens could pick a bundled package of these services, starting with, say, a €95 ($106) monthly transportation subscription for unlimited public transport in the city and also up to 100 kilometers (62 miles) of on-demand car services such as Uber or Hailo or Lyft. If subscribers need to visit relatives in the country or go camping for the weekend, they are entitled to up to 500 kilometers (310 miles) of shared-car use. If subscribers stay within these usage levels, they pay only that flat fee. More expensive options would let users get door-to-door shared taxi service plus public transport plus domestic transportation anywhere in the country via public transportation.
Blockchain Revolution: How the Technology Behind Bitcoin Is Changing Money, Business, and the World by Don Tapscott, Alex Tapscott
Airbnb, altcoin, asset-backed security, autonomous vehicles, barriers to entry, bitcoin, blockchain, Bretton Woods, business process, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, clean water, cloud computing, cognitive dissonance, commoditize, corporate governance, corporate social responsibility, creative destruction, Credit Default Swap, crowdsourcing, cryptocurrency, disintermediation, distributed ledger, Donald Trump, double entry bookkeeping, Edward Snowden, Elon Musk, Erik Brynjolfsson, ethereum blockchain, failed state, fiat currency, financial innovation, Firefox, first square of the chessboard, first square of the chessboard / second half of the chessboard, future of work, Galaxy Zoo, George Gilder, glass ceiling, Google bus, Hernando de Soto, income inequality, informal economy, information asymmetry, intangible asset, interest rate swap, Internet of things, Jeff Bezos, jimmy wales, Kickstarter, knowledge worker, Kodak vs Instagram, Lean Startup, litecoin, Lyft, M-Pesa, Marc Andreessen, Mark Zuckerberg, Marshall McLuhan, means of production, microcredit, mobile money, money market fund, Network effects, new economy, Oculus Rift, off grid, pattern recognition, peer-to-peer, peer-to-peer lending, peer-to-peer model, performance metric, Peter Thiel, planetary scale, Ponzi scheme, prediction markets, price mechanism, Productivity paradox, QR code, quantitative easing, ransomware, Ray Kurzweil, renewable energy credits, rent-seeking, ride hailing / ride sharing, Ronald Coase, Ronald Reagan, Satoshi Nakamoto, Second Machine Age, seigniorage, self-driving car, sharing economy, Silicon Valley, Skype, smart contracts, smart grid, social graph, social software, Stephen Hawking, Steve Jobs, Steve Wozniak, Stewart Brand, supply-chain management, TaskRabbit, The Fortune at the Bottom of the Pyramid, The Nature of the Firm, The Wisdom of Crowds, transaction costs, Turing complete, Turing test, Uber and Lyft, unbanked and underbanked, underbanked, unorthodox policies, wealth creators, X Prize, Y2K, Zipcar
Perhaps even a world where we own our data and can protect our privacy and personal security. An open world where everyone can contribute to our technology infrastructure, rather than a world of walled gardens where big companies offer proprietary apps. A world where billions of excluded people can now participate in the global economy and share in its largesse. Here’s a preview. Creating a True Peer-to-Peer Sharing Economy Pundits often refer to Airbnb, Uber, Lyft, TaskRabbit, and others as platforms for the “sharing economy.” It’s a nice notion—that peers create and share in value. But these businesses have little to do with sharing. In fact, they are successful precisely because they do not share—they aggregate. It is an aggregating economy. Uber is a $65 billion corporation that aggregates driving services. Airbnb, the $25 billion Silicon Valley darling, aggregates vacant rooms.
They aggregate the willingness of suppliers to sell their excess capacity (cars, equipment, vacant rooms, handyman skills) through a centralized platform and then resell them, all while collecting valuable data for further commercial exploitation. Companies like Uber have cracked the code for large-scale service aggregation and distribution. Airbnb competes with hotels on travel accommodations; Lyft and Uber challenge taxi and limousine companies; Zipcar, before it was purchased by Avis, challenged traditional car rental companies with its hip convenience and convenient hourly rentals. Many of these companies have globalized the merchandising of traditional local, small-scale services—like bed-and-breakfasts, taxis, and handypersons. They use digital technologies to tap into so-called underutilized, time-based resources like real estate (apartment bedrooms), vehicles (between-call taxis), and people (retirees and capable people who can’t get full-time jobs).
For Benkler, “Blockchain enables people to translate their willingness to work together into a set of reliable accounting—of rights, assets, deeds, contributions, uses—that displaces some of what a company like Uber does. So that if drivers want to set up their own Uber and replace Uber with a pure cooperative, blockchain enables that.” He emphasized the word enable. To him, “There’s a difference between enabling and moving the world in a new direction.” He said, “People still have to want to do it, to take the risk of doing it.”31 So get ready for blockchain Airbnb, blockchain Uber, blockchain Lyft, blockchain Task Rabbit, and blockchain everything wherever there is an opportunity for real sharing and for value creation to work together in a cooperative way and receive most of the value they create. 4. The Metering Economy Perhaps blockchain technology can take us beyond the sharing economy into a metering economy where we can rent out and meter the use of our excess capacity. One problem with the actual sharing economy, where, for example, home owners agree to share power tools or small farming equipment, fishing gear, a woodworking shop, garage or parking, and more, was that it was just too much of a hassle.
Airbnb, airport security, Al Roth, Alvin Roth, Andrei Shleifer, attribution theory, autonomous vehicles, barriers to entry, Brownian motion, centralized clearinghouse, Chuck Templeton: OpenTable, clean water, conceptual framework, constrained optimization, continuous double auction, creative destruction, deferred acceptance, Donald Trump, Edward Glaeser, experimental subject, first-price auction, framing effect, frictionless, fundamental attribution error, George Akerlof, Goldman Sachs: Vampire Squid, Gunnar Myrdal, helicopter parent, information asymmetry, Internet of things, invisible hand, Isaac Newton, iterative process, Jean Tirole, Jeff Bezos, Johann Wolfgang von Goethe, John Nash: game theory, John von Neumann, Joseph Schumpeter, Kenneth Arrow, late fees, linear programming, Lyft, market clearing, market design, market friction, medical residency, multi-sided market, mutually assured destruction, Nash equilibrium, Occupy movement, Pareto efficiency, Paul Samuelson, Peter Thiel, pets.com, pez dispenser, pre–internet, price mechanism, price stability, prisoner's dilemma, profit motive, proxy bid, RAND corporation, ride hailing / ride sharing, Robert Shiller, Robert Shiller, Ronald Coase, school choice, school vouchers, sealed-bid auction, second-price auction, second-price sealed-bid, sharing economy, Silicon Valley, spectrum auction, Steve Jobs, Tacoma Narrows Bridge, technoutopianism, telemarketer, The Market for Lemons, The Wisdom of Crowds, Thomas Malthus, Thorstein Veblen, trade route, transaction costs, two-sided market, uranium enrichment, Vickrey auction, Vilfredo Pareto, winner-take-all economy
Amazon and eBay serve this market-making role for buyers and sellers of just about everything; Angie’s List does it for plumbers, electricians, and other contractors on one side and those looking to fix or renovate their homes on the other. There need not be only two sides: Google’s Android is a meeting point for makers of smart phones like LG and Samsung, app designers, and consumers. The business networking service LinkedIn similarly brings together corporate recruiters, job hunters or employees, and advertisers. The list goes on, including some of the recent “sharing economy” companies that have gotten so much attention: Uber, Lyft, Airbnb, Postmates, and many other online marketplaces. The market maker faces a delicate balancing act in satisfying the needs and wants of each side. And indeed a platform isn’t much good unless all sides agree to participate. Just as no one would visit a supermarket that stocked only a limited supply of cornflakes, eBay wouldn’t get many visitors if the only items for bid were a couple of old Pez dispensers.
They’re the strategies Uber and every other business employs to try to keep customers from choosing freely among competing options in the marketplace, whether by driving competitors out of business or finding ways of keeping customers from shopping around. Sometimes, as we’ve learned from Uber in recent years, it can be a dirty business. They’ve been accused of misleading drivers on expected earnings (an information friction in the labor market) and calling then canceling rides from competing service Lyft (a friction in the market for rides), among other underhanded methods. So yes, you want to build that game-changing app. But to get your $60 billion valuation, you need to create as many frictions as possible for everyone else. Although proponents of the sharing economy tout its ability to reduce market frictions, the only way they’re going to make the kinds of profits they (and their investors) want is to create new ones.
.), 164–165 kidneys sales, 160–161 transplant exchange algorithm, 162–166 King Rat (Clavell), 175–177 Klein, Joel, 143–144 labor markets, 48, 64–66 labor theory of value, 23 ladies night at bars, 123 laundry service platform, 112 lemon markets theory, 44–51, 58–59, 64, 112 “Let Them Eat Pollution” (article), 167 life insurance, 1840s, 153 Lincoln Elementary, 1–2 Little, I. M. D., 22 Liu, Qihong, 128–129 Lyft car service, 173 MAD (doctrine of nuclear deterrence by mutually assured destruction), 26 mail-in-bids, for auctions, 83–84 “The Market for Lemons” (Akerlof), 44–51, 64 market frictions, 169–174 market fundamentalists, 16–17 market insights, 14–15 market makers, 107–110, 118–121 markets 18th-century book, 90–91 competitive, 35, 124–126, 172–174, 180–181 design, 133, 137–142 dysfunction of, 36, 75–77, 143 economics of platform, 107–112 equilibrium, 33 fixed-price versus auctions, 96–97 food bank system, 154–160 image problem of, 152–153 labor, 48, 64–66 lemon, 44–51, 58–59, 64, 112 multisided, 108–112, 118–124 one-sided, 108–112 in POW camps, 4, 7–13, 175–177 rules for platform, 112–117 school choice in Sweden, 151–152 selfishness in, 177–179 technology and, 169–173 trade with uninformed parties, 166–169 transformation of, 13–17 two-sided, 108–112, 118–124 See also auctions; economics; platforms Marx, Karl, 20, 23 matching problems middle school dance partners, 131–132, 134, 137–140 student to school, 138–139, 141–142, 143–149 mathematics algebraic topology, 44–45 economic theory transformed by, 15, 19–27 game theory, 136 general equilibrium model, 29, 31–34, 36–37, 40, 45, 76 kidney exchange algorithm, 163–165 models, 20, 24–25, 30 in real world economics, 35–37 Samuelson connecting economics and, 28–29 Shapley-Gale algorithm, 137–140 Matsuzaka, Daisuke, 79–81, 87–89 Maxwell, James Clark, 24 McManus, Brian, 73–75 mechanism design, 133, 134 medical residency programs, 140 merchant from Prato, 105–107 middle school dance-matching, 131–132, 134, 137–140 Milgrom, Paul, 70–71, 98, 102–103 mobile market platform, 116 modeling applied theory, 45, 50, 75–76 competition, 35, 166, 172–173 congestion pricing, 86, 94 dysfunction of, 75–77 economic, 15, 24–29 mathematical, 20, 24–25, 30 reality-based economic, 35–37, 45, 49–51, 141 models auction, 82–84 eBay, 43, 46, 48 general equilibrium, 31–34, 36–37, 40, 76 lemons, 44–51, 58–59, 64, 112 Solow, 35 See also platforms; signaling model Moldovanu, Benny, 90–91 money burning costs, 70–71 money-back guarantees, 69–71 Morals & Markets: The Development of Life Insurance in the United States (Zelizer), 153 Morgenstern, Oskar, 25–27 mortality rates, of Japanese vs German POW camps, 10–13 MS-13 gang, 67 multisided markets, 108–112, 118–124 multisided platform, 14 multiunit Vickrey auction, 93 Murphy, Frank, 9 Nasar, Sylvia, 29 Nash, John, 32 National Archives’ World War II Prisoners of War Data File, 11 network externalities, 121–124 New England Program for Kidney Exchange, 164–165 New York Department of Education, 143–144, 145, 149 Nobel Prize in Economics, 34 See also Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel noncustomers, paying, 123–124 Nordstrom’s return policy, 69–70 no-risk money-back guarantees, 69–71 normal good, 180 no-trade rule, Japanese POW camps, 10–13 nuclear deterrence, 26 Omidyar, Pierre, 39–40 one-sided markets, 108–112 online retail, 41–43, 52–55 optimized efficiency, 85–86, 133 organ sales, 160–161 organizations, sick, 142–143 out-of-town bids, for auctions, 83–84 Pareto, Vilfredo, 20, 21–22 Pareto efficiency, 22 Penny Black stamp, 82–84 Percy P.
The Age of Cryptocurrency: How Bitcoin and Digital Money Are Challenging the Global Economic Order by Paul Vigna, Michael J. Casey
3D printing, Airbnb, altcoin, bank run, banking crisis, bitcoin, blockchain, Bretton Woods, California gold rush, capital controls, carbon footprint, clean water, collaborative economy, collapse of Lehman Brothers, Columbine, Credit Default Swap, cryptocurrency, David Graeber, disintermediation, Edward Snowden, Elon Musk, ethereum blockchain, fiat currency, financial innovation, Firefox, Flash crash, Fractional reserve banking, hacker house, Hernando de Soto, high net worth, informal economy, intangible asset, Internet of things, inventory management, Julian Assange, Kickstarter, Kuwabatake Sanjuro: assassination market, litecoin, Long Term Capital Management, Lyft, M-Pesa, Marc Andreessen, Mark Zuckerberg, McMansion, means of production, Menlo Park, mobile money, money: store of value / unit of account / medium of exchange, Network effects, new economy, new new economy, Nixon shock, offshore financial centre, payday loans, Pearl River Delta, peer-to-peer, peer-to-peer lending, pets.com, Ponzi scheme, prediction markets, price stability, profit motive, QR code, RAND corporation, regulatory arbitrage, rent-seeking, reserve currency, Robert Shiller, Robert Shiller, Satoshi Nakamoto, seigniorage, shareholder value, sharing economy, short selling, Silicon Valley, Silicon Valley startup, Skype, smart contracts, special drawing rights, Spread Networks laid a new fibre optics cable between New York and Chicago, Steve Jobs, supply-chain management, Ted Nelson, The Great Moderation, the market place, the payments system, The Wealth of Nations by Adam Smith, too big to fail, transaction costs, tulip mania, Turing complete, Tyler Cowen: Great Stagnation, Uber and Lyft, underbanked, WikiLeaks, Y Combinator, Y2K, zero-sum game, Zimmermann PGP
David Johnston is a senior board member at the Mastercoin Foundation, the body that coordinates the funding for the Mastercoin project, which offers a special software platform for developers to design special decentralized applications that can run on top of the bitcoin blockchain. He says blockchain technology “will supercharge the sharing economy,” that emerging trend in which apartment owners use Airbnb.com to rent out quasi hotel rooms and car owners sign up as self-employed taxidrivers for smartphone-based Uber and Lyft. The idea is that if we can decentralize the economy and foster multiple forms of peer-to-peer exchanges, people will figure out profitable ways to turn much of what they own or control into a marketable service. Johnston is known for having coined the term DApp, for “decentralized autonomous application,” to describe the kind of specialized software programs that could thrive in blockchain-based settings.
Got some extra computing power sitting on your desktop? Share it with those who need it. Got a car sitting idle in your driveway? Share that. Got a big idea? Share it online and raise the money online to fund it. Business symbols of this era so far include the personal-apartment rental site Airbnb, the crowdfunding site Kickstarter, the peer-to-peer lending network Lending Club, and the taxi services controlled by individual car owners Uber and Lyft. In some respects these new business models are extensions of a process that began far earlier with the advent of the Internet. While no self-respecting bitcoiner would ever describe Google or Facebook as decentralized institutions, not with their corporate-controlled servers and vast databases of customers’ personal information, these giant Internet firms of our day got there by encouraging peer-to-peer and middleman-free activities.
Unlike a blockchain model, the lending is done in a centralized way in which the investor must trust the company itself, but the middleman-less mechanism has some of the same effects as projects touted by cryptocurrency advocates. Other big companies are also looking to figure out an adaptive response to the onset of new crowd- and sharing-based business models such as those employed by Uber, Airbnb, and Lyft. Silicon Valley–based Crowd Companies, which advises old-world companies on how to survive in this new economy, boasts an impressive list of clients, among them Visa, Home Depot, Hyatt, General Electric, Walmart, Coca-Cola, and FedEx. All are trying to figure out how to adapt their businesses to a centerless economy. What about the payments industry? Well, it looks to be dabbling in all three strategies in response to the challenge from cryptocurrencies.
The Innovation Illusion: How So Little Is Created by So Many Working So Hard by Fredrik Erixon, Bjorn Weigel
Airbnb, Albert Einstein, asset allocation, autonomous vehicles, barriers to entry, Basel III, Bernie Madoff, bitcoin, Black Swan, blockchain, BRICs, Burning Man, Capital in the Twenty-First Century by Thomas Piketty, Cass Sunstein, Clayton Christensen, Colonization of Mars, commoditize, corporate governance, corporate social responsibility, creative destruction, crony capitalism, dark matter, David Graeber, David Ricardo: comparative advantage, discounted cash flows, distributed ledger, Donald Trump, Elon Musk, Erik Brynjolfsson, fear of failure, first square of the chessboard / second half of the chessboard, Francis Fukuyama: the end of history, George Gilder, global supply chain, global value chain, Google Glasses, Google X / Alphabet X, Gordon Gekko, high net worth, hiring and firing, Hyman Minsky, income inequality, income per capita, index fund, industrial robot, Internet of things, Jeff Bezos, job automation, job satisfaction, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, joint-stock company, Joseph Schumpeter, Just-in-time delivery, Kevin Kelly, knowledge economy, labour market flexibility, laissez-faire capitalism, lump of labour, Lyft, manufacturing employment, Mark Zuckerberg, market design, Martin Wolf, mass affluent, means of production, Mont Pelerin Society, Network effects, new economy, offshore financial centre, pensions crisis, Peter Thiel, Potemkin village, price mechanism, principal–agent problem, Productivity paradox, QWERTY keyboard, RAND corporation, Ray Kurzweil, rent-seeking, risk tolerance, risk/return, Robert Gordon, Ronald Coase, Ronald Reagan, savings glut, Second Machine Age, secular stagnation, Silicon Valley, Silicon Valley startup, Skype, sovereign wealth fund, Steve Ballmer, Steve Jobs, Steve Wozniak, technological singularity, telemarketer, The Chicago School, The Future of Employment, The Nature of the Firm, The Wealth of Nations by Adam Smith, too big to fail, total factor productivity, transaction costs, transportation-network company, tulip mania, Tyler Cowen: Great Stagnation, University of East Anglia, unpaid internship, Vanguard fund, Yogi Berra
Other taxi firms and the trade unions had been attacking Uber cars and in early 2015 a court in Frankfurt ruled to ban UberPop, threatening it with a fine of up to €250,000 if the law is violated.7 Other German city authorities have followed Frankfurt’s lead, and countries like Italy, Spain, and the Netherlands have also banned the peer-to-peer service, all citing violations of commercial licenses as reason to expel Uber from the market. In Johannesburg, São Paolo, New York, and other metropolitan cities in the world, the company faces similar charges. New York Mayor Bill de Blasio tried to rehash an old regulation, restricting the growth of car-riding services like Uber, Sidecar, and Lyft to 1 percent a year, seemingly copying the thinking behind the taxi regulation in New York that has capped the number of yellow cab medallions.8 In Miami, these companies are banned. There is a bigger story about regulation embedded in these examples. Anchored among incumbents’ existing structures, regulation all too often helps to saturate or cement markets. While many existing firms complain about the effects of regulations, they know how to manage business under them and, if they are skilled operators, they can turn government interventions in their favor.
; Cecchetti and Kharroubi, “Reassessing the Impact of Finance on Growth.” 57.Swagel, “The Financial Crisis.” 58.Cecchetti and Kharroubi, “Why Growth in Finance Is a Drag on the Real Economy.” 59.Christensen, Kaufman, and Shih, “Innovation Killers,” 1–2. 60.Piketty, Capital in the Twenty-First Century, 264–81. 4 The Rise and Rise Again of Corporate Managerialism 1.Martti, Nokia: The Inside Story. 2.Steinbock, The Nokia Revolution. 3.Ahmad, Nokia’s Smartphone Problem. 4.Kuittinen, “Nokia Sells Handset Business to Microsoft.” 5.Lomas, “Nokia’s $7.2BN Devices & Services Exit.” 6.Cheng, “It’s Official: Motorola Mobility Now Belongs to Lenovo.” 7.Bass, “Microsoft’s Concept Videos.” 8.Jenkins, “Jenkins: Only Bill Gates Can Change Microsoft.” 9.Yarow, “Here’s What Steve Ballmer Thought about the iPhone.” 10.A good survey of companies failing at exits is McGrath, The End of Competitive Advantage. 11.Steinberg, “Among the First to Fall at I.B.M.” 12.Crainer, “‘Saving Big Blue.’” 13.Clinch, “How Apple Prompted This Country’s Downgrade.” 14.Schumpeter, Capitalism, Socialism and Democracy, 132. 15.Coase, “The Nature of the Firm,” 388. 16.Oliver Williamson, who received the Nobel Prize in economics for his work on economic governance, developed the idea of firm boundaries and put the emphasis on the internal or endogenous capacity of the firm to generate output that is more competitive than the market. 17.Santos and Eisenhardt, “Organizational Boundaries and Theories of Organization,” 491. 18.Coase, “The Nature of the Firm,” 390. 19.Coase, “The Nature of the Firm,” 404–5. 20.Zenger, Felin, and Bigelow, “Theories of the Firm–Market Boundary.” 21.Tett, The Silo Effect. 22.Morieux, “How Too Many Rules at Work Keep You from Getting Things Done.” 23.See, for instance, Caliendo and Rossi-Hansberg, “The Impact of Trade on Organization and Productivity.” 24.Zhou, “Coordination Costs, Organization Structure and Firm Growth.” 25.Langlois and Everett, “Complexity, Genuine Uncertainty, and the Economics of Organization”; Joskow, “Vertical Integration.” 26.Strom, “Big Companies Pay Later.” 27.Rajan and Zingales, “The Firm as a Dedicated Hierarchy.” 28.Bhide, The Origin and Evolution of New Business, 94. 29.Rajan and Zingales, “The Firm as a Dedicated Hierarchy,” 7. 30.Teece, “Profiting from Technological Innovation.” 31.Jensen, “Agency Cost of Free Cash Flow, Corporate Finance, and Takeovers.” 32.Stein, “Agency, Information and Corporate Investment”; Matvos and Seru, “Resource Allocation within Firms.” 33.See Berger and Ofek, “Diversification’s Effect on Firm Value”; Rajan, Servaes, and Zingales, “The Cost of Diversity.” 34.Scharfstein and Stein, “The Dark Side of Internal Capital Markets.” 35.Scharfstein and Stein. “The Dark Side of Internal Capital Markets.” 36.Büthe and Mattli, The New Global Rulers. 37.Kelly, “The Majority of iPhone Users Admit to ‘Blind Loyalty.’” 38.Kelly, “The Majority of iPhone Users Admit to ‘Blind Loyalty.’” 39.Johnson, De Lyfte Landet, 21. 40.All quotes are from Galbraith, The New Industrial State, 19. 41.Morieux, “Smart Rules.” 42.Bain & Co., “Busy CEOs.” 43.Langlois and Cosgel, “Frank Knight on Risk.” 44.Decker et al., “The Role of Entrepreneurship,” 10. 45.Harvard Business Review, Harvard Business Review on Strategies for Growth, 25–6. 46.Byrne, “The Man Who Invented Management.” 47.Porter, “How Competitive Forces Shape Strategy.” 48.Stephenson, “What Causes Top Management Teams to Make Poor Strategic Decisions?”
Jaruzelski, Barry, Volker Staack, and Brad Goehle, “Proven Paths to Innovation Success: Ten Years of Research Reveal the Best R&D Strategies for the Decade Ahead.” Global Innovation 1000, strategy+business, 77 (2014): 1–18. Jenkins, Holman W., “Jenkins: Only Bill Gates Can Change Microsoft.” Wall Street Journal, Aug. 27, 2013. At http://www.wsj.com/articles/SB10001424127887323906804579038852114518482. Jensen, Michael C., “Agency Cost of Free Cash Flow, Corporate Finance, and Takeovers.” American Economic Review, 76.2 (1986). Johnson, Anders, De Lyfte Landet: En Berättelse om Svenska Entreprenörer. Svenskt Näringsliv, 2002. Johnson, Steve, “Gulf States Redirect SWF Cash.” Financial Times, May 20, 2012. At http://www.ft.com/intl/cms/s/0/da57657e-a016-11e1-90f3-00144feabdc0.html#axzz3ode29Nn5. Johnston, Donald J., “Globalise or Fossilise!” OECD Observer, 219 (1999): 3. Jonquières, Guy de, “Who Is Afraid of China’s High-Tech Challenge?” ECIPE Policy Brief No. 7/2013, European Centre for International Political Economy, Sept. 2013.
Exponential Organizations: Why New Organizations Are Ten Times Better, Faster, and Cheaper Than Yours (And What to Do About It) by Salim Ismail, Yuri van Geest
23andMe, 3D printing, Airbnb, Amazon Mechanical Turk, Amazon Web Services, augmented reality, autonomous vehicles, Baxter: Rethink Robotics, bioinformatics, bitcoin, Black Swan, blockchain, Burning Man, business intelligence, business process, call centre, chief data officer, Chris Wanstrath, Clayton Christensen, clean water, cloud computing, cognitive bias, collaborative consumption, collaborative economy, commoditize, corporate social responsibility, cross-subsidies, crowdsourcing, cryptocurrency, dark matter, Dean Kamen, dematerialisation, discounted cash flows, distributed ledger, Edward Snowden, Elon Musk, en.wikipedia.org, ethereum blockchain, Galaxy Zoo, game design, Google Glasses, Google Hangouts, Google X / Alphabet X, gravity well, hiring and firing, Hyperloop, industrial robot, Innovator's Dilemma, intangible asset, Internet of things, Iridium satellite, Isaac Newton, Jeff Bezos, Kevin Kelly, Kickstarter, knowledge worker, Kodak vs Instagram, Law of Accelerating Returns, Lean Startup, life extension, lifelogging, loose coupling, loss aversion, Lyft, Marc Andreessen, Mark Zuckerberg, market design, means of production, minimum viable product, natural language processing, Netflix Prize, Network effects, new economy, Oculus Rift, offshore financial centre, p-value, PageRank, pattern recognition, Paul Graham, peer-to-peer, peer-to-peer model, Peter H. Diamandis: Planetary Resources, Peter Thiel, prediction markets, profit motive, publish or perish, Ray Kurzweil, recommendation engine, RFID, ride hailing / ride sharing, risk tolerance, Ronald Coase, Second Machine Age, self-driving car, sharing economy, Silicon Valley, skunkworks, Skype, smart contracts, Snapchat, social software, software is eating the world, speech recognition, stealth mode startup, Stephen Hawking, Steve Jobs, subscription business, supply-chain management, TaskRabbit, telepresence, telepresence robot, Tony Hsieh, transaction costs, Tyler Cowen: Great Stagnation, urban planning, WikiLeaks, winner-take-all economy, X Prize, Y Combinator, zero-sum game
“Unlike digital marketing, where ROI is sustained almost as soon as spending happens, communities are a long-term investment that is significantly more strategic,” says social business thought leader Dion Hinchcliffe. “Additionally, communities with CxO participation are far more likely to be best-in-class.” Create a platform to automate peer-to-peer engagement. GitHub, for example, has its members rate and review other members’ code. Airbnb hosts and users fill out evaluation forms; taxi disrupters Uber, Lyft and Sidecar encourage clients and drivers to rate one another; and the news platform Reddit invites users to vote on stories. In 2013, Reddit, which has just fifty-one employees, most of whom manage the platform, saw 731 million unique visitors cast 6.7 billion votes on 41 million stories. Talk about a platform…(More on this later.) Tony Hsieh, CEO of Las Vegas-based Zappos, was inspired by the Burning Man community to combine both physical and trait-based communities within his Las Vegas Downtown Project.
GE, in conjunction with TechShop, Skillshare and Quirky, launched a similar initiative last year in Chicago called GE Garages. As with Staff on Demand, ExOs retain their flexibility precisely by not owning assets, even in strategic areas. This practice optimizes flexibility and allows the enterprise to scale incredibly quickly as it obviates the need for staff to manage those assets. Just as Waze piggybacked off its users’ smartphones, Uber, Lyft, BlaBlaCar and Sidecar leverage under-utilized cars. (If you own a car, it sits empty about 93 percent of the time.) The latest wave of non-asset businesses is something called Collaborative Consumption, a concept evangelized by Rachel Botsman and Roo Rogers in their book, What’s Mine is Yours: The Rise of Collaborative Consumption. The book pushes the sharing philosophy forward by establishing information-enabled assets of all kinds, from textbooks to gardening tools to housing—assets and resources that are abundant and widely available.
DIY Drones, GitHub, Wikipedia) Engagement of Community & Crowd 6) Do you actively convert “the Crowd” (general public) into Community members?* ( ) We use standard techniques like PR to increase awareness ( ) We leverage social media for marketing purposes ( ) We use gamification and incentive competitions to turn crowd into community ( ) Our products and services are inherently designed to convert crowd into Community (e.g. shareable memes like the Lyft mustache or Hotmail signature) 7) To what extent do you use Gamification or Incentive Competitions?* ( ) We use gamification/incentive competitions for internal motivation only (e.g. salesperson of the month) ( ) We use basic gamification externally (e.g. loyalty programs, frequent flyer programs) ( ) We build gamification/incentive competitions into our products and services (e.g. Foursquare) ( ) We use gamification/incentive competitions to drive ideation and product development (e.g.
The End of Jobs: Money, Meaning and Freedom Without the 9-To-5 by Taylor Pearson
Airbnb, barriers to entry, Black Swan, call centre, cloud computing, commoditize, creative destruction, David Heinemeier Hansson, Elon Musk, en.wikipedia.org, Frederick Winslow Taylor, future of work, Google Hangouts, Kevin Kelly, Kickstarter, knowledge economy, knowledge worker, loss aversion, low skilled workers, Lyft, Marc Andreessen, Mark Zuckerberg, market fragmentation, means of production, Oculus Rift, passive income, passive investing, Peter Thiel, remote working, Ronald Reagan: Tear down this wall, sharing economy, side project, Silicon Valley, Skype, software as a service, software is eating the world, Startup school, Steve Jobs, Steve Wozniak, Stewart Brand, telemarketer, Thomas Malthus, Uber and Lyft, unpaid internship, Watson beat the top human players on Jeopardy!, web application, Whole Earth Catalog
A market opportunity that would have been available to a few thousand people that could afford to build a hotel is now available to a few million people that may have a spare bedroom. There are not many more houses now in the U.S. than there were 5 years ago, but AirBnB has created more inventory (extra rooms to stay in) without creating more supply (building hotels). Uber and Lyft have done for the taxi industry what AirBnB has done for the hotel industry—anyone with a car can become a taxi driver by signing up online to drive for the service. In the past it was difficult and expensive to become a taxi driver. Some cities require drivers to invest tens of thousands of dollars to buy a medallion just to drive a taxi. Uber and Lyft now let anyone do the work by instead going through a background check. A lot of people use this as supplemental income when making a job transition. They don’t have to invest thousands of dollars—they can just sign up on the website and make a few thousand bucks a month between jobs.
Blockchain: Blueprint for a New Economy by Melanie Swan
23andMe, Airbnb, altcoin, Amazon Web Services, asset allocation, banking crisis, basic income, bioinformatics, bitcoin, blockchain, capital controls, cellular automata, central bank independence, clean water, cloud computing, collaborative editing, Conway's Game of Life, crowdsourcing, cryptocurrency, disintermediation, Edward Snowden, en.wikipedia.org, ethereum blockchain, fault tolerance, fiat currency, financial innovation, Firefox, friendly AI, Hernando de Soto, intangible asset, Internet Archive, Internet of things, Khan Academy, Kickstarter, lifelogging, litecoin, Lyft, M-Pesa, microbiome, Network effects, new economy, peer-to-peer, peer-to-peer lending, peer-to-peer model, personalized medicine, post scarcity, prediction markets, QR code, ride hailing / ride sharing, Satoshi Nakamoto, Search for Extraterrestrial Intelligence, SETI@home, sharing economy, Skype, smart cities, smart contracts, smart grid, software as a service, technological singularity, Turing complete, unbanked and underbanked, underbanked, web application, WikiLeaks
Webopedia. http://www.webopedia.com/TERM/P/public_key_cryptography.html. 3 Hof, R. “Seven Months After FDA Slapdown, 23andMe Returns with New Health Report Submission.” Forbes, June 20, 2014. http://www.forbes.com/sites/roberthof/2014/06/20/seven-months-after-fda-slapdown-23andme-returns-with-new-health-report-submission/. 4 Knight, H. and B. Evangelista. “S.F., L.A. Threaten Uber, Lyft, Sidecar with Legal Action.” SFGATE, September 25, 2041. http://m.sfgate.com/bayarea/article/S-F-L-A-threaten-Uber-Lyft-Sidecar-with-5781328.php. 5 Although it is not strictly impossible for two files to have the same hash, the number of 64-character hashes is vastly greater than the number of files that humanity can foreseeably create. This is similar to the cryptographic standard that even though a scheme could be cracked, the calculation would take longer than the history of the universe. 6 Nakamoto, S.
Early Retirement Guide: 40 is the new 65 by Manish Thakur
This is less of a life change than biking or walking, but also has the big effect of less financial waste. When it comes down to it, owning a large, powerful car is an expensive luxury that most people don't remotely get close to using to the fullest, and don't even realize the kind of luxury they have. Here are several conscientious spending alternatives: 1. Carpooling to work and split the cost of gas. 2. Signing up for a car sharing service such as Zipcar or Car2Go. 3. Use Uber or Lyft if the longer distance rides are rarer and signing up for a car sharing service doesn't add up. Get free rides just by signing up with these links and try them out if you haven't yet Savings: $8,800 Challenges: 1. Compare the cost of public transportation to all the costs of owning a car, there's probably a significant difference. 2. Take public transportation or carpool to work with coworkers and use the freed up time to relax, prepare for the day, read a book, or even learn a new professional skill. 3.
Affordable Care Act / Obamacare, Airbnb, algorithmic trading, barriers to entry, Berlin Wall, bitcoin, Build a better mousetrap, centralized clearinghouse, Chuck Templeton: OpenTable, commoditize, computer age, computerized markets, crowdsourcing, deferred acceptance, desegregation, experimental economics, first-price auction, Flash crash, High speed trading, income inequality, Internet of things, invention of agriculture, invisible hand, Jean Tirole, law of one price, Lyft, market clearing, market design, medical residency, obamacare, proxy bid, road to serfdom, school choice, sealed-bid auction, second-price auction, second-price sealed-bid, Silicon Valley, spectrum auction, Spread Networks laid a new fibre optics cable between New York and Chicago, Steve Jobs, The Wealth of Nations by Adam Smith, two-sided market
So although limos worked fine for a scheduled trip to the airport or for a fleet of black cars for a conference, if you stepped outside and it was raining, or checked out of a hotel after a leisurely breakfast, hailing a taxi was much easier. Once again, smartphones changed all that. Now you can call a limo almost as easily as a taxi. So a lot of limos that once sat idle are now readily available. And that’s just the beginning. UberX and companies such as Lyft are even more like Airbnb: they are starting to make a market for the vacant passenger seats in private cars. Speed is of the essence in making these markets work differently than the “day ahead” market that already existed for limos. In some respects, these services are faster even than taxis: you don’t have to take time to pay when you reach your destination, since the same app through which you called the car will also pay the bill automatically through your credit card.
., 41, 42, 51, 208, 211 demand vs. supply for, 31, 205–7 disincentives for donations for, 209–10 exchange programs for, 8, 30–31, 206 algorithm for, 35–38, 39–41 benefits of, 51 chains in, extending, 35–36, 37–41 expanding, 210–12 first, 35 national level, 49–51 non-directed donors in, 35–38, 43–44, 52, 210–12 safe participation in, 34, 36, 37, 47–49, 51–52 trading cycles and design for, 32–41 financial interests in, 45–46, 50 hard and easy matches in, 47–49 living donors for, 41–46 national, 49–51 nonsimultaneous vs. simultaneous, 41–46 patient needs and preferences in, 34, 37 reimbursement systems for, 206–7, 208–10 selling organs for, 6, 12, 46, 203–7 legalization of, 208–9 thickening the market for, 49–51 Klein, Joel, 106, 107, 161 Kojima, Fuito, 149 Kozinski, Alex, 93, 95, 239 labor markets, 6 congestion in, 111 exploding offers in, 98–99 law firm recruiting and, 65–68 signaling in, 169–70, 173–75, 179–80 stable outcomes in clearinghouses for, 139–43 Lack, Jeremy, 106, 153, 160 laissez-faire, 7 languages, evolution of, 229–30 law clerks, 69–70 law firms, recruiting in, 65–68 Lee, Soohyung, 176–77 legal safeguards, 114–15 Leishman, Ruthanne, 37, 44, 50 Levey, Andy, 38–39 liquidity providers, 84 loans, charging interest on, 200–201, 202, 205 Louisiana State University, 65 Lyft, 104 Mad Men, 190 market design, 6–8, 13–14, 217–31 bad, persistence of, 223–26 based on participant culture and psychology, 78 central planning vs., 7, 149–50, 166–67 for coffee, 17–18 of college bowl games, 60–65 vs. control, 212–15 culture and, 78 expert guides in, 147–48 failures in, 52–53 failure to implement, 86, 88 for function, 12–13 gaining support for, 88–89 human behavior and, 52, 118 ongoing adjustments in, 52–53, 164–65, 222–23, 227–31 pervasiveness of, 15 reliable information in, 118 for restaurants, 217–20 solutions in, 133–34 trading cycles and, 32–41 markets and marketplaces barriers to entry in, 24 based on desires, 5 central planning vs., 7, 149–50 collective nature of, 229–31 commodity, 5 communication speed in, 99–106 congestion in, 9–10, 92–93, 99–112 connections among, 7, 22–24, 227 equilibrium in, 77 evolution of, 13–14 flexibility of, 149 free, 7, 12–13, 217, 226–28 as human artifacts, 212–15, 229–31 legal vs. illegal, 114–15 matching, 5–6 regulation of (See regulation) repugnant, 6, 11–12, 192, 195–215 safety of, 11, 113–30 simplicity of, 11, 26–27 thick, 8–9.
Simple Rules: How to Thrive in a Complex World by Donald Sull, Kathleen M. Eisenhardt
Affordable Care Act / Obamacare, Airbnb, asset allocation, Atul Gawande, barriers to entry, Basel III, Berlin Wall, carbon footprint, Checklist Manifesto, complexity theory, Craig Reynolds: boids flock, Credit Default Swap, Daniel Kahneman / Amos Tversky, diversification, drone strike, en.wikipedia.org, European colonialism, Exxon Valdez, facts on the ground, Fall of the Berlin Wall, haute cuisine, invention of the printing press, Isaac Newton, Kickstarter, late fees, Lean Startup, Louis Pasteur, Lyft, Moneyball by Michael Lewis explains big data, Nate Silver, Network effects, obamacare, Paul Graham, performance metric, price anchoring, RAND corporation, risk/return, Saturday Night Live, sharing economy, Silicon Valley, Startup school, statistical model, Steve Jobs, TaskRabbit, The Signal and the Noise by Nate Silver, transportation-network company, two-sided market, Wall-E, web application, Y Combinator, Zipcar
They soon launched Air Mattress Bed & Breakfast, later Airbnb. Airbnb is among the most successful of the shared-economy companies. Unlike many traditional businesses, shared-economy companies have no single base of customers. Rather, these companies provide two-sided markets that connect sellers (or people with something to share) with buyers (who are willing to pay for the product or service)—like the transportation-network company Lyft, which connects passengers who need a ride to drivers who have a car, and TaskRabbit, an errand-outsourcing company that connects people who need something done with “taskers” who will do the job. For Airbnb, it’s connecting local residents with room to spare and travelers who need a place to stay. To grow, shared-economy companies have to keep both sides of the market—sellers and buyers—happy. And growing matters, because these companies face what are known as network effects—in other words, the positively reinforcing cycle in which more buyers attract more sellers and vice versa.
See execution of strategy improving simple rules experts and, [>]–[>] internationalizing entrepreneurs and, [>]–[>] laboratory study on, [>]–[>] multitasking ways to learn, [>]–[>] pattern/examples, [>]–[>] process description, [>] rule types and, [>], [>] studying/doing something else and, [>]–[>] Turley example, [>]–[>] Indiegogo, [>], [>] insomnia/rules for overcoming, [>]–[>] intellectual property protection, [>]–[>] Internet boom (late 1990s), [>] investing ranking and, [>]–[>], [>] n Rothschild’s rules, [>]–[>] Russian rules and, [>]–[>] Jack’s (bar) description/customers, [>]–[>], [>] Sull as bouncer/rules, [>], [>]–[>] Jesuits (Society of Jesus) flexibility/opportunities and, [>]–[>] founding/growth, [>], [>] locations/travels, [>], [>], [>] schools/education and, [>]–[>], [>] simple rules/“Formula,” [>], [>]–[>] Jobs, Steve, [>], [>] Journal of Finance, [>] Kahneman, Daniel, [>] Kalaw, Paolo, [>]–[>] Katila, Riitta, [>] Kawakami, Tim, [>] Kickstarter, [>] Krakauer, Jon, [>] Laugh Factory, [>] Law of Citations (ancient Rome), [>] legal systems study, [>]–[>] Leonard, Elmore, [>], [>], [>] Lewin, Kurt, [>] Lewis, Michael, [>] Lobby (de Lotbiniere, Seymour Joly), [>]–[>] locusts/swarming, [>]–[>] Loeb, Gerald, [>]–[>] Lopez, George, [>] Louis C.K., [>] Lyft, [>] Lynch, David, [>] Madden, John, [>] Mann Gulch fire, [>]–[>] marine protected areas network, California, [>]–[>] Markowitz, Harry, [>], [>] Martin, Brett, [>] mate selection rules animal examples, [>]–[>] costs vs., [>] “fixed-threshold strategy/with last chance option,” [>] humans, [>]–[>] reversing investment, [>]–[>] variable-threshold strategy, [>] McDonald’s, [>], [>]–[>] n McDougall, Charles, [>] Media Rights Capital, [>]–[>] medical issues combat injuries and, [>]–[>] combat survival rates over time, [>]–[>] diagnosing children with deadly infections, [>]–[>] disease diagnosis, [>], [>], [>] Medicare/Medicaid diagnosis codes, [>] n redesigning health care attempt/principles, [>]–[>] surgery and, [>]–[>] See also triage rules Mediterranean climate, [>]–[>] Mencia, Carlos, [>] Mercado Eletrônico, [>]–[>] Michaels, Al, [>] Michaels, Lorne, [>] Mitchell, Victoria Coren, [>]–[>], [>], [>] Monet, Claude, [>], [>] moneyball strategy, [>]–[>], [>], [>], [>] Montoya, Edward, Jr., [>], [>], [>] Montsma, Sandrine, [>] Moss, Brandon, [>] “myth of requisite complexity,” [>]–[>], [>]–[>] Nader, Eduardo, [>] Nansen, Fridtjof, [>] Napoleon, [>] National Academy of Sciences, [>] National Oceanic and Atmospheric Agency.
The Internet Is Not the Answer by Andrew Keen
3D printing, A Declaration of the Independence of Cyberspace, Airbnb, AltaVista, Andrew Keen, augmented reality, Bay Area Rapid Transit, Berlin Wall, bitcoin, Black Swan, Bob Geldof, Burning Man, Cass Sunstein, citizen journalism, Clayton Christensen, clean water, cloud computing, collective bargaining, Colonization of Mars, computer age, connected car, creative destruction, cuban missile crisis, David Brooks, disintermediation, Donald Davies, Downton Abbey, Edward Snowden, Elon Musk, Erik Brynjolfsson, Fall of the Berlin Wall, Filter Bubble, Francis Fukuyama: the end of history, Frank Gehry, Frederick Winslow Taylor, frictionless, full employment, future of work, gig economy, global village, Google bus, Google Glasses, Hacker Ethic, happiness index / gross national happiness, income inequality, index card, informal economy, information trail, Innovator's Dilemma, Internet of things, Isaac Newton, Jaron Lanier, Jeff Bezos, job automation, Joseph Schumpeter, Julian Assange, Kevin Kelly, Kickstarter, Kodak vs Instagram, Lean Startup, libertarian paternalism, lifelogging, Lyft, Marc Andreessen, Mark Zuckerberg, Marshall McLuhan, Martin Wolf, Metcalfe’s law, move fast and break things, move fast and break things, Nate Silver, Network effects, new economy, Nicholas Carr, nonsequential writing, Norbert Wiener, Norman Mailer, Occupy movement, packet switching, PageRank, Paul Graham, peer-to-peer, peer-to-peer rental, Peter Thiel, Plutocrats, plutocrats, Potemkin village, precariat, pre–internet, RAND corporation, Ray Kurzweil, ride hailing / ride sharing, Robert Metcalfe, Second Machine Age, self-driving car, sharing economy, Silicon Valley, Silicon Valley ideology, Skype, smart cities, Snapchat, social web, South of Market, San Francisco, Steve Jobs, Steve Wozniak, Steven Levy, Stewart Brand, TaskRabbit, Ted Nelson, telemarketer, The Future of Employment, the medium is the message, the new new thing, Thomas L Friedman, Tyler Cowen: Great Stagnation, Uber for X, urban planning, Vannevar Bush, Whole Earth Catalog, WikiLeaks, winner-take-all economy, working poor, Y Combinator
Airbnb cofounder Brian Chesky describes the company as a platform of “trust” in which the reputations of guests and of hosts will be determined by feedback on the network.113 But Airbnb has been beset by such a scarcity of trust from the authorities that 15,000 New York City hosts were subpoenaed in May 2014 by New York State attorney general Eric Schneiderman because they may not have paid taxes on their rental incomes. Andreessen Horowitz has also ventured into the car-sharing market, where it is backing a 2012 San Francisco–based middleman called Lyft, a mobile phone app that enables peer-to-peer ride sharing. But the best-known startup in the transportation-sharing sector is Uber, a John Doerr–backed company that also has received a quarter-billion-dollar investment from Google Ventures. Founded in late 2009 by Travis Kalanick, by the summer of 2014 Uber was operating in 130 cities around the world, employing around 1,000 people, and, in a June 2014 investment round of $1.2 billion, was valued at $18.2 billion, a record for a private startup company.
“Open your eyes,” I said, pointing at the bustling San Francisco street outside the hotel window. “There’s your data.” The Alien Overlord Spaceships Outside the San Francisco hotel, the future had arrived and, to paraphrase William Gibson, it was distributed most unequally. Uber limousines lined up outside the club to whisk Silicon Valley’s successful young failures around town. Cars from rival transportation networks hovered hopefully around the hotel, too—companies like Lyft, Sidecar, and the fleet of me-too mobile-ride-hailing startups trying to out-Uber Travis Kalanick’s $18 billion market leader. Some of the people scrambling for a living as networked drivers were themselves aspiring entrepreneurs with billion-dollar startup ideas of their own.27 So even in these unlicensed cabs, it was impossible to get away from the pitches for the next WhatsApp, Airbnb, or Uber, which pitches, sadly, were mostly just a glorified form of begging.
3D printing, additive manufacturing, Affordable Care Act / Obamacare, AI winter, algorithmic trading, Amazon Mechanical Turk, artificial general intelligence, assortative mating, autonomous vehicles, banking crisis, basic income, Baxter: Rethink Robotics, Bernie Madoff, Bill Joy: nanobots, call centre, Capital in the Twenty-First Century by Thomas Piketty, Chris Urmson, Clayton Christensen, clean water, cloud computing, collateralized debt obligation, commoditize, computer age, creative destruction, debt deflation, deskilling, diversified portfolio, Erik Brynjolfsson, factory automation, financial innovation, Flash crash, Fractional reserve banking, Freestyle chess, full employment, Goldman Sachs: Vampire Squid, Gunnar Myrdal, High speed trading, income inequality, indoor plumbing, industrial robot, informal economy, iterative process, Jaron Lanier, job automation, John Markoff, John Maynard Keynes: technological unemployment, John von Neumann, Kenneth Arrow, Khan Academy, knowledge worker, labor-force participation, labour mobility, liquidity trap, low skilled workers, low-wage service sector, Lyft, manufacturing employment, Marc Andreessen, McJob, moral hazard, Narrative Science, Network effects, new economy, Nicholas Carr, Norbert Wiener, obamacare, optical character recognition, passive income, Paul Samuelson, performance metric, Peter Thiel, Plutocrats, plutocrats, post scarcity, precision agriculture, price mechanism, Ray Kurzweil, rent control, rent-seeking, reshoring, RFID, Richard Feynman, Richard Feynman, Rodney Brooks, secular stagnation, self-driving car, Silicon Valley, Silicon Valley startup, single-payer health, software is eating the world, sovereign wealth fund, speech recognition, Spread Networks laid a new fibre optics cable between New York and Chicago, stealth mode startup, stem cell, Stephen Hawking, Steve Jobs, Steven Levy, Steven Pinker, strong AI, Stuxnet, technological singularity, telepresence, telepresence robot, The Bell Curve by Richard Herrnstein and Charles Murray, The Coming Technological Singularity, The Future of Employment, Thomas L Friedman, too big to fail, Tyler Cowen: Great Stagnation, union organizing, Vernor Vinge, very high income, Watson beat the top human players on Jeopardy!, women in the workforce
.,” Mother Jones (blog), January 24, 2013, http://www.motherjones.com/kevin-drum/2013/01/driverless-cars-will-change-our-lives-soon. 18. Lila Shapiro, “Car Wash Workers Unionize in Los Angeles,” Huffington Post, February 23, 2012, http://www.huffingtonpost.com/2012/02/23/car-wash-workers-unionize_n_1296060.html. 19. David Von Drehle, “The Robot Economy,” Time, September 9, 2013, pp. 44–45. 20. Andrew Harris, “Chicago Cabbies Sue Over Unregulated Uber, Lyft Services,” Bloomberg News, February 6, 2014, http://www.bloomberg.com/news/2014–02–06/chicago-cabbies-sue-over-unregulated-uber-lyft-services.html. CHAPTER 8 1. For statistics on consumer spending, see Nelson D. Schwartz, “The Middle Class Is Steadily Eroding. Just Ask the Business World,” New York Times, February 2, 2014, http://www.nytimes.com/2014/02/03/business/the-middle-class-is-steadily-eroding-just-ask-the-business-world.html. 2. Rob Cox and Eliza Rosenbaum, “The Beneficiaries of the Downturn,” New York Times, December 28, 2008, http://www.nytimes.com/2008/12/29/business/29views.html.
Disrupted: My Misadventure in the Start-Up Bubble by Dan Lyons
activist fund / activist shareholder / activist investor, Airbnb, Bernie Madoff, bitcoin, call centre, cleantech, cloud computing, corporate governance, dumpster diving, fear of failure, Filter Bubble, Golden Gate Park, Google Glasses, Googley, Gordon Gekko, hiring and firing, Jeff Bezos, Lean Startup, Lyft, Marc Andreessen, Mark Zuckerberg, Menlo Park, minimum viable product, new economy, Paul Graham, pre–internet, quantitative easing, ride hailing / ride sharing, Rosa Parks, Sand Hill Road, sharing economy, Silicon Valley, Silicon Valley ideology, Silicon Valley startup, Skype, Snapchat, software as a service, South of Market, San Francisco, Steve Ballmer, Steve Jobs, Steve Wozniak, telemarketer, tulip mania, Y Combinator, éminence grise
With Uber-a-Marketer, you’d pay some money, or win some kind of competition, and HubSpot would send one of its marketing people to your office and teach you how to do marketing. After all, we’re the best marketing team on the planet! People would kill to have us teach them about marketing! This idea actually generates some responses. But someone worries that Uber might not want to play ball with us. What happens then? We could go to Lyft, or some other car service. I chime in, saying that I love this idea but maybe there’s a way to kick it up a notch and make it even more dramatic: “Why not have a marketing person parachute in?” I say. “Like Google did at their I/O conference last year, when they had people wearing Google Glass skydive onto the roof of the venue. You win the prize, and zoom—a plane flies overhead and a marketing person comes skydiving out of the plane and lands on your roof.
During my time at HubSpot, I was shocked to see how badly managed the company was and how packs of inexperienced twenty-something employees were being turned loose and given huge responsibility with little or no oversight. In the world of start-ups that is now the norm, not the exception. The consequences are just what you would expect. Employees at Uber, the ride-sharing company, have used a “God View” feature to stalk people using the service, including a BuzzFeed journalist. Re/code, a tech blog, claims other companies have done the same, including Lyft, a rival to Uber; Swipe, a photo-sharing app; and Basis, which makes a “health watch” that tracks people’s heart rates, sleep patterns, and other personal information. In the early days at Facebook, the young employees had a master password to gain access to anyone’s account, according to a book by a former Facebook employee. Dirty tricks have become par for the course at these places. In 2011 Facebook was caught running a sneaky smear campaign, hiring a PR firm to spread negative stories about Google—I know because I’m the reporter who caught them and broke the story for Newsweek.
3D printing, Airbnb, American energy revolution, assortative mating, autonomous vehicles, Bakken shale, barriers to entry, basic income, Bernie Sanders, BRICs, call centre, Capital in the Twenty-First Century by Thomas Piketty, Clayton Christensen, cloud computing, collective bargaining, computer age, creative destruction, dark matter, David Ricardo: comparative advantage, deindustrialization, dematerialisation, Deng Xiaoping, deskilling, Dissolution of the Soviet Union, Donald Trump, Downton Abbey, Edward Glaeser, Erik Brynjolfsson, eurozone crisis, everywhere but in the productivity statistics, falling living standards, first square of the chessboard, first square of the chessboard / second half of the chessboard, Ford paid five dollars a day, Francis Fukuyama: the end of history, future of work, gig economy, global supply chain, global value chain, hydraulic fracturing, income inequality, indoor plumbing, industrial robot, intangible asset, interchangeable parts, Internet of things, inventory management, invisible hand, Jacquard loom, James Watt: steam engine, Jeff Bezos, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph-Marie Jacquard, knowledge economy, low skilled workers, lump of labour, Lyft, manufacturing employment, Marc Andreessen, mass immigration, means of production, new economy, performance metric, pets.com, price mechanism, quantitative easing, Ray Kurzweil, rent-seeking, reshoring, rising living standards, Robert Gordon, Ronald Coase, savings glut, Second Machine Age, secular stagnation, self-driving car, sharing economy, Silicon Valley, single-payer health, software is eating the world, supply-chain management, supply-chain management software, TaskRabbit, The Future of Employment, The Nature of the Firm, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, trade liberalization, transaction costs, Tyler Cowen: Great Stagnation, Uber and Lyft, Uber for X, very high income, working-age population
Today’s labour victories, when they occur, tend to come from straightforward issues for which it is easy to muster broad, passionate electoral support: policies such as a rise in the minimum wage or a reduction in immigration. The more complex negotiations that occurred a generation or two ago, when labour had a seat at the political table, tend not to occur any longer. That could change. Drivers for car-sharing firms, such as Uber and Lyft, are battling to unionize. Unionization could eventually come to other sectors of the economy in which large pools of on-demand labour sell their time through market-making apps as well. Unionization would yield uncertain direct benefits to workers within these firms, though. Short-run concessions wrung from ownership might simply accelerate the pace of automation: troublesome labour tends to encourage the deployment of robots, whether the setting is a factory in Shenzhen or a car on California streets.
Ray labour abundance as good problem bargaining power cognitive but repetitive collective bargaining and demographic issues discrimination and exclusion global growth of workforce and immigration liberalization in 1970s/80s ‘lump of labour’ fallacy occupational licences organized and proximity reallocation to growing industries retraining and skill acquisition and scarcity and social value work as a positive good see also employment Labour Party, British land scarcity Latvia Le Pen, Jean-Marie Le Pen, Marine legal profession Lehman Brothers collapse (2008) Lepore, Jill liberalization, economic (from 1970s) Linkner, Josh, The Road to Reinvention London Lucas, Robert Lyft maker-taker distinction Malthus, Reverend Thomas Manchester Mandel, Michael Mankiw, Gregory marketing and public relations Marshall, Alfred Marx, Karl Mason, Paul, Postcapitalism (2015) McAfee, Andrew medicine and healthcare ‘mercantilist’ world Mercedes Benz Mexico Microsoft mineral industries minimum wage Mokyr, Joel Monroe, President James MOOCs (‘massive open online courses’) Moore, Gordon mortality rates Mosaic (web browser) music, digital nation states big communities of affinity inequality between as loci of redistribution and social capital nationalist and separatist movements Netherlands Netscape New York City Newsweek NIMBYism Nordic and Scandinavian economies North Carolina North Dakota Obama, Barack oil markets O’Neill, Jim Oracle Orbán, Viktor outsourcing Peretti, Jonah Peterson Institute for International Economics pets.com Philadelphia Centennial Fair (1876) Philippines Phoenix, Arizona Piketty, Thomas, Capital in the Twenty-First Century (2013) Poland political institutions politics fractionalization in Europe future/emerging narratives geopolitical forces human wealth narrative left-wing looming upheaval/conflict Marxism nationalist and separatist movements past unrest and conflict polarization in USA radicalism and extremism realignment revolutionary right-wing rise of populist outsiders and scarcity social membership battles Poor Laws, British print media advertising revenue productivity agricultural artisanal goods and services Baumol’s Cost Disease and cities and dematerialization and digital revolution and employment trilemma and financial crisis (2008) and Henry Ford growth data in higher education of highly skilled few and industrial revolution minimum wage impact paradox of in service sector and specialization and wage rates see also factors of production professional, technical or managerial work and education levels and emerging economies the highly skilled few and industrial revolution and ‘offshoring’ professional associations skilled cities professional associations profits Progressive Policy Institute property values proximity public spending Putnam, Robert Quakebot quantitative easing Race Against the Machine, Brynjolfsson and McAfee (2011) railways Raleigh, North Carolina Reagan, Ronald redistribution and geopolitical forces during liberal era methods of nation state as locus of as a necessity as politically hard and societal openness wealth as human rent, economic Republican Party, US ‘reshoring’ phenomenon Resseger, Matthew retail sector retirement age Ricardo, David rich people and maker-taker distinction wild contingency of wealth Robinson, James robots Rodrik, Dani Romney, Mitt rule of law Russia San Francisco San Jose Sanders, Bernie sanitation SAP Saudi Arabia savings glut, global ‘Say’s Law’ Scalia, Antonin Scandinavian and Nordic economies scarcity and labour political effects of Schleicher, David Schwartz, Anna scientists Scotland Sears Second World War secular stagnation global spread of possible solutions shale deposits sharing economies Silicon Valley Singapore skilled workers and education levels and falling wages the highly skilled few and industrial revolution ‘knowledge-intensive’ goods and services reshoring phenomenon technological deskilling see also professional, technical or managerial work Slack (chat service) Slate (web publication) smartphone culture Smith, Adam social capital and American Constitution baseball metaphor and cities ‘deepening’ definition/nature of and dematerialization and developing economies and erosion of institutions of firms and companies and good government and housing wealth and immigration and income distribution during industrial revolution and liberalization and nation-states productive application of and rich-poor nation gap and Adam Smith and start-ups social class conflict middle classes and NIMBYism social conditioning of labour force working classes social democratic model social reform social wealth and social membership software ‘enterprise software’ products supply-chain management Solow, Robert Somalia South Korea Soviet Union, dissolution of (1991) specialization Star Trek state, role of steam power Subramanian, Arvind suburbanization Sweden Syriza party Taiwan TaskRabbit taxation telegraphy Tesla, Nikola Thatcher, Margaret ‘tiger’ economies of South-East Asia Time Warner Toyota trade China as ‘mega-trader’ ‘comparative advantage’ theory and dematerialization global supply chains liberalization shaping of by digital revolution Adam Smith on trade unions transhumanism transport technology self-driving cars Trump, Donald Twitter Uber UK Independence Party United States of America (USA) 2016 Presidential election campaign average income Bureau of Labour Statistics (BLS) Constitution deindustrialization education in employment in ethno-nationalist diversity of financial crisis (2008) housing costs in housing wealth in individualism in industrialization in inequality in Jim Crow segregation labour scarcity in Young America liberalization in minimum wage in political polarization in post-crisis profit rates productivity boom of 1990s real wage data rising debt levels secular stagnation in shale revolution in social capital in and social wealth surpasses Britain as leading nation wage subsidies in university education advanced degrees downward mobility of graduates MOOCs (‘massive open online courses’) and productivity see also education urbanization utopias, post-work Victoria, Queen video-gamers Virginia, US state Volvo Vox wages basic income policy Baumol’s Cost Disease cheap labour and employment growth and dot.com boom and financial crisis (2008) and flexibility and Henry Ford government subsidies and housing costs and immigration and industrial revolution low-pay as check on automation minimum wage and productivity the ‘reservation wage’ as rising in China rising in emerging economies and scarcity in service sector and skill-upgrading approach stagnation of and supply of graduates Wandsworth Washington D.C.
Albert Einstein, barriers to entry, Bayesian statistics, Berlin Wall, business intelligence, carbon-based life, Claude Shannon: information theory, complexity theory, David Heinemeier Hansson, declining real wages, deliberate practice, discrete time, double helix, Douglas Engelbart, Douglas Engelbart, Downton Abbey, Drosophila, Firefox, Frank Gehry, Google X / Alphabet X, informal economy, invention of the printing press, inventory management, John Markoff, Khan Academy, Kickstarter, low skilled workers, Lyft, Marc Andreessen, Mark Zuckerberg, meta analysis, meta-analysis, natural language processing, Network effects, open borders, pattern recognition, Peter Thiel, pez dispenser, ride hailing / ride sharing, Ronald Reagan, Ruby on Rails, Sand Hill Road, self-driving car, Silicon Valley, Silicon Valley startup, social web, South of Market, San Francisco, speech recognition, Steve Jobs, technoutopianism, transcontinental railway, Vannevar Bush
He was using an app on his iPhone that was supposed to summon another person with the same app to drive us, but the first guy flaked, so he switched to the popular limousine-summoning service Uber. The GPS chip in Michael’s phone told the Uber driver’s phone where to pick us up, and the fare was automatically charged to Michael’s credit card. This was a year or so before Uber and competitors like Lyft became ubiquitous in major cities worldwide. We were running behind schedule and I asked Michael if we should just take a regular taxi. He is by nature laid-back, so I was surprised to see him scowl. He didn’t take taxis, he said. You have to stand out in the street and wave your hand to find one but half the time they drive right by you and you don’t even know why. Then it’s random whether they have a credit card machine, and if they do, they hassle you to pay cash even though he never carries cash with him, or they run his credit card through some kind of mechanical impression machine that must have been invented in the nineteenth century.
., 157 Lewin, Walter, 190–91 Liberal arts, 16, 27–31, 237, 241, 244–45 in accreditation standards, 50 core curriculum for, 49 at elite universities, 179 online courses in, 158, 244 PhDs and, 35 rankings and, 59 teaching mission in, 253 training, research, and, 29, 33, 261n (see also Hybrid universities) Lincoln, Abraham, 25 LinkedIn, 66, 217 Litton Industries, 75 Livy, 25 London, University of, 23 Lue, Robert, 178–81, 211, 231 Lyft ride-sharing service, 122 MacArthur, General Douglas, 51, 90 MacArthur “Genius” awards, 2 MacBooks, 132, 144 Madison, James, 23 Manitoba, University of, 150 Maples, Mike, Jr., 128–30, 132 Marine Corps, U.S., 140 Marx, Karl, 45 Massachusetts Bay Colony, Great and General Court of, 22 Massachusetts Institute of Technology (MIT), 37–38, 59, 116, 132, 148, 153, 167–79, 245 admissions to, 39, 161, 212, 214–15, 245 Brain and Cognitive Sciences Complex, 1–4, 143, 173–74 Bush at, 51–52, 79, 125, 168 computer science sequence offered online by, 231, 233 founding of, 29, 167 General Institute Requirements, 14, 190, 241 graduation rate at, 8 hacks as source of pride at, 168–69 joint online course effort of Harvard and, see edX MITx, 169, 173, 203 OpenCourseWare, 107–8, 150, 169, 185, 191 prestige of brand of, 163, 181 Saylor at, 176–90 Secret of Life (7.00x) online offering of, see Introduction to Biology—The Secret of Life (7.00x) tour of campus of, 168, 174 wormhole connecting Stanford and cafeteria at, 174–75, 179, 235 Massive open online courses (MOOCs), 150, 154, 156, 158, 159, 185, 204, 255 global demand for, 225 initial audience for, 214–15 providers of, see names of specific companies and universities Master Plans, 35, 60, 64–65 Master’s degrees, 117, 193, 195–96 Mayo Clinic, 242 Mazur, Eric, 137 “M-Badge” system, 208–9 McGill University, 204 Mellon Institute of Science, 75, 76, 229 Memex, 79, 80 Mendelian genetics, 3, 103–4 Miami-Dade Community College, 64 Microsoft, 128, 139, 145, 146, 188, 204 MicroStrategy, 187–91, 199 Middle States Association of Colleges and Schools, 50 Minerva Project, 133–38, 141, 215, 235, 236, 243 Minnesota, University of, Rochester (UMR), 242–43 Missouri, University of, 208 Moore’s law, 176 Morrill, Justin Smith, 25–26 Morrill Land-Grant Act (1862), 25, 168 Mosaic software program, 126 Mozilla Foundation, 205–8, 218, 248 MS-DOS, 87 Myanganbayar, Battushig, 214, 215 NASDAQ, 177, 188 National Aeronautics and Space Administration (NASA), 208 National Broadcasting Company (NBC), 96 National Bureau of Economic Research, 10 National Institutes of Health, 52 National Instruments, 216 National Manufacturing Institute, 208 National Oceanic and Atmospheric Administration, 208 National Science Foundation, 52 National Survey of Student Engagement, 243 Navy, U.S., 53, 123 Nebraska, University of, 26 Nelson, Ben, 133–35, 139, 181 Netflix, 131, 145 Netscape, 115, 126, 128, 129, 204–5 Newell, Albert, 79, 105 New Jersey, College of, 23 Newman, John Henry, 27–29, 47, 49, 244 Newman Report (1971), 56 Newton, Isaac, 190 New York, State University of, Binghamton, 183–84 New York City public schools, 1, 44 New York Times, 9, 44, 56–57, 107–8, 149, 170 New York University (NYU), 9, 64, 96, 250 Ng, Andrew, 153, 158 Nicomachean Ethics (Aristotle), 17 Nimitz, Admiral Chester W., 90 NLS/Augment, 125 Nobel Prize, 3, 45, 59, 78, 80, 176 Northeastern University, 64 Northern Arizona University, 229–30 Health and Learning Center, 230 Northern Iowa, University of, 55 Norvig, Peter, 149, 170, 227–28, 232 Notre Dame (Paris), cathedral school at, 18 Nurkiewicz, Tomasz, 218 Obama, Barack, 2 Oberlin College, 46 O’Brien, Conan, 166 Oklahoma, University of, 90 Omdurman Islamic University, 88 oNLine system, 125–26 Open Badges, 207 Open source materials and software, 177, 205–6, 215, 223, 232 Organisation for Economic Co-operation and Development, 9, 224 Overeducated American, The (Freeman), 56 Oxford University, 19, 21, 23, 24, 92, 135 Packard, David, 123 Parkinson’s disease, 70 Paris, University of, 18–19, 21, 137 Pauli, Wolfgang, 176 Pauling, Linus, 70 Pausch, Randy, 71–72 Peace Corps, 125 Pellar, Ronald (“Doctor Dante”), 208 Pell Grant Program, 56 Penguin Random House, 146 Pennsylvania, University of, 23, 24, 31 Wharton Business School, 155 Pennsylvania State University, 53 People magazine, 57 Pez dispensers, 146 Phaedrus (Socrates), 20, 98 PhDs, 7, 55, 117, 141, 193, 237, 250, 254 adjunct faculty replacing, 252 college rankings based on number of scholars with, 59 regional universities and community colleges and, 60, 64, 253 as requirement for teaching in hybrid universities, 31–33, 35, 50, 60, 224 Silicon Valley attitude toward, 66 Philadelphia, College of, 23 Philip of Macedon, 92 Phoenix, University of, 114 Piaget, Jean, 84, 227 Piazza, 132 Pittsburgh, University of, 73–76 Pixar, 146 Planck, Max, 45 Plato, 16, 17, 21, 31, 44, 250–51 Portman, Natalie, 165 Powell, Walter, 50, 117 Princeton University, 1–2, 23, 112, 134, 161, 245 Principia (Newton), 190 Protestantism, 24 Public universities, 7, 55, 177, 224, 253 Purdue University, 96, 208 Puritans, 22–24 Queens College, 23 Quizlet, 133 Rafter, 131–32 Raphael, 16, 17 Reader’s Guide to Periodical Literature, 87 Reagan, Ronald, 56 Regional universities, 55, 60, 64 Reid, Harry, 42 Renaissance, 19 Rhode Island, College of, 23 Rhodes Scholarships, 2 Rice University, 204 RNA, 3 Rockstar Games, 230 Roksa, Josipa, 9, 36, 85, 244 Romans, ancient, 16 Roosevelt, Theodore, 165 Ruby on Rails Web development framework, 144 Rutgers University, 23 Sample, Steven, 64 Samsung, 146 San Jose State University, 177 Sandel, Michael, 177 SAT scores, 63, 136–37, 171, 195, 213 Saylor, Michael, 186–93, 199, 201 Saylor.org, 191, 223, 231 Schelling, Friedrich Wilhelm Joseph, 45 School of Athens, The (Raphael), 16 Schopenhauer, Arthur, 45 Science: The Endless Frontier (Bush), 51 Scientific American, 92, 155 Scientific Research and Development, U.S.
The Airbnb Story: How Three Ordinary Guys Disrupted an Industry, Made Billions...and Created Plenty of Controversy by Leigh Gallagher
Airbnb, Amazon Web Services, barriers to entry, Bernie Sanders, cloud computing, crowdsourcing, don't be evil, Donald Trump, East Village, Elon Musk, housing crisis, iterative process, Jeff Bezos, Jony Ive, Justin.tv, Lyft, Marc Andreessen, Mark Zuckerberg, medical residency, Menlo Park, Network effects, Paul Buchheit, Paul Graham, performance metric, Peter Thiel, RFID, Sand Hill Road, Saturday Night Live, sharing economy, side project, Silicon Valley, Silicon Valley startup, South of Market, San Francisco, Startup school, Steve Jobs, TaskRabbit, the payments system, Tony Hsieh, Y Combinator, yield management
But it’s also what makes it unique. This kind of “sharing”—this hyperpersonal opening up of the most intimate and safest aspect of one’s life to a stranger—is not present when you hire a person to fix a leak on TaskRabbit, or when you get into someone’s air-conditioned black car for a silent ride to the airport with your head in your phone. More than anything else, it is this aspect of Airbnb that distinguishes it from Uber, Lyft, and any other of its sharing-economy peers. Elisa Schreiber, marketing partner at Greylock Partners, an investor in the company, summarized this distinction concisely after we got to talking about it one day. “Uber is transactional,” she said. “Airbnb is humanity.” Unfortunately, as we are about to see and as Airbnb has learned, despite its best intentions, that “humanity” can be a frustrating thing.
In what became a valuable reverse mentorship, Donahoe also quizzed Chesky for his advice on design and innovation and on how eBay could maintain characteristics of being young and nimble. From Jeff Weiner, Chesky learned the importance of removing those managers who weren’t performing. From Salesforce.com CEO Marc Benioff he learned how to push his executive team. He also had access to an informal support group among his current-generation start-up peers, including Travis Kalanick of Uber, Drew Houston of Dropbox, Jack Dorsey of Square, and John Zimmer of Lyft, all sharing their individual lessons about everything from running start-ups to balancing friends, relationships, and other elements of young founder life. A key principle of Chesky’s sourcing strategy was to become creative with identifying just who the experts were, and seeking out sources in unexpected disciplines. So, for instance, Chesky approached former CIA director George Tenet, not for trust and safety but to talk about culture (“How do you get people to feel committed in a place where everyone’s a spy?”
The New Prophets of Capital by Nicole Aschoff
3D printing, affirmative action, Affordable Care Act / Obamacare, Airbnb, American Legislative Exchange Council, basic income, Bretton Woods, clean water, collective bargaining, commoditize, crony capitalism, feminist movement, follow your passion, Food sovereignty, glass ceiling, global supply chain, global value chain, helicopter parent, hiring and firing, income inequality, Khan Academy, late capitalism, Lyft, Mark Zuckerberg, mass incarceration, means of production, performance metric, profit motive, rent-seeking, Ronald Reagan, Rosa Parks, school vouchers, shareholder value, sharing economy, Silicon Valley, Slavoj Žižek, structural adjustment programs, Thomas L Friedman, Tim Cook: Apple, urban renewal, women in the workforce, working poor, zero-sum game
Or they make sure they buy from and work with other local freelancers to keep the ecosystem healthy. They buy their groceries at the local food co-op. They attend classes. They teach classes. They go to networking events not just to hand out business cards, but to find other freelancers that share their passions.37 In the new sharing economy we’ll all be freelancers. We’ll rent out our spare rooms on Airbnb and drive our cars for Lyft. We’ll have a “portfolio of jobs” and live our lives by “essentialist” principles: We will live with “intention and choice” and celebrate the joy of “fulfilling a purpose” and making “small choices that lead to big change.”38 It’s all about adapting ourselves and acquiring the necessary skills and connections to make it in the world. This is the new American Dream. Sure, there are problems in society, but we don’t need to change the world.
Thank You for Being Late: An Optimist's Guide to Thriving in the Age of Accelerations by Thomas L. Friedman
3D printing, additive manufacturing, affirmative action, Airbnb, AltaVista, Amazon Web Services, autonomous vehicles, Ayatollah Khomeini, barriers to entry, Berlin Wall, Bernie Sanders, bitcoin, blockchain, Bob Noyce, business process, call centre, centre right, Chris Wanstrath, Clayton Christensen, clean water, cloud computing, corporate social responsibility, creative destruction, crowdsourcing, David Brooks, demand response, demographic dividend, demographic transition, Deng Xiaoping, Donald Trump, Erik Brynjolfsson, failed state, Fall of the Berlin Wall, Ferguson, Missouri, first square of the chessboard / second half of the chessboard, Flash crash, game design, gig economy, global supply chain, illegal immigration, immigration reform, income inequality, indoor plumbing, intangible asset, Intergovernmental Panel on Climate Change (IPCC), Internet of things, invention of the steam engine, inventory management, Irwin Jacobs: Qualcomm, Jeff Bezos, job automation, John Markoff, John von Neumann, Khan Academy, Kickstarter, knowledge economy, knowledge worker, land tenure, linear programming, Live Aid, low skilled workers, Lyft, Marc Andreessen, Mark Zuckerberg, mass immigration, Maui Hawaii, Menlo Park, Mikhail Gorbachev, mutually assured destruction, pattern recognition, planetary scale, pull request, Ralph Waldo Emerson, ransomware, Ray Kurzweil, Richard Florida, ride hailing / ride sharing, Robert Gordon, Ronald Reagan, Second Machine Age, self-driving car, shareholder value, sharing economy, Silicon Valley, Skype, smart cities, South China Sea, Steve Jobs, supercomputer in your pocket, TaskRabbit, Thomas L Friedman, transaction costs, Transnistria, urban decay, urban planning, Watson beat the top human players on Jeopardy!, WikiLeaks, women in the workforce, Y2K, Yogi Berra, zero-sum game
This system, she added, “amplifies everything that goes through it, so it creates feedback loops used to bully people, and it creates more points of interaction and many more opportunities for people who are homophobic to meet a gay person. And now suddenly so many more people are meeting gay people. If empathy comes about through human interaction, this system creates so many more opportunities for that.” The day I interviewed Gorbis, Bettina Warburg, a researcher at the Institute for the Future, told me this story from her recent commute in the San Francisco area: “I was riding in a Lyft the other morning—where you ride-share with others headed in the same direction. My driver chatted with me and mentioned his last [passenger] was ‘voted out of the car,’ because he was expressing extreme homophobic rhetoric. He said, ‘You won’t get a ride in San Francisco with those values—you are in the wrong city.’ We were a black, a Hispanic, and a woman in the car talking about how intolerance does not jibe with an economy built on platforms that value participation.”
She sent back the following list: • Tell you what to wear & provide the weather forecast for interview day • Where to go with Google street map view of job location & public transit route to job location • Send interview reminders about the time and how long you should prepare to get there • Have you dial-in to a practice interview line, record your answers, then hear “best practices” answers • Provide tips from previously hired job seekers or managers at each step • Provide more transparency of what and why at each step of a job search so that the benefits are clear • Show other previously hired job seekers at the job location • Share interesting facts about the location and the manager with job seekers • Provide more info about the hiring manager whom they will meet • Ask job seekers to share interesting facts about themselves with the hiring managers • Auto schedule a Lyft or Uber to take them to their interview • Remind you to send a thank-you note to the interviewer Concluded Ringwald: “Everyone needs someone who says, ‘I believe in you’ … There is not just a skills gap—there’s a confidence gap.” And you can’t sustainably fill one without the other. You Need Work on Fractions Maybe the most popular intelligent assistant in the world today is Khan Academy, which was started in 2006 by the educator Salman “Sal” Khan and offers free, short YouTube video lessons in English on subjects ranging from math, art, computer programming, economics, physics, chemistry, biology, and medicine to finance, history, and more.
Robert Lewis, LaShana Lexus and the Olive Tree, The (Friedman) liberty: impossibility of transplanting from outside; positive vs. negative Libya lifelong learning; in Mother Nature; workplace and Lincoln Delicatessen, St. Louis Park Lindley-French, Julian Linkabit LinkedIn Linnee, Jane Linnee, Paul Linnee, Susan Linux Liss, Jeff Lithium Corporation of America Litwak, Robert locomotives, sensors on London, Iranian Embassy in London Review of Books Long, Mark Lord, John Los Angeles County Museum of Art Lovejoy, Tom Lovins, Amory Lucene (search engine) Ludwig, Cornelia Lyft Macalester College MacGregor, Clark Machine, the; in age of accelerations; definition of; impact on people and cultures of; inflection points and; technological change and machine learning machines: sensors on; supernova and Madagascar Maersk, sensors for Maersk Alabama maintenance, new modes of makers, political, see geopolitics, innovation in Malagasy Armed Forces Malawi Maldonado, Raúl Malik, Khalid Maltzman, Jonathan Mandela, Nelson Mandelbaum, Michael Mann, Thomas E.
The Evolution of Everything: How New Ideas Emerge by Matt Ridley
affirmative action, Affordable Care Act / Obamacare, Albert Einstein, Alfred Russel Wallace, altcoin, anthropic principle, anti-communist, bank run, banking crisis, barriers to entry, bitcoin, blockchain, British Empire, Broken windows theory, Columbian Exchange, computer age, Corn Laws, cosmological constant, creative destruction, Credit Default Swap, crony capitalism, crowdsourcing, cryptocurrency, David Ricardo: comparative advantage, demographic transition, Deng Xiaoping, discovery of DNA, Donald Davies, double helix, Downton Abbey, Edward Glaeser, Edward Lorenz: Chaos theory, Edward Snowden, endogenous growth, epigenetics, ethereum blockchain, facts on the ground, falling living standards, Ferguson, Missouri, financial deregulation, financial innovation, Frederick Winslow Taylor, Geoffrey West, Santa Fe Institute, George Gilder, George Santayana, Gunnar Myrdal, Henri Poincaré, hydraulic fracturing, imperial preference, income per capita, indoor plumbing, interchangeable parts, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Isaac Newton, Jane Jacobs, Jeff Bezos, joint-stock company, Joseph Schumpeter, Kenneth Arrow, Kevin Kelly, Khan Academy, knowledge economy, land reform, Lao Tzu, long peace, Lyft, M-Pesa, Mahatma Gandhi, Mark Zuckerberg, means of production, meta analysis, meta-analysis, mobile money, money: store of value / unit of account / medium of exchange, Mont Pelerin Society, moral hazard, Necker cube, obamacare, out of africa, packet switching, peer-to-peer, phenotype, Pierre-Simon Laplace, price mechanism, profit motive, RAND corporation, random walk, Ray Kurzweil, rent-seeking, reserve currency, Richard Feynman, Richard Feynman, rising living standards, road to serfdom, Ronald Coase, Ronald Reagan, Satoshi Nakamoto, Second Machine Age, sharing economy, smart contracts, South Sea Bubble, Steve Jobs, Steven Pinker, The Wealth of Nations by Adam Smith, Thorstein Veblen, transaction costs, women in the workforce
Given the right institutions – a market in which to sell your product, the rule of law to prevent theft, a decent system of finance and taxation to incentivise you, some intellectual property protection, but not too much – you can set out to make an innovation and reap the rewards from it, despite sharing it with the world, in the same way you can set out to build a machine. That is roughly what the various firms around the world that are, as of this writing, offering mobile taxi-hiring services (Uber, Lyft, Hailo and so on) are doing – investing in innovation itself. But apart from some vague hand-waving about institutions, economists still have very little to offer in the way of prescriptions for innovation, except to say they know it will happen in open, free societies connected to the rest of the world by trade so that ideas can meet and mate. And even these explanations come long after the phenomenon itself.
Morgan 290 Judaism 258, 259, 260, 261, 263 Justinian, Emperor 34, 262 Kagan, Jerome 161 Kahn, Bob 301 Kalikuppam (nr Pondicherry, India) 185–6 Kammerer, Paul 56 Kant, Immanuel 8 Kauffman, Stuart 125 Kay, John 92 Kealey, Terence 134, 137, 138 Kedzie, Christopher 300 Kelly, Kevin 122, 125, 129, 131; What Technology Wants 120, 126 Kennedy, Gavin 25 Kennedy, John F. 206 Kenya 170, 181, 296 Keynes, John Maynard 105 Kim Il-sung 252 Kirwan, Richard 17 Kitzmiller, Tammy 49; Kitzmiller vs Dover Area School District (2005) 49–50 Klein, Richard 83 Knight, Thomas 121 Koestler, Arthur 56 Koran 8, 260–1, 261, 262 Kosslyn, Stephen 185 Kroeber, Alfred 120 Krugman, Paul 292, 293 Kryder’s Law 124 Kublai Khan 87 Kurzweil, Ray 124 Lagos 182–3 Lamarck, Jean-Baptise de 55–7 Lamb, Marion 56, 57 Lamont, Norman 295 Lane, Nick 61, 62 Lao Tzu 31, 241 Laplace, Pierre-Simon 17–18, 41 Latin America 229, 233 Laughlin, Harry 200, 202–3 Law, John 285–6 Lawson, Nigel 273, 275 leadership: China’s reform 217–19; and economic development 228–33; evolution of management 2258; giving credit to 215–16; Great Man theory 216–17, 218,222–5, 228; Hong Kong example 233–4; mosquitoes win wars 219–22 Lee, Sir Tim Berners 301 Leeds 91 Leibniz, Gottfried 12, 14, 15, 120, 276 Lenin, V.I. 217, 250 Lessing, Doris 188 Levellers 242–3 Libet, Benjamin 146 Library of Mendel 48 life: critics of Darwin 49–52; culture-driven genetic evolution 57–8; designed 39–42; development of the eye 44–6; Lamarckian view 557; natural selection 38–9, 42–8; organised complexity 44–5 Lilburne, John 242 The Limits to Growth (Club of Rome) 211, 212 Lincoln, Abraham 4 Lindsey, Brink 248, 318 Lisbon earthquake (1755) 14 Little Ice Age 276 Live Well Collaborative 130 Lloyd George, David 116 Locke, John 12, 20, 39, 41, 53, 67, 143,243, 247 Lockheed 130 Lodygin, Alexander 119 London 91, 92, 94, 121 Looksmart (search engine) 120 Lorentz, Hendrik 121 Lorenz, Edward 18 Lost City Hydrothermal Field 61 Louis XIV 101, 142 Lovelock, James 20 Lucretia, rape of 87 Lucretian heresy 10–12 Lucretius (Titus Lucretius Carus) 7, 8–10, 12, 14, 16, 21, 52, 244, 268; De Rerum Natura (Of the Nature of Things) 8–12, 13, 15–16, 21, 37, 59, 76, 96, 118, 140, 155, 174, 193, 215, 235, 256, 277 Luther, Martin 8, 216 Lycos 120 Lyft 109 Lysenko, Trofim 157 M-Pesa 296 Macbook Air laptop 319 McCloskey, Deirdre 96–7, 104, 108, 217n, 229, 248; The Bourgeois Virtues 32 Mackintosh, James 38 McNamara, Robert 206, 208 McNeill, J.R. 220–2 Mackey, John 227 Maccoby, Eleanor 161 Machiavelli, Niccolò 15 Madras 186 Mafia 238, 239, 240 Malawi 232–3 Malthus, Robert 38, 104, 193, 194–7, 203, 204–5, 208, 213–14, 246; Essay on Population 120, 194 Manchester 91 Mandela, Nelson 217 Manhattan 91 ‘Mankind at the Turning Point’ (Club of Rome) 211 Mann, Charles, 1493 220 Mann, Horace 176, 189 Mansfield, Edwin 133 Mao Zedong 210, 217, 219, 252 Marconi, Guglielmo 124 Marcus Aurelius 9 Margarot, Maurice 244 Marinetti, Filippo 198 Marshall, Alfred 106 Martin, William 61 Martineau, Harriet 38, 244–5; Illustrations of Political Economy 244 Marx, Karl 8, 106, 165, 216n, 248, 252, 269–70 Marxism 104, 267, 302 Maude, Francis 255 Maupertuis, Pierre-Louis 14–15 Maurice, Prince of Saxe 88 Mauritius 125 Max Planck Institute, Leipzig 146–7 May, Tim 306 Mayans 259 Mead, Carver 123 Mecca 260, 261, 261402 Medawar, Sir Peter 211 Medicaid 114 Medicare 114 Men in Black (film, 1997) 141 Mencken, H.L. 189 Mendel, Gregor 121–2, 199 Menger, Carl 106 Mexico 87, 170, 238 Micklethwait, John 247 Middle Ages 88 Mill, John Stuart 104, 105, 187, 246, 247, 249 Miller, George A. 159 Miller, Kenneth 51 Milton, John 15 mind: background 140–2; and the brain 143–7; and free will 142–3, 147–54; responsibility in a world of determinism 150–4; and self 140–1 mind-body dualism 141 Minerva Academy, San Francisco 184–5 Ming Chinese 130 Mises, Ludwig von 112 Mississippi Company 286 MIT (Massachusetts Institute of Technology) 184, 301 Mitchell Energy 136 Mitchell, George 136 Mitra, Sugata 176–7, 185–7 Moglen, Eben 303 Mohamed 8, 216, 257, 260–3, 266 Molière (Jean-Baptiste Poquelin) 15 money: crypto-currencies 296, 308–9, 310–12; emergence of 277–80; fiat money 297; financial crisis 287–94; financial stability without central banks 284–6; main functions 296; mobile money 294–8; and nationalisation of system 283–4; Scottish experiment 280–2; sub-prime market 289–94 Mongols 101 Monism 197–8 Montaigne, Michel de 15 Montana 92 Montesquieu, Charles-Louis de Secondat, Baron de La Brède et de 20, 31, 142, 216; The Spirit of the Laws 16 Montessori schools 188 Montford, Andrew 188 Monty Python’s Life of Brian (film, 1979)42, 265 Moore, Gordon 123 Moore’s Law 123–5 Morality: effect of commerce on 30–3; emergence of 26–7, 28; evolution of 28–30; impartial spectator 24–5, 30; nature-via-nurture explanation 23–4; spontaneous phenomenon 21–2, 25 More, Thomas, Utopia 15 Mormonism 263 Morning Star Tomatoes 225–8 Morris, Ian, War: What is it Good For?
The Fourth Industrial Revolution by Klaus Schwab
3D printing, additive manufacturing, Airbnb, Amazon Mechanical Turk, Amazon Web Services, augmented reality, autonomous vehicles, barriers to entry, Baxter: Rethink Robotics, bitcoin, blockchain, Buckminster Fuller, call centre, clean water, collaborative consumption, commoditize, conceptual framework, continuous integration, crowdsourcing, disintermediation, distributed ledger, Edward Snowden, Elon Musk, epigenetics, Erik Brynjolfsson, future of work, global value chain, Google Glasses, income inequality, Internet Archive, Internet of things, invention of the steam engine, job automation, job satisfaction, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, life extension, Lyft, mass immigration, megacity, meta analysis, meta-analysis, more computing power than Apollo, mutually assured destruction, Narrative Science, Network effects, Nicholas Carr, personalized medicine, precariat, precision agriculture, Productivity paradox, race to the bottom, randomized controlled trial, reshoring, RFID, rising living standards, Second Machine Age, secular stagnation, self-driving car, sharing economy, Silicon Valley, smart cities, smart contracts, software as a service, Stephen Hawking, Steve Jobs, Steven Levy, Stuxnet, supercomputer in your pocket, The Future of Employment, The Spirit Level, total factor productivity, transaction costs, Uber and Lyft, Watson beat the top human players on Jeopardy!, WikiLeaks, winner-take-all economy, women in the workforce, working-age population, Y Combinator, Zipcar
These have reduced the transaction costs and friction in the system to a point where it is an economic gain for all involved, divided in much finer increments. Well-known examples of the sharing economy exist in the transportation sector. Zipcar provides one method for people to share use of a vehicle for shorter periods of time and more reasonably than traditional rental car companies. RelayRides provides a platform to locate and borrow someone’s personal vehicle for a period of time. Uber and Lyft provide much more efficient “taxi-like” services from individuals, but aggregated through a service, enabled by location services and accessed through mobile apps. In addition, they are available at a moment’s notice. The sharing economy has any number of ingredients, characteristics or descriptors: technology enabled, preference for access over ownership, peer to peer, sharing of personal assets (versus corporate assets), ease of access, increased social interaction, collaborative consumption and openly shared user feedback (resulting in increased trust).
The Driver in the Driverless Car: How Our Technology Choices Will Create the Future by Vivek Wadhwa, Alex Salkever
23andMe, 3D printing, Airbnb, artificial general intelligence, augmented reality, autonomous vehicles, barriers to entry, Bernie Sanders, bitcoin, blockchain, clean water, correlation does not imply causation, distributed ledger, Donald Trump, double helix, Elon Musk, en.wikipedia.org, epigenetics, Erik Brynjolfsson, Google bus, Hyperloop, income inequality, Internet of things, job automation, Kevin Kelly, Khan Academy, Law of Accelerating Returns, license plate recognition, life extension, Lyft, M-Pesa, Menlo Park, microbiome, mobile money, new economy, personalized medicine, phenotype, precision agriculture, RAND corporation, Ray Kurzweil, recommendation engine, Ronald Reagan, Second Machine Age, self-driving car, Silicon Valley, Skype, smart grid, stem cell, Stephen Hawking, Steve Wozniak, Stuxnet, supercomputer in your pocket, Tesla Model S, The Future of Employment, Turing test, Uber and Lyft, Uber for X, uranium enrichment, Watson beat the top human players on Jeopardy!, zero day
Soon the public conversation will be about whether humans should be allowed to take control of the wheel at all. This paradigm shift will not be without costs or controversies. For sure, widespread adoption of autonomous vehicles will eliminate the jobs of the millions of Americans whose living comes of driving cars, trucks, and buses (and eventually all those who pilot planes and ships). We will begin sharing our cars, in a logical extension of Uber and Lyft. But how will we handle the inevitable software faults that result in human casualties? And how will we program the machines to make the right decisions when faced with impossible choices—such as whether an autonomous car should drive off a cliff to spare a busload of children at the cost of killing the car’s human passenger? I was surprised, upon my first sight of a Google car on the street, at how mixed my emotions were.
3D printing, additive manufacturing, agricultural Revolution, AI winter, Airbnb, artificial general intelligence, augmented reality, autonomous vehicles, banking crisis, basic income, Baxter: Rethink Robotics, Berlin Wall, Bernie Sanders, bitcoin, blockchain, call centre, Chris Urmson, congestion charging, credit crunch, David Ricardo: comparative advantage, Douglas Engelbart, Elon Musk, en.wikipedia.org, Erik Brynjolfsson, Flynn Effect, full employment, future of work, gender pay gap, gig economy, Google Glasses, Google X / Alphabet X, ImageNet competition, income inequality, industrial robot, Internet of things, invention of the telephone, invisible hand, James Watt: steam engine, Jaron Lanier, Jeff Bezos, job automation, John Markoff, John Maynard Keynes: technological unemployment, John von Neumann, Kevin Kelly, knowledge worker, lifelogging, lump of labour, Lyft, Marc Andreessen, Mark Zuckerberg, Martin Wolf, McJob, means of production, Milgram experiment, Narrative Science, natural language processing, new economy, Occupy movement, Oculus Rift, PageRank, pattern recognition, post scarcity, post-industrial society, precariat, prediction markets, QWERTY keyboard, railway mania, RAND corporation, Ray Kurzweil, RFID, Rodney Brooks, Satoshi Nakamoto, Second Machine Age, self-driving car, sharing economy, Silicon Valley, Skype, software is eating the world, speech recognition, Stephen Hawking, Steve Jobs, TaskRabbit, technological singularity, The Future of Employment, Thomas Malthus, transaction costs, Tyler Cowen: Great Stagnation, Uber for X, universal basic income, Vernor Vinge, working-age population, Y Combinator, young professional
Many freelancers find they have simply traded an unreasonable boss for unreasonable clients, and feel unable to turn down any work for fear that it will be the last commission they ever get. Many freelancers find that in hindsight, the reassurance of a steady income goes a long way to compensate for the 9 to 5 routine of the salaried employee. Whether or not the new forms of freelancing opened up by Uber, Lyft, TaskRabbit, Handy and so on are precarious is a matter of debate, especially in their birthplace, San Francisco. Are the people hired out by these organisations “micro-entrepreneurs” or “instaserfs” - members of a new “precariat”, forced to compete against each other on price for low-end work with no benefits? Are they operating in a network economy or an exploitation economy? Is the sharing economy actually a selfish economy?
The Unbanking of America: How the New Middle Class Survives by Lisa Servon
Affordable Care Act / Obamacare, Airbnb, basic income, Build a better mousetrap, Cass Sunstein, choice architecture, creative destruction, Credit Default Swap, employer provided health coverage, financial exclusion, financial independence, financial innovation, gender pay gap, George Akerlof, gig economy, income inequality, informal economy, Jane Jacobs, Joseph Schumpeter, late fees, Lyft, M-Pesa, medical bankruptcy, microcredit, Occupy movement, payday loans, peer-to-peer lending, precariat, Ralph Nader, Richard Thaler, Robert Shiller, Robert Shiller, Ronald Reagan, sharing economy, too big to fail, transaction costs, unbanked and underbanked, underbanked, universal basic income, Unsafe at Any Speed, We are the 99%, white flight, working poor, Zipcar
They pull a hundred dollars from my paycheck, and I get paid bimonthly, so that’s two hundred per month.” Indeed, research shows that the “sharing economy” is on the rise. This economy values shared resources and collaboration over accumulation and ownership, and it operates as a system of providers and users, although people often act in both roles. Providers offer goods and services to be shared, and users rent, pay for, or barter for what’s being offered. Best known for services like Zipcar, Lyft, and Airbnb, it extends to crowdfunding as well as the sharing of equipment and media. Advances in technology—mobile apps and web platforms—allow individuals to connect and then facilitate services and transactions. While almost less than one in ten adults has participated in the sharing economy as providers, consumers under age thirty-five make up 38 percent of the total. Half of millennials belong to or expect to join a sharing service within the next year.
The Glass Cage: Automation and Us by Nicholas Carr
Airbnb, Airbus A320, Andy Kessler, Atul Gawande, autonomous vehicles, Bernard Ziegler, business process, call centre, Captain Sullenberger Hudson, Checklist Manifesto, cloud computing, computerized trading, David Brooks, deliberate practice, deskilling, digital map, Douglas Engelbart, drone strike, Elon Musk, Erik Brynjolfsson, Flash crash, Frank Gehry, Frank Levy and Richard Murnane: The New Division of Labor, Frederick Winslow Taylor, future of work, global supply chain, Google Glasses, Google Hangouts, High speed trading, indoor plumbing, industrial robot, Internet of things, Jacquard loom, Jacquard loom, James Watt: steam engine, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Kevin Kelly, knowledge worker, Lyft, Marc Andreessen, Mark Zuckerberg, means of production, natural language processing, new economy, Nicholas Carr, Norbert Wiener, Oculus Rift, pattern recognition, Peter Thiel, place-making, Plutocrats, plutocrats, profit motive, Ralph Waldo Emerson, RAND corporation, randomized controlled trial, Ray Kurzweil, recommendation engine, robot derives from the Czech word robota Czech, meaning slave, Second Machine Age, self-driving car, Silicon Valley, Silicon Valley ideology, software is eating the world, Stephen Hawking, Steve Jobs, TaskRabbit, technoutopianism, The Wealth of Nations by Adam Smith, turn-by-turn navigation, US Airways Flight 1549, Watson beat the top human players on Jeopardy!, William Langewiesche
And, like those antiaircraft gunners during World War II, we’ll be compelled to adapt our own work, behavior, and skills to the capabilities and routines of the machines we depend on. * The internet, it’s often noted, has opened opportunities for people to make money through their own personal initiative, with little investment of capital. They can sell used goods through eBay or crafts through Etsy. They can rent out a spare room through Airbnb or turn their car into a ghost cab with Lyft. They can find odd jobs through TaskRabbit. But while it’s easy to pick up spare change through such modest enterprise, few people are going to be able to earn a middle-class income from the work. The real money goes to the software companies running the online clearinghouses that connect buyer and seller or lessor and lessee—clearinghouses that, being highly automated themselves, need few employees.
Most Likely to Succeed: Preparing Our Kids for the Innovation Era by Tony Wagner, Ted Dintersmith
affirmative action, Airbnb, Albert Einstein, Bernie Sanders, Clayton Christensen, creative destruction, David Brooks, en.wikipedia.org, Frederick Winslow Taylor, future of work, immigration reform, income inequality, index card, Jeff Bezos, jimmy wales, Khan Academy, Kickstarter, knowledge economy, knowledge worker, low skilled workers, Lyft, Mark Zuckerberg, means of production, new economy, pattern recognition, Paul Graham, Peter Thiel, Ponzi scheme, pre–internet, school choice, Silicon Valley, Skype, Steven Pinker, TaskRabbit, the scientific method, unpaid internship, Y Combinator
* * * For a good example of how the innovation economy is upending traditional models, check out Elance, a rapidly growing online service that enables entrepreneurial freelancers to earn income in hundreds of ways, including as editors, graphic designers, creative writers, software developers, and researchers. Need your logo designed? Go to Elance. Need careful research about an article? Go to Elance. Elance is hardly unique. Millions of people are generating income through the online microeconomies of sites like Care.com, Freelance.com, eBay, oDesk, TaskRabbit, Uber, Airbnb, Lyft, Teachers Pay Teachers, iTunes, Kickstarter, and on and on. These marketplaces represent the wave of the future, where anyone can: • reach lots of customers readily. • build an online reputation through customer feedback and examples of work. • succeed in a world where customers don’t care about education credentials or standardized test scores. • thrive in an economy that values skills (liberal arts as well as STEM) that matter
The 100-Year Life: Living and Working in an Age of Longevity by Lynda Gratton, Andrew Scott
3D printing, Airbnb, assortative mating, carbon footprint, Clayton Christensen, collapse of Lehman Brothers, creative destruction, crowdsourcing, delayed gratification, diversification, Downton Abbey, Erik Brynjolfsson, falling living standards, financial independence, first square of the chessboard, first square of the chessboard / second half of the chessboard, future of work, gender pay gap, gig economy, Google Glasses, indoor plumbing, information retrieval, intangible asset, Isaac Newton, job satisfaction, low skilled workers, Lyft, Network effects, New Economic Geography, old age dependency ratio, pattern recognition, pension reform, Peter Thiel, Ray Kurzweil, Richard Florida, Richard Thaler, Second Machine Age, sharing economy, side project, Silicon Valley, smart cities, Stephen Hawking, Steve Jobs, The Future of Employment, women in the workforce, young professional
Travelling light The major investment of the explorer and independent producer stage is in intangible assets – particularly transformational assets. So during these periods, financing is always going to be tricky. That is why developments in the technologies of the sharing economy are so interesting.19 The sharing economy is a great way of enabling people to remain asset-light or to bring income in to finance their asset accumulation. Sharing platforms such as Airbnb, Simplest, Lyft or even Dogvacay are all examples of an emerging economy where people share capacity of assets that they may have purchased or created. So not only is it possible to put off making big financial decisions, it is also possible to reduce the exposure to these financial decisions. Buying a house or a car is expensive, as it involves purchasing a capital stock and making a financial commitment. This needs evidence of a reliable salary in order to secure the credit or to purchase it outright.
Hacking Growth: How Today's Fastest-Growing Companies Drive Breakout Success by Sean Ellis, Morgan Brown
Airbnb, Amazon Web Services, barriers to entry, bounce rate, business intelligence, business process, correlation does not imply causation, crowdsourcing, DevOps, Elon Musk, game design, Google Glasses, Internet of things, inventory management, iterative process, Jeff Bezos, Khan Academy, Lean Startup, Lyft, Mark Zuckerberg, market design, minimum viable product, Network effects, Paul Graham, Peter Thiel, Ponzi scheme, recommendation engine, ride hailing / ride sharing, side project, Silicon Valley, Silicon Valley startup, Skype, Snapchat, software as a service, Steve Jobs, subscription business, Uber and Lyft, Uber for X, working poor, Y Combinator, young professional
Or a business in a “winner take all” situation, where it’s likely that one firm will become overwhelmingly dominant (as is often true for network effect businesses such as LinkedIn or WhatsApp), spending a great deal up front to make a land grab and try to lock in dominance may be a brilliant strategy. Or, if a company is running neck and neck with a strong competitor, as is the case with car-service providers Uber and Lyft, there may be no choice but to spend heavily on acquisition efforts. That’s assuming, of course, that the company has the cash on hand to sustain that up-front spending and a solid plan to recoup it down the line. The amount a company should spend on customer acquisition is not a matter of any preordained formula; it’s a function of many variables specific to each company’s business model, competitive situation, and stage of growth.
The New Urban Crisis: How Our Cities Are Increasing Inequality, Deepening Segregation, and Failing the Middle Class?and What We Can Do About It by Richard Florida
affirmative action, Airbnb, basic income, Bernie Sanders, blue-collar work, business climate, Capital in the Twenty-First Century by Thomas Piketty, clean water, Columbine, congestion charging, creative destruction, David Ricardo: comparative advantage, declining real wages, deindustrialization, Donald Trump, East Village, edge city, Edward Glaeser, failed state, Ferguson, Missouri, Gini coefficient, Google bus, high net worth, income inequality, income per capita, industrial cluster, informal economy, Jane Jacobs, jitney, Kitchen Debate, knowledge economy, knowledge worker, land value tax, low skilled workers, Lyft, megacity, Menlo Park, mortgage tax deduction, Nate Silver, New Economic Geography, new economy, New Urbanism, occupational segregation, Paul Graham, Plutocrats, plutocrats, RAND corporation, rent control, rent-seeking, Richard Florida, rising living standards, Ronald Reagan, secular stagnation, self-driving car, Silicon Valley, sovereign wealth fund, superstar cities, the built environment, The Chicago School, The Death and Life of Great American Cities, the High Line, The Wealth of Nations by Adam Smith, Thorstein Veblen, trickle-down economics, Uber and Lyft, universal basic income, upwardly mobile, urban decay, urban planning, urban renewal, urban sprawl, white flight, young professional
It is time to level the playing field for mass transit by reducing the outright subsidy we give to the car in the form of roads and highways. Cities in other parts of the world, including London, have begun to institute congestion charges, which make drivers pay for their use of busy roads to help alleviate traffic, sprawl, and pollution. New developments like self-driving cars, electric vehicles, and on-demand digital delivery systems, such as Uber and Lyft, will certainly play a big role in the city of the future. But we still need mass transit to provide the connective fiber that will increase clustering and enable the development of a larger number of dense, mixed-use clustered neighborhoods that are affordable to more people. Ultimately, this is not about choosing one form of transportation over another. It’s about ensuring we have the infrastructure that can move people around efficiently, create the density and housing affordability we need, and, most of all, help to spur overall economic growth.
23andMe, 3D printing, Affordable Care Act / Obamacare, Anne Wojcicki, Atul Gawande, augmented reality, bioinformatics, call centre, Clayton Christensen, clean water, cloud computing, commoditize, computer vision, conceptual framework, connected car, correlation does not imply causation, creative destruction, crowdsourcing, dark matter, data acquisition, disintermediation, don't be evil, Edward Snowden, Elon Musk, en.wikipedia.org, Erik Brynjolfsson, Firefox, global village, Google Glasses, Google X / Alphabet X, Ignaz Semmelweis: hand washing, information asymmetry, interchangeable parts, Internet of things, Isaac Newton, job automation, Joseph Schumpeter, Julian Assange, Kevin Kelly, license plate recognition, lifelogging, Lyft, Mark Zuckerberg, Marshall McLuhan, meta analysis, meta-analysis, microbiome, Nate Silver, natural language processing, Network effects, Nicholas Carr, obamacare, pattern recognition, personalized medicine, phenotype, placebo effect, RAND corporation, randomized controlled trial, Second Machine Age, self-driving car, Silicon Valley, Skype, smart cities, Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia, Snapchat, social graph, speech recognition, stealth mode startup, Steve Jobs, the scientific method, The Signal and the Noise by Nate Silver, The Wealth of Nations by Adam Smith, Turing test, Uber for X, Watson beat the top human players on Jeopardy!, X Prize
But there is 24/7 availability, wait time is zero, and it’s as simple as tapping your smartphone to get connected with a physician.51,84a In some ways it can be likened to Uber as we get used to on-demand service via our smartphones. Indeed, two companies have now launched the real equivalent to Uber for medical house calls. In select cities, Medicast and Pager offer doctors on demand on a 24/7 basis. It’s just like summoning a car via Uber or Lyft, but instead of seeing information about the driver and car on your smartphone screen, you see the doctor’s picture, his or her profile, and the length of time it will take him or her to be at your house. It’s no surprise that these companies are so similar to Uber—Pager was started by one of Uber’s co-founders.84b There has also been the emergence of health visit kiosks. One, called Healthspot, looks like a hybrid of a sleek, futuristic phone booth and automated teller machine (ATM).
23andMe, Airbnb, airport security, AltaVista, Anne Wojcicki, augmented reality, Benjamin Mako Hill, Black Swan, Brewster Kahle, Brian Krebs, call centre, Cass Sunstein, Chelsea Manning, citizen journalism, cloud computing, congestion charging, disintermediation, drone strike, Edward Snowden, experimental subject, failed state, fault tolerance, Ferguson, Missouri, Filter Bubble, Firefox, friendly fire, Google Chrome, Google Glasses, hindsight bias, informal economy, Internet Archive, Internet of things, Jacob Appelbaum, Jaron Lanier, John Markoff, Julian Assange, Kevin Kelly, license plate recognition, lifelogging, linked data, Lyft, Mark Zuckerberg, moral panic, Nash equilibrium, Nate Silver, national security letter, Network effects, Occupy movement, payday loans, pre–internet, price discrimination, profit motive, race to the bottom, RAND corporation, recommendation engine, RFID, self-driving car, Shoshana Zuboff, Silicon Valley, Skype, smart cities, smart grid, Snapchat, social graph, software as a service, South China Sea, stealth mode startup, Steven Levy, Stuxnet, TaskRabbit, telemarketer, Tim Cook: Apple, transaction costs, Uber and Lyft, urban planning, WikiLeaks, zero day
We used to buy things with cash at a store; now we use credit cards over the Internet. We used to pay with coins at a tollbooth, subway turnstile, or parking meter. Now we use automatic payment systems, such as EZPass, that are connected to our license plate number and credit card. Taxis used to be cash-only. Then we started paying by credit card. Now we’re using our smartphones to access networked taxi systems like Uber and Lyft, which produce data records of the transaction, plus our pickup and drop-off locations. With a few specific exceptions, computers are now everywhere we engage in commerce and most places we engage with our friends. Last year, when my refrigerator broke, the serviceman replaced the computer that controls it. I realized that I had been thinking about the refrigerator backwards: it’s not a refrigerator with a computer, it’s a computer that keeps food cold.
Age of Discovery: Navigating the Risks and Rewards of Our New Renaissance by Ian Goldin, Chris Kutarna
2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, 3D printing, Airbnb, Albert Einstein, AltaVista, Asian financial crisis, asset-backed security, autonomous vehicles, banking crisis, barriers to entry, battle of ideas, Berlin Wall, bioinformatics, bitcoin, Bonfire of the Vanities, clean water, collective bargaining, Colonization of Mars, Credit Default Swap, crowdsourcing, cryptocurrency, Dava Sobel, demographic dividend, Deng Xiaoping, Doha Development Round, double helix, Edward Snowden, Elon Musk, en.wikipedia.org, epigenetics, experimental economics, failed state, Fall of the Berlin Wall, financial innovation, full employment, Galaxy Zoo, global supply chain, Hyperloop, immigration reform, income inequality, indoor plumbing, industrial cluster, industrial robot, information retrieval, Intergovernmental Panel on Climate Change (IPCC), intermodal, Internet of things, invention of the printing press, Isaac Newton, Islamic Golden Age, Khan Academy, Kickstarter, labour market flexibility, low cost carrier, low skilled workers, Lyft, Malacca Straits, mass immigration, megacity, Mikhail Gorbachev, moral hazard, Network effects, New Urbanism, non-tariff barriers, Occupy movement, On the Revolutions of the Heavenly Spheres, open economy, Panamax, Pearl River Delta, personalized medicine, Peter Thiel, post-Panamax, profit motive, rent-seeking, reshoring, Robert Gordon, Robert Metcalfe, Search for Extraterrestrial Intelligence, Second Machine Age, self-driving car, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, Skype, smart grid, Snapchat, special economic zone, spice trade, statistical model, Stephen Hawking, Steve Jobs, Stuxnet, TaskRabbit, The Future of Employment, too big to fail, trade liberalization, trade route, transaction costs, transatlantic slave trade, uranium enrichment, We are the 99%, We wanted flying cars, instead we got 140 characters, working poor, working-age population, zero day
In the last Renaissance, people went to the town square to find each other; in the New Renaissance, the town square is always with us, in the form of real-time, location-based data on our identities, choices and behaviors. We go to it anytime to fulfill an ever-widening range of needs—to shop, eat, exercise, travel and meet with one another. We can match partners for love or sex (Match.com, Tinder), match entrepreneurs with investors (kickstarter.com, indiegogo.com), drivers with riders (Uber, Lyft), spare rooms with travelers (Airbnb), public stewards with street-level concerns (SeeClickFix.com), people in need with good Samaritans (causes.com, fundly.com), problems with the talents to solve them (hackathons, InnoCentive.com) and victims with aid-givers and watchdogs (ushahidi.com), to name a few. None of these feats or forums were possible even 10 years ago. Now they are an integral part of how we all talk, learn, create, share, do and help, and allow us to do all these things more quickly, more efficiently, at a bigger scale and (sometimes) privately.
Selfie: How We Became So Self-Obsessed and What It's Doing to Us by Will Storr
Albert Einstein, autonomous vehicles, banking crisis, bitcoin, book scanning, computer age, correlation does not imply causation, Donald Trump, Douglas Engelbart, Douglas Engelbart, Elon Musk, en.wikipedia.org, gig economy, greed is good, invisible hand, job automation, John Markoff, Lyft, Menlo Park, meta analysis, meta-analysis, Mont Pelerin Society, mortgage debt, Mother of all demos, Nixon shock, Peter Thiel, QWERTY keyboard, rising living standards, road to serfdom, Robert Gordon, Ronald Reagan, selective serotonin reuptake inhibitor (SSRI), Silicon Valley, Silicon Valley startup, Steve Jobs, Steven Levy, Stewart Brand, The Future of Employment, Tim Cook: Apple, Uber and Lyft, War on Poverty, Whole Earth Catalog
We began talking about the role of government, and collective projects for the common good, and it quickly became clear he was deeply sceptical. ‘It’s kind of a weird thing, when people say we need to do things for the common good,’ he said. ‘Tech companies made it so that I could get a ride anywhere in the city for five dollars, door to door, and split it with two people. San Francisco would be impossible without Uber and Lyft. And then the city come here and fine me because people put graffiti on my windows.’ ‘They fine you?’ I said. I could see why that would be annoying. ‘There are times where some of us have said, “Can you imagine where we did an experiment where Google took over what City Hall does now?”’ he said. ‘Just let them have at it and see what they can come up with?’ It seemed clear Berkeley thought that would be an exciting idea, that tech brains were of a different order to the ones the politicians and civil servants carried around in them.
The One Device: The Secret History of the iPhone by Brian Merchant
Airbnb, Apple II, Apple's 1984 Super Bowl advert, citizen journalism, Claude Shannon: information theory, computer vision, conceptual framework, Douglas Engelbart, Dynabook, Edward Snowden, Elon Musk, Ford paid five dollars a day, Frank Gehry, global supply chain, Google Earth, Google Hangouts, Internet of things, Jacquard loom, Jacquard loom, John Gruber, John Markoff, Jony Ive, Lyft, M-Pesa, more computing power than Apollo, Mother of all demos, natural language processing, new economy, New Journalism, Norbert Wiener, offshore financial centre, oil shock, pattern recognition, peak oil, pirate software, profit motive, QWERTY keyboard, ride hailing / ride sharing, rolodex, Silicon Valley, Silicon Valley startup, skunkworks, Skype, Snapchat, special economic zone, speech recognition, stealth mode startup, Stephen Hawking, Steve Ballmer, Steve Jobs, Steve Wozniak, Steven Levy, Tim Cook: Apple, Turing test, Upton Sinclair, Vannevar Bush, zero day
It’s also about proving that Apple can still innovate in a post-Jobs world,” he says. After years of attending these product-launch events, Spoonauer is still glad to get the email invite from Apple (the Event is invitation only). “There’s still excitement about being here,” he says. “It’s not just about the product; it’s about the atmosphere.” The lights go down, and a video rolls. It shows Tim Cook calling a Lyft for a ride to the Apple Event—the very event we are waiting for him to show up at—only to find that the car is being driven by James Cordon of Carpool Karaoke, who is then joined by Usher for some reason. They all sing “Sweet Home Alabama” together, and the flesh-and-blood Cook runs out onstage. He makes some announcements, and then invites Shigeru Miyamoto, the legendary founder of Nintendo, up to the stage to announce the company’s first foray into iPhone games, Mario Run.