31 January 2019  4 min read

Free Electricity. Humanless Restaurants. At 100 Day Speed

EVs powered by lean startup engine put pedal to the metal like no petrol car. No wonder Big Energy is playing catch-up. Can they catch up?

The most inefficient thing about driving a car is the car. Cars are heavy. Average car weighs 23X the weight of the person it carries.

Big brands like Shell, Exxon, Chevron try to catch up by making acquisitors or partnering with smaller partners, offering market access and scale to brilliant entrepreneurs.

Shell has acquired New Motion, one of Europe’s largest EV charging providers. BP acquired ChargeMaster to compete with Shell. BP estimates there will be 320M EVs by 2040.

French folks don’t want to be late to the game, and spent $4.1B in 2011 for SunPower, solar maker, and Saft Group, who make EV batteries. American ExxonMobil and Chevron have not made large-scale investments in solar, wind, electric cars yet.

It seems like the US has held fire.

Will Energy Go The Way of Email?

Email, when it came about, was not free either.

Then Google made it free, and captured all home market share by making it free. Sergey and Larry the smart entrepreneurs, together with their investors, realised data contained in the email had more (advertising) value than the price that could be charged for it. Then they built the whole business model around it (free to users, paid for advertisers via profiling and behavioural data).

Then telos followed suit by migrating from metered plans to unlimited data, subsidised hardware, and free calling. Today, not only does Amazon subsidise products with data, but smart TV manufacturers as well.

Data now drives the business model. Here’s how it plays out:

Lower price — more market share — more data — higher monetisation value from device per lifetime.

So data contained in your energy streams going in/out of home is just as precious, or more. Entrepreneurs understand it.

Folks wearing t-shirts are removing problems rather than merely solving them. Speed is their religion. By focusing on users, they crack their pains. Mixed with disrupt-it approach, that’s a potent mix. If they crack energy right, they will:

  1. Get people to use power more economically—reducing peak loads, thereby improving utilities’ margins.
  2. Be able to bundle other services on top of data/energy—helping users use less energy on per-device level. That’s because consumers love real-time device data and transparency it affords.
  3. Thus make demand more predictable,
  4. (With the help of AI), shift consumption to off-peak hours, thereby removing stress from the grid. We are seeing this already in EV charge points.

But, if any company wants to do to electricity what Google did to email, it needs to act fast. There’s good reason big players have failed to move fast.

Big business must execute and can’t focus on the fringes as they keep eye on the road. They should learn how to push pedal to the metal (mash the accelerator, not the clutch). Why does speed matter?

We at 100Hz Have a “Frequentist” View On Innovation

In innovation, you cannot optimize the success rate. Your % success will always be the same. The hard truth about this is that in order hit more you need to bat more. Do enough experiments, and success will come. Do more faster. Here’s how we look at it:

Don’t get discouraged. Innovation is a numbers game. Try more. And try faster. Our original Tweet is here

Let’s check back with consultants. Turns out they have a little different view on this:

Really? Do not work with consultants if you want to keep things simple.

How Speed Makes Experiments Cheaper

Speed is distance over time. If you ship more frequently (cut time), you overbuild less (cut distance).

Innovating faster costs less because it forces you to ship more frequently. By shipping faster you reduce the number of untested ideas (inherently overbuilt). Your “innovation backlog” goes down.

How To Move Fast Like a Start-up:

  1. ship more frequently and prototype more
  2. dedicate people and resources to it
  3. measure things that matter most

You want more about speed. Grab the 100Hz “Why speed matters” podcast (iTunes).

Jeff Bezos got it so right when he said that Amazon is an experiment factory. “You never know what experiments will deliver, but you need a lot of them so that you can disrupt the market with the next big thing.”

Grocery is 3X size of total e-commerce in the US. Think where Walmart could be if they embraced Amazon type experiment driven culture. Marry $500B of Walmart revenue/cash with Amazon speed: Walmart would surely have a stab at disrupting the disrupter.

Startups bet on speed, frequency and they have a strong motive: change the world, solve problems and scale forcefully.

Arcadia Power buys renewable energy from the market, and get REC certificates, and then resells (clean) renewable power to retail customers at no extra cost, offering clean energy for the price of dirty energy. They secured $40.5M funding to offer the switch to lower rates automatically when available to save money.

Young brave entrepreneurs dream up simple and innovative products and make them work at small scale. Big corporations then use financial leverage to acquire young startups to keep up with the innovation. Entrepreneurs get access to a large customer base. Customers love the simple novel simple products. Here’s a case in point.

There are people in London that charge cars off their home outlets with electrical wires going from home and across the street to the car. It’s crazy. On the other hand there are people running those massive oil companies like ExxonMobil, or Shell. Their jobs are to think up “the gas station of the future.” Which they usually go about by reimagining the experience of fueling up your car into all sorts of bizarre experiences. We have “Fuel your mind as you fuel up your car” concepts or a “Green” gas station. Entrepreneurs on the other hand, stumble into people charging cars off the mains at night and understand right there that the future of the gas station is the lamp post:

Which pretty much removes the need for the gas station. Which is why we at 100Hz think entrepreneurs are really entrePRUNeurs.

We have the lamp post as the gas station, and humanness restaurant from Famer’s Fridge. There’s also Stockwell.ai which brings the pantry to your smartphone removing the need for shopping!

Entrepreneurs Are Innovators Who Make It Happen

Innovators think up great products and ideas, but it’s innovators who have the framework to come up with these ideas and deliver them to market in 100 days. Entrepreneurs deliver the future tomorrow.

At 100Hz We Are Entrepreneurs Who Fortune 100 Companies Hire to Find Their New Disruptive Digital Growth (Revenue).

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