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Entrepreneur and former presidential candidate Andrew Yang has a theory about where the next wave of startup opportunity lies, and it starts with a question most founders aren’t asking: what if the business model was giving money back instead of extracting it?
Yang was inspired by Mark Cuban. Not by his wealth, or his celebrity, but by Cost Plus Drugs — Cuban’s startup that sells pharmaceuticals at cost. Yang made a list.
“Housing, education, food, fuel, transportation, media, and wireless,” Yang told TechCrunch on a recent episode of Equity. “The things we all spend money on.”
He picked wireless and last September launched Nobile Mobile, a new mobile virtual network operator that provides cell service for a fraction of what traditional carriers charge and gives customers money back if they use less data.
As AI threatens to compress wages and displace workers, Yang sees a business opportunity in bringing down the cost of living. Cost Plus Drugs, Noble Mobile, dumb phone makers like Light Phone, and even online grocery store Misfits Markets are early examples of an emerging business category where the startup’s value proposition is the margin it gives back to the customer.
“AI is going to suck up a lot of the value and the jobs, and then Americans are going to look up and say, ‘How do I meet basic needs?’” Yang said. He believes meeting people’s needs “less expensively” is “a very rich vein of opportunity.”
That instinct didn’t emerge from nowhere. Yang first launched himself into the public eye during his 2020 presidential campaign, during which he advocated for Universal Basic Income as a means of combating AI-related workforce displacement and wealth concentration. The campaign didn’t succeed but the thesis has only grown more relevant.
Yang is still an advocate for UBI, arguing that the value generated by AI companies needs to be redistributed into the hands of the average American. But whether the government will be the vehicle for that redistribution, or whether it will just use any collected wealth to “plug a hole and do something not terribly productive,” Yang is less certain.
“There is room for a direct connection between the money and the people,” he said.
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