I entered the industry in the way many do: with a sense of complete personal abandon and lack of direction. No one enters out of high school, because they can't, so everyone goes in because something else didn't work out. Layoffs, breakups, and prison stints are popular notes of inspiration. I graduated journalism school tens of thousands in debt, and I needed fast cash with minimum expenditures. Craigslist, I noticed, was overrun with trucking companies making desperate pleas. So I spent three grand, earned a commercial driver's license at a community college, and applied to nine trucking jobs. ... The American Trucking Association famously claims that the trucking industry is forty-eight thousand drivers short of demand. Then again, there are 1.7 million large truck drivers, which makes the shortage sound less impressive. What is impressive is the industry's 87 percent turnover rate. The average driver age is in the upper forties. Poaching is rampant, and companies are constantly trying to replace drivers as fast as they're leaving. ... The day after applying, seven companies hired me.
Now the canal is being reconfigured by a $5.5 billion expansion project scheduled for completion early next year. Approved by national referendum in 2006, the expansion effectively doubles the canal’s capacity by adding a new set of locks to accommodate larger container ships. Chambers with walls 50 feet thick are being grafted directly onto bedrock, like extensions of the isthmus itself. But the construction — monumental as it is — is only a small part of the story. More important is how the Panama Canal expansion is altering logistical relationships and generating new infrastructures throughout the American Hemisphere. ... Almost as soon as the referendum passed, port authorities from Miami to Lima began racing to complete their own expansion programs: dredging deeper shipping channels, installing larger gantry cranes, and building new container yards, in speculative efforts to compete for the ultra-large container ships that will transit the widened canal. An intense wave of anticipation ripples outward throughout the multi-continental network of waterways, ports, inspection stations, railroads, switching yards, highways, warehouses, and distribution centers that enable the global flow and movement of shipped materials. ... The expansion will reconfigure trans-American shipping in three primary ways. 4 First, a higher volume of goods will move faster between the two oceans, decreasing transport costs and altering the delicate financial calculus that determines global shipping routes. Second, as canal traffic increases, there will be a corresponding rise in transshipment, where goods are transferred to smaller ships that service cities with shallower harbors. The canal’s three ports — Balboa, Colón, and Manzanillo — will link distribution centers like Shanghai with smaller hubs like Barranquilla, Colombia, thus increasing Panama’s importance to regional shipping networks. Third, the expansion will provide an attractive alternative for shipping agricultural products from the interior United States to East Asian markets, elevating the Mississippi River corridor relative to the currently dominant overland routes to Pacific ports.
Alibaba is the hottest e-commerce company of the past five years, a fusion of eBay and Amazon whose 386 million active users accounted for $394 billion in sales in fiscal 2015—six times the sales volume of its biggest Chinese competitor. The company created a huge marketplace and a sophisticated distribution network just in time to serve a generation of Chinese consumers attaining middle-class prosperity. “We are seeing Chinese consumers adopt new retail formats and online shopping faster than any of their global counterparts,” says Jasmine Xu, president of e-commerce for Procter & Gamble Greater China. Those trends fueled a rise so impressive that even the mighty Amazon became an Alibaba partner ... Today, however, Alibaba looks mortal. Its growth has slowed, hampered by China’s ebbing economy and by competition from a growing crop of rivals like JD.com. Its stock has fallen 26% from its post-IPO highs, from $115 to the mid $80s. To reignite its growth, chairman and founder Jack Ma and CEO Daniel Zhang plan to lean on U.S. companies—brands that hold enormous appeal in China. “This is an incredibly important strategy for the future of Alibaba,” Ma says. ... Alibaba is pitching itself as a shortcut to the world’s most populous market. Alibaba is helping foreign companies with marketing, data analytics, and shipping. And more recently it has sweetened the pot with a newer service, Tmall Global, that lets U.S. brands sidestep many of the taxes, regulatory hurdles, and logistics hassles that trip up foreign companies in China. ... Tmall, went live in 2008 with a business model sharply distinct from Taobao’s. Tmall is Zhang’s brainchild. He positioned it as a marketplace for higher-quality clothing, food, and electronics, with a focus on luxury brands. ... Tmall owes its growth to China’s rapidly expanding, brand-conscious middle class. Currently there are 109 million Chinese people with a net worth between $50,000 and $500,000, according to Credit Suisse, which estimates that those ranks could surpass 500 million by 2022. It’s a demographic that’s very comfortable with e-commerce: 40% of Chinese consumers buy groceries online, for example, compared with only 10% of Americans.
Good Eggs was founded in July 2011 in San Francisco. The two software developers behind it wanted to build an efficient way for small farmers and producers to reach consumers who were interested in fresh, beautiful ingredients but didn’t necessarily have the time to hunt them down at a farmers market or a grocery store (which probably wouldn’t carry them to begin with). It was a promising idea, well-positioned at the white-hot Venn-diagram center of some of the biggest themes in tech right now: tech-enabled on-demand delivery, food, eye-popping funding rounds. Good Eggs started operating on a limited basis in the Bay Area in 2012, and by the end of the following year, it had expanded to full service there, opened three additional hubs around the country, and was on its way to hiring hundreds of employees. To date, it has raised almost $53 million in venture capital. ... But by Good Eggs’ own admission — and as Stambler’s sudden email indicated — building the business was immensely, unexpectedly difficult. On-demand delivery, perishable inventory, strict regulations, fluctuating prices, and city-specific quirks added up to a host of logistical challenges that can’t always be neatly predicted or solved by software.
In pulling back the curtains, Amazon, one of the most private public companies in the world, revealed how it is racing to piece together an immensely complex puzzle—much of which it is having to build from scratch, at giant expense and with painstaking attention to the minutiae, as it tosses out assumptions that American customers have taken for granted for decades. In doing so, the company, an upstart here, has thrown itself into a knife fight with two privately owned and much more established Indian competitors—Flipkart Internet Pvt. and Snapdeal, owned by Jasper Infotech Pvt.—as well as a clutch of smaller Indian startups that are nipping at all of their heels. ... It is a fight that Amazon is far from certain of winning, yet one it cannot afford to sit out. The company predicts that India will be its biggest market after the U.S. within a decade and that the Indian e-commerce market as a whole will ultimately be gigantic. ... It is not hard to see why the battle for India is this fierce, nor why Bezos, famously obsessed with analytics, would see it as essential for Amazon’s future. The numbers alone are dizzying. India’s population of 1.25 billion is four times as big as the U.S.’s and more than double Europe’s. And since the median age is 27—a full decade younger than Americans’—the trajectory will be steep. India will overtake China as the world’s most populous country in just seven years, according to the UN. It is now the world’s fastest-growing major economy, and the IMF projects 7.5% growth next year. The roads and railways might be creaking under the strain. Many laws governing business are a confounding tangle, including a law forbidding foreign companies from selling products directly to Indians. That law effectively renders Amazon India a platform for vendors—akin to its “fulfillment by Amazon” program in the U.S. ... Barely one-quarter of India’s population has access to the Internet at home, whether on a smartphone or computer, and only a small fraction of those have ever shopped online. ... By some estimates the company is spending nearly $25 million a month in India already.
The untold tale of Target Canada’s difficult birth, tough life and brutal death ... Fisher, 38 years old at the time, was regarded as a wunderkind who had quickly risen through the ranks at Target’s American command post in Minneapolis, from a lowly business analyst to leader of a team of 400 people across multiple divisions. Launching the Target brand in a new country was his biggest task to date. The news he received from his group that February afternoon should have been worrying, but if he was unnerved, Fisher didn’t let on. He listened patiently as two people in the room strongly expressed reticence about opening stores on the existing timetable. Their concern was that with severe supply chain problems and stores facing the prospect of patchy or empty shelves, Target would blow its first date with Canadian consumers. Still, neither one outright advocated that the company push back its plans. “Nobody wanted to be the one to say, ‘This is a disaster,’” says a former employee. But by highlighting the risks of opening now, the senior employees’ hope was that Fisher would tell his boss back in Minneapolis, Target CEO Gregg Steinhafel, that they needed more time. ... Nobody disagreed with the negative assessment—everyone was well aware of Target’s operational problems—but there was still a strong sense of optimism among the leaders, many of whom were U.S. expats. The mentality, according to one former employee, was, “If there’s any team in retail that can turn this thing around, it’s us.” ... Roughly two years from that date, Target Canada filed for creditor protection, marking the end of its first international foray and one of the most confounding sagas in Canadian corporate history. The debacle cost the parent company billions of dollars, sullied its reputation and put roughly 17,600 people out of work.
Hikmatullah Shadman, an Afghan trucking-company owner, earned more than a hundred and sixty million dollars while contracting for the United States military; for the past three years, he has been battling to save much of his fortune in a federal court in Washington, D.C. In United States of America v. Sum of $70,990,605, et al., the Justice Department has accused Hikmat, as he’s known, of bribing contractors and soldiers to award him contracts. Hikmat has maintained his innocence, even as eight soldiers have pleaded guilty in related criminal cases. Several members of the Special Forces who have not been accused of wrongdoing have defended him. In a deposition, Major Jerry (Rusty) Bradley, a veteran Special Forces officer, said, “The only way to right a wrong of this magnitude is to be willing to draw your sword and defend everything that you believe in.” ... Hikmat, who is in his late twenties, looks disarmingly young and gentle. Slim, with a high brow that he often furrows, he countered the charges against him in grave, deliberate English. “The people who did this investigation were sitting in air-conditioned rooms,” he told me. “They don’t know what was happening in the field.” He offered to explain how he had made his fortune. “I was part of the Special Forces family,” he said. “I was trained by them.” ... Before the Americans came, Hikmat lived with his father, a schoolteacher; his mother; and five siblings in a four-room mud-walled house in one of the oldest parts of Kandahar City, in southern Afghanistan. In the summer of 2001, Hikmat was fourteen years old, and he and his friends chafed at the narrowness of life under the Taliban. No one had a telephone, televisions were banned, and there was rarely any electricity. ... He had started a side business selling fruit and soft drinks to the base, and that winter he quit his job as an interpreter in order to work on the business full time. Hikmat told me that a sergeant major at the Special Forces headquarters helped him register it at the main U.S. base, known as Kandahar Airfield, or KAF. On February 25, 2007, Hikmat signed a “blanket purchase agreement” with the U.S. military, an open-ended contract for trucking services. He started with a single rented truck.
Houston is the fourth-largest city in the country. It’s home to the nation’s largest refining and petrochemical complex, where billions of gallons of oil and dangerous chemicals are stored. And it’s a sitting duck for the next big hurricane. Why isn’t Texas ready? ... Such a storm would devastate the Houston Ship Channel, shuttering one of the world’s busiest shipping lanes. Flanked by 10 major refineries — including the nation’s largest — and dozens of chemical manufacturing plants, the Ship Channel is a crucial transportation route for crude oil and other key products, such as plastics and pesticides. A shutdown could lead to a spike in gasoline prices and many consumer goods — everything from car tires to cell phone parts to prescription pills. ... After decades of inaction, they hoped that a plan to build a storm surge protection system could finally move forward. ... Several proposals have been discussed. One, dubbed the “Ike Dike,” calls for massive floodgates at the entrance to Galveston Bay to block storm surge from entering the region. That has since evolved into a more expansive concept called the “coastal spine.” Another proposal, called the “mid-bay” gate, would place a floodgate closer to Houston’s industrial complex. ... The 10 refineries that line the Ship Channel produce about 27 percent of the nation’s gasoline and about 60 percent of its aviation fuel ... Flooding is the most disruptive type of damage an industrial plant can experience from a hurricane. Salty ocean water swiftly corrodes critical metal and electrical components and contaminates nearby freshwater sources used for operations.
Thanks to a process involving rapid evaporative ionisation mass spectrometry (Reims), developed at Imperial College London, the computer can identify the smoke’s unique “molecular fingerprint”. This £500,000 machine, together with another £5m-worth of equipment in the Belfast-based Institute for Global Food Security, have inspired the lab’s nickname “Star Trek”, as it boldly pushes technological frontiers in the battle against food crime. The only other Reims machine in the UK is at Charing Cross Hospital, London, where it is used by the oncology department to distinguish between healthy and malign tissue. Here, the machine is being asked to make a formal identification of the fish fillet: is it cod? Or is it something else? ... food analysis is inching ever closer to forensic investigation. Fraud, adulteration and contamination can happen to almost any edible commodity that you care to think of. Or, more likely, that you care not to think of — not just beef burgers with a hidden equine component but staples such as fish, spices and fruit juices. ... “What we eat and where it comes from, generally, we don’t know any more. It’s a very complex web. Every time you have a transaction [in the supply chain], there’s another opportunity to cheat.” And every week his lab picks up several cases of food fraud happening somewhere in the world. ... The institute is monitored by 24-hour security — with food fraud as yet hard to bring to successful conviction, any refinement in methods of detection is a potential threat to organised crime.
Over half a century (the company will celebrate its 50th anniversary in August) Vitol has never suffered an annual loss. Profits surged from just $22.9 million in 1995 to a record $2.28 billion in 2009, according to documents reviewed by Bloomberg. At its peak, Vitol’s return on equity, a measure of profitability compared with the money that partners have invested, was a geyserlike 56 percent. Even Wall Street pales in comparison; Goldman Sachs’s best ROE since going public in 1999 is 31 percent. ... Vitol, which trades about 6.5 percent of the world’s oil, fights in a tough arena. It competes with other independents such as Glencore, Trafigura Group, Mercuria Energy Group, Gunvor Group, and Castleton Commodities International. It also grapples for market share against Big Oil’s in-house trading arms, including those of BP, Royal Dutch Shell, Total, and, increasingly, state-owned Chinese oil companies. ... As for the future, Vitol faces a daunting fact: The best days of oil trading are almost undoubtedly in the rearview mirror. Margins are shrinking as the market becomes ever more transparent and competitors emerge fighting for the same barrels. Even as Vitol sinks more capital into assets such as refineries and terminals, returns are falling. Last year’s ROE was 16 percent—for Vitol, a less-than-stellar number. ... In August 1966, two Dutchmen, Henk Viëtor and Jacques Detiger, invested 10,000 Dutch guilders (about $2,800 at the time) to start a Rotterdam company with the aim of buying and selling refined petroleum products by barge up and down the Rhine. They crunched Viëtor and “oil” to get Vitol. The money was a loan from Vietor’s father and the pair agreed to pay an annual interest rate of 8 percent. ... The modern Vitol began to take shape in 1990, when Detiger and seven other partners sold the company for $100 million to $200 million (the actual figure wasn’t disclosed) to a group of about 40 employees, including Taylor.
Disputes quickly erupted over how to divide responsibilities. Some executives appeared not to fully grasp how little money they had to complete a complex project with a tight deadline and a multicultural team whose members did not always see things the same way. ... Internal arguments soon gave way to bigger problems. There would be work stoppages, porous concrete, a risk of earthquakes and at least $3.4 billion in disputed costs: more than the budget for the entire project. ... Seven years later, and nearly two years late, the locks have finally been declared ready to accept the new generation of giant ships that carry much of the world’s cargo but cannot fit in the original canal. To mark the occasion, Panama has invited 70 heads of state to watch on Sunday as a Chinese container ship becomes the first commercial vessel to attempt the passage from the Atlantic Ocean to the Pacific through the larger locks. ... For more than 100 years, the canal has been a vital artery nourishing the world economy, a testament to American engineering and one of the signature public works of the 20th century. The new locks, built by Panama without help from other governments, were sold to the nation and the world as a way to ensure that the canal remained as much of a lifeline in the hyperglobalized 21st century as it was in the last. ... one inescapable fact will remain: The expanded canal’s future is cloudy at best, its safety, quality of construction and economic viability in doubt ... In simple terms, to be successful, the new canal needs enough water, durable concrete and locks big enough to safely accommodate the larger ships. On all three counts, it has failed to meet expectations, according to dozens of interviews with contractors, canal workers, maritime experts and diplomats, as well as a review of public and internal records.
Starting in September 2015, people in the city noticed more planes flying in and out of the airport, loading and unloading those black-wrapped boxes. This March, Amazon announced that it was leasing 20 Boeing 767s from Air Transport Services Group, a cargo company that operates out of the air park. Amazon had also negotiated an option to buy nearly 20 percent of the company. ... Two months after the Ohio announcement, Amazon leased 20 more jets from Atlas Air, an air cargo company based in Purchase, N.Y. Amazon has also purchased 4,000 truck trailers. Meanwhile, a company subsidiary in China has obtained a freight-forwarding license that analysts say enables it to sell space on container ships traveling between Asia and the U.S. and Europe. In short, Amazon is becoming a kind of e-commerce Walmart with a FedEx attached. ... Amazon’s ambitions depend on the continued success of its Prime service. For $99 a year, Amazon Prime customers get two-day delivery at no extra charge. Those who sign up tend to spend almost three times as much as their non-Prime peers. The company zealously guards its numbers, but Consumer Intelligence Research Partners estimates that Amazon had 63 million Prime members as of late June—19 million more than the year before.
Blue is a rarity among plants and animals. When it does occur in nature, it often isn’t truly blue, but rather a trick of diffraction, or the scattering of light, which is the case for bird feathers, sky, ice, water and iridescent butterfly wings. ... In response to growing pressure from consumers across the globe, Mars announced in February that over the next five years it would remove artificial colors from all the processed foods it makes for human consumption, and that pigments found in natural substances would take their place. ... In 2013, the Food and Drug Administration approved Mars’s petition to use the microscopic algae spirulina to make the first natural blue dye approved for use in the United States. As a result, any food manufacturer in the country can legally use spirulina as a colorant. Mars spent years researching spirulina’s safety; in order to overhaul 1,700 or so recipes and update its global manufacturing capabilities, the company desperately needs a substitute for synthetic Blue No. 1, as does the rest of the industry. But right now, there isn’t nearly enough spirulina dye to go around — and in any case, sometimes it doesn’t yield just the right blue, or the color degrades and comes out blotchy, or it tastes odd. ... Humans are color-seeking animals, and food companies learned to manipulate that trait early. ... One Mars executive told me that to convert only its blue M&Ms to spirulina blue, the company would, in his estimation, need twice the current global supply. ... last year the global market in natural colors was worth an estimated $970 million, up 60 percent since 2011. Natural colors now represent more than half the food-colors market in dollar terms.
Congo is one of the last frontiers in a global scramble for the world’s best-tasting coffee. The rise in demand for specialty coffee, which accounts for one of every two cups sold in the U.S., has encouraged exporters, roasters and retailers to go places where the potential is huge—and so are the risks. ... The many challenges of doing business in Congo include death threats, kidnapping and extortion. Government officials often concoct new taxes on the spot or forge documents to demand more money than what is owed. Last year, at least 175 foreigners and Congolese, many working for aid organizations, were abducted and held for ransom, according to Human Rights Watch. ... Most of the kidnappings happened in areas near where specialty coffee is grown, though no Western coffee prospectors have been abducted. ... Specialty coffee is a fast-growing segment of the approximately $175 billion-a-year world-wide coffee market. Specialty coffee is made from the highest-quality arabica beans, sells at a premium and has gone from the fringe to mainstream. In the U.S., 31% of adults drink specialty coffee every day, up from 16% in 2006, the National Coffee Association trade group estimates. ... Congo’s best beans regularly get at least an 85 and fetch a wholesale price of about $3 a pound, about double the price on the ICE Futures U.S. exchange in New York.
If you’ve ever dressed up as a movie or television character for Halloween, the costume you bought was probably made by Rubie’s. The odds drop a little with generic characters like witches or vampires—plenty of smaller companies make those—but with more than 20,000 costumes and accessories for sale at retailers like Walmart, Amazon, and Party City, Rubie’s has probably played a part in your Halloween festivities. What started in 1951 as a soda shop/novelty store in Queens has, over the past 65 years, grown into an international business that earns hundreds of millions. (It doesn’t disclose figures, but the analytics firm IbisWorld estimates $251 million in revenue in the U.S.) Rubie’s has 3,000 employees, contracts with 12 factories in China, owns four factories in the U.S., and runs six large warehouses, four on Long Island, one in Arizona, and one in South Carolina. Rubie’s has also spawned 15 subsidiaries in countries such as Japan, the Netherlands, and the U.K. It sells Carnival costumes in Brazil, Day of the Dead dresses in Mexico, and Easter Bunny and Santa Claus suits around the world. But in America its bread and butter is still Halloween. ... Americans will shell out a record-breaking $8.4 billion on Halloween candy, costumes, and decorations this year, according to the National Retail Federation. That figure has jumped almost 70 percent in just 10 years, making Halloween the second-largest holiday in terms of decoration sales, behind Christmas. ... Rubie’s tries to anticipate Halloween trends a year in advance, but it’s constantly adjusting its plans as expected blockbusters flop (The Legend of Tarzan), beloved actors die (Gene Wilder’s Willy Wonka costume will be popular this year), or millions of people get swept up in the Pokémon Go craze and Beige finds himself mass-manufacturing last-minute Pikachu costumes to fill thousands of back orders. ... unlike regular clothes, which are subject to high import duties, most costumes are considered “festive apparel” and can be imported duty-free.
This is Tiksi, a decaying town in the Russian Arctic. Here, more than 4,000 kilometres from Moscow on the coast of the Laptev Sea, 4,550 people inhabit a wasteland whipped by blizzards and wrapped in polar night for half of the year. Surrounded by thousands of kilometres of permafrost, the town has no outside land connection. Its main lifeline is an airport manned by a military unit, a relic of Soviet times, when the country’s Arctic territory was dotted with military bases. ... Global warming, which is causing Arctic sea ice to melt at an unprecedented pace, is watched with alarm in other parts of the world. But in Russia, the rising temperatures are fuelling expectations that the waters along its northern coast, long a frozen frontier, could once again become a vibrant shipping line, rivalling some of the world’s most important trading routes. ... In theory, the NSR could compete with routes that have dominated global maritime transport for decades. Calculated between the ports of Yokohama and Hamburg, the 7,200 nautical miles shipping distance between Asia and Europe using the NSR is 37 per cent shorter than the southern route via the Suez Canal. ... Total cargo transport volumes plummeted from a peak of 6.58 million tonnes in 1987 to just 1.46 million tonnes in 1998. ... total cargo volumes recovered to 5.15 million tonnes last year, almost back to the level of 1990. ... The idea of mastering nature is very much part of Russian identity, as is the myth of conquering the Arctic, despite the decline of Moscow’s footprint in the far north over the past 25 years. ... Since there is still a lot of ice on the northern oceans, this makes passages risky and drives up insurance premiums. Only ships with reinforced hulls can use the NSR with relatively few restrictions and even for them passage times remain unpredictable. The waters off Russia’s coast are also far shallower than those on the southern route, meaning that the world’s largest, most cost-efficient container ships can’t be used.
I could go on about the innovations at Domino’s, but Doyle’s most important lessons are about the mindset required for organizations to do big things in tough fields. Two of the great ills of executive life are what he calls, borrowing from behavioral economics, “omission bias” and “loss aversion.” Omission bias is the tendency to worry more about doing something than not doing something, because everyone sees the results of a move gone bad, and few see the costs of moves not made. Loss aversion describes the tendency to play not to lose rather than play to win. “The pain of loss is double the pleasure of winning,” he argues, so the natural inclination is to be cautious, even in situations that demand creativity. ... Leaders who want to shake things up have to be comfortable with the idea that “failure is an option,” Doyle concludes. In a world of hyper-competition and nonstop disruption, playing it safe is the riskiest course of all. That’s a recipe for reinvention that makes for good pizza and big change.
Pettis had begun his ascent in 2006, producing weekly videos for MAKE magazine—the maker movement’s Bible—that featured him navigating goofy tasks such as powering a light bulb with a modified hamster wheel. In 2008, he cofounded the NYC Resistor hackerspace in Brooklyn. By then, Pettis was a star. A year later, he launched a Brooklyn-based startup with friends Adam Mayer and Zach Smith (also a NYC Resistor cofounder) called MakerBot. ... By 2015, Pettis, Mayer, and Smith had all moved on. A new CEO and management team has taken the helm since then, and three rounds of layoffs cut the employee head count from a high of around 600 to about half that. This year a Taiwanese competitor nabbed MakerBot’s spot as the most popular desktop 3D printer maker. ... How did MakerBot, the darling of the 3D printing industry, fall so hard and seemingly so fast?
As so many great entrepreneurial success stories do, the tale of Mike Lindell begins in a crack house. ... It was when he realized that abusing crack and running a business weren’t compatible in the long term and vowed to get better. ... Lindell is sober and phenomenally successful. He quit everything after one final party on Jan. 16, 2009, and presides over an empire that’s still growing precipitously. Last year he opened a second factory, saw sales rise from $115 million to $280 million, and almost tripled his workforce, to 1,500. To date he’s sold more than 26 million pillows at $45 and up, a huge number of them directly to consumers who call and order by phone after seeing or hearing one of his inescapable TV and radio ads. ... He’s an unusual manager, governing largely on instinct and by making seemingly wild gambles that he swears are divinely inspired. … Throughout his life he’d sought the perfect pillow. He never slept well, and things kept happening to worsen the problem. ... When Lindell imagined his perfect pillow, it was micro-adjustable but would keep its shape all night. He bought every variety of foam and then asked his two sons to sit on the deck of the house with him and tear the foam into different-size pieces that they’d stuff into prototypes for testing. ... When desperate, he counted cards at the blackjack table to pay for materials. He was good at it. Eventually, all the casinos within a day’s drive banned him. ... In six months, he grew from 50 to 500 employees and sold almost $100 million in pillows. ... Lindell was losing $250,000 a week. ... What saved the entrepreneur was FedEx. It hadn’t occurred to him to negotiate shipping rates; he just paid retail with a bunch of different shippers.
Although robotic ships of this sort are some ways off in the future, it’s not a question of if they will happen but when. My colleagues and I at Rolls-Royce anticipate that the first commercial vessel to navigate entirely by itself could be a harbor tug or a ferry designed to carry cars the short distance across the mouth of a river or a fjord and that it or similar ships will be in commercial operation within the next few years. And we expect fully autonomous oceangoing cargo ships to be routinely plying the world’s seas in 10 or 15 years’ time. ... Remotely controlled ships, piloted by people on shore, and autonomous ships, which can take actions for themselves, are the latest beneficiaries of increasing digital connectivity and intelligence. These developments in electronic sensors, telecommunications, and computing have sparked interest in a range of autonomous vehicles including cars, planes, helicopters, trains, and now ships. ... That people should be seriously interested in robotic ships is easy enough to explain: Such ships are expected to be safer, more efficient, and cheaper to run. According to a report published by the Munich-based insurance company Allianz in 2012, between 75 and 96 percent of marine accidents are a result of human error, often a result of fatigue.
Reversing Paralysis: Scientists are making remarkable progress at using brain implants to restore the freedom of movement that spinal cord injuries take away.
Self-Driving Trucks: Tractor-trailers without a human at the wheel will soon barrel onto highways near you. What will this mean for the nation’s 1.7 million truck drivers?
Paying with Your Face: Face-detecting systems in China now authorize payments, provide access to facilities, and track down criminals. Will other countries follow?
Practical Quantum Computers: Advances at Google, Intel, and several research groups indicate that computers with previously unimaginable power are finally within reach.
The 360-Degree Selfie: Inexpensive cameras that make spherical images are opening a new era in photography and changing the way people share stories.
Hot Solar Cells: By converting heat to focused beams of light, a new solar device could create cheap and continuous power.
Gene Therapy 2.0: Scientists have solved fundamental problems that were holding back cures for rare hereditary disorders. Next we’ll see if the same approach can take on cancer, heart disease, and other common illnesses.
The Cell Atlas: Biology’s next mega-project will find out what we’re really made of.
Botnets of Things: The relentless push to add connectivity to home gadgets is creating dangerous side effects that figure to get even worse.
Reinforcement Learning: By experimenting, computers are figuring out how to do things that no programmer could teach them.
They were assigned perhaps the most urgent rescue mission in business today: Repurpose Wal-Mart’s historically underachieving internet operation to compete in the age of Amazon. ... Lore cuts an unusual figure at the Bentonville headquarters, which he now visits once a month on a private company plane, and in the geeky hallways of San Bruno and Sunnyvale, Calif., where most of Walmart.com’s engineers work. He’s a former bank risk manager and longtime New Jersey resident who’s a fan of Bruce Springsteen and of figuring out ways to simplify the routines of daily life. He recently ditched his Tesla and uses only Uber, for example, and he visits the same sushi restaurant near his office four times a week, always ordering the salmon sashimi. He also spends time on customer-pleasing contrivances that, in the parlance of Silicon Valley, do not scale. He recently devoted a 12-hour day to recording a thousand variations of a video greeting for new Jet customers. Now when customers sign up, Lore welcomes them by their first name. ... He’d like to extend Jet’s sensibility and business model to Walmart.com, the second-biggest e-commerce destination in the U.S., according to ComScore Inc. ... Wal-Mart has a lot riding on Lore. Last year he received $244 million in pay, 10 times that of his boss, Doug McMillon, Wal-Mart’s CEO. His project could determine the future of Sam Walton’s legacy and the eventual success of McMillon.
- Also: Barron's - The Amazoning of American Retail 5-15min
- Also: Bloomberg - Why the Retail Crisis Could Be Coming to American Groceries < 5min
- Also: Bloomberg - The Long, Hard, Unprecedented Fall of Sears < 5min
- Also: Bloomberg - Mall Owners Fighting Online Stores Turn to Concerts, Food Trucks < 5min
Pick any other major city or metropolitan area in the U.S., and the situation’s probably the same: a massive surge in deliveries to residential dwellings, one that’s outstripping deliveries to commercial establishments and creating a traffic nightmare. ... It’s estimated that, on average, every person in the U.S. generates demand for roughly 60 tons of freight each year, according to the National Capital Region Transportation Planning Board. In 2010, the United States Post Office—which has overtaken both FedEx and UPS as the largest parcel-delivery service in the country—delivered 3.1 billion packages nationwide; last year, the USPS delivered more than 5.1 billion packages. The growth in e-commerce is fueling a commensurate rise in the number of delivery vehicles—box trucks, smaller vans, and cars alike—on city streets. ... While truck traffic currently represents about 7 percent of urban traffic in American cities, it bears a disproportionate congestion cost of $28 billion, or about 17 percent of the total U.S. congestion costs, in wasted hours and gas.
Shopping involves scrolling through an intoxicating admixture of goods: Commodity necessities appear next to fast fashion and knockoff apparel; extraordinarily cheap but on-trend electronics mingle with what I can only describe as global manufacturing overspill. ... These shipments were made in accordance with a bilateral trade agreement between the United States and China that originated in 2010, meant to address the rising tide of cross-border e-commerce. Items up to 4.4 pounds — more than the weight of, for example, a violin and bow — can be shipped as ePackets, at extremely low rates with tracking numbers and delivery confirmation. ... This obscure trade deal has become the quiet conduit for an explosion in a new and underexamined American consumer behavior: buying things directly from their countries of manufacture. ... Because of ePacket, and the decades-old international postal agreements that serve as its foundation, lightweight product shipments from China are heavily subsidized by the U.S.P.S. ... Wish certainly illuminates the peculiarities of international shipping, but it casts a much brighter light on the state of globalized manufacturing and commerce. In fact, it offers a somewhat convincing vision of what they might become in the near future. ... Wish wastes no such effort on concealing its international character. Its product selection feels like a churning, infinite cascade; its lack of any sort of organizing principle is part of the reason it’s so hard to stop scrolling.