Brad Stone

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If you look through history, great inventors had their breaks from reality–Edison believing he could create a device to communicate with the dead, Marconi thinking he had the ability to exchange Morse Code with Martians. That seems to be part and parcel of large-scale technological dreamers. Elon Musk acknowledges that he’s sometimes given to delusions, but it’s possible that driverless electric cars, the  near-term colonization of Mars and the Hyperloop are not among them. Time will tell.

At Recode’s Code conference, Musk announced the autonomous-car challenge essentially solved and commented on this poisonous U.S. political season. He remarked that the President is the “captain of a large ship with a small rudder.” Musk may be working with a smaller vessel, but he believes its rudder world-changing.

From Brad Stone at Bloomberg Technology:

The South Africa-born entrepreneur is known for his unvarnished views on, say, how malevolent artificial intelligence could doom the human race or space exploration being key to humanity’s evolution. Musk — who said he occasionally succumbs to delusion — debated the best form of government (democracy) for a putative Mars colony, and the need for entrepreneurs to start businesses from iron-ore smelters to pizza delivery that can thrive in that planet’s harsh environment. But he also touched on matters far closer to home, including the divisive U.S. elections. Asked about controversial Republican candidate Donald Trump, Musk said no one person had the clout to affect the entire country, not even the Commander-in-Chief.

“I don’t think this is the finest moment for our democracy,” he said. “Being U.S. president is being the captain of a large ship with a small rudder. There is a limit to how much good or bad a president can do.”

Business-wise, Musk welcomed competition in what he called an increasingly crowded electric and self-driving arena, including from Apple Inc., which he expected to begin producing cars in volume by 2020. The iPhone maker however has never confirmed any plans on that front. Google Inc. on the other hand, which has spent years researching and testing autonomous vehicles, posed no direct threat.

“There’ve been so many announcement s of autonomous EV startups. I’m waiting for my mom to announce one,” he said. “Google’s done a good job of showing the potential of autonomous transport, but they’re not a car company.”•

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In a Financial Times essay, economist Tim Harford finds a link no one else was looking for: the scorched-earth strategies which drive both Amazon and contemporary Russia. An excerpt:

“Brad Stone’s excellent book, The Everything Store: Jeff Bezos and the Age of Amazon, paints Amazon’s founder to be a visionary entrepreneur, dedicated to serving his customers. But it also reports that Bezos was willing to take big losses in the hope of weakening competitors. Zappos, the much-loved online shoe retailer, faced competition from an Amazon subsidiary that first offered free shipping and then started paying customers $5 for every pair of shoes they ordered. Quidsi, which ran Diapers.com, was met with a price war from “Amazon Mom.” Industry insiders told Stone that Amazon was losing $1m a day just selling nappies. Both Zappos and Quidsi ended up being bought out by Amazon.

When the weapons of war are low prices, consumers benefit at first. But the long term looks worrying: a future in which nobody dares to compete with Amazon. Apple is a striking contrast: the company’s refusal to compete aggressively on price makes it hugely profitable but has also attracted a swarm of competitors.

Consider a grimmer parallel. Vladimir Putin’s Russia is the chain store. Georgia, Ukraine and many other former Soviet states or satellites must consider whether to seek ties with the west. In each case Putin must decide whether to accommodate or open costly hostilities. The conflict in Ukraine has been disastrous for Russian interests in the short run but it may have bolstered Putin’s personal position. And if his strategy convinces the world that Putin will never share prosperity, his belligerence may yet pay off.

I feel a little guilty comparing Bezos and Putin. My only regret about Bezos’s Amazon is that there aren’t three other companies just like it. I do not feel the same about Putin’s Russia.”

 

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A passage from Steve Coll’s New York Review of Books piece about Brad Stone’s The Everything Store, a title bout Amazon strongarming publishers, which was recently caught in the crossfire of Jeff Bezos’ battle with Hachette:

“Jeff Bezos’s conceit is that Amazon is merely an instrument of an inevitable digital disruption in the book industry, that the company is clearing away the rust and cobwebs created by inefficient analog-era ‘gatekeepers’—i.e., editors, diverse small publishers, independent bookstores, and the writers this system has long supported. In Bezos’s implied argument, Amazon’s catalytic ‘creative destruction,’ in the economist Joseph Schumpeter’s phrase, will clarify who will prosper in an unstoppably faster, more interconnected economy.

‘Amazon is not happening to book selling,’ Bezos once told Charlie Rose. ‘The future is happening to book selling.’ Yet the more Amazon uses its vertically integrated corporate power to squeeze publishers who are also competitors, the more Bezos’s claim looks like a smokescreen. And the more Amazon uses coercion and retaliation as means of negotiation, the more it looks to be restraining competition.

Toward the end of his account, Stone asks the essential question: ‘Will antitrust authorities eventually come to scrutinize Amazon and its market power?’ His answer: ‘Yes, I believe that is likely.’ It is ‘clear that Amazon has helped damage or destroy competitors small and large,’ in Stone’s judgment.”

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The opening of Dan Lyons’ post which pushes back at last night’s Amazon drone-delivery reveal on 60 Minutes, which he sees as hoopla for Cyber Monday marketing and also as damage control against Brad Stone’s unflattering Bezos book, The Everything Store

“Amazon CEO Jeff Bezos runs one of the world’s most notoriously secretive organizations. Yet last night he went on national TV and showed off a bunch of dazzling delivery drones that he says won’t realistically arrive in the real world for another four or five years, which in realspeak means they’re a decade or more away. 

Why is this incredibly tight-lipped company suddenly showing off prototypes? The answer is that these drones were not designed to carry packages, but to give a lift to Amazon’s image.

For one thing, today is Cyber Monday, the day when everyone goes shopping online. Amazon somehow got CBS and 60 Minutes to create a 14-minute free ad spot for Amazon on the eve of this huge shopping day.”

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