source: techcrunch ai: andrew yang thinks the next big startup opportunity is lowering the cost of living
level: business
andrew yang, entrepreneur and former presidential candidate, believes the next big startup wave will focus on reducing the cost of living. inspired by mark cuban's cost plus drugs, which sells pharmaceuticals at cost, yang identified sectors like housing, education, food, fuel, transportation, media, and wireless as ripe for disruption. he launched noble mobile, a mobile virtual network operator that offers cheap cell service and refunds customers for unused data. yang sees ai compressing wages and displacing workers, making affordable essentials a critical business opportunity.
yang's push for cost-cutting businesses stems from his advocacy for universal basic income during his 2020 presidential campaign. he argues that ai-generated wealth must reach average americans, but he is skeptical that government will effectively redistribute it. instead, he says market incentives can directly connect money to people. noble mobile, which has grown to thousands of customers and millions in revenue, shares profits with subscribers to encourage loyalty and word-of-mouth growth. yang notes that saving $50 monthly and investing it could yield $24,000 over 40 years.
despite the logic, investors remain focused on ai, with one telling yang they would invest only if noble mobile became an ai company. yang counters that extreme wealth concentration harms everyone, even the rich who may need private security. he urges founders to tackle meaningful problems and avoid groupthink, suggesting that consumer-focused, margin-sharing models can be valuable. the trend includes examples like dumb phones and discount grocers, pointing to a category where startups win by returning value to customers.
why it matters: for ai and data science professionals, this signals a shift toward applying technology to reduce consumer costs, creating demand for efficient, automated systems in essential services.
source: techcrunch ai: andrew yang thinks the next big startup opportunity is lowering the cost of living