Physical businesses can be built like an atoms-based computer

Transcript

Transcribed by machine (Whisper) from the episode’s audio, so a word may be off here and there.

1. 3:17

   a lot of this stuff's not surprising. I would often talk about digitizing the physical world. I think I even did it all at Summit. The quick version of this, I'll try to do it quickly, but it's like, we know the bits world, the computer world, the one that Michael Dell essentially invented for us. CPU, storage, network, these are three core computing resources when you go to computer science class your first day.

2. 3:39

   Three core computer resources. CPU manipulates the bits, storage stores the bits, network moves bits from point A to point B. But if you're digitizing the physical world, you're treating atoms like bits. You're building an atoms-based computer. And I'll explain what I mean to say. I know this is a little out there. CPU manipulates bits. What manipulates atoms? manufacturers. manufacturing. Storage stores bits. What stores atoms? Real estate. Network moves bits from point A to point B. What moves atoms? That's transportation or logistics. So you have these three core computing resources in an atoms-based computer. The name of my company was very obtuse and purposely designed to be as boring as hell. It was called City Storage Systems.

3. 4:23

   So that's digitized real estate in an atoms-based computer. Our first computer being a food computer. What does that mean? Manufacturing real estate and logistics for food. And so you start to get there. And the idea, the mission was infrastructure for better food. The idea was, can you get a meal that's prepared and delivered to you so efficient that it starts to approach the cost of going to the grocery store? If you can do that, you do to the kitchen what Uber did to the car. But in the Uber day, the roads were there. The cars are unused. You just had to put an app in the app store. It wasn't that easy, but kind of that easy. In this world, you can't do this on a restaurant. Restaurant doesn't have... When I left Uber, 13% of all San Francisco miles were Uber miles. You can't get... And that was nine years ago. You can't get there on food,

4. 5:20

   on restaurants. They have like 20% capacity. Uber Eats and DoorDash fill it, but the infrastructure to do high capacity, high scale sort of industrial production is just not there. And the logistics just not there. It just doesn't work. That's why on e-commerce, you go through Amazon big ass warehouses with awesome logistics. You've got to do the same thing when food, when food goes to e-commerce that was a lot yeah okay so bottom line is it's awesome we do this food computation