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What3Words CMO: tech companies can (and should) make money and do good

One of many largest working jokes in tech is the ‘we wish to change the world for the higher’ trope coming from Silicon Valley firms. With Fb altering its whole mission assertion to be about altering the world for the higher, it looks as if a super time to query whether or not a tech firm can really be the servant of two masters: the great of society and its backside line. 

It looks as if firms are both huge, and really financially profitable with bolted-on moral  practices, or focussed on bettering the world however won’t ever make severe cash. 

One firm that’s bucking that pattern is What3Words (iOS, Android), a free location app that has given addresses to the world by dividing it into three meter sq. models, allocating a 3 phrase mixture to every, providing you with simple to recollect, extremely correct location data. 

Good and easy

As easy an thought as this appears, it seems it’s been fairly revolutionary for folks within the growing world that don’t have a put up code, and even an deal with. Nevertheless it seems like the advantages attain far past humanitarian efforts.

We sat down with What3Words CMO Giles Rhys Jones at an occasion hosted by Tech4Good to speak about the place the concept got here from, the way it makes its cash and what’s subsequent.

The unique thought got here – as many nice concepts do – out of necessity. What3Words founder Chris Sheldrick was a musician and music occasions organiser who typically struggled with corralling musicians, roadies and crew due to poor addressing. 

“Chris determined that he would use GPS coordinates as a result of GPS coordinates are correct, what may go incorrect?” Giles mentioned. “Nevertheless it turned obvious in a short time that roadies, guitarists and caterers should not greatest programmed to recollect 18 digits.

“And the issue with GPS coordinates is that if should you make a slight mistake you do not essentially notice you’ve got made a mistake. You combine up a 4 and a 5, and nonetheless you find yourself on a hillside in Rome, simply on the incorrect hillside.”

They experimented with utilizing an alphanumeric code to shorten it down, however discovered that introduced extra issues, as should you combine numbers and letters, a ‘1’ may as simply be a ‘7’, and even an ‘l’. It was again to the drafting board. 

“There was a dictionary on the desk, and so they thought: ‘What number of phrases would we’d like [if we were just using words]?’ They labored out that three meters by three meters was the best dimension to be helpful, and there have been 57 trillion of these three meter squares on the earth. To cowl all of them you want 40,000 phrases, as 40,000 cubed is 64 trillion, which supplies you adequate to cowl the whole world.”

Excess of only a quicker pizza supply

The truth that it covers the whole world has been revolutionary, particularly for these in international locations that do not have a complicated addressing system, if they’ve one in any respect. 

Throughout the convention, Giles spoke a few program that What3Words is concerned with in Durban, South Africa. A ticket machine is planted within the centre of a rural village, which individuals can use to print off a three-word ticket for the placement the place they reside. They’ll then give that deal with to emergency providers, probably saving lives in conditions the place each minute counts. 

All of that is utterly free, as is the app itself, which is superb, however doesn’t sound nice for revenue margins. It begs the query: can an organization each do good and generate income? 

“Sure, and it ought to. There’s a wide range of totally different research on the market that say that companies with function carry out higher than these with out. I feel that actually at this explicit level in in historical past, folks gravitate in direction of firms that they’ve shared pursuits, shared perception, that they share a philosophy with.” 

Which is sensible, however the fundamental (and we all know that is very fundamental) precept of capitalist economics is that worth is pushed by provide and demand. When you’ve gotten a product that individuals want, you get to cost extra for it. 

Clearly, if you get a product that makes a distinction to folks’s lives, and also you cost loads for it, you find yourself as Martin Shkreli. However you give it away free, and the place does your revenue come from?

“In the event you’re a big enterprise and you may make or save some huge cash utilizing us we cost you a charge primarily based on quantity. We ran some assessments in London and Dubai and in Manchester. In London we gave two couriers 20 occasion parcels every, one with the three phrase addresses on, one with the identical road addresses on, and we tracked them with GPS screens and coronary heart price screens. 

“The one with three-word addresses was 30% quicker. In Dubai it was 40% quicker. For a enterprise that is a major sum of money. UPS mentioned that if they’ll save every of their drivers one mile a day that equates to a saving of 50 million .”

Utilizing tech to leapfrog

One of many really fascinating issues that is taking place with What3Words that it by no means anticipated is that growing international locations have been in a position to skip huge chunks of technological developmental historical past due to being able to find your self utilizing the app: 

“In Mongolia you will get a pizza, you will get a taxi, you’ll be able to open a checking account all with a three-word deal with. They’ve leapfrogged all of the legacy techniques that we have now right here within the Western developed international locations, and so they’re into the longer term already.”

It is clear that What3Words is efficiently making good cash whereas doing good. Clearly its enterprise mannequin cannot be utilized by all companies, however it’s good to see an instance of it in motion.

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