Amazon’s future might be less about drones and more about operating its own trucks

The idea of Amazon using delivery drones attracted attention but one commentator thinks owning and operating its own trucks would be more feasible and important:

Ajay Agarwal knows Amazon. As a managing director with Bain Capital Ventures, he led a big investment in Kiva Systems, the warehouse robot company that Amazon paid $775 million for last year. Agarwal says that Amazon may be taking an ever-greater chunk out of the world’s brick-and-mortar retail sales, but physical stores still have Amazon beat in one key area. “What’s the biggest negative of Amazon? Returns,” he says. “It’s a royal pain…I feel like a daily, weekly exercise for me is breaking down boxes, doing returns, printing out return labels, etcetera, etcetera.”

But a dense network of Amazon delivery trucks could make returning unwanted items as easy as taking out the garbage. Unlike electronics or books, which most people shop for sporadically, grocery shopping takes place regularly and often. If Amazon Fresh takes off, that will mean frequent, predictable trips by Amazon trucks down residential streets. For every grocery order delivered, those trucks will have room for another return. “They take packages, and they take packages back,” Agarwal says, much like the milkman who in distant days not only delivered your milk but also picked up the empty bottles. “They control the entire infrastructure.”

That deep control has been a signature element of Amazon’s operations, from the first website visit to the moment an order leaves a warehouse. But that’s when Amazon hands off that order to a third-party carrier, typically UPS or FedEx. Such a concession must drive a control freak like Amazon CEO Jeff Bezos nuts — even if those companies have helped cement Amazon’s reputation for reliability by delivering on Amazon Prime’s promise of two-day shipping. With an army of its own trucks on city streets, Amazon cuts out the middle man. Meanwhile, returns could become as easy as handing a box back to the same Amazon driver who brought it in the first place…

But, he adds, Amazon must tread lightly. For now, the company depends intensely on UPS and FedEx to make its business work. At the moment, Amazon can’t make them angry. It’s telling that a day after Bezos revealed Amazon’s flying drone ambitions on 60 Minutes, which would also be a form of direct shipping, news leaked of UPS’ own drone plans, as if the delivery company was saying: “Don’t test us.”

Companies like Amazon like having control over the whole process for several reasons. One is that everything is then under their control. (Except the production of products which still have to be designed, made, and placed in Amazon distribution centers.) From beginning to end, they can set quality standards and track information. The other important part of this is cost and I’m a little surprised Agarwal doesn’t say anything about this. One appealing aspect of drones is that they remove the need to have people involved with the delivery of packages. In contrast, trucks require drivers and maintaining equipment. (This also doesn’t account for the need for Amazon, companies, and taxpayers to also support and pay for roads.) Could Amazon do trucking cheaper?

Maybe Amazon doesn’t care. Compared to other companies, Amazon seems relatively unconcerned about its profits. For example, see this opinion piece on “Why Amazon is a Lousy Business:”

Unfortunately, it’s not a great business.  According to Yahoo Finance, the company earned only a slim 1% operating margin during the last 2 years and a not particularly impressive 4% margin in 2010.  While there’s more to a business than just the bottom line, those are worrying numbers.

Jeff Bezos insists that he can turn on the earnings spigot any time he wants and is merely plowing money back in order to grow the business, but that seems thin to me.  Last year Amazon grew its top line 27%, very good, but not unusual for a technology company (Google, for comparison, grew 32%).

Drones, trucks, or otherwise, Amazon will have some choices about how to proceed with deliveries.

Beyond technological advances: “50 Social Innovations that Changed the World”

After reading The Atlantic‘s recent list of the 50 greatest inventions, one reader sends in a list of the most important social innovations. Here is the top 10 – in chronological order:

50 Social innovations that changed the world more or less in chronological order.  Rank order in top 10 shown in [ ]

1. Irrigation that
2. created a structured bureaucracy, land measurement and administration in Egypt and Mesopotamia
3. mathematics [3]
4. creation of nations as workable structures
5. empires based  on bureaucracy and military discipline
6. writing, instructions could be sent over distance – Incas used knots [1]
7. written rules and laws – the lawyers and courts as independent
8. alphabet [11]
9. agriculture and and animal husbandry skills that could be recorder and spread
10. history as peoples myths and lessons…

One could argue that these social skills made other technologies possible. It provided a social infrastructure. Imagine trying to large social groups without bureaucracy. While it often gets a bad name today, you couldn’t have the Roman army or city-states or the modern welfare state without bureaucracy.

I’m a little surprised that language isn’t included here – writing makes it but perhaps language predates the beginning of this list. It is also intriguing that economics and political science make the end of the list – perhaps this betrays the opinions of the author but few other academic disciplines make the list.

Social network analysis of Chicago violence show differences in risk, differences compared to Boston

Read a summary of recent research by sociologist Andrew Papachristos about social networks and violence in Chicago:

Take, for instance, a 2013 paper, published with Yale colleague Christopher Wilderman in the American Journal of Public Health. It’s set in a community in Chicago with a litany of familar risk factors: half of all households were led by a single female; 43 percent of the 82,000 residents had less than a high-school education; a third of households were below the poverty line. And the homicide rate, over the five years of the study, was 55.2 per 100,000, about four times the citywide rate (Daniel Hertz’s maps of homicide rates by police district are a good way of putting that in context; it’s high.)…

Simply being arrested during this period increases the aggregate homicide rate by nearly 50%, but being in a network component with a homicide victim increases the homicide rate by a staggering 900% (from 55.2 to 554.1)…

Even in this extremely abstracted form, from a third paper by Papachristos you can see a remarkable contrast between gang violence in Chicago and Boston. Each node is a gang; each line is a homicide or shooting; each bidirectional line is a reciprocal homicide…

Chicago’s social network of homicide is a knotty mess: 98 percent of all Chicago gangs were connected within the city’s homicide network during that timeframe, 32 percent higher than Boston’s shooting network. The network density of black gangs in Chicago is particularly intense, 30 percent compared to 4.5 percent for Latino gangs…

And a place to start for gathering more data—as Papachristos points out, his analysis is limited to people doing bad things. Robert Sampson, the Harvard (by way of Chicago) sociologist, has done pioneering work, most recently in his book Great American City, showing how positive social networks reduce crime and improve public-health outcomes in socially-organized neighborhoods like Chatham. Another possible implication is figuring out what kinds of networks “inoculate” people from violence.

Looks like a good summary of some interesting research. On one hand, this should be reassuring to the public: the perception is that crime rates in Chicago are out of control (even as they have declined in Chicago over the years and in many American cities) yet much of the violent crime is in the hands of a relatively small group of people. On the other hand, the density of violence in Chicago suggests there are some serious issues in particular social interactions and locations that are not easy to solve.

I’m also reminded of the work of sociologist Sudhir Venkatesh who has argued in several books that gangs in Chicago as well as more informal black market networks might be considered “efficient” or “rational” in what they do because of a lack of legitimate opportunities in poor neighborhoods. Whereas legal businesses might seek the best way to make profits, social networks in disadvantaged neighborhoods make do with what they have, even if the means are not legitimate. This doesn’t condone violence or other illegal behavior but Venkatesh’s work shows these aren’t haphazard or chaotic social networks and interactions.

Chicago suburb and school district won’t allow MTV’s “16 and Pregnant” to film on their property

Not all suburbs want to appear on reality TV shows: the Chicago suburb of Tinley Park and the local school district don’t want MTV’s “16 and Pregnant” to film there.

MTV’s controversial show “16 and Pregnant” is unwelcome in Tinley Park, as village officials and school leaders have pushed back against possible filming in the community.

When Tinley Park Mayor Ed Zabrocki heard the show might be shooting at the 80th Avenue train station’s restaurant, he sent word to the owner of Parmesans Station that the show’s cameras would be unwelcome on Tinley property…

Officials at Andrew High School declined this summer to allow MTV’s cameras on campus, principal Bob Nolting said…

When he was approached about filming at his restaurant, Papandrea said he had the same initial reaction as Zabrocki.

But he changed his mind after giving the matter further consideration, reasoning that the show has a positive effect on teenage pregnancies, he said…

For Zabrocki, who worked for many years as a guidance counselor at Brother Rice High School, the show presents “a bad image.”

Suburbs are often conscious about their image and it sounds like the suburb and school district didn’t want to be viewed as promoting teen pregnancy. Instead, I’m sure they would rather their community and schools are viewed as having a good quality of life, meaning they are the sort of places where teen girls don’t get pregnant. Of course, not all teen pregnancies happen to low-income residents but that seems to be the perception that Tinley Park does not want to invite.

One new Miami building will “Be Home to Nearly 2 Percent of the World’s Billionaires”

There are wealthy buildings and then there are ultra-wealthy buildings like this new condo tower in Miami:

Twenty-two billionaires—just shy of two percent of the world’s total—have purchased units in a condominium tower being built in Sunny Isles Beach, a small city in Miami-Dade County. The 60-story Porsche Design Tower features the normal super-rich perks, including units as large as 17,000 square feet, and swimming pool- and kitchen-equipped balconies as large as 1,600 square feet.

But the real draw is hinted at in the name: The Porsche Design Tower features three car elevators that will take residents and their rides directly to their units, where they can park their car in a glass garage adjoined to their residences (two-car garages for the “cheaper” units, four-car garages for the pricier ones). This feature allows car-obsessives to stare at their super expensive cars from their high-rise living rooms.

The tower, which broke ground in April 2013 and secured a massive construction loan in October, is the brainchild of car enthusiast and condo magnate Gil Dezer and Germany’s Porsche Design Group. As of mid-October, Dezer had sold almost 100 of the tower’s 132 units, the prices for which range from $4.2 million to $32 million. He reportedly spent part of November selling the remaining units at a gathering for Bugatti owners. There will be 284 robotic parking spaces in all. This is automated parking taken to the next level.

I know most of the buyers would rather not reveal that they live in this building but doesn’t this lift the profile of a new building?

The car elevator is pretty cool but I would also be interested in seeing how exactly this building interacts with the surrounding area. If you have this many wealthy residents, you don’t want normal people walking up or being anywhere near. Indeed, how could you construct entry and exit points so that people can’t simply wait for the wealthy to drive in and out? Leaving the transportation to cars leads to possible problems – and flying helicopters off the top of the building would help.

I can only imagine what the security will be here…

Just how do Americans do on an “ignorance test” about world development?

Hans Rosling, a guru of development data and TED star, has for decades asked people around the world what they know about international development. The results are not good:

In the 1990s, a professor at a medical university in Stockholm decided to test his students’ knowledge about the progress of global development. He was staggered to discover the class, some of the brightest people in Sweden, scored fewer than two out of five on average…

That academic was Hans Rosling, Professor of Global Health at the Karolinska Institutet and a medical doctor who had carried out decades of research in Africa, discovering the complexities of the continent (and a new disease) along the way…

Rosling has been on a mission to inform since the realization that his students — and his fellow professors — were somewhat woefully informed about the state of the world. Today CNN publishes Rosling’s latest survey of the United States which shows Americans, like most of the world, are far behind the reality in their understanding of world development but ahead of some — for example, Swedes…

In 2005, he co-founded the Gapminder Foundation, which aims to “promote a fact-based world view.” The following year, Rosling spoke at a conference run by TED — the non profit organization “devoted to ideas worth spreading.”…

Rosling realized the concept of “developed” and “developing” countries was hindering understanding of the emerging world, giving an impression of remaining homogeneity of a so-called “developing world”.

Nothing that an introduction to sociology course couldn’t help.

While Rosling wants to focus on facts (and there are some improving figures in the global fight against some major problems), I wonder if it isn’t also about getting people in the developed world to pay attention to the bigger picture. To be honest, many Americans, residents of Sweden, and people in other first-world countries don’t always have to know or consider what is going on in the rest of the world. For example, American media discussion of foreign countries is often pretty woeful and often presents a very American perspective. It is a luxury of being in a wealthier nation as your life is in decent shape (in global comparison).

“The Last Taboo”: Atheists still face uphill battle in American public life

Here is an overview of the hurdles atheists face in American society:

For starters, consider that there is not a single self-described atheist in Congress today. Not one. It wasn’t until 2007 that Rep. Pete Stark, a Democrat from Northern California, became the first member of Congress and the highest-ranking public official ever to admit to being an atheist. (And even he framed it in terms of religious affiliation, calling himself “a Unitarian who does not believe in a supreme being.”) Stark was elected twice after this, but when the 20-term congressman lost his seat last year, it was to a 31-year-old primary challenger who attacked him as irreligious, citing, among other things, Stark’s vote against our national motto: “In God We Trust.”

Indeed, the same year that Stark came out, the Secular Coalition of America was able to identify only five atheist public officials in the entire United States. After Stark and a Nebraska state senator, the third-highest ranking atheist was a school-board president from Berkeley, Calif.—this despite the fact that, according to a 2012 Pew report, 6 percent of Americans say they don’t believe in a higher power. That leaves at least 15 million Americans without any elected officials to represent their point of view. Basically, atheism is still as close as it gets to political poison in American electoral politics: A recent Gallup poll found (once again) that atheists are the least electable among several underrepresented groups. Sixty-eight percent of Americans would vote for a well-qualified gay or lesbian candidate, for example, but only 54 percent would vote for a well-qualified atheist. Seven state constitutions even still include provisions prohibiting atheists from holding office (though they are not enforced). One of those is liberal Maryland, which also has a clause that says, essentially, that non-believers can be disqualified from serving as jurors or witnesses…

The Cold War changed all that. Atheism began to seem almost treasonous amid tensions between the United States and the Soviet Union, because the Soviets were officially and emphatically against religion. Sen. Joseph McCarthy famously used the phrase “godless communists” to bash the political left and others he considered his enemies. In this context, President Dwight D. Eisenhower signed laws in the mid-1950s inserting “God” into our Pledge of Allegiance and putting it on all our money. (It had been on most coins earlier, but Eisenhower made “In God We Trust” our national motto, henceforth to appear on all bills.)…

In fact, the fastest-growing religious category in the United States is what are called the “nones”—people who say they have no religious affiliation. One-fifth of Americans are in this group today, according to Pew Research Center polling. Among adults under age 30, a full third count themselves as religiously unaffiliated. Some of them believe in a god or gods; some do not. They are not going to want to be pushed around by any sect one way or another, and as their numbers increase, they won’t have to allow it.

Surveys consistently show Americans are more opposed to atheists than other groups (such as voting for President) even as organized religiosity declines and atheists look to form megachurches. Read more of the Pew report on religious nones which suggests the numbers are growing even as some still have more traditional religious beliefs and practices.

Infographic: “Gender Inequality in [Hollywood] Film”

Check out this infographic from the New York Film Academy on gender inequality in American films. A few of the facts involved:

-“Women purchase half of the movie tickets sold in the U.S.” but “28.8% of women wore sexually revealing clothes as opposed to 7.0% of men” in the top 500 films from 2007 to 20012 and the “average ratio of male actors to females is 2.25:1” in these same films.

-The number of men and women working behind the scene in major roles of the top 250 films of 2012 is pretty unequal: women are 9% of directors, 15% of writers, 17% of executive producers, 25% of producers, 20% of editors, and 2% of cinematographers.

-“Forbes 2013 list of the top ten highest paid actresses made a collective $181 million versus $465 million made by the top ten male actors” and “In 2013 the highest paid female actor, Angelina Jolie, made $33 million, roughly the same amount as the two lowest-ranked men. Furthermore, age appears to be a dominant factor in an actress’s monetary success compared to men.”

So much for progressive Hollywood? The infographic also suggests the depth of the inequality goes beyond just star actors and actresses; it applies to numerous important roles and how characters are regularly portrayed.

Another aspect of this is to think about using infographics for social activism. In one big graphic, this group has presented a lot of data regarding gender in American films. Is it more effective to present the data in (1) a splashy way – infographics are hot these days and (2) to overwhelm people with data?

Describing the 20% of temporary rich (“mass affluent”) Americans

New survey data looks at new rich Americans who draw a lot of attention from companies and who might have outsized political influence:

Fully 20 percent of U.S. adults become rich for parts of their lives, wielding outsize influence on America’s economy and politics. This little-known group may pose the biggest barrier to reducing the nation’s income inequality…

Made up largely of older professionals, working married couples and more educated singles, the new rich are those with household income of $250,000 or more at some point during their working lives. That puts them, if sometimes temporarily, in the top 2 percent of earners…

Companies increasingly are marketing to this rising demographic, fueling a surge of “mass luxury” products and services from premium Starbucks coffee and organic groceries to concierge medicine and VIP lanes at airports. Political parties are taking a renewed look at the up-for-grabs group, once solidly Republican…

In a country where poverty is at a record high, today’s new rich are notable for their sense of economic fragility. They’ve reached the top 2 percent, only to fall below it, in many cases. That makes them much more fiscally conservative than other Americans, polling suggests, and less likely to support public programs, such as food stamps or early public education, to help the disadvantaged…

As the fastest-growing group based on take-home pay, the new rich tend to enjoy better schools, employment and gated communities, making it easier to pass on their privilege to their children…

Sometimes referred to by marketers as the “mass affluent,” the new rich make up roughly 25 million U.S. households and account for nearly 40 percent of total U.S. consumer spending.

This sounds like a group that would call themselves upper middle-class: wealthy enough to enjoy some luxuries and good things for their kids but not wealthy enough to truly compete with the millionaires and CEOs. They resent the idea that they are rich as they think middle-class values, such as hard work and providing for their kids, helped them arrive at their current position.

Yet, when the median household income in the United States is around $50,000 it is hard not see this group as wealthy. To some degree, it is all relative: the mass affluent might not be able to consistently live the high life in Manhattan or San Francisco but they could do really well in cheaper places like the Midwest or Atlanta or Dallas. Perhaps it is the perceived fragility that matters most: losing their job might be enough to move them down back near the median income, though unemployment rates are much lower for the educated and well-trained.

A few questions after reading this article:

1. How big should this group be in the United States?

2. Long-term, which party will capture these voters?

3. Will this group get a lot of negative attention as they are more accessible than the ultra-wealthy who can live more cloistered lives?

Review of the updated “A Field Guide to American Houses”

The 1984 version is a classic and there is now an updated version of A Field Guide to American Houses:

Architecture buffs, decorators, historians and anyone who studies the built environment will have Virginia Savage McAlester’s encyclopedic update of her 1984 book “A Field Guide to American Houses,” (Alfred A Knopf, 2013) on their wish lists.

For example: For those who think “prairie palace” and “McMansion” are merely envious epithets for “house bigger than mine,” the author explores the 1980s birth of the Millenium Mansion style and explores the reasons for the wide criticisms (“These complicated roofs can be thought of as crowns, or, more satirically, as the Future Roofers of America Relief Act.”)

For fans of modern ranches, Savage McAlester breaks them down into submovements with different roots. For lovers of historic homes, this is a rich trove of not just details, but reasons for them.

And for those seeking a homeplace that makes sense, the new chapter on neighborhoods is nothing less than essential.

It is hard to find another source that combines the technical features of different styles of American housing architecture as well as good summaries of each architectural movement.It can be hard to keep track of all the different exterior parts that are associated with different architectural styles – keeping your Italianate from your Georgian to your Colonial straight – and this book has helpful diagrams and descriptions.

I’m looking forward to seeing the section on McMansions. If I remember correctly, the 1984 version had a section on more postmodern or eclectic housing styles and McMansions would have likely fallen into that category. But, a reference book like this has the ability to shape understandings of McMansions for years to come.