Day: August 17, 2018
General Motors Expects to Launch Autonomous Cars in 2019
Since the turn of the century, interest in autonomous cars has skyrocketed. Several car manufacturers have invested heavily in self-driving car programs, including Google with its Waymo model. However, none is more invested or more poised than General Motors Autonomous Vehicles to make a huge impact in this market. With analysts suggesting the self-driving car market may be worth $30 billion, General Motors seems to know what it’s doing. Moreover, others are taking notice of the company’s future potential when it comes to this market segment.
General Motors Commitment to Autonomous Cars
When it comes to the self-driving car, General Motors isn’t new to the game. In 2016, General Motors purchased Cruise Automation, a San Francisco-based tech company, invested in designing navigational systems for autonomous cars. The company has continued to pump half a million dollars into its Cruise division with favorable results.
Currently, General Motors’ Cruise division has two sections. One involves the Cruise self-driving car while the other is its lidar section called Strobe, Inc. Lidar is the primary sensing and navigational component of autonomous cars typically seen on the car’s roof.
General Motors recently reported that the company plans to mass-produce its Cruise model in 2019, which is earlier than predicted. It plans to use its Chevy Bolt EV as the base model for their self-driving car line. These autonomous cars have been involved in testing for some time now. In addition to California, Arizona, and Michigan, General Motors plans to test-drive its self-driving car in New York soon. The price of its autonomous cars is between $70,000 and $100,000. Experts expect this price to drop.
Softbank Vision Fund – General Motors’ New Partner
General Motors’ prediction for the launch of its autonomous cars in 2019 just gained a little more clout. Softbank Vision Fund decided to invest $2.25 billion in GM’s Cruise Automation.
In return, the Tokyo-based technology investment firm gains a 19.6 percent equity stake in the self-driving car division. Other benefits also include a directorship position on Cruise’s board and future revenue opportunities from robo-taxi services and rider data. General Motors receives $900 million now and another $1.35 billion upon the commercial release of the self-driving car.
Softbank isn’t new to the self-driving car industry either. The investment firm has also invested in Uber Inc. as well as Nvidia Corporation, a manufacturer of sensor chips as well as Nauto, Inc that Bold Business featured in a recent article. Softbank’s motivation for pursuing General Motors is two-fold, however. First, General Motors has the ability to ramp up manufacturing of autonomous cars quickly. Secondly, the integration between the company’s Detroit operations and its Cruise division in San Francisco is attractive. The immediate returns on General Motors’ self-driving car have the potential for SoftBank if released in 2019. At the same time, the long-term potential related to user data may be even greater.
Why General Motors See Autonomous Cars as the Future
While technology has catapulted interest in autonomous cars, numerous advantages to a self-driving car have similarly contributed. General Motors recognized these benefits and plans to leverage autonomous cars to gain a competitive edge. The following highlights several of the potential benefits autonomous cars can provide.
- Enhanced Safety – Statistics show that human error cause 94 percent of all motor vehicle accidents. Over 35,000 people die each year in the U.S. from car crashes. Autonomous cars eliminate this factor as well as social problems like driving under the influence.
- Economic Advantages – Car crashes also impact the economy. Overall, motor vehicle accidents cause $242 billion in direct and indirect costs each year in the U.S. alone. In addition to markedly reducing these costs, autonomous cars also reduce human resource costs in the transportation sector.
- Better Transportation Efficiency – Americans spend nearly 7 billion hours in traffic each year due to congestion and various delays. Self-driving car systems can reduce this substantially through automation and artificial intelligence. Estimates suggest Americans could save 50 minutes a day in commute times on average.
- Better Mobility – Massive segments of the population currently have limited mobility options. The elderly and the disabled who cannot drive a total over 100 million individuals. This likewise does not include youth under 16 years of age. Autonomous cars could greatly expand mobility options for millions.
Where General Motors’ Self-Driving Car Will Likely Be
While General Motors predicts a self-driving car release in 2019, the introduction of autonomous cars will likely be gradual. Robo-taxis, shuttle systems, and AV pod transports are expected to be the first uses of autonomous cars. This means its Cruise self-driving car will likely be seen first as a robo-taxi. However, the production of these autonomous cars and their use could advance quickly. While several obstacles must be considered, the self-driving car will soon be here. Moreover, it appears General Motors is in a great position for the change.
Doomed for Extinction? – The 6 Percent Real Estate Commission
Recent technological advances have disrupted nearly every industry to date. Travel agents have yielded to giants like Expedia and Travelocity. Booksellers gave up their brick-and-mortar shops for listings on Amazon. Is technology finally disrupting the real estate market as well? And if so, is the 6 percent real estate commission going to be a thing of the past? Many forecasters believe so. Given the number of technology startups with the goal of disrupting the real estate industry, they might be right.
The 6 Percent Real Estate Commission – The Dinosaur in the Room
For most who bought a home in the last century, the 6 percent real estate commission has been a standard. Buyers and sellers partnered with a real estate agent who in turn helped them with the real estate transaction. Moreover, both the buyer and seller paid the agent a real estate commission, which was typically several thousands of dollars. Through the entire process, the real estate agent offered advice, education, negotiating skills, and other benefits. These services substantiated the 6 percent real estate commission received.
Today, people are questioning whether a 6 percent real estate commission makes sense. What value does the buyer or seller receive in exchange for the real estate commission paid today? With numerous online resources to assist individuals in homebuying, is the 6 percent real estate commission still worth it? Some homebuyers are not so sure. However, despite attempts by some companies to innovate the industry, the basic real estate commission model persists. At least so far, disrupting the real estate industry has been harder than many thought.
Disrupting the Real Estate Industry – A Work in Progress
Early in the 2000s, a few real estate renegades thought the time was ripe for disrupting the real estate industry. Zillow and Trulia launched online platforms with interactive real estate maps for homebuyers and sellers. Their model allowed them to earn revenues from real estate agent referrals. In contrast, Redfin pursued a similar platform but decided to seek revenues from real estate brokerage services. As a more “do-it-yourself offering,” Redfin costs much less than the traditional 6 percent real estate commission. However, despite the cost advantages, customers still preferred the personalized service of a real estate agent.
Some real estate startup companies are awarding more to brokers than the 6 percent real estate commission. Compass, which may be more of a technology company than a real estate firm, offers real estate brokers lavish signing bonuses. Compass provides its 2,000 real estate agents with a platform of hi-tech tools ideal for disrupting the real estate industry. The platform integrates all types of data for buyers and sellers alike. Moreover, it allows real estate agents to schedule appointments and communicate more effectively with their clients. However, despite awarding more than the standard 6 percent real estate commission with sales, Compass has yet to make a profit. The company raised a total of $808 Million in funding over 8 rounds, the last coming from SoftBank.
Flat Rate Real Estate Commissions – The Next Wave
More recently, technology startup companies with plans of disrupting the real estate industry have taken a new approach. Rather than charging a 6 percent real estate commission, these companies offer a flat rate fee for the transaction.
For example, Reali has adopted such a model using independent real estate agents. Based in Southern California, Reali uses machine learning and artificial intelligence to enhance customer experience and improve efficiency.
Purplebricks, operating in the U.K., Australia and now the U.S., takes a similar approach as Reali. Purplebricks also charges a low flat rate fee instead of the 6 percent real estate commission. And Trelora also charges flat-rate fees that are less than half the traditional 6 percent real estate commission fee for most sales. Unlike Reali and Purplebricks, Trelora uses an employee-based model where employees assume typical real estate agent duties. All of these companies leverage technology in some way to make the home buying process more efficient and less expensive.
Looking Beyond Real Estate Commissions
Technology startups are not only disrupting the real estate industry in areas of real estate commission. Several companies are looking to make changes in other areas of the real estate sector. Bowery is using data processing software in a proprietary appraisal platform to improve the speed and accuracy of home appraisals.
Flip is like a long-term Air BNB type of company facilitating subleasing activities. OnTarget provides an online dashboard to ensure on-time home construction projects by connecting multiple stakeholders. Finally, Offerpad, a technology startup in the Southwest, is reinventing the home sale process by providing its customers the convenience and control of the process. It is using on-demand technology to create a platform come to get fair and fast purchase offers on their home. They are live in Phoenix, Atlanta, Orlando, Tampa, Las Vegas, Los Angeles, Salt Lake City and Charlotte. Earlier this year, they secured $150 Million in new equity and debt financing. LL Funds, LLC is leading the round and they see further expansion of the business across the U.S. This raises OfferPads total funding to $410 Million. As Bold Business reported in May, Zillow, OpenDoor, Perch and Redfin are also ramping up their competing platforms.
There are many technology startups, and these are only a few with potential in disrupting the real estate industry further.
Dying a Slow and Gradual Death?
Unlike other industries, the real estate sector has maintained some resistance to change. Though many technology companies are hopeful in disrupting the real estate industry, they have not made a major impact yet.
More than 90 percent of homebuyers and sellers use a real estate agent and pay the 6 percent real estate commission. More than $75 billion in real estate commission fees are made each year in the U.S.
However, the writing is on the wall. Venture capitalists poured $1.2 billion into real estate technology companies in 2017. In the near future, you might check out a potential home by unlocking it with an app on your smartphone. You might then tour the home with a virtual assistant on the same app. Moreover, artificial intelligence might then help you close the deal. Though change has been slow, most still predict the 6 percent real estate commission is seeing its last hoorah.
Good Bacteria for Babies — Key to Optimum Health
Science is revealing how we can have healthy babies. A healthy dose of good bacteria for babies will do the trick. It may sound inconsistent with the practice of having sterile and germ-free environments around newborn babies. However, studies show that a healthy gut bacterial population can help boost the infant’s immunity against life-threatening diseases, allergies and may even help prevent obesity. The baby immune system
Inoculation Starts at Birth
The infant’s first brush with bacteria and microbes happen during the vaginal passage. During childbirth, a baby goes through a “microbial bath” from the mother’s vaginal flora. Essentially, this initial exposure to microbes is crucial in training the baby immune system. These microbes equip the infant’s body to recognize harmful organisms. Without this initial “coat of microbes” from the mother, a baby will most likely have a weak immune system. Likewise, an untrained immune system can become hypersensitive even to benign substances like dust or pollen and develop asthma or allergies. The passing of microbes and good bacteria for babies during birth helps in ensuring the survival of the baby outside the protective environment of the mother’s womb.
However, babies delivered via caesarian section is missing out on the good bacteria for babies. Infants born via Caesarean section are not able to go through a “microbial bath” hence developed an altered gut bacterial composition than those delivered through vaginal birth. In a 2007 study conducted by practitioners from Royal Belfast Hospital for Sick Children in Belfast, Northern Ireland, it was found that children delivered via Caesarian section have a 20% increase in the subsequent risk of asthma.
A study in 2016 headed by Maria G. Dominguez-Bello et al., tried to restore the bacterial count on C-section borne infants using vaginal seeding. The team observed a small group of 18 babies – 7 born vaginally, 11 born via caesarian.
Four of the eleven babies borne via C-Section were swabbed with saline solution cultured with their mother’s vaginal microbes. For one month, the researchers tracked the participants of this study, and the results were encouraging. Experts are following the progress of this study – further research is currently being conducted at Inova Fairfax Hospital in Virginia using a bigger sample.
What Our Gut is Telling Us
The body has bacterial cells. There are trillions of them, and they can be found in our stomach. These microorganisms, collectively known as the human microbiome, is responsible for keeping our internal ecosystem stable and robust.
The laying out of our microbiome foundation occurs during infancy. However, factors such as birth type, limited breastfeeding, use of antibiotics and hyper-cleanliness contribute to the distortion of the population of microorganisms in an infant’s gut.
Each bacterium has a specific function in our system. Changes in the population of the following microorganisms may have an impact on your child’s health:
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Bifidobacterium infantis (B. infantis)
B. infantis is a type of lactic acid found in our oral cavity and gastrointestinal tract. This probiotic is essential to protecting the infant’s gut against bad bacteria. B. Infantis does this by producing protein and acids that line the intestinal cells. Likewise, a healthy gut translates to a healthy baby immune system. A baby is less likely to catch a cold and flu or have skin problems and other illnesses with a healthy immune system. This probiotic also produces folate which is vital for the production of red blood cells.
With enough supply of red blood cells, the circulation of oxygen and removal of carbon dioxide in the body becomes more efficient. Healthy blood circulation is crucial in the baby’s overall development. It is the same way for good bacteria for babies.
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Lactobacillus
Our digestive tract, predominantly our large intestines, contains the probiotic Lactobacillus. Lactobacilli aid in digestion helps prevent diarrhea, promotes lesser bouts of colic and inhibits ts the growth of harmful pathogens in the infant’s gut. Lactobacillus also stimulate the baby immune system and helps reduce the risk of atopic eczema. These good bacteria strain also helps break down sugar more efficiently.
Consequently, this helps in providing nutrients and energy for growth and prevent weight problems in the future. Lactobacillus also works well with B. infantis in carbohydrate fermentation. An efficient fermentation means good acid production, which is essential for warding off harmful pathogens.
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The good bacteria for babies
A study conducted by Canadian Healthy Infant Longitudinal Development (CHILD) observed 319 subjects. Their studies reveal that 3-month-old infants having a significantly lower population of the gut bacterial genera Faecalibacterium, Lachnospira, Veillonella, and Rothia are at higher risk of asthma later in life. While most babies naturally acquire these good bacteria for babies, some infants fail to have enough population of these good bacteria in their digestive tract. Experts are looking at developing a therapeutic method in preventing asthma with this new information.
A baby’s immune system becomes stronger by exposure to a stimulus. The immune system must test, adapt, and learn how to cope with its environment. Parents will do anything to strengthen a baby’s immune system. A good source of probiotics is breastmilk and it is a better option over milk formulas. Second, lessen the use of antibiotics that may disrupt the building of your kid’s microbiome. Lastly, equip your child by letting him touch things, play and interact with the environment. It also helps if parents understand the benefit of good bacteria for babies.
