May 19, 2021, 4:07 PM ETConference Presentation, Interview, Fireside Chat

The Future of Everything: How Technology is Changing the World

Host and Panel: Stacey Worden (Milken Institute) moderates a session featuring Mike Milken (Chairman), Rajiv Misra (CEO, SoftBank Vision Fund), Drew Saxena (CEO, ShipBob), and Yakir Gola (Co-CEO, GoPuff).
Core Theme: The accelerated transformation of global systems (supply chain, healthcare, work, finance) driven by technology, catalyzed by the COVID-19 pandemic.
Pandemic Impact: The crisis compressed timelines for major innovations, such as the development of the Moderna vaccine (9 weeks vs. the traditional 9–10 years).
Employment Shifts: The pandemic generated millions of new jobs; Amazon was the top US hirer, while Kroger recruited 60,000 workers for delivery logistics.
Digital Acceleration: Telemedicine visits in one day during the pandemic equaled the volume of the entire previous year; digital education shifted from 20 million to 110 million students in China within a single year.
Global Connectivity: Mobile penetration in Sub-Saharan Africa rose from 4% in 2000 to over 80% by 2020, enabling information access in emerging markets.

Cost Reductions: Processing power has increased 1,000,000x; data storage costs have dropped to 1/1,000,000,000th of prior levels; and communication costs have fallen from $10/minute to near zero.
Capital Availability: The cost of capital has decreased dramatically due to near-zero short-term global rates, enabling easier financing for entrepreneurs.
Asset-Light Models: Successful startups (e.g., ShipBob, GoPuff) utilize leasing and third-party infrastructure rather than owning warehouses or factories, minimizing capital expenditure.
AI and Data: Companies like Coupon (Korea) and TikTok leverage massive data sets to offer vertically integrated services (ride-sharing, insurance, e-commerce) within single "super apps."
Demographic Shifts: The global population is aging, with projections showing more people over 60 than under 15; this drives demand for telemedicine and personalized healthcare.
Borderless Talent: Remote collaboration tools (Zoom, Slack) and real-time translation technology are eliminating language and geographic barriers for hiring.
Financial Inclusion: Digital platforms allow consumers in small towns to access products and services (e.g., exotic fruits) without visiting physical stores, democratizing access.

Mission: Provides small-to-mid-sized e-commerce businesses with logistics infrastructure similar to Amazon Prime (next-day/same-day delivery) without requiring them to build their own warehouses.
Entrepreneurship Barriers: Digital tools allow new brands to launch websites, accept payments, and access fulfillment networks in seconds, drastically reducing entry costs.
Resilience: Small e-commerce brands demonstrated high resilience during the pandemic by rapidly pivoting supply chains to meet changing consumer demands (e.g., a deodorant brand shifting focus during lockdowns).
Physical to Digital Conversion: Traditional brick-and-mortar businesses, such as JP Graziano's (an Italian deli in Chicago), successfully pivoted to e-commerce, selling merchandise and memorabilia online.
Supply Chain Constraints: The primary current risk is global supply chain congestion, with lead times for products from Southeast Asia extending to 2–3 months.
Small Business Vulnerability: 41% of African-American controlled small businesses and 20% of women-led businesses closed in March–May 2020, particularly those without an e-commerce presence.
Global Ambitions: ShipBob is expanding fulfillment centers in the EU, Canada, and Australia to service the global internet market.

Operational Model: Operates 400+ "micro-fulfillment centers" (approx. 10,000 sq ft) across 800+ US markets, controlling the entire inventory and delivery experience.
Delivery Speed: Targets 20–30 minute delivery for goods including groceries, alcohol, and over-the-counter medication.
Capital Efficiency: The company was bootstrapped with a few thousand dollars, achieving profitability in its first three years by turning inventory over multiple times per month before paying suppliers.
AI Integration: Uses AI to predict demand by zip code, optimizing inventory levels and SKUs in specific warehouses based on local preferences.
Pricing Strategy: Relies on financing from FMCG (Fast-Moving Consumer Goods) partners rather than holding significant upfront capital for inventory.
Pandemic Growth: Scaled demand by 800–900% year-over-year during peak pandemic periods, launching new categories like baby products and groceries.
Challenges: Faced significant hurdles in hiring staff and managing supply chain stockouts (e.g., toilet paper, paper towels) during the height of the pandemic.
Strategic Partnerships: Actively partners with local brands (e.g., Federal Donuts, Nick's Gelato) to provide immediate national distribution for local entrepreneurs.

Market Valuations: While there is some froth in the market (600 IPOs in the first four months, mostly SPACs), broad IPO performance has recently underperformed the S&P; value lies in selecting specific sectors like life sciences and European tech.
Life Sciences Investment: Critical for managing the costs of an aging population, who will spend 70% of healthcare costs in their final 10 years.
Innovation Focus: Opportunities exist in early diagnostics, personalized medicine, and therapeutics (e.g., drugs effective within 5 days of infection to prevent hospitalization).
Behavioral Permanence: The shift to remote work and digital consumption is permanent; "second derivative" acceleration means the pace of change will not revert to pre-pandemic levels.
Food Technology: Advances in plant-based and lab-grown proteins aim to match animal protein in texture and taste within five years.
Human Capital Value: In a low-cost capital environment, the scarcity and value of human talent and leadership have increased significantly.
Generational Tech Adoption: Necessity has accelerated technology literacy among senior citizens (70+), closing the digital divide regarding communication and commerce.