Andrew Yang: The next big startup opportunity is lowering the cost of living
Entrepreneur and former presidential candidate Andrew Yang believes the next wave of startup success lies in business models that give money back to customers. He launched Nobile Mobile, a low-cost cell service that refunds unused data, as an example.
Former U.S. presidential candidate and entrepreneur Andrew Yang argues that the next major startup opportunity is reducing the cost of living. In an interview with TechCrunch, he said many founders fail to ask: "What if the business model was giving money back instead of extracting it?"
Inspired by Mark Cuban's Cost Plus Drugs, which sells pharmaceuticals at cost, Yang listed categories where people spend most: housing, education, food, fuel, transportation, media, and wireless. He chose wireless and launched Nobile Mobile last September, a mobile virtual network operator offering cell service at a fraction of traditional carriers' prices and refunding customers for unused data.
Yang believes artificial intelligence (AI) will continue to compress wages and displace workers, making cost-of-living reduction a ripe opportunity. He cited Cost Plus Drugs, Nobile Mobile, Light Phone, and Misfits Markets as early examples of a new category where the startup's value proposition is the margin returned to customers.
While Yang still advocates for Universal Basic Income to redistribute AI-generated wealth, he noted government action isn't always effective. "There is room for a direct connection between the money and the people," he said. Nobile Mobile is his attempt to prove the point. Since launch, it has grown to "thousands and thousands" of customers and generates "millions in revenue." The company is unit profitable, sharing profits with subscribers.
Yang highlighted that average monthly savings of $50, invested over 40 years, could amount to $24,000—enough for a retirement down payment. However, investors remain focused on AI, making consumer businesses with thin margins a hard sell. He recalled an investor saying, "Love you, Andrew, want to work with you—if you could just make this an AI company, we'll invest."
Yang encourages founders to tackle problems they are passionate about and think broadly. "Concentrating value in the hands of a few folks and firms is bad for everybody," he said, noting that even AI companies need consumers with purchasing power.
