Rocket Internet: a Company Factory

Venture Beat, a Tech Blog company, published a list of unicorn startups in worldwide

(http://venturebeat.com/2016/01/18/there-are-now-229-unicorn-startups-with-175b-in-funding-and-1-3b-valuation/). There are 6 in Germany which are “Hello Fresh”, “Zalando”, “Home24”, “Auto1”, “Delivery Hero” and “Rocket Internet”.

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Image from http://venturebeat.com/2016/01/18/there-are-now-229-unicorn-startups-with-175b-in-funding-and-1-3b-valuation/

However, according to the official website of Rocket Internet (https://www.rocket-internet.com/companies), surprisingly, most German unicorn companies I mentioned before are invested and built by Rocket Internet such as Hello Fresh, Delivery Hero and Home 24.

Sam Parr, one of the columnists of theHustle.co said, “Rocket Internet is one of the most hated yet successful tech companies in the world” (http://thehustle.co/rocket-internet-oliver-samwer) because the strategy of Rocket Internet for building companies is to copy successful business models from Silicon Valley. And the slogan displayed on the homepage of the official website of Rocket Internet is “To Become the World’s Largest Internet Platform Outside the United States and China”. In this way, Rocket Internet actually is a startup factory company which builds and invests other startups.

slogan

Image from https://www.rocket-internet.com/

How Rocket Internet Established

The founder of Rocket Internet, Oliver Samwer, holds a degree from WHU. “Upon graduation, Oliver, and his two brothers founded Alando.de in 1999. After the sale of Alando.de to eBay Inc., he was Managing Director of eBay, responsible for Germany, Switzerland, and Austria. In 2000, Oliver and his two brothers founded Jamba! AG, which was acquired by Verisign Inc. in 2004” (https://www.rocket-internet.com/about), I believe that the experience of establishing Alando gave Oliver a formula which can clone and develop startups quickly.

Then, in 2007, he founded a startup factory, Rocket Internet, to help startups grow at a high speed such as three years compare to ten years normally.

Let’s watch a Rocket Internet film.

Focus on Internet Business

According to the film, the main business that companies invested by Rocket Internet’s focus is the online business such as online finance, E-commerce, and online marketplaces. “5.4 billion consumers outside the United States and China = 75% of global population = 74% mobile users in the world.”

Usually, in the period of coping, Rocket Internet will provide a wider service range than the original product and spend a huge amount of money on Google Ads as long as the project still has capital left in order to attract consumers (https://www.huxiu.com/article/139124/1.html).

The running and managing way of Rocket Internet is totally like an assembly line. The only thing they are pursuing is efficiency which can grow a project in a short period and then sell it to the original company to make money.

How Big Data Changes Human’s Social Life

Big data, a popular word at present, is existing in everywhere nowadays. To some people, big data just means nothing, but to others, it means future and everything. Someone describe Big Data as the fossil fuel of the future world and someone even describe it as the tool to be the god.

Word Cloud "Big Data"

Image from http://crossing-technologies.com/big-data-analytics/

So in this world filled with information and data, what can big data exactly do to change human’s life in the future?

Let’s watch a video published by “fliptptv” at first.

 

Actually, after collecting sufficient information and data, the big data can help researchers anticipate what will happen.

Launching Ads Precisely

Maybe you have noticed that after you search The Google ad is the most direct example of describing the influence that big data affects on. Google will collect the history that web users browsed and what they posted on the social media platforms and push the advertising they may be interested in. For example, I just searched a running shoe on Finish Line but I did not buy it because of the high price and close the web page. Several minutes later, when I am on Google, it recommended me a lower price of that model of running shoes offered on Footlocker. Thus, the big data facilitate the deal.

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Image from http://marketingland.com/google-adsense-moves-new-home-page-testing-forces-publishers-use-new-layout-95839

Monitoring Users’ Physical Health

People browse web pages and use their credit card to purchase online and in physical stores. Also, devices record our information, for example, Fitbit and Apple Watch records the personal health data. The cell Phone records our location data. All these data such as what you eat, how many miles you walked, how much time you exercised can be collected and analyzed by the big data technology and be organized to a report to clarify YOUR personal situation about the current physical health and the anticipated illness might have in the future so that it can help us remind and correct the habit of dietary, workout and lifestyle.

Improving the Health Care System

Moreover, John Naughton addressed, “according to tracking and analyzing the search numbers and frequency of words such as ‘cough’, ‘fever’ and ‘cold’, Google can help government department anticipate the flu” (https://www.theguardian.com/technology/2014/apr/05/google-flu-big-data-help-make-gigantic-mistakes).

Knowing About the Traffic Situation

Through GPS set in the cell phones, the big data can analyze the traffic situation so that help people avoid coming across the traffic jam coincidently. Actually, this technology has been applied in Mobile Apps. And I believe that this function can be developed deeply in the near future.

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Image from http://www.clipartkid.com/privacy-policy-go-slow-fCG492-clipart/

The Risk of Leakage of Individual Privacy

However, the leakage of privacy information is a big problem to the development of the big data. The information the big data needs is diverse which includes all kinds of personal background such as income, age, occupation, locations, transaction history and some fields that common people can imagine. In this way, governments, IT companies and human rights organizations still need to do a lot and to negotiate with each other to find a balance point between developing the big data and protecting the privacy information.