Understanding Context & Trust - Video 8

Summary

The script narrates the inspiring story of Keller and Keenan, two American robotics enthusiasts who, after initial failures, successfully established Zipline, the world's largest commercial drone delivery service. Starting in rural Rwanda to address the critical need for timely blood and plasma delivery, they built trust with the government by honoring their delivery commitments, even during drone development. This trust led to a nationwide contract and expansion across Africa. Their innovative solution now extends to the US, with Walmart integrating Zipline for efficient, on-demand deliveries, showcasing how trust and technology can transform supply chains and save lives.

Takeaways

• 🤖 The script discusses the story of Keller and Kenan, two young American entrepreneurs fascinated by robotics, who built a drone company to address the problem of delivering medical supplies in rural areas.
• 🏥 Keller and Kenan identified a critical issue in public health, specifically the timely delivery of blood and plasma to remote locations, which is a common challenge in many parts of the world.
• 🚁 They founded Zipline, a company that uses drones to deliver medical supplies quickly and efficiently, starting in Rwanda and expanding to other African countries.
• 🛣 The conventional solution of delivering medical supplies via motorcycle was inefficient and often resulted in delays or spoilage due to the hilly terrain and long distances.
• 📱 Zipline operates with an app-based system where clinics can request the type and amount of blood needed, which is then fulfilled by a team and delivered by drone.
• 🔄 The company has two main teams: Flight Ops for pre-flighting and preparing the drones, and Healthcare Ops for managing the medical products and ensuring the right supplies are delivered.
• 📈 Zipline's success is built on trust, starting with a contract with the Rwandan government to deliver blood, even if it meant using trucks during the development phase of their drone technology.
• 🌟 Trust was established by honoring the contract and incrementally improving the delivery system, which eventually led to the launch of drone delivery services.
• 📚 The script highlights the importance of trust in entrepreneurial ventures, emphasizing that trust can transcend technological, application, and geographical settings.
• 🛒 The script also mentions the expansion of Zipline's services to the US, with Walmart partnering to install drone landing ports for various goods, not just healthcare supplies.
• 🚀 The future vision includes the development of more advanced drones capable of vertical takeoff and landing (VTOL), potentially revolutionizing the delivery of everyday items like groceries.
• 🌍 The script concludes by emphasizing that trust is a universal component of successful entrepreneurship, regardless of the setting or the specific challenges faced.

Q & A

What is the main focus of the example discussed in the transcript?

The main focus is on the trust-building process and the innovative solution of using drones for delivering medical supplies, specifically blood and plasma, in rural areas, starting with Rwanda.

Who are Keller and Kenan, and what is their connection to the drone delivery service?

Keller and Kenan are two American individuals with a background in robotics who teamed up to create a solution for delivering medical supplies using drones. They are the founders of Zipline, the world's largest commercial drone delivery service.

What was the initial problem that Keller and Kenan aimed to solve with their drone technology?

The initial problem was to ensure that remote areas, particularly in Rwanda, could receive blood and plasma in a timely manner, which was previously a challenge due to the long and difficult transportation routes.

How did the conventional solution for delivering blood in rural Rwanda compare to the drone delivery system?

The conventional solution involved transporting blood via motorcycle, which was time-consuming and could lead to blood spoilage due to the long travel times. The drone delivery system significantly reduced the delivery time, ensuring blood arrived fresh and on time.

What is the significance of the contract signed by Keller and Kenan with the government of Rwanda?

The contract was significant because it demonstrated their commitment to deliver blood to the specified facilities, regardless of the method. This allowed them to build trust with the Rwandan government while they developed their drone technology.

How did the trust-building process with the Rwandan government influence the expansion of Zipline?

The trust-building process allowed Zipline to establish a strong foundation in Rwanda, which then led to expansion into other African countries and eventually to the United States, where they are now working with Walmart for broader delivery services.

What is the role of the fulfillment team in the Zipline operation?

The fulfillment team is responsible for receiving blood pack requests, loading them onto the drones, and ensuring the drones are prepared for flight. They are a crucial part of the operation that connects the demand for medical supplies with the drone delivery system.

What is the significance of the phrase 'plate level delivery consistency' mentioned in the transcript?

The phrase 'plate level delivery consistency' refers to the high level of precision and reliability in the drone delivery system, where packages can be delivered directly to a specific location, such as a person's garden, with minimal noise and disruption.

How does the trust that Walmart has in Zipline relate to their previous success with delivering blood?

Walmart trusts Zipline because of their proven track record in delivering sensitive and critical items like blood. This trust is built on the reliability and efficiency of their drone delivery system, which can now be applied to a wider range of products.

What are the broader implications of the success of Zipline's drone delivery system for other industries and services?

The success of Zipline's drone delivery system has broader implications for the logistics industry, showing that drones can be a viable solution for delivering a wide range of goods, including medical supplies, consumer products, and potentially even food and other perishables.

What is the importance of understanding the context and addressing institutional voids in entrepreneurial ventures like Zipline?

Understanding the context and addressing institutional voids is crucial for entrepreneurial ventures because it allows them to identify and capitalize on opportunities that may not be apparent in more developed markets. It also helps in building trust and creating solutions that are tailored to the specific needs and challenges of the target communities.

Outlines

00:00

🤖 Building Trust with Robotics: The Zipline Story

This paragraph tells the story of Keller and Kenan, two young American entrepreneurs from Harvard, who founded a robotics company that failed initially. They eventually teamed up with a PhD student working on the Robot Operating System (ROS) and identified a significant problem in global healthcare logistics: the timely delivery of medication, particularly in rural areas. They chose to address the challenge of delivering blood and plasma to remote clinics in Rwanda. The conventional method was inefficient due to the country's hilly terrain and long travel times. The founders created a solution using drones to deliver blood quickly and efficiently. The company, Zipline, now operates as the world's largest commercial drone delivery service, starting in Rwanda and expanding to other African countries. The paragraph highlights the innovative use of technology to solve real-world problems and the importance of trust in the success of such ventures.

05:01

🛫 Trust and Contractual Commitment in Drone Delivery

The second paragraph delves into the trust-building process that allowed Keller and Kenan to successfully implement their drone delivery service in Rwanda. Initially, they signed a contract with the Rwandan government to deliver blood without specifying the use of drones. They iterated on their drone technology while fulfilling their contractual obligations by driving the blood to the clinics. This demonstrated their commitment and earned the trust of the Rwandan Ministry of Health. The Ministry advised them to deal directly with the government to mitigate risks associated with individual hospital contracts. With the government's trust, they were able to launch their drone service, which has since expanded to the US, including partnerships with Walmart for broader delivery services. The paragraph emphasizes the importance of trust in business relationships and how a proven track record can open doors to new opportunities and partnerships.

Keywords

💡Trust Building

Trust building is the process of establishing credibility and reliability between parties. In the video, the concept is central to the narrative as it describes how Keller and Kenan earned the trust of the Rwandan government by fulfilling their contract to deliver blood, even while developing their drone technology. This consistent reliability led to further opportunities and partnerships.

💡Robotics

Robotics refers to the technology dealing with the design, construction, operation, and application of robots. Keller Naldo's fascination with robotics from a young age and his partnership with a PhD student from Stanford to develop the Robot Operating System (ROS) is highlighted in the video. Their work with drones for medical deliveries exemplifies the practical application of robotics.

💡Drone Technology

Drone technology involves the use of unmanned aerial vehicles (UAVs) for various purposes. In the video, drones are used by Zipline to deliver medical supplies like blood and plasma to remote areas in Rwanda. The efficiency and reliability of drones over traditional methods like motorcycles are emphasized as a game-changer in healthcare delivery.

💡Public Health

Public health is the science and practice of protecting and improving the health of a community. Keller and Kenan's motivation to address public health issues through their drone delivery service stems from their family connections to the field. Their focus on ensuring timely delivery of medical supplies to rural areas showcases the impact of technology on public health.

💡Supply Chain

A supply chain is the sequence of processes involved in the production and distribution of a commodity. The video discusses how Zipline's drone delivery system revolutionizes the medical supply chain by ensuring timely delivery of blood and other essentials to remote locations, thereby preventing stockouts and expiries.

💡Rwanda

Rwanda is a country in East Africa known for its hilly terrain. It serves as the initial testing ground for Zipline's drone delivery service. The challenges posed by Rwanda's geography and the need for reliable medical supply delivery highlight the significance of Zipline's innovation in the video.

💡Zipline

Zipline is a company that provides drone delivery services, primarily for medical supplies. Founded by Keller and Kenan, Zipline started its operations in Rwanda and has since expanded to other African countries and the US. The video narrates the company's journey from its inception to becoming a key player in drone-based logistics.

💡Harvard College

Harvard College is a prestigious institution where Keller Naldo studied. The mention of Harvard in the video underscores the academic background and innovative spirit that fueled Keller's interest in robotics and his eventual venture into drone technology.

💡Contractual Reliability

Contractual reliability refers to the adherence to terms and conditions agreed upon in a contract. The video highlights how Zipline honored its contract with the Rwandan government by delivering blood through any means necessary, including trucks, while their drone technology was being perfected. This reliability was crucial in building trust with the government.

💡Innovation

Innovation is the process of translating new ideas into tangible societal benefits. The video showcases innovation through Zipline's use of drones to solve logistical challenges in healthcare. By addressing the specific problem of medical supply delivery in remote areas, Zipline exemplifies how innovative solutions can have a profound impact on public health.

Highlights

Harvard student Keller Naldo's fascination with robotics and his initial failure in building a robot company.

Collaboration with a Stanford PhD student on developing the Robot Operating System (ROS).

The problem of inaccessible medication in rural areas, particularly the challenge of delivering blood and plasma in time.

Innovative solution using flying robots or drones to deliver medical supplies quickly.

The establishment of Zipline, the world's largest commercial drone delivery service, starting in Rwanda.

Zipline's operation with two teams: flight operations and healthcare logistics, ensuring efficient delivery.

The use of an app for clinics to request blood, demonstrating technological integration in healthcare.

Zipline's expansion to other African countries, showcasing the scalability of the drone delivery solution.

The importance of trust in entrepreneurial ventures, as illustrated by the Rwandan government's contract with Zipline.

The incremental development of drone technology, ensuring reliability before full-scale deployment.

The strategic advice from the Rwandan Minister of Health to deal directly with the government for efficiency.

Zipline's entry into the US market, starting with operations in North Carolina.

The potential for drone delivery to revolutionize supply chains, including for companies like Walmart.

The concept of 'plate level delivery consistency' for consumer goods, indicating the future of drone delivery.

The significance of building trust through reliable delivery records, as seen with Walmart's partnership with Zipline.

The broader implications of trust-building in entrepreneurship, transcending technological and geographical boundaries.

Transcripts

let's go to yet another example of uh of

of of trust building um so this one is

um one that I've been following for only

four or five years but it comes out of

Harvard College yeah uh which is right

there across across the perbal river yes

across the real imagine River in front

of us beautiful Bridge old brick

buildings and nobody ever walks across

nobody ever walks across except

me we live in a bubble here on buiness

campus um but there was a student uh at

at Harvard 10 all years ago uh Keller

Keller Naldo and he was fascinated by

robotics so he seems to have been

playing around with robots um uh pretty

much all his all his young life and uh

was trying to build a robot company and

guess what happened to the robot company

like any other Adventure it failed most

startups fail most startups fail just so

you know yeah so it failed a few times

and then he ran into this guy who was

doing a PhD in robotics at stand

yeah who was building uh Ros the Robot

Operating System and was one of the

people who managed to get it to work and

so they teamed up and again they started

with a problem right and the problem for

them was since they had as I recall um

Keller and Kenan both had family members

who were in public health yes maybe the

spouses I I forget but some in public

health and so they said okay well a big

problem is that in most parts of the

world you cannot get medication

uh two people in the right time this

goes back to my opening ice back example

right um I needed ice to for a family M

to keep medication cold yes somebody

else might need the actual medication to

stay alive um so the problem that they

they chose to address was how do we make

sure that uh places in rural Rwanda get

access to blood and

plasma when they need it and the

convention solution was what go on a

motorcycle or something from Kali to

some remote some place to the Ugandan

border and the Motorcycle

goes Randa is famously very hilly uh it

takes you know 7 hours yeah as old as

the hills yeah take 10 takes 10 seeds

good you're a good

student takes 8 10 hours the blood

doesn't get there in time or you stop

the blood ahead of time and it goes bad

because it only has a shell f for so

long uh so they said well you know let's

create a solution where we use our

robots flying robots drones and

essentially the the hospital selling of

the clinic that needs blood basically

sends on an app yes uh we need this kind

of blood and this amount and there's a

fulfillment team at zipline which is the

name of the company now the world's

biggest commercial uh drone provider

including in in the in the US but the

starting point just in Rwanda and the

Fulfillment team takes the blood packs

it in and shoots the Drone and it's

there in a few minutes yeah so they'll

watch the video of the zip line

working zip line is divided in two

different team we have the flight Ops

who carry about pre-flighting planes

packing loading the packages and make

sure that plane can fly and then we have

hair thops you can include more of the

people with the knowledge of the blood

product we make order to zipline by

using SMS or by using uh WhatsApp

the package handed to fly DRS you scan

the package and that's when we put the

vehicle on the

launcher vehic will fly autonomously up

to the

[Music]

hospital we can avoid expiries we can

avoid stock out

because the supply chain has improved

blood is life it is saving life for

[Music]

a you saw the video it's pretty

incredible like I

mean like we need this in the US right

and and I'll come to that I'll come to

that cuz they've done this this kind of

access to uh supplies is brutal America

needs it in a big way absolutely um but

going back to Africa so starting at run

then I think they went to Ghana next

then to Tanzania now in 8 or 10 African

countries over over over the past years

uh go back to the idea what why why

should someone believe that why should

someone trust Keller and Kenan who are

two American Kids yes young young

American Kids never built robots before

well they built built robots

unsuccessfully unsuccessfully in a

company sense uh but even so even if

they had even if they were amazing robot

Engineers I'm sure they were um why

would I why would I trust them to deal

with blood come to

Randa so what's what's really

interesting what I'm remembering now as

we're speaking is that the initial

contract that they signed with the

government of Rwanda yes right was we

will deliver your blood to X facility

okay it didn't say we will use drones it

just said we will deliver it yes and

they went through at least four

generations of drones

including flying the Drone across the

parking lot to see if it actually gets

to where it's supposed to to and because

they had committed to deliver blood they

would drive it in a truck in the

meantime and deliver it so they

satisfies their contract yes and the

Rwandan Ministry is looking at it and

saying these kids are real because they

are honoring the contract while they're

developing the science they're not

prematurely launching the launching the

drones and so the ministry began to

trust them once the ministry trusted

them I think it was the minister of

Health whose name Agnes I forget I

forget her full name the minister

probably advised them look don't do a

deal with individual hospitals it'll

take forever you have counterparty risk

you don't know when you're going to get

paid do a deal with the governor Rwanda

because we have an interest in solving

this we have unnecessary debts going on

we'll do that with you but it came out

of that trust building exercise of

saying because they were sending the the

I committed to do this come hell or high

water I I'll get you your blood there on

time yes for whatever I'm committing to

and then incrementally changes that you

keep on delivering and when you're ready

then you launch the Drone and now it's

like wow it's it's it's a Dr that's

really doing it um and that's what's

allowed them to then come to come to the

US and star I think the initial effort

was in was in North Carolina yes uh I

met um someone from the uh from the from

the Walton family a few months ago and

they were telling me how they are now in

Walmart and Arkansas they're

installing uh in the Walmarts they're

installing zipline portals where the

Drone can land and take some Goods not

just Healthcare stuff but any Walmart

stuff so it turns out that 90% of things

that are shipped on Amazon are are like

this size less than 5 lb or this

Dimension which the drones can do and

now they're working on like not just

fixed swing drones which you saw in the

video the initial things but fixed swing

come quadcopter drones that can do VTO

where take off a landing and then go a

little distance and then H down yeah and

so you have I love this phrase that I

heard one of them use which is um um

like plate level delivery consistency

what it means is you're sitting in your

garden and you realize I don't have

ketchup yes and you order the ketchup

from the Walmart and the Drone will come

it'll stop 300 ft above you it sounds

very science fiction yes it's real I saw

it it stops ft above you yes that's high

enough that you don't hear it it's a

quadcopter and then like a little Droid

comes down right just like this you hear

that and the ketchup drops into your

dinner plate and the Droid goes away in

five

minutes and you know what's what's great

about this and you know America yeah

exactly it sounds sounds science fiction

but again the core is trust right like

to get wmart trusts them right why does

Walmart TR them because it says you guys

have a track record of delivering

delivering blood but was hard things to

deliver right now all we're talking

about is ketchup yeah so exactly I mean

I'm exaggerating they do all kinds of

deliveries but uh but but you're

building on that trust mechanism and

living the contractual realities and not

violating that um in a way that

transcends settings technological

settings application settings

geographies communities people's

backgrounds so whether you think about

you know Bano and the Carlos's in rural

Mexico um you think about you know colam

Masha in in Northern Nigeria DTI doing

heart

surgeries Keller and Keenan delivering

blood supplies in uh different parts of

America um Shetty getting the patients

to trust him uh it's all about uh a

understanding the context uh B taking

steps to El at the institutional voids

and and capitalizing the opportunities

that they represent and stitching the

whole thing together in a fabric of

trust and making that the central uh

part of the entrepreneurial mission bous