Brandon Donnelly — Daily insights for city builders. Published since 2013 by Toronto-based real estate developer Brandon Donnelly. — Page 1212

If you don’t follow the work of MIT’s Senseable City Lab , I highly recommend that you start. 

Earlier this year, researchers from the Massachusetts Institute of Technology, the Swiss Institute of Technology, and the Italian National Research Council developed something that they call “ slot-based intersections .” In a world where cars have sensors and drive themselves, it is intended as a more efficient alternative to traditional intersections. Goodbye traffic lights.

Much like air-traffic control, the way the system works is by assigning individualized time slots to each car for when they may enter an intersection. For example, in the diagram below (Sequence 01) the car approaching from the bottom left (#10) has a “stop distance slot” in front of it reserved for 3 of the cars that are currently in the intersection. The two that are traveling perpendicular to it and the car currently turning left into the same lane as #10 (on the other side of the intersection). The car in the midst of turning right (#5) is exempt because there’s no possibility of collision. 

In Sequence 02 (below) you can see that car #10 is now turning left, which means it has its own time slot in the intersection. Other approaching cars now have a “stop distance slot” dependent on car #10.

In all cases, cars making a right turn are able to move freely, provided they will not interfere with any other cars.

The researchers estimate that real-time slot allocation might double the number of vehicles that a traditional traffic-light intersection can handle today and, in some cases, it might completely eliminate stop and go traffic.

Often when I write about self-driving vehicles I hear people tell me that cars are still cars. It doesn’t matter whether they are self-driving or not. The same inefficiencies apply. They are not the solution to urban gridlock. Elon Musk was also criticized (following his Master Plan ) for not properly understanding urban geography.

But self-driving cars will create new efficiencies. I am not saying that they are a silver bullet, but I am saying that they will help a great deal. I don’t think that anyone truly understands the extent of these efficiencies, but there are a myriad of possibilities. This Senseable City Lab project is a perfect example.

What I am grappling with right now is the relationship between self-driving vehicles and traditional forms of public transit. Until we get a handle on the efficiencies and overall impact, it’s hard to ascertain how these different forms of mobility will work together. My gut tells me that the lines are bound to get blurry and that self-driving “cars” will feel less and less like the cars we know today.

Below is a video that was published along with the research. If you can’t see it, click here.

[youtube https://www.youtube.com/watch?v=4CZc3erc_l4?rel=0&w=560&h=315]

Fred Wilson has a great post up on his blog today about open protocols . By open protocols he is referring to things like TCP/IP (transmission control protocol and internet protocol), HTTP (hypertext transfer protocol), and SMTP (simple mail transfer protocol). Whether you realize it or not, you rely on these protocols every single day if you go on the internet, browse the web, and write emails.

If you’re interested in these sorts of nerdy things, I recommend you read his post . I’m not going to write about open protocols today – though I do find them fascinating. Instead, I would like to talk about the last paragraph of his post. 

Here it is:

“I believe that business model innovation is more disruptive that technological innovation. Incumbents can adapt to and adopt new technological changes (web to mobile) way easier than they can adapt to and adopt new business models (selling software to free ad-supported software). So this new protocol-based business model feels like one of these “changes of venue” as my partner Brad likes to call them. And that smells like a big investable macro trend to me.”

This is interesting to me for 2 reasons.

First, business model innovation is incredibly powerful. Once a company has built itself up around an existing model, it can be painfully difficult to change. Imagine you have a 200 person sales team that would become unnecessary should you pivot your business model. Are you going to fire them and make the switch?

This is also one of the reasons why some tech companies can exist for so long before they make any money. Sometimes – but not always – it’s because the investors believe that if the company has users, attention or whatever it may be, that they will figure out a way to monetize them/it. And maybe, just maybe, it’ll be a business model that no one has ever thought of before.

Second, look how he is publicly sharing his investment thesis. Why would he do that? Shouldn’t he just go off and do it and not tell anyone? Clearly, he too believes that there’s greater value in being open and transparent.

A new “transparent offer platform” called Haus has just launched in California to serve the residential real estate market. The way it works is that all offers are submitted online. And once an offer has been confirmed, it – along with all of its terms – gets revealed to every other potential buyer. See image below.

I’ve seen a number of different iterations of this same idea, which tells me that this is a well-identified problem in the real estate market. Here’s a snippet from a recent TechCrunch article announcing Haus:

“We think the openness will create a more efficient market and that the number of offers and price will ultimately be dependent on demand,” said Haus GM Sarah Ham. “Bidding wars are a common, almost accepted, part of the real estate process today. But with our approach, buyers know where they stand. Buyers will know what they need to offer to make their offer competitive, but they also won’t negotiate against themselves.”

I completely agree that this is a problem that needs to be solved. It will create a more efficient marketplace. However, in this market, I suspect that the current information asymmetries largely benefit sellers, to the detriment of buyers. So I wonder if the supply-side of the marketplace will be willing to participate at scale. What’s really in it for them?

Side note: Haus is the latest project from  Expa , which is a “startup studio” that works on its own ideas, as well as partners with other founders. I am very interested in this approach to creation because I think you have to try and make a lot of things if you want to do truly innovative things.