Some of you might know that I’ve recently started using a mobile app called Strava. It’s a platform that allows you to track your runs and bike rides, as well as those of your friends. It tells you your speed, elevation changes, and it also maps your trips–among many other things. Here’s what my 50 km ‘Ride for Heart’ looks like from last Sunday.
But what’s even more interesting is how cities are starting to use the data this app collects:
For $20,000 a year, transportation planners and others can access Strava Metro, which provides an unprecedented look at where and how people are biking. It can tell them where they speed up and slow down, for example, or where they might stay in the street or ride on a crosswalk. That information can reveal where bike lanes or traffic calming measures would be useful, and if those already installed are effective.
It’s a perfect example of how “tech” is infiltrating so many other sectors. Mobile technology and networks are generating huge amounts of data and it’s happening at an increasing rate. We’re gaining insights into the way people live that simply wasn’t possible before. Some of this information will inevitably be misused, but a lot of it will be used to improve the way we live our lives.
I know that the City of Toronto also has its own proprietary cycling app and is hoping to collect similar sorts of data from it. But intuitively, I don’t think they’ll be able to compete with the scale of a platform like Strava. Though I certainly applaud the initiative.
The information age is an exciting time.
Image: Strava via Wired
Earlier this week when I responded to a Globe and Mail article that was arguing condo rents were on the decline in Toronto, I talked about how imperfect and opaque I feel the real estate market is. Today I’d like expand on that.
The reason I call the real estate industry imperfect is because of 2 main reasons: first, there’s a lot of friction when it comes to buying and selling as a result of high transaction costs (amongst other things); and, second, there are massive information asymmetries between marketplace participants. This could be buyers and sellers, purchasers and developers, clients and real estate agents, and so on.
But it’s only a matter of time before these issues get resolved. And I think it’ll happen through better access to data and more transparency in the marketplace. The question, however, is: Where is this big data going to come from?
I was reading Fred Wilson’s post this morning on Large Networks, Big Data, and Healthcare, and I was struck by a parallel. Here’s what stood out for me:
“The question is who will control the input of the patient data, the aggregated data sets, and the results the data science produces. If the answer is the current healthcare system; the insurance companies, the hospitals, and the doctors, then we will have missed a big opportunity to reshape healthcare. If, on the other hand, the data is entered by patients, controlled by patients, and benefits patients, then we would have something new, different, and disruptive.”
In both healthcare and real estate, we have large bureaucratic institutions and bodies that control the industry. And in both instances, we’ve seen that they’ve been slow to adapt to the changing times. Therefore, I think the billion dollar opportunity is the same in both: the data is going to have to come from the ground up via patients and real estate consumers. Only then will we have something truly innovative.
Last week we spoke about why the world needs a social real estate community and how we intend to use this community to get and share property information and activity.
We’re about a week away from launching our first release (signup here and be the first to get notified) and so we thought…