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Why Do People Resist New Technology Like Electric Vehicles?
David Shultz
David Shultz reports on clean technology and electric vehicles, among other industries, for dot.LA. His writing has appeared in The Atlantic, Outside, Nautilus and many other publications.
Last week California air regulators voted to ban all new internal combustion car sales starting in 2035. The news was met with a predictable mix of responses: Some lauded the decision as forward-thinking and environmentally responsible; others saw it as government overreach–an attack on consumer freedom and the free market.
Whether the arguments against EVs are in good faith or not (they’re often not), the fact remains that this burgeoning technology has been met with fierce resistance since Teslas started hitting the road back in 2008. It’s easy to find examples of people keying EVs, rolling coal to spite them or blocking chargers with gas-powered cars.
A part of human nature is naturally resistant to change and to the unknown. It has served us well evolutionarily over the past 200,000 years. Tradition keeps us safe when it comes to eating the right wild berries or choosing a route to the next town. It wouldn’t surprise me to learn that there were people in the Roman Empire spreading myths about how using indoor plumbing makes your sword hand weak, or that riding in a chariot would make your uterus fall out. Even without political tribalism and pressure from the fossil fuel industry, new tech can be divisive.
Rosabeth M. Kanter, a professor of business at Harvard Business School, who studies these ideas, says the number one reason people resist change is that they fear a loss of control over their lives. This may explain why the ban on new gas cars in California has faced some backlash.
“For people who are feeling like life is slipping out of their control–that sinister forces are pushing them around–they're likely to not want to be forced into making a change,” says Kanter. Whether or not the state could have accomplished the same goal without a mandate is debatable, but due to the California Air Resources Board’s successful history of driving national policy with ambitious state-level laws, it’s not surprising they chose to take that risk.
However, Kanter also notes that plenty of new tech innovations have been welcomed with open arms. Take the smartphone, for instance. Steve Jobs announced the iPhone in 2007. By 2017, 77% of Americans owned a smartphone. Cars, of course, were always going to be slower transition—after all, the lifecycle of a car is at least three or four times as long as that of a smartphone. But why has there been so much cultural resistance to the growing EV market share?
The biggest and most obvious answer is cost. Smartphones aren’t cheap, but there’s a big difference between $700 and $70,000. The current batch of EVs on the road are simply too expensive for the average person to afford. Knowing that demand would outstrip initial manufacturing capacity, EV makers have chosen to offer luxury models first in order to make as much money as possible while ramping up production. And while legacy OEMs are beginning to enter the scene and change this dynamic, we’re still early in this story and costs are still extremely high.
Kanter says that to get consumers to adopt new tech, the transition has to be smooth. It has to be easy. Remember taking your flip phone to a Verizon or AT&T and trading it in for a smartphone? These companies made it simple and offered excellent financing plans–just a few extra dollars added to your bill every month. And while there are about a thousand different EV rebates and incentives on offer (see Wednesday’s newsletter) finding and understanding how to apply these deals is a whole lot harder than trading in a Motorola Razr for an iPhone.
Regarding smooth transitions: Charging infrastructure remains another huge impediment. While EV range anxiety is perceived to be much more of an issue than it actually is, the fact remains that America’s charging infrastructure is inadequate–especially rural areas in the middle of the country. If California wants to get everyone in an EV as quickly as possible, the state will need to make EV charging as seamless as gassing up.
Another thing Kanter says made the transition to smartphones different from EVs and other technology. New phones offered immediate and obvious benefits. Maps and internet access alone would’ve sold the devices. They also connected customers to networks that were pretty much inaccessible without the device. Nobody wants to miss out on the group chat drama. “The minute they see things that are benefits for themselves, you don't have to argue with them anymore,” says Kanter. “The benefits are right there in front of them.”
The benefits of electric vehicles, on the other hand, are more subtle or even existential. Calculating the cost of recharging the vehicle or the cost per mile of driving almost requires some familiarity with high-school physics. While the math isn’t necessarily complex or difficult, it’s new and foreign enough to present a barrier. Yes, it’s usually cheaper per mile to drive an EV than to fill up with gas, but to figure that out you have to know what a kilowatt hour is and how many your car consumes per mile of travel and how much electricity costs per kilowatt hour. Climate benefits only really apply at a society- and perhaps planetary level.
Of course you have this entire debate playing out against a climate in which batteries and gasoline have somehow become political footballs. If “opposing any policy from the other side” remains de rigueur in Washington, EV adoption will be slowed by politics…until the transition is truly seamless and the benefits are impossible to ignore.
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David Shultz
David Shultz reports on clean technology and electric vehicles, among other industries, for dot.LA. His writing has appeared in The Atlantic, Outside, Nautilus and many other publications.
Prescription discount GoodRx shares skyrocketed more than 50% in its Wall Street debut on Wednesday. Shares started trading under the symbol "GDRX" at an IPO pricing of $33 each but quickly rose landing at $50.50 per share at market close.
GoodRx is the first Los Angeles tech company to go public this year and follows a wave of other tech companies that have recently gone public, including Unity and Snowflake.
Co-founded by former Facebook executive Doug Hirsch in 2011, the Santa Monica company makes money by collecting fees from pharmacy benefits managers.
The popular app provides comparison drug pricing at different pharmacies, breaking down what is often a murky market. Hirsch told dot.LA in an interview earlier this year that the idea came to him when, on a whim, he began comparing drug prices at local pharmacies and found pharmacists could not explain the difference.
Over recent years, GoodRx has boasted steady growth. The company earned $54 million in profit for the first six months ending in June, up from $31 million over the same time last year, a 74% increase. It has $697 million in debt as of June 30.
Last year, GoodRx expanded into telehealth with HeyDoctor. While patients have flocked to the new service during the pandemic, the division is less profitable than the prescription side of the business.
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Rachel Uranga
Rachel Uranga is dot.LA's Managing Editor, News. She is a former Mexico-based market correspondent at Reuters and has worked for several Southern California news outlets, including the Los Angeles Business Journal and the Los Angeles Daily News. She has covered everything from IPOs to immigration. Uranga is a graduate of the Columbia School of Journalism and California State University Northridge. A Los Angeles native, she lives with her husband, son and their felines.
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rachel@dot.la
Big Wins: Dodgers Take the Title ⚾, ChatGPT Levels Up🚀
06:54 AM | November 01, 2024
🔦 Spotlight
Happy Friday, LA! It’s been a week of big wins, on and off the field. 🎉
⚾️ First up, let’s talk Dodgers. With a thrilling 7-6 comeback victory over the Yankees in Game 5, the Dodgers clinched their eighth World Series title, their first since 2020. The city is buzzing, and fans are ready to celebrate! A parade kicks off this morning at 11 a.m., starting at City Hall and winding down to Flower Street, with a ticketed celebration at Dodger Stadium for those wanting to keep the festivities going.
Image Source: Dodgers
💻 Meanwhile, in the tech, OpenAI just rolled out a game-changing update for ChatGPT. Plus and Enterprise users can now access real-time internet search, powered by Microsoft Bing, bringing ChatGPT's responses fully up-to-date. This means users can now ask about the latest news, hotspots, or recent LA startup announcements, and ChatGPT will pull in fresh, relevant answers directly from the web. Previously limited to information up to 2021, ChatGPT’s new browsing capabilities make it a valuable digital assistant for anyone needing real-time insights in fast-paced industries like tech and entertainment.
Image Source: ChatGPT
🔍 The real-time search feature also includes “Browse with Bing,” allowing ChatGPT to source information from multiple sites for detailed answers to complex questions. Whether you’re exploring the latest venture capital trends in LA or curious about the best local spots, ChatGPT’s new browsing power helps you stay ahead with the latest info. This leap forward in AI functionality makes ChatGPT even more versatile and powerful for everyone, from business owners to everyday users.
From the Dodgers’ World Series win to OpenAI’s latest ChatGPT update, there’s a lot to celebrate in LA this week. Here’s to champions, innovation, and a city that’s always pushing boundaries. 🌆✨
🤝 Venture Deals
LA Companies
- Final Boss Sour, a Los Angeles-based gaming-themed snack company specializing in healthier sour snacks, has raised a $3M Seed funding round led by Science Inc. to expand its product offerings and operational capabilities. - learn more
LA Venture Funds
- Smash Capital led a $50M Series B round for Read AI, a productivity-focused AI company, bringing its total funding to $81M. The company offers a platform that enhances meeting efficiency through features like note-taking, summarization, and transcription. Additionally, Read AI introduced "Read AI for Gmail," a free Chrome extension that integrates information from various applications, reducing the need to switch between apps. The funds will be used to increase the company's headcount in engineering, data science, and business teams. - learn more
- Distributed Global participated in a $25M funding round for Nillion, a company that provides decentralized privacy solutions designed to secure sensitive data using advanced technologies like secure multi-party computation. - learn more
- Alexandria Venture Investments and Tachyon Ventures participated in a $115M Series A funding round for Axonis Therapeutics, a Boston-based biotechnology company developing innovative medicines targeting KCC2, a key mediator of brain inhibition, to treat neurological disorders. - learn more
- Act One Ventures participated in a $5M Seed funding round for Latii, a construction materials supply chain startup, to enhance its platform that connects contractors with suppliers, aiming to streamline procurement processes and reduce costs in the construction industry. - learn more
- F4 Fund participated in a $3M Seed funding round for Final Boss Sour, a Los Angeles-based gaming-themed snack company specializing in healthier sour snacks. - learn more
- SmartGateVC participated in a pre-seed funding round for Ritual Dental, a company revolutionizing dental care by integrating advanced technology and microbiome science to provide personalized, preventive treatments. - learn more
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