Hey, I'm Dan! I invest in early-stage startups at Madrona and write a weekly newsletter called the DL

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Value creation and value capture - SR99 case study

Last week the Seattle Times reported that it costs $0.30 to collect $1.00 for the 99 Tunnel toll. Apparently, back when people collected physical money in tollbooths, collection overhead was 20-30%, so 30% is really bad.


Crappy deal for WSDOT to pay so much for an automated system, but it seems like the tolling contractor is doing a great job capturing the value they are creating, so good for them! Definitely an interesting example of a company that “automates” an old manual process but keeps pricing the same and captures a large portion of the value they create.


And in case you missed it last time, check out my Geekwire post on the three types of ML companies: (1) automators, (2) augmenters, and (3) avant-garde.


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