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- [00:00]
Yonatan Adiri
Foreign.
- [00:04]
Michal Avram
You are listening to an art media podcast. So, Yonatan, what's your number this week?
- [00:11]
Yonatan Adiri
It's 69.69percent of the $6 billion invested in Q2 in Israel over the last 90 days in the tech ecosystem has been invested by foreign investors, which I think is a phenomenal figure. A country at war. One of the best quarters of VC investments in Israel, and 69% of that was led by foreign investors. A big vote of confidence.
- [00:34]
Michal Avram
My number is $570 million. This is the cost of damages from an Iranian missile strike to the Weizmann Institute, which I know we've talked about in a previous episode. Several labs were damaged, including one that focused on cancer research, and the institute is trying to raise money to rebuild the facilities that were hit. So that's my number you want. I have a feeling, I know that you think you're the winner.
- [01:01]
Yonatan Adiri
I'm the winner this time, no doubt. Getting out of Q2 20, 25 with talks of the end of the war. I'm going with the positive one.
- [01:09]
Michal Avram
I'm going to give it to you. You win. But I hope that my number will spin into a positive one, that they'll raise the funds, they'll rebuild. I have no doubt they will. So. But I'm going to give it to you this week. You win.
- [01:19]
Yonatan Adiri
Let's go. Let's roll.
- [01:26]
Michal Avram
Okay, yonatan, it is 1:30 in New York.
- [01:31]
Yonatan Adiri
It is 7:30 here. Still in Israel. Yeah.
- [01:34]
Michal Avram
I can't believe you're not in Italy for the Jeff Bezos wedding. Were you not invited?
- [01:39]
Yonatan Adiri
I was not invited. And, you know, it made quite some noise here in Israel because there was a lot of big news about private jets in Israel because they were used heavily by certain people to come back during the war. That was more or less the only route that worked. So another kind of angle of the economy that profited really well. Some of the reports are at $50,000 for a flight from Greece or from Cyprus, which usually in normal days is like 18 to 20 thousand dollars. So there's economy of war for you.
- [02:08]
Michal Avram
Well, I am not at the wedding either. I was not invited. Maybe my invitation got lost in the mail. But I am here in New York reporting a story for today. We have a lot to get to. We're going to be talking drones with Yariv Bash, co founder and CEO of flytrex, an Israeli drone delivery platform. And they just announced a service launch with DoorDash in the Dallas Fort Worth area. So we're going to talk to Yariv about what's next for drones delivering pizza, but also the role that the technology plays in defense and other critical areas and of course what that means for not only flight trucks but other Israeli companies in the space.
- [02:45]
Yonatan Adiri
And Yariv is really a legend. You're in for a treat. One of those sort of funny quintessential Israeli entrepreneurs led Bereshit was the founder of the big Attempt, the audacious attempt to land a lunar module on the moon. So there's a lot to hear from him. It's a real privilege to have him on the show.
- [03:01]
Michal Avram
Well, looking forward to the conversation and first as usual, we will take a quick look at some of the week's other pressing news AKA our big shorts and of course the Windex. Cannot forget the Windex and some other key numbers that we're both looking at this week. So stay with us onto our big shorts. Let's kick things off with this week's what's yous Number Index or Windex. This is our very own index of Israeli based and or Israeli founded companies. Jonathan, can you give us the numbers?
- [03:31]
Yonatan Adiri
So very interesting week for Windex. 3.3% on the green for the week of 23rd to 28th of June more or less correlated with the S&P 500 and underperforming NASDAQ by 1%. I would say it was an interesting week because most of the windex, I'd say 42 out of 51 were in the green to an extent. Biggest winners are again autonomous car giant Mobileye with another consecutive week of 20% in total rise. This is again a $15 billion company. So 20 is significant market cap. And again we're seeing Nova Semiconductor measurement up at 15% week on week. We're seeing a very interesting dynamic for companies that are involved with autonomous driving with AI with the sort of silicon growth vector of Wall street in general also being led winning big from Israel.
- [04:20]
Michal Avram
S&P 500 by the way, just crushing it. But we do have important to note and I'm sure we'll see this reflected one way or another in the Windex as well. We do have quite a few big tech companies that are going to be reporting their earnings in the coming weeks. And so there's a lot of eyes on that. You know what happens next. Those numbers are going to be really key.
- [04:42]
Yonatan Adiri
Yeah, all eyes are on again. We're back with Trump and Tariffs. President's going to announce the next couple of weeks where that's going to land with China. We saw the big dip, right. Remember we forget But a couple of months ago we saw S and p collapse by 12%, 13% over a couple of weeks only to regain upon positive news on US China Dynamics. So I think you're right. A lot to kind of look out for over the next couple of weeks. I will say there was one company on the red that is worthwhile to mention, that's lemonade.com, shedding 5% over a week looks like a lot. But I think overall with 160% growth in the 12 trailing month, the company's delivering big time for its kind of renewed investor crop from last year. So it's one of those very interesting benchmarks for AI adoption in the market. So again, keep an eye on Lemonade in future Windex reporting.
- [05:30]
Michal Avram
Okay, let's move on to another critical piece of news here and that's the cost of the war and also what comes next, the day after. And we're seeing a lot of conversation around this, including on call me back what comes next. And there are a few different scenarios that are kind of in opposition to each other that are starting to take shape.
- [05:50]
Yonatan Adiri
Yeah. So I guess, you know, the spirit that Zeitgeist here in Israel really shifted in the last few days. We were and this was reflected in our conversation about Saudi, if you remember, we were all in suspense of what's going to happen in Iran. And this was clearly hovering over the economy, hovering over the national conversation. So things that were really taboo three weeks ago, how do we end the war in Gaza? Is there consensus? What do we do with the hostages, what are we willing to pay and so on and so forth have completely shifted. The Zeitgeist is totally out there, completely different, a lot more favorable. And I think from what's your number being sort of focused on the macro. There are two camps right now in the Israeli sort of macro economy dynamic. Where is the national security doctrine? Are we truly closing this? Leaning back, no more Hezbollah, no more Syria. Possibly a normalization degree with Syria. Therefore axe the defense budget and let the economy kind of, you know, go back to being underburdened by the defense spending or that's another camp is the friction national security doctrine we need to continue because the Iranians are going to rebuild. Everybody's looking at us. Ten years from now there's going to be another round. So these are the conversations just to give you a sense in numbers. These are big numbers. The defense administration, if they get their way, it's 60 billion shekels extra. That's an extra, I would say $15 billion on top of a $30 billion budget, which is north of 15% of the budget right now. Big burden on civil services funded by the public. That being said, and I think, and I hope we're not going to be proven wrong on this one, the Zeitgeist is also very much reliant on very strong recovery of the economy, consumption growth. So everybody's like, we can sustain another 1 or 2% of debt in favorable terms, because like in all previous wars, we're going to bounce back and flatten the curve through growth. So let's not worry about that. I'm actually not on that camp. I think we have to be, I want to say austere, but it's time to kind of go back and cut the spending and really plan for the next day. As optimistic as we may want to be, these dynamics are at the point that we're at 72% debt to GDP. Time to stop the party.
- [08:00]
Michal Avram
Is there a middle ground or it really is these two separate camps?
- [08:03]
Yonatan Adiri
I think, unfortunately, the middle ground will be decided politically. I don't think that there's a way out of this without an election. I mean, that would be the big decision right now. The budget is locked for, I would say, nine months, seven months. I will say one interesting thing which is worth of note. Reverend Dr. Johnny Moore, one of the most impressive people I got to meet over the last six months, is now both the head of the ghf, the Gaza Humanitarian front. And it's been reported that a week ago, he went to meet President Shara Al Jawlani in Damascus with a very prominent American Jewish rabbi, sort of an interfaith dialogue. So I think something is going on. Dr. Moore is not involved with things that are not of consequence to the Middle East. So I think the next couple of weeks are gonna tell us where we land. If I had to bet, there's gonna be a significant opening. But it's not the Abraham Accord peace dynamics we anticipate.
- [08:57]
Michal Avram
By the way, I did see a story about this meeting that you're referring to, and they were actually referring to it as like. It sounds like a beginning of a joke, right? Like a reverend, a rabbi, you know, but it's not. It's real life.
- [09:09]
Yonatan Adiri
Reverend the rabbi and an ex ISIS commander. Exactly.
- [09:13]
Michal Avram
Let's see what happens next. Moving along to different sector for us. I mean, still within technology and innovation. A printing technology pioneer, Landa Nano, they filed for court protection, and we cover a lot of the success stories, the wiz deals and the like. But, you know, obviously There are failures as well. And this is an interesting one. Yonatan, for those who are not familiar with Benny Land, first of all, just give us the lay on the land. Who is he? Why should we care?
- [09:44]
Yonatan Adiri
So I think maybe a couple of things here. People don't know or don't recognize that a lot of the modern digital printing was born in Israel. What we know is what something called HP Indigo, which is the biggest kind of printing technology coming out of HP, was an acquisition in the mid-90s of an Israeli company called Indigo, which was invented by none other than Benny Landa. Benny Landa is genuinely one of the titans, one of the grandfather of Israeli tech in many ways. He always was the guy that builds real things, right? So digital printing that became HP Indigo. The entire world that prints has a degree of Lambda tech inside over the last 25 years. Beni Landa is Polish by origin, was born to Holocaust survivors, if I remember correctly, in Canada, Medaliya and really created the Israeli might in that space of printing. There are a lot of printing companies that came out of Israel. Kornit is another one that's traded and is part of our Windex. Beni Landa inspired a generation. He is now, I think almost 80 years old. And just to give you a sense, 15 years ago he decided and he invested $200 million of his own money to seed Landa Nano. That was sort of the name of the project out of Landa Labs, which he built in Rehovot, not far from where the Weizmann Institute lab was, with a huge, very audacious goal to basically redo indigo did in the 90s, 80s, to do for 2020 and beyond, which is basically to create digital printing, nanoprinting at a big scale. The company saw $1.3 billion of investments in the last 15 years. We don't think about it. It's a trillion dollar industry. Printing on packaging, printing on products, printing on boxes, and you know, the whole FedEx economy and the whole E commerce that gets to your home at some point, somebody printed something for that to be there. And there was a big bottleneck, if you will, of technology. They created a nanopigment, which basically means you print fast, high throughput, in big numbers and it comes out accurately in industrial scale. That did not exist, rather, I should say doesn't exist yet because Lambda Nano unfortunately failed last week and we need to see what happens. Is it going to be reborn out of a debt restructuring or is that the end of the road?
- [12:00]
Michal Avram
I don't know what was the bad bet Here, I mean, is it the technology, is it the scalability? Bad timing, what was it?
- [12:07]
Yonatan Adiri
So, you know, different narratives. Right. On failures, Nilanda has been quoted fairly little. He doesn't give a lot of interviews, saying, look, the COVID thing came in and then the wars and so on. I think dominantly what happened here is the attempt was to create an asml, what the Netherlands has in, you know, these are big machines, heavy machinery. Israel is not equipped. You know, we don't have a lot of companies that way. That's why Mr. Landa and everything that he does is so consequential to Israel. And from that perspective, also the failure, if it is going to end up being a failure, is going to give birth to so many companies, so many talented people that work there, that outside of the Landa labs, don't deal with hardware, that don't deal with printing, don't deal with nano pigments. So kind of like the Xerox lab, where there were a lot of failures, but a lot of companies were born in Silicon Valley out of folks who left. I believe that that's what we're going to see out of the Lambda Lab, if indeed it fails in the printing space.
- [13:01]
Michal Avram
And again, not a sector we look at frequently, but like you said, still an important sector. There's still innovation there. And I personally have a very soft space for print. I'm going to hold onto my magazine subscriptions till the day I die. So there's that.
- [13:17]
Yonatan Adiri
Yeah. And again, people don't kind of think about it. We spoke about autonomous cars and you have the Innovis and the Mobileye. Right? The Israeli companies playing a role there. Israeli companies played a big role in the global printing industry. I mean, we don't stop to recognize it, but it's the truth. It's part of the genesis of the tech industry was in the printing space.
- [13:35]
Michal Avram
Well, speaking of moonshots, Yonatan, we have a long play to get to. I'm really excited to speak with Yeriv Bash from Flytrax and hear all about drones. So stay tuned for that. All right, let's get to our long play. Today we're talking to Yeriv Bash from Flytrek. Welcome to what's yous Number.
- [13:57]
Yariv Bash
Thank you.
- [13:58]
Michal Avram
Great to have you here. First question is, did you bring a number? What is your number?
- [14:01]
Yariv Bash
My number is 77. When we're doing a delivery, we basically we're hovering up to 100ft above someone's backyard. And then we lowered the package on a tether with a hook and we went through 77 iterations of that hook to make sure that everything stays securely while we're flying in the air above people's heads. No matter what, we release the package once it gets to the ground.
- [14:25]
Michal Avram
This is actually one of my biggest questions is how do you ensure that pizzas don't start falling on people's heads?
- [14:31]
Yariv Bash
Are you kidding me? That's, you know, that's biblical.
- [14:33]
Yonatan Adiri
Mana from heaven.
- [14:34]
Michal Avram
It's a good omen.
- [14:35]
Yariv Bash
Dumping food on people's heads. Yeah.
- [14:37]
Yonatan Adiri
The next generation of FlightTrek's drones are going to be called Mana. Mana from heaven.
- [14:40]
Yariv Bash
There's actually a successful Irish company that's doing drone deliveries in Ireland, and they're called Mana.
- [14:46]
Yonatan Adiri
There you go. I think we know when I called Yariv when I saw the news of the doordash contract. Yariv is on my phone is called Yariv Digital Camp. Mahanet in Hebrew, because Yariv has been one of those people. 20 years ago. Yariv, right? Machanet. 20 years ago, who did the skunk works of the Israeli defense system? All the young guys, the heads of state, Shimon Peres, Netanyahu. Everybody would love to go to Yariv's digi camp because they would see all the skunk works of all the cool, super smart people. Yariv then moved on. You said moonshots to create, you know, Beresheet, to compete for the lunar landing. And then FlightTracks was in parallel at some point. And then, you know, kind of took his full attention. We have with us one of the quintessential Israeli entrepreneurs, I think, you know, Yariv, at least from my perspective, one of the most important kind of things to start up with before we even talk drones, you stay the course. Right. This is now FlightTrack's 13th, 14th year. What is it?
- [15:42]
Yariv Bash
12Th year. But, yeah, we are encountering.
- [15:44]
Yonatan Adiri
Yeah, yeah. Going on 13. To see an industry going from big promises, then dying by regulation, then dying by not having the right hook. Right, You've stayed the course. Now there's doordash. Now things are kind of becoming a bit more realistic. Can you give us a sense of, you know, what that journey looks like? How do you stay the course when investors already are kind of moving ahead between, you know, and so on?
- [16:06]
Yariv Bash
So we always said that this is going to be a marathon rather than a sprint. And when you're speaking with investors, then, you know, some investors immediately will tell you, nah, we are more into sprints. And I get that it's their money or their LPs, money and they can choose what to do with it. But others recognize that, you know, it's coming. This is going to be huge. And huge things sometimes take the time. I mean, if you want to make a dent in the world, it's going to take some time.
- [16:30]
Yonatan Adiri
So tell us about the failure points that you were able to relive. Why hasn't it worked for 13 years and why does it seem it's starting to take shape?
- [16:38]
Yariv Bash
Technology always leads, regulations always follow. Aviation has been so safe, even with the few recent accidents. Still, commercial aviation is so much safer than it was 50 years ago and 70 years ago. Everybody wants to keep the same safety levels and margins as they are today. But you're going to introduce 10 times more unmanned vehicles than manned aviation in the next few years. So the big regulators, basically the European regulator and the FAA moving a bit slowly, but for good reason. You can't really push things too fast when you're dealing with people's lives. We've partnered with the FAA back in 2017 as part of their. It was called the IPP, the integration pilot Program and then the beyond program. It's been quite a ride, but things are progressing. I can tell you one of the hardest things was to explain investors, potential investors and my investors, that this is actually moving because from the side it doesn't look like anything's moving.
- [17:37]
Yonatan Adiri
So what's the killer app? Yariv, walk us through the state of the art at Flytrex. What's the most advanced use case? The caterer app for FlightRex and beyond.
- [17:44]
Yariv Bash
So we've built the perfect system for a very specific problem and that's delivering hot food from restaurants or cold food from restaurants to people, backyards in the US suburbs. We've built the best system for that. It's not that good for anything else. And when you think about it, it's the same with, you know, with companies like DoorDash. DoorDash does deliveries. FedEx also does deliveries. Can FedEx compete with DoorDash delivering food in Manhattan? No, they're two very different companies. They're actually using very different vehicles today. When you were talking about owners. Oh, it's a flying machine. It can do everything. Just like a tank and a scooter are two ground based vehicles. They're the same. So you have to really get into that mindset. I've had potential investors asking me, so why don't you do surveillance? Why don't you do, you know, long range deliveries? Because that's not the solution I'm building for Instance, when you're ordering something on doordash, usually drives with a guy on an E bike or a scooter. Usually that guy doesn't drive a shiny new Mercedes Benz to deliver you your hamburger because that's not how the unit economy works. And it's the same with drones. So we've built the equivalent of an autonomous E bike or an autonomous scooter, something that can pass FA regulations as a commercial airplane or almost as a commercial airplane on one hand. But on the other hand, it makes sense for a burrito delivery and not just for a, you know, $1,000 per delivery kind of thing.
- [19:08]
Michal Avram
A lot of what you're describing sounds right out of science fiction. And I know it's like, still very early days, but what does this future look like ultimately? How ubiquitous can this become?
- [19:21]
Yariv Bash
I think that six, seven years ago, it still looked like a science fiction, but when we analyzed the market, like a few years ago, we looked at autonomous cars, doll deliveries of autonomous flying machines, flying people. At the end, the simplest technological solution is just delivering that burrito. It's much easier than delivering humans in the skies, and the skies are so much clearer. And it's a much simpler problem than a car that has to drive next to human divers with all those, you know, traffic and noises around it. I'd say that from our perspective, we thought that this is going to happen a lot faster than autonomous cars or flying cars. We've already solved the problem of traffic management in the skies. About a month ago, we announced together with Project Wing by Alphabet, that's like the Google drone delivery company, also a very strong company. And we announced that for the first time in the US and probably in the whole world, we are actually now sharing our airspace in Texas outside of Dallas, with an autonomous system that manages the traffic between us. And it's so much easier when there aren't any humans involved. Everything happens in milliseconds between different servers on, you know, on a network other than humans talking on radiolink. So it's already happening, and it's so much simpler.
- [20:37]
Michal Avram
I have a very simple question. I realize these are flying in low altitude, but there's all sorts of weather in low altitude. How does the weather impact the drones?
- [20:46]
Yariv Bash
We had situations in North Carolina where we were flying when the roads were closed due to icing. We had another problem. Some of the restaurant employees couldn't get there, so some of the restaurants were closed, but the service was up and running. Our next version of the system will be flying in heavy rains in. I'd Say medium winds, when you compare it to humans, that they're also not, it's not 100% of the time kind of system, but it's already at 90 plus percent of the time. So. And you know, robots, machines, they're only going to get better. So we'll solve that as well.
- [21:18]
Yonatan Adiri
Yeah, exponentially. And so walk us through. I think one of the dimensions is what's your number? We're focused on sort of how Israeli companies, economies go global and the other way around. Right. Israeli economy through a global lens. How do you build a company that interfaces with DoorDash? Why DoorDash, not Amazon? Why food and not products? I mean, walk us through the business development dynamics. I've done this in the healthcare space. It was a nightmare because it's also regulated and these are big American companies and it's very hard to kind of. Does it require an American leadership? Is it you? Is it like how do you build a company that ultimately wins a partnership like that with DoorDash? Give us a bit of the behind the scenes here and you know, why DoorDash not Amazon kind of dynamics.
- [22:00]
Yariv Bash
So it starts 12 years ago when we started the company Amit, my co founder and myself before that we were, we shared an apartment in Tel Aviv. We were flatmates. Then we started dating two medical students. Today we're married to physicians. We were flatmates when I started SpaceX. So we already knew. I'm crazy. Back then Amit had one of the largest mobile development companies, but we were talking about the pre iPhone and Android days like 15, 20 years ago, long time ago. And we started playing together with drones, just thinking that drones are going to be a cool industry. It's really new, so there are lots of opportunities. And we started by doing black boxes for drones, small electronic devices that you attach to your drones.
- [22:39]
Yonatan Adiri
Right. I remember the gaming days exactly.
- [22:42]
Yariv Bash
So we had like a website and a service like Strava, if you're familiar with the Strava website. So we've done something similar for drones. You can see a drone in real time. You can get achievements and medals for flying it faster and higher and longer distances, those kind of things. And after two years we realized that the killer application for drones is going to be in deliveries. It's going to take a while. But our analysis was that's something that as an Israeli company, we can grab a portion of it. Another thing we thought of was about traffic management. We said, okay, we can continue producing those little boxes once traffic management is needed and everybody has to know where each Drone is at. We can then sell those boxes as a regulatory solution for traffic management. But when we looked at the market, we said, okay, that's going to be probably something that a tier one defense company for the US Going to win. And we might be the third tier that produces the hardware. And even if there are going to be a million drones flying in the air, each box will cost $100. Not really interesting as a market, but when we're talking about deliveries and back then we thought about deliveries as a whole, that's a very interesting market. And as we progressed, we realized that we have to select something and focus on that really food delivery hit all the sweet spots. The market's already there. People are educated and they want to get their food hotter and faster. They're already paying a fortune. Current companies, they're growing in revenues, but they're not really making any profit because this is human intensive. People are actually driving cars in the suburbs to deliver you a Quarter Pounder. It's crazy. That's why we decided to focus on that at the end. We're happy to work with everybody. We've got more than, I think now 20 restaurant chains working with us directly, plus now the doordash announcement at the end. It's just a faster, more affordable way to make a delivery. Can't go too much into the details, but we went through a very lengthy process with each one of our partners. Some of them even flew in to CL System in action. Some of them even came to our R and D center and testing center in North Carolina to see what's the next version. So some of them really took a lot of effort to make sure that they're betting on the right company.
- [24:57]
Yonatan Adiri
Yariv talked to us a bit about the linkage between what we're seeing in the frontiers of Ukraine, maybe also here in Israel, Iran. How does that impact? Generation leaps. Right? Because at the end of the day, when war is involved, a lot of money is being poured into tech. So drone technology has been kind of front and center. Do you think there is linkage? Do you expect that given those last, I would say 24 months, you guys are going to have maybe a quantum leap in how the technology grows. And from that perspective also, are you seeing kind of competition on talent that you didn't see before? Now there's defense tech. It's again in vogue. Folks want to build drone companies on defense, whereas in the last few years this wasn't even the case.
- [25:39]
Yariv Bash
So, Jonathan, you're asking a scooter manufacturer about the latest in Tank battalions.
- [25:44]
Yonatan Adiri
Yeah, yeah.
- [25:45]
Yariv Bash
So it's a pretty different market though we are using similar technologies I don't expect. So in terms of the electronics, batteries, hardware, etc. We're not going to see major leaps in the next few years unless, I know, fuel cells or that kind of technology evolves. When you're producing scooters, you're not going to use, you know, roll soy models. You're going to wait for those motors to become quite affordable because that's what you need for your vehicle. So we're not seeing that much of an impact on what we do.
- [26:15]
Michal Avram
So slightly different twist I guess on Yonatan's question, on the impact of what we're seeing on the defensive and offensive space on consumer drones. Seems like there is definitely a shift in consumers being more comfortable with drone delivery as this kind of notion has become. There's also growing awareness of the threats of drones. So maybe this is kind of oversimplifying things, but I just wonder how you think about the optics here and the consumer perceptions of like the friendly drones. It's bringing me a burrito versus, you know, the threat kind.
- [26:51]
Yariv Bash
So first thing, we don't have any cameras. So that solves, you know, privacy issues, et cetera. We don't need cameras. So it also makes the drones a bit more affordable. But I'd say that the world drone has changed, meaning multiple times in the past few decades. So, you know, maybe in the beginning it was an R2D2 from Star wars and then it was something that's flying above Afghanistan shooting hellfires. Then we went to that pesky thing that's buzzing above my neighbor's backyard, taking pictures of my living room. And in some places in the U.S. you now have drones doing thousands of deliveries each month above specific towns where we operate, where drones are just that little speck in the sky that you can barely hear and see that just delivers lunch and dinner to your backyard. That's where we are today, at least in some specific towns in the US.
- [27:39]
Yonatan Adiri
Last week when I was in Washington, I spoke to a defense administration, a very senior high ranking guy who said one of the threats they're thinking about is a drone operated 9 11. So in terms of how the, how Washington is thinking about that, the threat of a swarm that sort of gets to that point has been really voiced. And it's fascinating that you guys don't operate cameras. I didn't even realize that's an important thing when you're delivering to somebody's backyard. That would prevent me from ordering via Drone. So that's pretty cool to understand.
- [28:13]
Yariv Bash
It was really about making this as simple, as lean as possible, while reaching the same safety criteria that has to be reached by Cessnas and Boeings and Airbuses. So that was really part of the fun of the engineering. Fun. How do you build a vehicle that can pass all the lengthy regulatory process of a body like the FAA while being affordable enough to make for doing a burrito delivery?
- [28:37]
Michal Avram
So what's next for flight tracks?
- [28:39]
Yariv Bash
So next we want to expand in Dallas together with our partners, and after that start expanding in more towns and cities across the U.S. that's where we're aiming. It's a long road, it's still a very lengthy road, but it's fun. We're now shifting from technology regulations and the beginning of operations to more of how do you expand.
- [29:00]
Yonatan Adiri
So I guess to conclude. Yariv, and again, thanks for the time and all the honesty. And it's always fun to hear the stories from the frontline. Since you found a product market fit and you have the strong partnership and you're still aiming high. There's a data play, there's a regulatory play, there's a moat around it because you're building your own drone.
- [29:16]
Yariv Bash
Multiple modes. Yeah, multiple modes.
- [29:18]
Yonatan Adiri
Is this a public company down the line? Does it get bought out by an Amazon like, what's your vision call it five years from now in terms of growth path, I think we have a.
- [29:26]
Yariv Bash
Potential here at the end to become the Amazon, the 10 minutes Amazon of the suburbs. A lot of what you're ordering on Amazon is available just a few miles from your house, from a nearby shopping center. And if I can, you know, Deliver that in 10 minutes to your backyard, that's even bigger than the food delivery market, which is already huge.
- [29:44]
Yonatan Adiri
So a decentralized Amazon is the vision, basically creating the value of Amazon, but through a decentralized service that's enabled by drones.
- [29:52]
Yariv Bash
If you need something from the long tail, that's going to arrive in a truck from a distribution center or a warehouse. But for the head of what people are ordering for the recurring products, they're just a few miles from your house. Why wait for next day delivery?
- [30:06]
Yonatan Adiri
Interesting. In the suburbs.
- [30:07]
Yariv Bash
In the suburbs.
- [30:08]
Michal Avram
So are you going to be in Palo Alto anytime soon? Is that suburban enough?
- [30:13]
Yariv Bash
It's already on our plans, but for now we're sticking to for. With Texas. Texas has been amazing for us, but yeah, Palo Alto is bro. That's going to be. That's high on our list on the roadmap. Yeah, yeah, for sure.
- [30:26]
Yonatan Adiri
Thank you.
- [30:27]
Michal Avram
Looking forward to it. Thank you so much, Yariv.
- [30:29]
Yariv Bash
It's been my pleasure. Thank you.
- [30:35]
Michal Avram
Well, we began our show with the numbers of the week and we're going to end with the words of the week. And this week's words come from Josh Wolfe, investor with Lux Capital, big investor in defense tech companies, including in Anduril. And here is what he wrote about Anduril's Palmer Lucky. Future generations will know his name and his achievements, while petty foes shall fade. Palmer will be 100% remembered because he 100% never forgets.
- [31:05]
Yonatan Adiri
I think we'll be hearing more from Josh in the context of the Israeli investment seen. He's been vocal about his investment in Israeli defense tech in Kela, which we discussed a couple episodes back. You know, I think the Lux Quarterly report to the ALP's shows the incredible, I would say, foresight and fortitude the fund has in terms of investing in deep tech. And I think he's right about Palmer Lucky and about Anduril. I think it's going to be one of those enduring companies that would change the defense landscape in the US In Israel and globally.
- [31:35]
Michal Avram
All right, that is it for today's show. Thank you for tuning in to Ark Media's what's your number? We hope you found it interesting and if you did, be sure to, like, subscribe, rate, review. You know the drill, but most importantly, share it with others who you think will find it interesting. If you want to make suggestions or share your feedback, please reach out to us@whatsyournumberarkmedia.org.
- [32:03]
Yonatan Adiri
What'S yous Number is produced by Ilan Benatar and Ed, edited by Michael Evram. Sound and video editing is by Martin Juergo. Our theme music is by Midnight Generation, which I think is coming to perform.
- [32:13]
Michal Avram
In the U.S. yes, I just got noticed from Spotify. They're going to be playing in San Francisco. So anybody around who wants to catch them, please do.
- [32:21]
Yonatan Adiri
There you go. I'm Yonatan Adiri.
- [32:22]
Michal Avram
And I'm Michal Avram. See you back here next week.
- [32:25]
Yonatan Adiri
See you next week.
- [32:31]
Michal Avram
This podcast offers general business and economic information and is not a comprehensive summary for investment decisions. It does not recommend or solicit any investment strategy or security.