Andrew Yang thinks the next big startup opportunity is lowering the cost of living

techcrunch.com ∙ Saturday, June 13, 2026

Andrew Yang thinks the next big startup opportunity is lowering the cost of living

Top line

Andrew Yang proposes a new startup paradigm where companies prioritize reducing the cost of living and sharing profits with consumers to combat the economic pressures of AI.

Summary

Andrew Yang is advocating for a new wave of entrepreneurship focused on reducing the cost of living for Americans. By adopting a business model that prioritizes returning value to the customer—inspired by Mark Cuban’s Cost Plus Drugs—Yang aims to address the rising economic pressure caused by wage stagnation and the displacement effects of artificial intelligence. Through his venture, Noble Mobile, Yang is testing the theory that consumer-facing businesses that lower the cost of essentials can achieve both profitability and significant social impact. Despite the challenge of attracting venture capital in an AI-obsessed market, Yang encourages founders to reject groupthink and target the genuine needs of the average consumer to create lasting, sustainable value.

Highlights

Andrew Yang argues that the next major startup opportunity lies in businesses that 'give money back' to consumers rather than those that focus solely on profit extraction.
The strategy targets essential expenditures including housing, education, food, fuel, transportation, media, and wireless services.
Yang was inspired by Mark Cuban’s 'Cost Plus Drugs' model, which aims to sell pharmaceuticals at cost.
In September 2023, Yang launched 'Noble Mobile,' a mobile virtual network operator that charges lower rates than traditional carriers and offers rebates for low data usage.
Yang views this shift as a necessary response to the potential for artificial intelligence to compress wages and displace workers.
Other companies identified by Yang as part of this emerging category include 'Light Phone' and 'Misfits Markets'.
The business model focuses on building customer loyalty and retention by directly sharing margins with subscribers.
Yang continues to advocate for Universal Basic Income but suggests that market incentives can serve as a vehicle for wealth redistribution where government policy is absent.
Fundraising poses a significant challenge, as venture capital is currently heavily concentrated in AI and often overlooks low-margin, consumer-facing social enterprises.
Yang suggests that even high-wealth individuals and firms should support a more equitable distribution of value to ensure consumers maintain sufficient buying power.

techcrunch.com ∙ Saturday, June 13, 2026

Top line

Andrew Yang proposes a new startup paradigm where companies prioritize reducing the cost of living and sharing profits with consumers to combat the economic pressures of AI.

Summary

Highlights

Andrew Yang argues that the next major startup opportunity lies in businesses that 'give money back' to consumers rather than those that focus solely on profit extraction.
The strategy targets essential expenditures including housing, education, food, fuel, transportation, media, and wireless services.
Yang was inspired by Mark Cuban’s 'Cost Plus Drugs' model, which aims to sell pharmaceuticals at cost.
In September 2023, Yang launched 'Noble Mobile,' a mobile virtual network operator that charges lower rates than traditional carriers and offers rebates for low data usage.
Yang views this shift as a necessary response to the potential for artificial intelligence to compress wages and displace workers.
Other companies identified by Yang as part of this emerging category include 'Light Phone' and 'Misfits Markets'.
The business model focuses on building customer loyalty and retention by directly sharing margins with subscribers.
Yang continues to advocate for Universal Basic Income but suggests that market incentives can serve as a vehicle for wealth redistribution where government policy is absent.
Fundraising poses a significant challenge, as venture capital is currently heavily concentrated in AI and often overlooks low-margin, consumer-facing social enterprises.
Yang suggests that even high-wealth individuals and firms should support a more equitable distribution of value to ensure consumers maintain sufficient buying power.