
a16z Podcast
a16z Podcast: The API Economy -- The Why, What, and How
Mar 13, 2018
Cristina Cordova leads partnerships at Stripe, Augusto Marietti is the CEO of Kong, and Laura Behrens Wu is the CEO of Shippo. They dive into the transformative power of APIs, comparing them to everything from Lego blocks to the veins in a body. The conversation covers how APIs allow businesses to focus on core competencies while accessing greater data, democratizing technology. They also discuss the evolution of APIs from utilities to microservices, and how small businesses can leverage this landscape to compete with giants like Amazon.
30:50
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Quick takeaways
- The API economy empowers businesses to leverage external services, allowing them to concentrate on core functions and innovate efficiently.
- Adopting an API-first approach is essential for sustainable growth, ensuring that API development is integral to a company's strategy.
Deep dives
Defining the API Economy
The API economy allows businesses to focus on their core competencies while leveraging external services to handle various operational tasks. Companies can now build and innovate without needing expertise in every aspect, such as payments or shipping, thanks to API integrations. The shift is not limited to tech startups; traditional businesses are also embracing APIs as they transition to e-commerce models. For instance, a soap brand that initially operated through physical stores is now utilizing APIs to enhance its online shipping capabilities.
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