A Working Wonder
Busy bees 🐝 and the Swiss working world 🌍
Dear Insider,
It is generally accepted that there are (or were) seven wonders of the ancient world and, according to the Encyclopedia Brittanica, there are seven equivalents in today’s modern world.
Switzerland does not make the list.
And there some reasons to dispute that omission. Visitors from around the world (yes, before covid…) have marveled at the natural beauty of Switzerland, its soaring alpine peaks, its exquisite lakes and tidy little farms tucked away cozily in rustic valleys, protected from time and its onward march.
They also rave about how things “just work” in Switzerland. Like the meticulously machined inner workings of its watches, all the moving parts of Swiss society seem to function without a hitch. In many ways it resembles a colony of bees, all working together in seamless harmony for the greater good.
It’s perhaps not surprising then, that Christian Grossmann and his co-founders chose to name their communications app for frontline workers Beekeeper.
Sounds funky, right? And yet…
Grossmann (the subject of this week’s Profile - see below) and his co-founders have built one of the more successful, internationally recognized and appreciated tech startups from Switzerland.
And they did it by serving the “busy bees” that help make everything work so well - the hotel staff, the construction workers, the restaurant delivery boys and girls. In many ways, they are the overlooked heroes of the Swiss “working wonder.”
They are also some of the hardest hit by corona restrictions that have shut down so many businesses that use low-paid and manual labor. In the best of times, their honest labor has formed the backbone of the Swiss economy. Now - in what we might call ‘the worst of times’ many of them have been furloughed - or laid off. The result is rising poverty and rising social discontent.
The hard-working bees that have helped make Switzerland what it is may soon need more than just a pat on that back - and significantly more than what even the best of digital apps can provide.
Many may ‘wonder’ if they are appreciated or valued in society anymore. To preserve the fabric of Switzerland’s well-working wonder, more coherent communication, together with more ingenuity and innovation will be needed.
Soon….
The Briefing
Burning news from around Switzerland - bit by bit…
Watered down Nestlé
The world’s largest foodstuffs corporation is taking a step back. Nestlé has let it be known that it is letting go of several drinking water brands in the US. The company will not be getting out of the water business altogether, however. It still holds household names such as San Pelegrino and Perrier. The sale will bring in USD 4.3 billion.
Why it matters: Despite being a global player and a proud Swiss brand, Nestlé is not too big to cut its losses and move on. Overall, this bodes well for the company. It may also need the energy and resources to take a closer look at its overall supply chain, given that corona and similar such threats now make globalization harder to pull off than in times past.
Topping the taxes
There are only things that are sure in life - death and taxes. Or so they say. In Switzerland, the tax topic is one that often incites regional rivalry, since every canton sets its own rates, leading to no little competition. The latest rankings show that there is a wide margin between the most expensive and the cheapest canton by income tax.
Why it matters: After spending big on state aid to business hit by corona, the subject of tax may soon become a hot one. One canton has already made it an issue - by lowering its tax rate. Zug, already known for its low taxes, recently announced a cut to its tax rate. Clearly competition among cantons will continue…
SCOOP: When bankers do a dump
‘What do insiders do?’ That is the question posed by InsideParadeplatz, the juicy blog that often reports inside info from Zürich’s finance scene. The latest tidbit is, indeed, juicy. Top management members at Julius Bär, one of Switzerland’s leading private banks, have sold over CHF 11 million worth of their own stock since October 2020. A sign of confidence - not especially.
Why it matters: The level of trust put in bankers is, on one hand, considerable, given the amount of money and assets they control. But populism and public mistrust of flashy money men (and women) is being fed by incidents such as this. Given the level of government support and their systemic importance - when will top bankers begin seeing themselves as public servants, with selfless service to the greater good, instead of superstars who need to take their cut?
A matter of identity
On 7 March, Swiss citizens will go to the polls to decide (among other things) whether to adopt an e-ID for the country. The proposed law will put responsibility for creating a national electronic ID in the hands of private companies - something that many oppose. At the same time, many proponents point out that internet giants like Google and Facebook already do so, providing login services for many internet applications. The discussion has been fierce - and the outcome so far unclear…
Why it matters: In some ways, the battle over an electronic ID system - one that matches the fast pace of digitalization in the world today - is a struggle to bring Switzerland into the truly modern world. Opponents fear it goes to far and opens the door to government control that would be undesirable. A failure to pass the measure now will only delay change - perhaps to Switzerland’s detriment.
Feeling smarter (already)?
Let others know about The Swiss Insider…they’ll thank you. 😀
By the Numbers
Numbers that matter…
30%
Two are better than one? Some might argue that the fusion of telecoms firms Sunrise and UPC Switzerland will be bring many advantages. At least that’s how the deal was “sold” to the public. The devil, however, is in the details - up to 30% of jobs may be cut due to overlapping functions. This will not sit well in times of heightened unemployment and economic depression…
CHF 878 million
The swing was massive. After a tidy profit of over CHF 700 million in 2019, reinsurance giant Swiss Re recorded a loss of CHF 878 million this past year. The main culprit was, not surprisingly, corona. Despite the drop, the company still plans to pay out dividends this year to shareholders - around CHF 6 per share. A (small) Starbucks anyone?
40%
Home to some of the most luxurious hotels in Europe, Switzerland’s tourist industry suffered predictably large drop-offs in visitors in 2020. Overall, there were 40% less people staying in Swiss hotels and guest houses. At over 35 million overnight stays, 2019 was a record year. Who knows how long it will take to climb back to those levels…
The Profile - Christian Grossmann
An in-depth look at singular personalities from Switzerland. This week the focus is on Christian Grossmann, founder and CEO of mobile communications app Beekeeper.
Is Christian Grossmann a prophet?
Probably not - at least not in the traditional sense of the word. But the company he helped found in 2012, Beekeeper, has benefited greatly from the corona crisis. The mobile communications app for frontline workers saw demand jump by around 50% when the pandemic hit.
A stroke of luck? Again - probably not.
The ETH Zürich spin-off founded by Grossmann and his compatriots has taken aim at the mundane problem of communication among those working away from laptops and meeting rooms, where much of today’s business information flows.
“It all started with the digitalization of the notice board. We realized that in many large companies communication with mobile employees takes place offline and, as such, with an extremely long time lag.” - Christian Grossmann Source: GZA
With clients that include Heathrow Airport and Swiss retailer Globus, it’s fair to say that Beekeeper and Grossmann have hit their product-market fit fairly well - and fairly fast.
Lucky for its co-founder, who told Swiss news portal Finanz and Wirtschaft that he was never patient enough to stick with the bio-medical company he started out with after studying chemical and electrical engineering at university.
After raising an additional CHF 45 million in September 2019, Grossmann has even bigger plans in mind: over 500 million users by 2030.
What do his ambition and his vision mean for Switzerland as a whole? If Grossmann is right, the working world of Switzerland and perhaps the wider European continent is set for change in the coming years. The threat of a drawn-out pandemic and future health challenges will make remote work more normal - which will certainly affect his target user group more than others. Keeping front-line workers informed and up-to-speed in the accelerating world will be key.
It could just be that Beekeeper and its ambitious founder are pointing the way for the entire Swiss workforce in the decades to come.