‘It’s only when you see 49-ton trucks in China running on batteries that you realize how serious electrification is’: Octopus Energy CEO Greg Jackson on Europe's incumbency problem

Key Points:

• Octopus Energy's founder highlighted how offering mirrors with wide frames online created a unique product that stood out from competitors, driving significant sales and transforming the business by approaching the market from a fresh perspective.
• The concept of "incumbency cost" explains how established firms often fail to innovate because they continue doing things as they always have, which hinders growth and allows newer competitors, especially from regions like China and the Gulf, to rapidly advance in sectors like electric vehicles.
• Chinese electric vehicle manufacturers have significantly increased their market share in Europe despite EU tariffs, benefiting from the absence of incumbent car industry constraints that European companies face in transitioning to new technologies.
• Incumbent industries often block innovation and policy progress, limiting new companies' ability to drive productivity growth; Europe’s fintech sector is cited as a successful example of innovation overcoming legacy systems.
• Octopus Energy grew by leveraging technology to modernize energy supply and demand management, becoming the UK’s largest energy provider by focusing on operational efficiency and integrating renewables, illustrating how technology-driven newcomers can disrupt established sectors.