After massive quakes, millions in Mexico turn to early warning app

Since two massive earthquakes hit Mexico in September, claiming more than 460 lives, an early warning start-up called SkyAlert has doubled its users to 5.8 million, making it one of the country’s most downloaded apps.

SkyAlert has also found a market selling alarms to small businesses in the capital, said its co-founder and director Alvaro Velasco. And it is looking to expand to Latin America, mainly Colombia, Peru and Chile, which lack an official alerting system despite frequent quakes in those countries.

Velasco said that he and SkyAlert co-founder Alejandro Cantú are talking to investors from Mexico and elsewhere about raising 100 million pesos ($5.35 million) in capitalization in 2018.

He said the surge in users after the most recent deadly quake in Mexico City had heightened the interest of existing investors including U.S.-based American Messaging and attracted interest from two Mexico-based private equity funds.

American Messaging did not respond to requests to comment on any potential new investment.

Velasco said SkyAlert was in talks with those funds and existing investors to inject around 20 million pesos (1.05 million dollars) into SkyAlert.

Still, finding a sustainable business model for the quake monitoring app has been a challenge partly because recent regulation in Mexico City has limited SkyAlert’s ability to access funds through public financing.

MAKING A PROFIT NOT EASY
Shomit Ghose at Onset Ventures, a U.S. private equity company with experience in software start-ups, said quake apps have struggled to get adequate financing because of the lack of a clear path to profits.

“If the business model is B2B where the earthquake early-warning is sent to companies, or railways, or hospitals, or high-buildings then perhaps a strong B2B case can be made for start-up investment,” Ghose said.

SkyAlert’s predicament echoes that of companies seeking funding to develop earthquake alert apps in the United States. Seismic activity is hard to monetize without government support.

It competes with its former partner, Mexico’s official alerting system run by government-funded non profit CIRES, which was created after an earthquake in 1985 killed thousands in the country.

One of the world’s few widely deployed seismic alarms, CIRES runs a network of sirens positioned around Mexico City that warn of a coming quake. SkyAlert mainly warns people through a mobile app.

Both sell quake warning systems, but a 2016 regulatory reform requires public buildings in Mexico City to purchase alarm systems from CIRES, limiting SkyAlert’s public financing.

SkyAlert initially replicated CIRES’ alerts, but in 2015 it decided to deploy its own detection sensors to increase coverage with greater accuracy, Velasco said.

“After a few false alerts from CIRES that affected SkyAlert’s credibility, we decided to invest in our own technology,” he said.

SkyAlert also is exploring ways to monetize its free app.

Currently, it sells a “premium” version for $4 a year that allows users to personalize alerts. However, Mexico has an average per capita income of $8,200, and the company said only around 4 percent of users pay for it.

Velasco said SkyAlert’s revenue is split fairly evenly between those fees and income from selling to businesses.

The newest version of the app allows for paid advertising, but ads would not be visible during a seismic alert.

SkyAlert, founded in 2011, has few peers, but one similar service in Japan is called YureKuru Call, which relies on government seismic data. YureKuru has received some government funding on an ad-hoc basis, but like SkyAlert is mostly funded by fees, said Rina Suzuki, an official at RC Solution Co., the Tokyo-based firm that developed YureKuru.

Detection technologies are evolving and they are all perfectible, Jennifer Strauss, external relations officer at the Berkeley Seismology Lab told Reuters.

“In the end, what matters is how effective they are at alerting people to save lives,” said Strauss.

Additional reporting by Christine Murray in Mexico City and Minami Funakoshi in Tokyo; Editing by Frank Jack Daniel and Diane Craft



Trending News on PVDN

  • <strong>Popocatépetl Volcano Exhibits Increased Activity; Yellow Phase 3 Alert Continues</strong>Popocatépetl Volcano Exhibits Increased Activity; Yellow Phase 3 Alert Continues PUERTO VALLARTA (PVDN) - In the past 24 hours, heightened activity was recorded from Mexico's Popocatépetl volcano, with an alarming 315 exhalations detected, accompanied by water vapor, other volcanic gases, and ash, according to the Scientific Advisory Committee (CCA) of the National Civil Protection System (SINAPROC). Monitoring systems in place around the active stratovolcano also…
  • 'Kingdoms of Mexico' Distinction Launches to Boost Tourist Destinations With European Influences‘Kingdoms of Mexico’ Distinction Launches to Boost Tourist Destinations With European Influences Puerto Vallarta (PVDN) - Miguel Torruco Marqués, the head of the Ministry of Tourism (Sectur), introduced the new 'Kingdoms of Mexico' distinction, a major initiative designed to enhance the appeal of Mexico's tourist communities on an international level. The announcement came during a presentation attended by the governors of Tlaxcala, Lorena Cuéllar Cisneros; Baja California,…
  • Puerto Vallarta Set to Celebrate 105th Anniversary as Municipality and 55th as a City with Grand FestivitiesPuerto Vallarta Set to Celebrate 105th Anniversary as Municipality and 55th as a City with Grand Festivities PUERTO VALLARTA - The coastal paradise of Puerto Vallarta is poised to celebrate two landmark anniversaries: the 105th anniversary of its recognition as a municipality and the 55th anniversary of its elevation to city status, with a grand commemoration on May 31, 2023. The celebrations have been meticulously planned by the municipal government led by…
  • Popocatépetl Volcano Resumes Activity; Authorities Maintain Alert StatusPopocatépetl Volcano Resumes Activity; Authorities Maintain Alert Status PUERTO VALLARTA (PVDN) - After a period of relative calm last week, Mexico's Popocatépetl volcano resumed minor activity on Friday night and through Saturday night, as reported by the National Civil Protection Coordination (CNPC). This comes following significant explosions last weekend that put nearby communities on high alert. The resumed activity was characterized by minor…
  • Two More Puerto Vallarta Beaches Are Awarded Blue FlagsTwo More Puerto Vallarta Beaches Are Awarded Blue Flags Puerto Vallarta (PVDN) - In the upcoming 2023-2024 season, Puerto Vallarta is set to host six beaches awarded with the Blue Flag accreditation, an esteemed international recognition for high environmental and quality standards. The Blue Flag committee has reconfirmed the status for four previously certified beaches while conferring this prestigious title to two new beaches…
  • LGBTIQ+ Community Member Disappears At Puerto Vallarta PrideLGBTIQ+ Community Member Disappears At Puerto Vallarta Pride PUERTO VALLARTA - A member of the local LGBTIQ+ community has gone missing under mysterious circumstances, inciting deep concern within the community and calls for immediate action from local authorities. Rubén Michel Castro Guizar, 32, a deaf individual, was last seen on the night of Thursday, May 25th, attending the Vallarta Pride march. His disappearance…
  • Shocking Case of Animal Abuse in Mexico: Man Throws Dog into Boiling Fry OilShocking Case of Animal Abuse in Mexico: Man Throws Dog into Boiling Fry Oil PUERTO VALLARTA (PVDN) - A disturbing incident of animal abuse has sent shockwaves throughout Mexico, as a man allegedly threw a dog into a pot of boiling oil, resulting in the animal's tragic death. Authorities have detained the suspect for the assault on the dog and have issued an additional arrest warrant on charges of…
  • SEAPAL Vallarta Launches New Vallarta II Tank to Reinforce Drinking Water SupplySEAPAL Vallarta Launches New Vallarta II Tank to Reinforce Drinking Water Supply PUERTO VALLARTA (PVDN) - SEAPAL Vallarta, the local water management authority, announced the successful integration and activation of the new Vallarta II Tank to its drinking water distribution system on Tuesday, May 30. This strategic addition is expected to enhance the availability of water in Vallarta homes, a pressing issue in the wake of the…
  • Trans Fats Ban in Mexico Will Prohibit the Sale of Cookies, Chips, Pizzas, and More in SeptemberTrans Fats Ban in Mexico Will Prohibit the Sale of Cookies, Chips, Pizzas, and More in September Puerto Vallarta (PVDN) - The Chamber of Deputies in Mexico has taken a critical step in the battle against heart disease, approving a decree that reforms the General Health Law to restrict the use of trans fats and oils. The move is predicted to save more than 13,000 lives per year, with these substances currently…
  • Mothers Searching For Their Missing Children Uncover Presumed Clandesant Grave in Puerto VallartaMothers Searching For Their Missing Children Uncover Presumed Clandesant Grave in Puerto Vallarta PUERTO VALLARTA (PVDN) - A team of mothers seeking their missing children made a chilling discovery on the outskirts of Puerto Vallarta Saturday afternoon: a skeleton, fragments of bones, and several indications pointing towards a potential site of illegal body disposal. The area of discovery, located near the road to Viejo el Veladero, close to…

Compare Listings

Title Price Status Type Area Purpose Bedrooms Bathrooms