Who has heard of Uber?
Everyone? Who had heard of them in 2011? Next to no one? That’s right, in 8 short years Uber have become part of our regular vocabulary to the point where we no longer call a taxi, we take an Uber. Uber is now a Verb!
What were the issues Uber solved?
1. Transparency (where is my driver, who are they, what are they driving)
2. Cost (fixed price, mostly significantly cheaper, easier to pay)
3. Standards for the driver and vehicle enforced by the feedback system (better drivers who are engaged, better cars that are kept clean and presentable)
4. Even though drivers were paid less, they could earn more
But the key factor was that they placed the customer in the centre of their business rather than making the customer fit the business like the traditional taxi industry did. This lack of customer focus alongside efficient use of technology made the taxi industry ripe for disruption.
What can we learn from Uber?
Firstly, the traditional taxi Industry had 3 years notice that Uber may come to New Zealand and be a disruptor. Instead of changing their model, they tried to mount a legal defence which failed in the face of general public opinion.
However, Ebay has never come to New Zealand because Trade Me had already filled the space. The learning here is that we should watch what is happening overseas and position ourselves to be the local disruptor. Are you the next Trade Me?
Secondly, put your customer at the centre of your business. Look at your processes that force your customers to behave the way you want them to. For example, automated phone attendants and being placed in a “priority” queue are great ways of annoying your customers. Having a “speak to a human now” option or a call back option are great ways of being efficient without losing the human touch.
Thirdly, don’t ignore technology. There is a point at which if you stop adopting new technology you will become irrelevant. If you can’t or won’t adopt new technology, sell your business before it is worthless (anyone want a DVD store?) or risk becoming a hobby business.
Making sure your business is efficient by using technology to stay or become customer centric will help stop you being disrupted by others!
