Summit: Pathways to a Just Digital Future, Investigate how to address technological inequality, AI puts Moderna within striking distance of beating COVID-19, Dig into the totally digital biotech company, TaskRabbit: Your Retinue of Errand Runners, Etsy – An Artisanal Marketplace for Millions, http://www.forbes.com/sites/ellenhuet/2014/09/22/uber-now-taking-its-biggest-uberx-commission-ever-25-percent/. When you need a ride, just pull out your smartphone and tap a button to order a car. Thinking of drivers as the “other customer” and not merely a resource deployed in providing a service to the end user has enabled Uber to cultivate a higher-quality workforce, resulting in both lower employee churn and increased customer satisfaction. The way the company initially fostered it was by seeking out Silicon Valley movers and shakers and getting them to advocate for the brand. 1.What Is Uber’s Value Innovation? The term “disruptive innovation’’ was first framed by professor Clay Christensen from Harvard Business School. Here are five drivers that were instrumental to Uber’s success: While unprofitable now, Uber’s upfront investment paired with effective execution can fuel future growth and long-term potential for value-creation. Cannon, S. and Summers, L.H., 2014. These operational decisions are directly in line with Uber’s business model aimed at converting driver satisfaction to customer satisfaction through industry-competitive employee incentives and innovative business practices. “Uber Dispatches trips”. Our app connects drivers with riders in ways that were simply impossible six or seven years ago. The COVID-19 pandemic upended that business strategy, prompting Uber to offload its shared micromobility unit Jump, double down on delivery […] Uber … The playbook’s strong operational focus creates a robust infrastructure to effectively onboard drivers, verify paperwork, and interact with local officials on the ground. We are creating products that will help all founders better understand the process of building a People love to use their smartphones; in fact, their daily lives involve heavy usage of smartphones, with key transactions conducted over the mobile device. Will this drive down the benefits of Uber and return many to the more traditional industry model? If you can’t beat them, join them: Opportunistically create value in international markets through partnerships and investments when stand-alone strategy is unviable. From a fiduciary standpoint, paying drivers an 80% commission on their fares as opposed to an hourly wage more accurately ties revenues to local market share and unlocks increased analytical capability. The same alternatives occurred in most of the very protective Western Europe, while Uber keeps expanding worldwide. First Round Capital. Rusli, Evelyn (June 6, 2014). Word of mouth marketing has been essential for Uber. What does it take to convince a marketplace (and its regulatory mechanisms) that the old way of doing business is outdated? By John Dudovskiy. Optimizing for ease of use, learnability, and efficiency in the app’s user interface design has won customer loyalty and mitigated competitive pressure as passengers are less likely to switch providers if doing so requires them to learn and adapt to a new technology. Instead of completely giving up on markets, Uber used its leverage as an established player to acquire stakes in local competitors. In addition to a playbook, democratized data-driven decision making is central to Uber’s operations. Wall Street Journal. The team’s mandate is to supercharge automation and build rock-solid foundations for technology and innovation. Uber uses an automated algorithm to increase prices to "surge" price levels, responding rapidly to changes of supply and demand in the market, and to attract more drivers during times of increased rider demand, but also to reduce demand. Insightful…one question I have: how do the major industry disruptors of the world such as Uber lead the way with regulatory changes? Customers of Uber. Passengers– With passengers, it is mostly directed by the usage of UberPOOL, UberX, UberBLACK, and UberSUV. Eventually, Uber is only a “matchmaker” between informed and willing parties ( a car owner and a passenger). Uber has rapidly transformed mobility across the globe through operational excellence, product innovation, and strategic investment in competitors. ; Drivers– With drivers or often known as their partners, they are segmented by their locations, get to use their own cars and can either be full time or part time depending on their preferences. Uber effectively aligns its business model with innovative operating practices to maximize profits and optimize the experience of both the driver and the passenger. Uber business strategy involves increasing service range to cater for the needs of great amount of customers and focusing on high levels of user convenience. great consumer tech company. I’d even go a bit further and describe Uber as a “logistics platform”. This is an old story, but worth underlining: competition spurs innovation which results in better, faster and cheaper services. 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