Uber - Startup which has potential to transform our lives completely to complete lives

Making Ubetter
Today’s brew is for Uber,
Brew Date: 16th May 2015
Type: Served Hot – Redefine and Transform brew

Why Uber is more than $ 50 Billion firm? and its potential to transform our lives.

For a deeper understanding of Uber’s business model: check out the following:

If Apple is the design firm in technology responsible for intertwining our lives with technology to a much deeper extent, then Uber is the design firm in physical world by offering solutions that help in bettering the living standards. Though it offers Mobility Transport solutions to public, it has all the potential and stage to take on other mundane tasks of daily lives to perfection with far higher consumer satisfactions.

And which is as well the underlying USP of Uber. Firms like Uber exists to prove world, the theory of competitive advantage holds best, that if somebody can us more convenience, better experience, and ease of getting to it with high certainty for a decent value, its worth not just a one time try but rather establishing an meaningful relationship.

The clearest sign of Uber's ascendance is that its name is no longer just a noun. It's become a verb, too, as in: How did you get home from that party? I Uber'd. 

Effectively, with Uber’s mobility solution, the choice that a Consumer is left to make is not between service providers who offer transport solutions, but directly with the Automobile manufacturers. In the battle of Perceptions, a Consumer who thinks of buying a car is completely satisfied with Uber’s all time availability of Mobility services with good experience, for similar value. Perceptionally, it has moved up the Consumer value chain and created a Competitive edge for itself.

Thebrew will analyze Uber majorly in 3 parts:
a) Business Analysis
b) Improvisation to Business Strategy
c) Tactical Improvisation

 a) Business Analysis – Understanding Key Success Principles of Uber:
1) Uber’s core offering is the Technology platform that it offers. At heart of it, it’s a technology company offering consumer solutions, and this core offering is a disruption for it considers several dynamic factors while contemplating the monetization value.  

Uber’s core model is of being an analytics & datascience firm mapping human behaviors (demand, supply, experience, and convenience) along with economics (utility, value, resource Optimisations). The maturity of the firm is highlighted by the fact that it knows its competence very well, and is on continual verge of evolving it.

2) The platform model for disruption: Uber follows a platform model for its services making its competence available to consumers and service providers. The unlocking of value happens at both the ends thus forming a virtuous circle to entire value chain.

3) The Brand and USP of Uber: Uber has been successful in creating different brand personas to varied stakeholders, however with Consumers at large, its created a basic brand promise of Certainty, Experience, Convenience with Value and Affordability, along the while, serving the markets on basic model of transportation as well value added model of luxury cars.

4) Experimentation, Innovation & Operational Execution: Building on its competence, Uber’s strategy is to experiment with new business and consumer needs, and have add-on Innovations in the delivery of those solutions.
From the business equation of  (Competence + Strategy = Competitive Advantage), Uber’s competence is its soul, which is definitely in right place and seems to be ticking.  From a Strategy point of view, its success in Mobility solutions has been a roaring success. And a combination of these 2, has resulted it in establishing a Competitive Advantage in Logistics Planning with a Byproduct of a successful Consumer Business Model.

Uber’s strategy of moving to Logistic solutions for consumers, has resulted in an additional competence, thus making it a Blackjack win in the Casino’s of other tech players. Hence, any firm, which intends to compete with Uber, will have to disrupt this advantage and competence to gain an edge in Logistic solutions and Consumer market.

Apart from it, Uber’s Operational excellence model and deployment to deliver on its brand promise is very efficient, build in a phased out manner and rests on the gospel of Consumer Centricity.

5) Having a Vision to Uber, Cos it will enable a strategic direction and alignment to Uber’s future business expansions and experimentation. Uber is actually a Consumer Solutions company cos it identifies the needs of Consumers and solves them with its competences thus making it great Consumer Solution.

b) Improvisations to Business Strategy:
1) Given the above Business Analysis of Uber, there are 2 things which it has to continue doing, Retaining the Tech Competence its got all while, along with Experimentating with different Consumer Solutions where this competence can be utilized on the principles discussed above.

Precisely, bcos Uber has Competence in Tech, Logistic Solutions, Consumer Offering of Mobility, it will have to keep the Innovation and Disruption model alive in at least these segments along with expanding to other Businesses of solving Consumer needs more effectively and efficiently.

2) Extending the Tech Competence to other Consumer Needs like Housing (Residential and On Demand), Utility Pricing, Healthcare Services, Local Shopping, Advertising etc. All these businesses have been on traditional methods for quite a long time and they offer a great potential for Uber to develop an adaptive Tech competence to solving Consumer needs and making it a better Consumer Solution.  

3) A Convergence of all of above on a B2C side is having a Consumer Solution for Housing, Utilities Pricing, Jobs, Healthcare Services, Local Shopping along with existing model of Food, Mobility where Uber should step up with experiments on IOT and Wearables where all these Consumer Needs will Converge and get monetized. The idea is to offer a Uber Life with Disruption, Innovation, Personalisation of higher value.

4) A key point here to understand is different tech competence in the different business models, Housing Ecosystem and Pricing model will be different from Health Services, or say Local Shopping (Refer Point 1 of Business Analysis, which is the Key Criteria of delivering Higher differential value to Uber Consumers). Post having this established, the framework then requires it to build an Ecosystem and Platform for Service Providers and Consumers.

5) Along with building competence on above, Uber should as well focus on building Common Consumer Solutions on Digital Payments, Wearables, IOT, and tracking mechanisms, which measure perceptive value and satisfaction etc, which will be key drivers of technology along with Shareability & Convenience. Uber seems to be the only company, at present, which has potential, and capability to understand Human Behavior in physical world and offer a complete set of disruptive solutions.

6) Uber’s B2B side of Offering have a potential of a Software – as – Service along with Platform – As – Service (Offering a Platform under brand Uber) and Solutions – As Service (Offering driven by Uber Brand along with PAAS model) to be developed and offered to relevant stakeholders.

c) Tactical Improvisation:

1) Uber Logistics
Building Tech competence and Offering Competence in Logistics Planning & Delivery Mechanisms in the current Uber Model.

2) Uber Food
For Offering of Uber Food, it’s a Combination of Logistics + Food, whereas Uber should ideally build a different food discovery algorithm on the parameters of its brand promise along with offerings of Ondemand Food as well Consumers wanting to head to a place with an end to end Uber services (Heading to a Eatery listed on Uber Food, in Uber Cab).

The result is building independent competence in both the models and leveraging these together to have a composite offering rather than just building Food Offering on Logistics where the market is limited to Delivery of it.

3) Advancements in Mobility Solutions of Driverless Car
Though Uber has made advancements in exploring the avenues of Driverless car, it should as well focus on building an Ecosystem of Electric car, which can bring down the cost of travel considerably.

Along with building a driverless car, Uber can as well think of offering its current services in a Self – Driven cars (requires some advancement in security and tracking, along with weighted costing model of time + money), but both are similar offerings and it further places Uber in a pseudo – competition with Automobile manufacturers.

4) Currently, it’s USP of Everyone’s Private driver, rather it should now be USP of Uber Move (or something else which relates to Mobility of Consumers), thus not limiting the overall brand’s trajectory.

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1 comment:

  1. I think the most important aspect is that of plugging the model in the driver-less car space. That would be a completely technology driven world, free of human interactions and free of human errors!