With the same overall theme as yesterday, if you’re looking at your future, step one is to look at what your customers would value, then to work back to the service components to deliver it.
I’ve followed Uber since I first discovered them in San Francisco, and it looks a simple model – to the user. You want to go from where you are to another local destination. You typically see where the closest driver is to you on your smartphone. You ask your handset for a price to go to a specific destination. It tells you. If you accept, the car is ordered and comes to pick you up. When you get dropped off, your credit card is charged, and both you and the taxi driver get the opportunity to rate each other. Job done.
Behind that facade is a model of supply and demand. Taxi drivers that can clock on and off at will. At times of high demand and dwindling available ride capacity, prices are ramped up (to “surge” pricing) to encourage more drivers onto the road. Drivers and customers with voluminous bad ratings removed. Drivers paid well enough to make more money than those in most taxi firms ($80-90,000/year in New York), or the freedom to work part time – even down to a level where your reward is to pay for your car for a few hours per week of work, and have free use of it at other times.
The service is simple and compelling enough that i’d have thought tax firms would have cottoned onto how the service works, and to replicate it before Uber ever appeared on these shores. But, with a wasted five years, they’ve appeared – and Taxi drivers all over Europe decided to run the most effective advertising campaign for an upstart competitor in their history. A one-day 850% subscriber growth; that really takes some doing, even if you were on the same side.
I’m just surprised that whoever called the go-slows all over Europe didn’t take the time out to study what we in the tech industry know as “The Streisand Effect” – Wikipedia reference here. BBC Radio 2 even ran a segment on Uber at lunchtime today, followed by every TV News Bulletin i’ve heard since. I downloaded the app as a result of hearing it on that lunchtime slot, as I guess many others did too (albeit no coverage in my area 50 miles West of London – yet). Given the five years of missed prep time, I think they’ve now lost – or find themselves in fast follower mode to incorporate similar technology into their service before they have a mass exodus to Uber (of customers, then drivers).
London Cabbies do know all the practical use of rat runs that SatNav systems are still learning, but even that is a matter of time now. I suspect appealing for regulation will, at best, only delay the inevitable.
The safest option – given users love the simplicity and lack of surprises in the service – is to get busy quickly. Plenty of mobile phone app prototyping help available on the very patch that London Black Cab drivers serve.