Will Uber Disrupt Itself?

Will Uber Disrupt Itself?

Source: https://pbs.twimg.com/media/DNnnJ0BXkAAiJhv.jpg

Most of you must have seen this image (or a version of it) in the last few years. I remember a lot of people sharing it or referring to it with almost a sense of pride and relief. It was almost as if the world had found a way to get the rewards without the work. I also remember using it about 2 years ago during my design thinking workshops. My objective was more about slowing down any wild imagination among participants, about creating business models without firm, underlying foundations.

Oddly, this would be the only section or slide that would find a small amount of resistance and counter-views. Apart from the losses Uber was amassing, there wasn’t much else to disprove it. Its valuation certainly fuzzied plain reasoning for many business folk.

And while the jury’s still out on the success or failure of Uber, I’ve been trying to see if there are any indicators in their drivers’ views.

On a recent Uber ride, the driver was telling me about their reducing margins. How Uber initially started with a very lucrative 15% (share of revenues Uber retained, leaving the rest for the driver partner). And how, with time, that share has increased to 20, 25, and now 28%. I also inquired about why I was often getting surge prices in the afternoons.

The driver explained that they prefer the mornings and evenings because of surge pricing. And since their revenue sharing is lower now, a lot of them go home to rest in the afternoons. A few afternoons ago, the app showed nearly half a dozen cars around me. Yet it took an hour of trying to get a confirmed booking. And the few drivers who cancelled, suspiciously called to ask where I was going, before cancelling. And recently, a few drivers have also asked how much I was being charged for the ride. Something never discussed before.

In an earlier post, I shared a story of another company before Uber, that perhaps did not have a good pulse on its different stakeholders. And how it eventually disappeared from this space in the face of Uber. By these recent signs, seems that if Uber doesn’t disrupt itself, someone soon enough might.

If you own, manage or work at a company, and are grappling with a complex challenge or are in need of innovation for growth, get in touch. More here.

And you might find my book, ‘Design the Future’ interesting. It demystifies the mindset of Design Thinking. Ebook’s on Amazon, and paperbacks at leading online bookstores including Amazon & Flipkart.

Leave a Reply

Connect with:


logo


Your email address will not be published. Required fields are marked *