It was four a.m. in the outskirt
of Boston – the city of Malden – as we were preparing to head out to Logan
airport for a flight back to Texas a few days ago. My brother in law, who had always taken us to
and from the airport many times in the past, will be spared the early wake up
because that morning I wanted to see for myself what this latest hoopla in business
innovation is all about. With our bags
by the hallway I tapped an icon App on the smart phone and typed origin and
destination. In less than a minute the
screen came alive with the name of the driver with his photo, the model of the
car he’s driving and license plate number, the estimated ‘fare’ and announcing
that he’ll be arriving in five minutes.
Sure enough he did. A few minutes
later we unloaded our luggage right at the departure area where he helped to
unload our bags, then a handshake and a tip – fare was taken care of by the credit
card on file. Before our flight was to board I received an email with the
receipt for the credit card charge and a thank you note from Uber.
Uber – now quickly emerging as
another word verb, like Google and others – is fast becoming a successful
business model that can and will only function based on cyber technology but
performing a service as basic as the transporting of people from A to B. It was at first a curiosity to many,
including myself, until one gets a firsthand experience of finding out what
this new made up English word is all about.
Of course, in German it is a qualifier of sort – a superlative prefix
for anything extremely above all others.
English speakers are content with over
anything, i.e. over the top, over
worked, over taxed, overlord, etc., but Uber could very well be the
ultimate choice if not a better alternative to urban taxi service. It is not a solution to mass transportation
but it is as innovative as the subway system was over a hundred years ago.
Uber, the company that is now the
bane of taxi operators and even by the limo industry is an uber-example of entrepreneurship that carries on the idea that if
necessity is the father of invention then it had just sired a child of
technology. Utterly impossible to pull off over a decade
ago it is now a legitimately viable business because the light speed flow of
information over the web makes it almost as easy as a short order at the fast
food’s drive through. Inevitably it will
spark competition but Uber might remain the word to describe the ready-when-you-are
transportation genre as coke had done with the soda industry, or fridge (for
Frigidaire) in refrigeration, etc.
Uber, now a worldwide phenomenon,
albeit mainly if not totally for urban consumption only, is not new of
course. The idea that it is in the
transportation business but does not own a single vehicle is quite a feat but
not entirely unfamiliar. Amazon has been
selling products, now outselling Walmart even, without the façade of a single
physical store. Nike had in the beginning
sold a bunch of shoes without owning a shoe factory. It is mainly a designer of footwear and
outsourcing the production to some far flung Asian shoemakers was an uber-business idea. I am not sure that Nike today even has its
own shoe factory anywhere. Mercenary
armies in history had been employed for a fee and a dictator is able to impose
his will without implicating or using his own military.
Angie’s List, Home Advisor, and
others are a subtext to the main theme.
They provide the uber-shortcut
to word-of-mouth. Uber has also adopted
the Star-rating system with a twist. The
passengers get to rate the driver but drivers too do get to rate their
passengers. This is the uber-equivalent of a two way street. Uber, from what I understood from our driver,
takes about three days to vet the prospective drivers who apply to drive – full
or part time and at the hours and days they choose and the area they wish to
cover. Uber passengers need to sign up
ahead and become an Uber user but the vetting only takes about 1-2 hours based
on address and credit card information.
I’m sure Uber can access a lot of data, including credit and criminal,
about you from just that basic information.
Car dealerships actually do the same thing. Why the ratings on both sides? Well, Uber probably likes to keep good
drivers and drop those not in keeping with their standards; unruly, habitually
un-ready, drunk passengers (passing out or throwing up in the car), etc. are
also dropped from the service. Uber is
naturally the uber-clearing house. When a passenger wishes to contact the
driver, the phone number he or she calls is routed to Uber then to the driver
and vice versa. So the information is
buffered between passenger and driver, except of course for just the necessary
passenger name, location of pick up, driver’s name, car model and license
plate.
Is this going to be the basis for
most other business models in the future?
Naturally, as always, affected businesses are pushing back, including
politicians beholden to the transportation business, as what seems to be
happening with the New York mayor taking on Uber on behalf of the taxi and limo
industry. Ultimately, the users of the service will determine the outcome. For now, there is the attraction to the
perceived safety and assured service from Uber.
The drivers are ordinary citizens, working part time and certainly not
overworked to meet quotas as taxi drivers need to, who live within the
neighborhood of the origination location; hence, they can pick up within five
minutes or less. The passenger knows
ahead of time the estimated fare, and except for tips there is no exchange of
cash and receipts are automatic. For
others it is like having a neighbor drive a school child or relative to and
from locations with the safety of vetted drivers. Uber can tell when and where
a passenger had arrived with the precision of a GPS. When I got the receipt, it provided the route
taken, how many miles were covered and the origination and destination times –
something parents or relatives get instantly for a child pick up, for example,
if a parent is running late or unable to for one reason or another, but the
child gets to go to tennis or football practice or get picked up from the movie
theater for a safe trip and assured arrival to the house. Critics lament the absenteeism in parenting if
one day that piano recital, the perfect catch of a baseball or football, or
thrilling end to a tennis match are easily missed but unburdened by guilt
because after all dad or mom did do everything to ensure the child will be safely
home after not missing an activity because they were not around. And that could be the problem because this
could make it easier to not be around and yet feel good that their child is
safe.
This is not an endorsement for
Uber but it is something to have in your back pocket just in case you find
yourself in an unfamiliar urban setting somewhere and you need a ride. It does not cost anything to apply but it
could be crucial when the need arises. There is something about having a
personal driver to take you to an unfamiliar place where finding a parking
space becomes an unnecessary headache.
Who knows what comes next? We may not have been paying attention but a
long, long time ago somebody came up with the idea to cook meals for you at a
place that is not your home where you don’t need to clean up or wash the
dishes. The place is now what we call a restaurant. Then when we are really in such a hurry, we just
drive through. Somebody now does our
laundry if we’re willing to pay for it.
The uber-doing of these chores
is as much part of modern life as the symbiotic relationships between organisms
of providers and recipients of services or material in exchange for something.
Let’s hope we don’t uber-do it
because someone is already thinking about robot nannies for our young. But wait a minute! Don’t we have televisions and video games
already doing that? We need to be
careful because some are already doing the thinking for us through social media
where we’re told what to say and not say, or do and not do. Something we cannot do is out source our
thinking because in the end our thoughts are all we have left if suddenly
everything stops flowing through the ether, the airwaves and the web. And thus begin the debate and the uber-thinking but there is the danger of
the Gotterdammerung of civilized
society, or any society for that matter when much of what we do is outsourced
and when we lose that capability the landscape of our future is not going to be a pretty picture.