I recently attended an e-commerce conference where speakers from popular online retailers offered advice to start-ups trying to make it in the competitive tech space. I have attended several similar events in the past and the relatively simple formula remains the same.
Identify a need. Come up with an innovative way to address that need. And do it well.
For Travis Kalanick and Garrett Camp this involved developing an app. The need that required attention is rumoured to have been identified on a trip to Europe when the pair found themselves trudging the snowy Parisian streets in search of a cab. And how did they do it differently? By utilising something that has become a mainstay in most of our lives - our mobile phones.
Just five years down the line, their seemingly simple concept has been valued by Goldman Sachs at as much as $40 billion. A price tag I would argue indicates they must be doing something right.
Living up to its name - that is denoting an exceptional example of a particular kind of thing; in this case, a car service - the remarkable success of Uber has made the application a case study relentlessly flogged by tech industry thought leaders as the epitome of disruptive innovation.
But as an early Uber investor put it: "It's hard to be a disrupter and not be an asshole." In this case, the brand's whirlwind trip to the top has earned the Uber team its fair share of foes.
From news of planned media smear campaigns, whispers of plots to sabotage competitors, accusations of manipulating regulatory loopholes and a less than loving relationship with global transport industry officials, Kalanick, now Uber CEO, is no stranger to controversy.
Locally, there has been talk that the smartphone-based car service is not complying with tax legislation, in addition to flouting transport licensing requirements. Just a few weeks ago, the City of Cape Town impounded 65 Uber-affiliated vehicles for not having the necessary permits to operate in the Western Cape. And who could forget the somewhat comical "price surge" (an increase in fare costs at peak times) story that made the headlines when a drunken 20-something was charged R2 800 for a 35km trip from Clifton to Muizenberg on New Year's Eve.
Divide and conquer
But if Uber has identified a need, addressed that need and done so in way that works well (from my experience at least), what's the big deal? Can we fault them for seeing a gap in the market and finding creative ways to skirt around what many would describe as outdated regulations on hired rides?
At the same tech conferences I referenced above, industry experts stress the importance of listening to the customer and offering one's services to them via their preferred channel. And while mobile can hardly be considered a breakout trend, finding ways to capitalise on the mobile moment is something that few have been able to truly execute successfully. In my opinion, Uber has made a fairly decent attempt.
Contrarians in an industry of conformists, reports of Uber's plans for the future indicate the San Franciscan ride-sharing start-up continues to adapt, innovate and diversify.
It is clear Uber has created some rather controversial ripples in the local and international transport sector.
In December, Uber worked with Kalahari.com to allow Cape Town-based shoppers to utilise a promotional delivery service and Uber now offers restaurant patrons cabs to their culinary destination through a partnership with Zomato. I was lucky enough to spend an afternoon on an "UberYACHT" last week. Despite this being just a promotional voyage, the event, which was attended by local celebs and featured performances from international DJs, showcased how Uber wants the local market to perceive its brand.
While residents of the Mother City may not be able to hail an UberYACHT for their Sunday afternoon trip from Camps Bay to the V&A Waterfront for a spot of shopping, as of October last year, app users could hire out an UberCHOPPER to take them to their chosen destination. With delusions of grandeur, I entertained the idea of utilising this mode of transport briefly but quickly changed my tune after learning that a chopper trip from the Southern Suburbs into the City Bowl would set me back a mere R170 000.
With an eye on expansion, Kalanick was recently quoted as saying: "If we can get you a car in five minutes, we can get you anything in five minutes". And should his vision for the company be realised, the Ubers of the future could be steered by driverless cars.
It is clear Uber has created some rather controversial ripples in the local and international transport sector. And the app has made an impressive play for the lion's share of the market. But if you ask me, its success should not be viewed as a threat but rather as a challenge to the Luddites of the licensed taxi industry and local government to rustle up a little disruption of their own.
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