Industry Insider

The Uber Effect Featured

Written by  Tuesday, 08 December 2015 16:22
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It's difficult to find on Uber's website any explicit statement as to what the company is. Instead, all the information is directed toward what the company does. This is all their customers really care about. Without having to define themselves, Uber is able to slide into any new opportunities as they emerge.

In the minds of most, Uber is an "on demand car service". Even non-users have a vague notion that it's like a taxi but cheaper. Certainly, the taxi industry has snapped to attention, but that's only one sector under threat of disruption. 

Here are the Top 5 to consider:

Taxi Drivers are the canaries in the coal mine, so to speak. Recently, the City of Edmonton passed legislation to allow Uber to operate, much to the loud annoyance of taxi drivers. These members of the traditional industry must pay fees and adhere to regulations that Uber drivers can avoid. This poses some interesting options for taxi drivers, one of which being: join Uber. 

Taxi Companies now have an uber-competitor. Really. With drivers migrating to Uber, the cream will rise to the top. Uber's internal scoring system will ensure this. As more customers (they too are scored) shed their inhibitions and come on board...I think you get the math; taxi companies will have to up their quality service game to stay alive.

Limo Services have always been the thoroughbreds of the taxi industry. They live or die by the quality of their customer service. Uber is pushing their corporate car services hard, with Uber apps taking front page positions on every big-city admin assistant's smart phone. 

Couriers and Short-haul Truckers are due for a technology upgrade. Uber provides it. Got a package to get to your client across town? A lab sample for analysis? A palette of restaurant supplies? App it. 

Automobile Manufacturing itself is potentially the granddaddy of all sufferers. One look at our Uber Infographic reveals a sobering reality. Think about it: most vehicles owned in North America are only active (driving on the road) 3.6% of the time. While parked, your vehicle is still costing you the same amount as when you drive it. How much of that idle money will it take before you decide to just use Uber? You may not, but many people will.

As drivers start becoming passengers, auto sales go down. We've already seen how fundamental the auto industry is to the economy here and around the world. Sure, Uber will need to buy vehicles, but theirs will be more efficiently used than the one in my driveway, for example.

What about you?

Read 1301 times Last modified on Monday, 13 June 2016 01:52

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