When we talk about disruptive innovation, one of the instances that often arise is Uber Technologies Inc. or, merely, uber car hire, which has transformed the transportation industry as we now understand it.
How Does Uber Works?
You only need three stuff to use Uber: the mobile app, a smartphone, and connections to the internet. The mobile app must get uploaded and mounted on your smartphone (it is consistent with both iPhone and Android phones). Users first have to sign up for an application before they can book a private vehicle. Users are being requested for their mobile number and accounting data when joining up for an application. Once you have supplied the necessary data, you are now prepared to use the phone. You will also get told to label your place where you are being picked up by the vehicle. You will then have to keep waiting until the rider comes and the vehicle arrives.
Uber’s Disruptive Innovation Strategies
Different transaction costs are being eliminated. Uber created it so that there were no more transaction costs. When booking a vehicle through the mobile app, there are no fees to get charged. This is certainly not the case with your conventional car-hire service, where you have to pay a fee for each step of the reservation or car hire transaction, regardless of the actual fare you pay at the end of the ride.
Encouraging increased asset productivity and job levels. The sharing economy idea, which Uber has zeroed in on, includes converting either available or underused assets into useful or, in other terms, lucrative resources. Uber offers extra revenue to riders who enjoy a part-time job, which means they will ride only when they are accessible.
Use of state-of-the-art technology. Developing a mobile app may be the greatest approach Uber used. Uber gave the complete benefit to the idea of collaborative consumption by creating a very user-friendly mobile app filled with characteristics intended for comfort for consumers.
Variable or versatile sales model (and often more inexpensive). Uber is not responsible for regulating tariffs, so distribution is versatile. Uber’s pricing model also provides transparency, which can’t get said about traditional taxi company suppliers. Passengers using Uber are also notified of their projected price beforehand, and the software also enables them to match rates across several other apps.
Payment convenient and friction-free. The ticket will get charged to your credit card account after each trip and will get credited to the driver’s bill. That implies you have a cashless operation to appreciate.
Implementation by a rating system of quality control. This promotes riders to deliver and retain their service’s high quality, from driving and interacting with their travelers to maintaining their cars.
Be brave and fearless. In most of their interactions, Uber showed fearlessness, an aggressive attitude, and not a tiny degree of ruthlessness, and this was being explained by top leadership by quoting the essence and volatility of rivalry in the shipping sector.