The Uber transport phenomenon has upset people all over the world. Some people absolutely love it and some people categorically hate it.
Uber users love it. Taxi companies hate it. I don’t have any sympathy for the taxi companies, and below I’m going to explain why in simple business terms.
If you’re a business owner, should you love it or hate it? I believe you should love it and here’s why.
Before I get started, let me say that Uber should have to pay all the same license and regulatory fees as its competitors, but that’s where the game finishes.
Imagine that you decided to open a coffee shop somewhere. It costs you $300,000 to fit out and set up; and off you go, business steadily increases over time and you are pretty happy with the results.
I see those results and think maybe it would be a good idea to open a coffee shop nearby. Before I do though, I make a list of everything that is not quite right with your coffee shop. The list might look like this. Service could be better. The sales transaction is clunky. The customers have no idea how long the coffee will take. Quality varies enormously. Cost is a little bit high. The seating is uncomfortable. The shop is a bit tired looking. Customers have no way of providing feedback.
In my new coffee shop (just a few stores away from yours) I am going to fix all of those problems. I tell you what I am going to do and give you 3 years notice that I’m opening my store.
WHAT WOULD YOU DO?
If you were smart, you would change your business, and fix all the things that were not right so that when I open my shop it does not affect you at all. However, you don’t do that and 3 years later I open up, take a lot of your business and the value of your $300,000 investment in your coffee shop is significantly devalued!
That’s what happened with Uber and I don’t feel sorry for the taxi industry one little bit. It costs around $300,000 for a taxi license. Uber fixed a whole heap of problems in the taxi industry. The taxi industry has known for 3 years that Uber was coming and has done nothing. The value of taxi licenses is declining rapidly.
There will be an Uber moment for your business. It’s getting easier and easier to set up and enter industries. If you’re not watching the market trends and innovations and adapting to them, you’re going to go the way of the taxi– and that’s scary!
Rowdy Mclean, is a keynote speaker and author of Play a Bigger Game, published in 7 countries. “Playing a Bigger Game” is Rowdy’s life story, overcoming adversity and challenges to achieve extraordinary results. A Certified Speaking Professional, Rowdy has founded five companies, played professional sport, run marathons, climbed mountains and broken world records. He has presented to over 250,000 people in Europe, China, Asia, United States, and Australia. Rowdy helps leaders and organizations “Play a Bigger Game” by challenging the status quo to drive remarkable results.