By Jeofrey Bean
Customer Experience Leadership: Many times, giving the customer more control in an existing situation can innovate a new product or service and upset dominating players.
This is particularly true if you consider Internet communications and giving the customer a sense of empowerment. Do not mistake this for assigning the customer an undesirable self-service role for cost reduction. That’s another rule!
Uber, in over 42 cities around the world with an estimated $3.4B valuation, has innovated a new customer transportation experience. It has disrupted the ancient structure of the taxi service by putting the customer in the role of transportation dispatcher with their smartphone. The Do-Fors that make Uber better and different are 1) Anywhere and anytime, 2) Ride in style and 3) Leave the cash at home, since customers have an account. Uber has nicely integrated the physical and digital experience where customers can track on a map where the driver is with their mobile device until their selected ride arrives.
Uber has many energized advocates who rave about the service. The only consistent objection is about market demand pricing where prices can spike temporarily.
The bigger objections comes from the staid taxi services in places including Massachusetts, Illinois and California where class actions suits have been filed to make Uber illegal.
Uber caused even more upheaval in Paris. France’s Conseil d’État suspended the controversial decree against urban transportation services like Uber and LeCab in early 2014. Until January 1, 2014 Uber drivers were required to wait at least 15 minutes from the time a customer hails them, to the time they picked up the fare. This was viewed as a competitive imbalance, so the rule was suspended. French authorities have to decide if the repeal is permanent. Meanwhile, demand for Uber is very high.
While the legal arguments mount against Uber from the incumbent industry players and others’ attempt to make the case to preserve the industry player status quo for the sake of economic stability, many customers continue to vote for Uber and Uber-like services with their dollars and time. For these customers there has been a customer experience revolution. Uber’s offers and their response represent the future of the taxi industry. There’s no going back to the old ways.
Interestingly, little has been mentioned by the same companies taking a legal defense against Uber about how to improve their own customer experience. This likely means opportunities for additional “experience maker” companies as change continues. And it will.
Until next month in this column, think about “The Uber Effect” of giving customers more control and a better experience so you can redefine the future of the Fleet Customer Experience.
Reference Links
Jeof’s web site and e-mail address
http://www.delmarresearch.com/
Keynote speaker highlights (3 minute video)
https://www.youtube.com/watch?v=znpNuczexiA
Jeofrey Bean’s Amazon author page
http://www.amazon.com/Jeofrey-Bean/e/B006K2L0XI/ref=dp_byline_cont_book_1
