Date post: | 08-Jan-2017 |
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UBER: Evolution of the sharing economy
Aaron
JackSatishDevang
MGMT 5061 - Managing Service Design and Operation | Professor Ramiro Jara
Evolution To A Sharing EconomyEconomy Stage 1According to Adam Smith (1876) the market was the invisible hand connecting producers to consumers
Economy Stage 2The Firm Economy:The producers organized into firms as a means of increasing production and metering of labor
MGMT 5061 - Managing Service Design and Operation | Professor Ramiro Jara | Team II: Aaron, Devang, Jack, and Satish
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Economy Stage 3The Sharing economy where businesses provide platforms for P2P sharing of underutilized assets
I NeedYou HaveService woven in TRUST & EFFICIECY
WE ARE HERE
Group 2 Crystal Ball: Economy Stage n
Trekonomics?
[service and]the acquisition of wealth is no longer the driving force of our lives. We work to better ourselves and the rest of humanity, Captain John Luc Picard
Launched in 2010, Uber is the largest cab company but doesnt own any car first global transportation brand UBER: Market Cap $66 B | Employees: 7KBMW: Market Cap $53 B | Employees: 116K
Shared Economy- Zero cost to start vs. high cost medallion taxi- Shared revenue (70 80% of the fare) - Rewards with discounts- 40% more $ compare to cab drivers - Helping to improve earnings and reduce unemployment - Pay for different service level - Rush hours vs. off-peak rates - Comfort of auto pay through the app - No capital investment for cars, high margin, less liability- 20 to 30% of the fare, plus advertisement revenue- Lean operation, Average three people per city - Scalable crowd sourcing (variability - arrival)- Adoption through local competition
FlexibilityDriversCustomersUber/EmployeesPart Time, Full Time, Be your own bossUberBlack, UberX, UberPool (variability-request) Effort: Only digital customer touch points (app, email, text), no CSR employed
MGMT 5061 - Managing Service Design and Operation | Professor Ramiro Jara | Team II: Aaron, Devang, Jack, and Satish 3
- No taxi bring vs. new brand and market Physical BMW but Uber as servicebut normal taxi would have made big capital investment
Million rides a day (2 Billion rides till date), 400 cities, 70 countries, 160,000 drivers in US alone
Normative Control- Rate passengers - Car quality inspection for new drivers - Community Trust- Customer picture/name shared to create the personal connection - Rate drivers- Community Trust - Safety: ability to share ride in real time- Driver picture/name shared to create the personal connection - Customers doing most of the work to schedule ride using technology platform - Community based foundation for trust
DriversCustomersUber/Employees
MGMT 5061 - Managing Service Design and Operation | Professor Ramiro Jara | Team II: Aaron, Devang, Jack, and Satish 4Community- New economy engine influenced by the Uber model. - Pulling part timers back into workforce - Reduction in unemployment - 24/7 driver support and insurance coverage
- Safety: reduced number of drink and drive incidents - Environment friendly (Uber Pool) - Can reach assigned driver via text or phone- Pride of brand association - The dispatch software/algorithm links the passengers to drivers - Leverages data analysis to translate data into dynamic pricing
Mapping To The Service Value Chain Normative Customer ratingsStandards of vehiclesCategorization of vehicles Efficient App/ Platform
Employee RetentionExternal Service ValueCustomer SatisfactionCustomer loyaltyRevenue GrowthProfitability
Drivers are masters of their own schedulesDrivers are rated by many customers as an appraisal systemRiders shared prosperity model with UberRiders rate the service based on parameters.Drivers who consistently get low ratings are dropped from the service.On the App customer satisfaction is gatheredIncentives to customers and promos are provided to enhance customer satisfactionUber is reaping inherent trust in the new economyConvenience and level of service drives customer loyalty
Employee SatisfactionInternal Service QualityCosts of Driver retention are low
Customer loyalty is driving more use of the service and customer advocacy to other potential customersUnder Ubers shared prosperity model, drivers are incentivized to keep riders satisfied which drives more volume and bottom lineEmployee Productivity
MGMT 5061 - Managing Service Design and Operation | Professor Ramiro Jara | Team II: Aaron, Devang, Jack, and Satish 5
Successfully Evolving with the Shared Economy
Drivers of SuccessInternal Service QualityEmployee SatisfactionExternal Service ValueCustomer Loyalty
Customer SatisfactionThe nature of the shared economy ensures that changing competitive, customer, and technical dynamics in the ecosystem will greatly speed the evolution of service design operations
Analogs of the Past and FutureCompetitive ConsiderationsCustomer ConsiderationsTechnical ConsiderationsRelationship status? it is complicated
Rapidly Changing EnvironmentNimble and ModularLeading a shared economyImproving the crystal ball Driverless vehiclesTech and Functional ArchitectureUber and Waze Uber and GoogleNapster and iTunesUber and .
MGMT 5061 - Managing Service Design and Operation | Professor Ramiro Jara | Team II: Aaron, Devang, Jack, and Satish 6
?Thank You QUESTIONS? MGMT 5061 - Managing Service Design and Operation | Professor Ramiro Jara | Team II: Aaron, Devang, Jack, and Satish 7
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APPENDIX
MGMT 5061 - Managing Service Design and Operation | Professor Ramiro Jara | Team II: Aaron, Devang, Jack, and Satish
http://expandedramblings.com/index.php/uber-statistics/ How it works99
40% more earning10
MGMT 5061 - Managing Service Design and Operation | Professor Ramiro Jara | Team II: Aaron, Devang, Jack, and Satish 10
MGMT 5061 - Managing Service Design and Operation | Professor Ramiro Jara | Team II: Aaron, Devang, Jack, and Satish
http://www.businessinsider.com/uber-doubles-its-drivers-in-2015-2015-10 1111
http://www.bizjournals.com/