In the past, when a person needed to get somewhere with a cab, the process was a nightmare. You either called a cab, frustratingly attempted to give the driver directions and then waited for the car to arrive; or you stood on the side of the road, in the heat, rain, or snow, and hoped a vacant cab would pass by and stop for you. You had to make sure you were carrying enough cash on you to pay the fare, and not a large note, just in case the driver wasn’t carrying enough change.
When Garrett Camp and Travis Kalanick were hanging out in Paris on a cold winter night late in 2008, both entrepreneurs were discussing what was next for them. Garret had just sold StumbleUpon to eBay and Travis had recently sold Red Swoosh to Akamai. Garrett had had enough of the frustrating cab experience and the horrible taxi problem in San Francisco and this lead them to discuss a limo timeshare service – the two of them splitting the costs of a driver, a car and a parking spot in a garage alone with an iPhone app.
A couple of months later the prototype was coming along and a beta version was soon released. The beta version was invite only which Garret and Travis started sharing with their friends. Those who tried it the app, loved it and told their friends about it who requested invites as well. On 31st May 2010, Uber launched in San Francisco and that’s when Uber started growing to a private car service currently available in over 200 cities in more than 40 countries, valued at $17 billion, and perceived as a disruptive innovation that has revolutionized ridesharing globally.
The main key to Uber’s success is that it enhanced consumer experience by reinventing the entire experience of getting private transportation. The app is integrated with Google maps on, which you can pinpoint your location, see where the nearest cabs are, and watch as the cab gets closer to you. Additionally, you can see the driver’s information, which also includes ratings from previous passengers. The car arrives within minutes so you end up waiting less and once you reach your destination, the app charges your credit card so you don’t have to carry cash on you. The result? A great product that provides a real seamless solution to the millions of people frustrated with the old process of getting a cab.
Because Uber enhanced the entire experience and not just one element, they created a deep change in the industry, which sparked word of mouth and press coverage. The cab riders became Uber’s advocates, who shared their experience with their friends and on social media, leading to a growth of passionate customers.
Another contributing factor to Uber’s success is that they acknowledged that if they were to expand in other cities, they required local efforts tailored to each new location. Team launchers, described as a SEAL team, are responsible to get business running in new cities by being logistically savvy, getting a grasp of the city’s transportation ecosystem and using marketing creativity to encourage user adoption and market penetration. They often operationalize a new Uber city within 8 weeks and then recruit a team of local talented staff to run the business locally and sustain long-term growth. The company supports the new launches by utilizing industry partnerships, local events, and more; fueling word of mouth and local growth.
Uber has truly disrupted and revolutionized the ridesharing experience and has potential of doing so much more in the future to sustain its growth. How this company reinvented an experience that has been there for so long is a great example for startups and entrepreneurs to gain from. It is proof that every industry has room for growth and innovation, regardless of how old it is.
