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February 10, 2015 at 07:35 AM
Uber is one of my favorite disruptions, or as you’ve read in my previous articles, “Napster Moments.” This is when someone who has no business being in a business comes in and reinvents the business and puts someone out of business.
In the case of Uber, the reason I like it so much is because, generally speaking, I can’t stand cabs. This is probably true for many people who live in or near large cities and who take a cab or car service often.
Aggressive driving, texting and talking on the phone while driving, bad attitudes, dirty cars and, oh, the smell!
However, Uber eliminates all the issues above, and they have also created a system where you don’t have to call a cab and wonder if they will show up. And you don’t have to exchange any money or wait for the credit card to run through.
Not only has Uber transformed the customer experience, it actually grew the category. People who were infrequent or nonusers of car services are now using Uber as an alternative to driving themselves, their kids and anyone else who needs a ride. They have also created revenue streams for people with cars and some flexibility. Finally, they leverage an already existing infrastructure to do it. This is pretty amazing stuff. Yes, I know there is controversy over surge pricing and an occasional bad driver; however, on the whole, Uber has made a big difference in the lives of consumers and created a big dent in the demand for traditional services.
But wait, there’s more. Uber recently created disruption in the insurance industry. Yes, they have created “insurance by the mile.” This was their response to the need for their non-full-time drivers to be covered as a commercial driver when they are on the job and as a “regular person” when they are not. Drivers simply flip on an app on their iPhone while they are en route to pick up someone or driving them to their destination. Once they are no longer on Uber’s clock, they shut it off. They are covered (and presumably charged) only for the miles that are relevant to them.
