When someone says Uber, the first thing comes in our mind is the excellent cab service that we are using so frequently. Millions of riders globally love this service so much that it has become its own verb now. It is the service which can be reserved anytime or can be delivered to you anywhere.
New companies are trying to implement this business model to compete in the market. It all depends on the market capture and greater market capitalization than their rivals. But most of them are limited to the particular geographic markets.
If we do the analysis to determine which companies and which markets will be truly transformational, we need to look for those who can provide a service where the greatest percentage of crowd is in pain and unhappy with the existing providers. Many service sectors suffer major challenges in terms of availability, quality, transparency, and pricing, which leads to innovation ideas.
The important thing of most On Demand Mobile Services is to use the smartphone as your life’s remote control, so that when you click the button for your things need to happen, as fast, consistent and accurately as possible. Uber service leverages local network effects between its users, and invests heavily in Machine Learning and algorithms to ensure minimum waiting time for riders and busy schedule for drivers to facilitate them more income. Without short wait times Uber would not be nearly the magical experience today we all love.
Businesses which include services are so hard to create because they are dependent on people to interact with customers directly. Managing a group of people, is a lot more tedious task than executing software routines. For any geography, recruiting, selecting, training, and managing workers is a core element of any ODMS. Background checks, license verification, detailed applications and face to face interviews are all part of the selection process.
There are simply no shortcuts when it comes to satisfy market and delivering consistently great services levels. At last, quality can make or break a business regardless of whether they have the best looking mobile app or any other UI stuff.
It seems that tech enabled services are much more efficient than traditional businesses at acquiring customers and aggregating demand through digital channels, efficient marketing, and highly visible brands. This often enables cutting out hidden layers of middlemen in the value chain. Passing a good portion of these savings on to consumers is perhaps the smartest way to generate trial, grow quickly and hook customers on your service.
Customers expect that effortless payment should be in a service that has been newly redefined as on demand and mobile. The nice part is that this also solves many business model problems around the workers handling cash or credit card numbers, and leakage from your workers attempting to cut you out of a side deal they offered your customer. Over time, however, we will see the clear majority of ODMS handle payments in the background as part of the consumer experience.
So, will there be an Uber for every service industry? There will be some, but not many in terms of a global, dominant, hugely valuable iconic brands. Some industries are just not important and/or frequent enough to our daily lives, or unpleasant enough as they exist today, whereas other industries face service challenges so fundamentally hard to solve that it will be a long while before we see an ODMS truly solve them.
So, while there may only be a handful or so of Uber-sized winners, there will be many smaller ODMS who find some degree of success, and the biggest winners of all will be consumers themselves.
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