Whatever you may call them, it can’t be denied that in today’s mobile app ecosystem, on-demand service apps are making their mark.
By offering delivery of goods and services straight to your door step, they’ve redefined the marketplace. Coupled with a lower cost structure, their competitive rates give them a significant edge over traditional players. But whenever there is a disruptive force, that’s when things can get a bit hairy.
Take Uber for example. Uber is an app that directly connects drivers with passengers, cutting out the need for a centralised booking service or having you waste precious minutes waiting on the kerb. This is good, no?
Uber went head on to break the dominant business model, with transparency never seen before in the taxi industry (users can view details of the driver, vehicle plate number, model and real-time location tracking), and this drastically changed the business model of an entrenched industry.
The regulatory challenges faced by Uber over its aggressive global expansion are well documented. Here in Malaysia, it’s gotten to the point of actual physical confrontations between cabbies and Uber drivers.
Last week, Indonesia’s Transport Minister caused quite a stir by banning ride-hailing services like Uber, GoJek, and GrabTaxi altogether, because these companies “do not meet the official definition of public transport”. However, the ban was later lifted by not-too-amused Indonesian President, Joko Widodo.
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You see, one of the key obstacles to innovation has always been that policies are never able to catch up with the fast pace of change. The people who make up the rules will always be wrong-footed by an evolving landscape shaped by new technology. Perhaps some may even have incentive to maintain the status quo.
But there’s no stopping this wave. Just like you can’t put toothpaste back in the tube. The secret is out.
Amazon, as we all know, disrupted the publishing industry and the retail industry, by refining the e-commerce experience, offering low prices and efficient services. Since then, we’ve never looked back.
Today, tapping our smart phone screen to book a ride, a room, a flight, a meal, a movie ticket, or for instant communication, has become second nature. And it has all come at the expense of big business.
Chat apps like WhatsApp, WeChat, Kakao Talk and Facebook Messenger have significantly impacted telcos. I mean, generally speaking, no one uses SMS anymore. The reality is, consumers prefer using chat apps to make calls and send messages through data networks. So what did the telcos do? Adapt and ride on the trend, offering more attractive voice and data packages.
Airbnb is gaining ground in the hospitality sector by offering unique accommodation solutions at very attractive rates. Now anyone in the world with a spare room can have the opportunity to participate in a peer-to-peer global marketplace. To consumers, it’s a no-brainer: why would you not opt for a more economical, and more exotic local experience on your travels?
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So whether you like it or not, innovative solutions previously unheard of, will continue to emerge and disrupt the marketplace. The only viable option to survive in the market is for traditional players to remain on their toes, and try and stay ahead of the game.
In case you missed it: A mother actually named her son 'Uber'
