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Scenario... Twenty years ago an astute and entrepreneurial young man named John took over his father's taxi company, Orange Cab based in San Diego. Exploring ways to reach potential customers, he found that all the cab companies in town were marketing their services through the same traditional mediums - newspaper ads, Yellowbook listings, billboards, etc. Not sure what else he could do, he remembered he still had 4 free hours of America Online credit, and decide to see if the internet had any advice. Then it struck him... Maybe my competitors have websites that I could browse for hints on how they advertise. The search came up empty. Damn he muttered, "none of them have websites", to which his wife Jane (expertly lurking from the nearby davenport desk) quips, "well neither do you, so maybe you should get a website". I have a brilliant idea, he thinks while slightly tilting his monitor away from Jane, maybe I should get a website. He types into the Lycos search bar "how. to. make. a. website." enter, "You know in that technology class I took last semester they taught us how to make a webpage using HTML", pipes Jane; then she smiles and taps John on the shoulder "move over". After building the website they noticed things starting to pick-up a bit, and in a short few years they were beginning to see real growth; recently their was a nice spike in their marketshare after implementing an online form to request rides directly from their homepage. Younger crowds in particular preferred to request rides over speaking with someone on the telephone. Fast-Forward ~10 years... Orange Cab is not so little anymore. They now manage fleets in 14 metropolitan areas and recently incorporated so they could merge with Yellow Cab, making them the biggest cab company in the US. A few days after the merger, Jane (formerly Orange Cab's head of operations) had a meeting with Yellow Cab CEO to see how her role would change after the merger. She came into the meeting excited with ideas about how to innovate to reach new customers (particularly since the new operating budget was 10x the pre-merger budget). She started by sharing an idea where the whole point-to-point experience, from cab request to fair payment is managed entirely by a little software applications on someone's mobile phone. Jane, Jane, Jane, ahhh silly Jane, we are not a tech company. Yes, the website has been really helpful, but don't those smartphone things have a web browser? We are the biggest taxi company in the US, and we have a veteran management team, what's the worst that could happen! |
http://www.marketwatch.com/story/uber-and-lyft-didnt-bankrup...