We all seek value, we set out to buy when we find it, but all too often, we settle on price as the measure, when price is only one component of the mix of factors that makes up “value”. The challenging thing is that even each individuals perception of value can change radically depending on context.
I tried to catch a taxi last week in the CBD, mid afternoon, and it was raining very lightly, I was late for an appointment,………
No hope, none at all. AAARRRRHHHH!!!!
There was also one of those sensational exposes on TV last week about the taxi industry in Sydney, how bloody awful it is, poor cars, badly serviced, flagrant profiteering by those who own the licences, and so on, typical populist “news comment”. However, those who own the licences, and those who issue them were declaring righteously how good it really was, and we better all wise up and understand that they had high standards, and the fares were managed to ensure we could all get a cab when we needed one, at a fair price.
What crap. Clearly, the model is broken.
The growth of Uber has been explosive after a shaky start in San Francisco in 2008, it went from an idea to a valuation of 304 million in 4 years.
They do not own a fleet of cars
They do not employ many people
They deliver a service people are prepared to pay for.
The service has always been there, it is called a Taxi, but taxi regulation obsesses about low fares, and regulation, making sure everyone is the same, Uber obsesses about Value. Same service, getting from point A to point B, Uber just does it differently and arguably more reliably than our regulated taxi service. However, you pay for it.
Their model enables cars to be called up in peak demand, but at peak demand, you also get peak prices, the surge pricing model kicks in. You can get a ride at 3.00 in a rainy CBD, but you pay for it.
Back to my taxi dilemma, when I have time, and it is not raining, there are many transport options, of which a taxi is one, but when there is no time, and it is raining the value of having a taxi there when I need it is enormous.
Value is extremely context sensitive and variable.
Does your marketing reflect this reality?
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