Of course the last blog assignment is the hardest one. That’s why it took me so long to start writing. This week’s blog is about innovation diffusion and adoption and therefore we had to identify an appropriate innovation for entrepreneurs, which is sufficiently spread. It was hard to find such an innovation, but then I took a cab.. And during that drive I thought of Uber and talked about it with the taxi driver.
Uber is a rideshare and taxi service company, which is founded by Travis Kalanick and Garret Camp in 2009. It started in San Francisco, but at this moment it is already situated in more than 200 cities and is worth more than $40 billion. Uber uses an app, where people can request for a ride. They can both get a ride from a licensed taxi-driver or just people like you and me (UberPOP service). This service-based innovation breeds on the inefficient use of cars and the need for sustainability.
Uber is still a very young company, but has grown rapidly in the last 5 years. If we look at the diffusion model of Rogers (2003) I think it is diffusing at the edge of early adopters and early majority. It just passed the diffusion among young professionals who live in Amsterdam and has still time to grow.
Although Uber is a service for individuals it is also a major innovation among licensed taxi drivers. Do they keep on going like they always did and be laggards or do they sign in at Uber and do it their way? Well the taxi driver I spoke to wasn’t really a fan of Uber. It was an older men and he didn’t saw the advantages of it. He has his own network of customers and he likes it that way. I asked if he would ever consider using it if all other cabs he know did. He then would overthink the situation and maybe become an Uber cab as well. In this last part social learning and the social influence mechanism play a role. He will maybe adopt it if there is enough evidence and if enough others have adopted it too.
I think taxi drivers should seriously consider to become an Uber cab. Caps are expensive and people don’t like to spend money on them. The world has changed and cabs haven’t been innovative for a very long time. I think this innovation would give the taxi driver much more customers. Especially young people (and even other generations) using smartphones and Uber fits perfectly within their lifestyle.
I didn’t follow the exact outline of the assignment, but I think it was worth sharing!
Goodbye everyone and good luck with the final course, which I will not follow L.