Uber Now Driving Down the Demand Curve

I had posted seven months ago about how Uber was confining itself to the head of its demand curve.  I found that confusing.

Let me say.  I’m beginning to get it with UberX, the announced tier of service priced to be competitive with taxi services.

I love that Uber is willing to cannibalize itself.

I love that they worked to perfect the experience on the high-end, and now they are taking the learning to the meat of the market.

I love that they are taking on the authorities stuck in the Stone Age — like this week in DC — gaining bucket loads of attention and attracting fans to the mission.

I love the loyalty generated in the high-end business and how it’s being drawn on now — witness all of those on Twitter and elsewhere willing to testify about why they love the service today, e.g. James Fallows and the pleasure of certainty, and witness the power of logic and customer benefit trump the usual nonsense that happens in the backrooms to protect insiders.

I love the loyalty they have developed among their drivers and fleets, as demonstrated by the apparent fact that drivers and fleets are investing and purchasing hybrids to take part in UberX.

This is a company that’s doing it right — taking on a fossilized industry, bringing to it the information and control that the Internet provides to consumers, empowering suppliers, and making the right tactical and strategic moves in rolling itself out.

Leave a comment