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Lecture 16

ISYS 1021 Lecture 16: Uber Case Study
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2 Pages
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Fall 2016

Department
Information Systems
Course Code
ISYS1021
Professor
George Wyner
Lecture
16

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Data Assets
Ratings
o Gives feedback to driver
o Helps them determine what to fix or who to fire
o Can use rating to determine whether or not to trust them
Algorithms
o Which drivers to alert
o What the surge price should be
Locations
o Pick up and drop off
o Real time: maps let them determine surges and find rides
o Alert
o Surge
o History
Strategic Resources
1. Unique and Valuable algorithm
a. Value chain?
b. What they know about how to get the job done
2. Scale
a. Accessibility
b. The more riders, the more drivers, the shorter the wait
c. Also Uber pool
d. Network Effects lead to scale
3. Brand
a. I’ goa Uer there
b. Use Uber to explain other kinds of ideas
c. People know and trust Uber
d. Uber can take a driver off the road right away, but Taxi drivers can look further in the
past in background checks
4. Distribution Channel? App Store
a. Is hard for competitors to use this distribution channel? No
b. However, it is a strategic resource for apple
Uber v. Taxi
Uber v. Lyft
Can you get an Uber into an airport?
(sometimes)
The taxi industry is highly regulated
o T drivers have to lease medallions
(silver plaque that gives drivers
the right to operate a vehicle)
o Way towns regulate how many
drivers they have
Smaller scale
Less brand name trust and recognition
Challenge: not impossible
Network effects makes Uber better
o Wait time
o Availability of both riders and
drivers
In order to make up for it
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Description
Data Assets  Ratings o Gives feedback to driver o Helps them determine what to fix or who to fire o Can use rating to determine whether or not to trust them  Algorithms o Which drivers to alert o What the surge price should be  Locations o Pick up and drop off o Real time: maps let them determine surges and find rides o Alert o Surge o History Strategic Resources 1. Unique and Valuable algorithm a. Value chain? b. What they know about how to get the job done 2. Scale a. Accessibility b. The more riders, the more drivers, the shorter the wait c. Also Uber pool d. Network Effects lead to scale 3. Brand a. “I’m gonna Uber there” b. Use Uber to explain other kinds of ideas c. People know and trust Uber d. Uber can take a driver off the road right away, but Taxi drivers can look further in the past in background checks 4. Distribution Channel? –App Store a. Is hard for competitors to use this distribution channel? No b. However, it is a strategic resource for apple Uber v. Taxi Uber v. Lyft  Can you get an Uber into an airport?  Smaller scale (sometimes)  Less brand name trust and recognition  The taxi industry is highly regulated  Challenge: n
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