First Class Service, other type of businesses (part 2)

Uber As I wrote on my last post, the Long Tail model with low prices is an excellent option for online stores and businesses on Internet, because the model takes advantage of many of the benefits this media offers such as cost reduction in many of the processes (showcase, storage, and distribution in some cases). However if every single online store starts to operate under this model, soon the market will saturate and they will compete in red oceans, as the Blue Oceans theory of innovation explains.

This is the reason why the thesis of this series of articles is that it is possible to compete in another way on Internet and one of this ways is with a First Class Service Model. To explain how can we take this model to the Internet I will present a pair of examples.


Uber, a first level service in the physical world and Internet

The first example I will present is the platform for renting transportation services called Uber. This company, which started in 2009, connects drivers and passengers. Today Uber operates in many cities around the world.

We all have used transportation services such as buses, subways and cabs. The only value this kind of service presents is to take you from one point to another. The service Uber offers goes further and offers passengers an excellent service with great drivers and cars and they driver will try to make you very confortable with the music you one to hear and free water and candies.

Taking into account this excellent service in the physical world they complemented it with a first class platform. Therefore the app provides an excellent platform where users will be confortable of including all their information and credit card. In this way they aren’t going to need to worry about paying in cash or to swipe their credit card because the service will be automatically charged. Also once they ask for a service the traveller will be provided with complete information about the driver, which includes its name, picture, phone number and car type. The route will be billed according to the time spent and the number of miles it drove, making it fair and transparent. Finally once the ride has ended, the platform will send an email with the bill with all the ride’s information and the traveller will be able to rate the driver, so they can improve their service.

On the next post of this series I will present another company that has applied this first class service model in an excellent way.


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