First the Taxi industry, then the limousine industry, and now the Ferry and Tourist attraction industry? Uber is doing it right!
In Croatia UberBOAT has not only become a seasonal mean of transportation but a regular as well as reliable service. The UberBOAT business model reflects that of the Uber taxi industry, whereby a driver is always paired with a car; so the customers do not need to have knowledge on how to drive a boat.
UberBOAT offers two different services, the first one transfers customers from one island to the other and is very similar to their taxi industry model, just now it competes with ferries as a mean of transportation. The other service it provides is the trip option. This option is Ubers first step into the tourist attraction industry. These boat trips allow you to go wherever you want and to book the boat for the time you requested. During this time, you can explore nearby islands, or explore hidden beaches and caves (the boat driver can even give you some local tips on the best hidden places; making your vacation more memorable than ever)!
As Croatias tourism industry accounts for 19% of the country’s GDP, Ubers entrance will likely cause a disruption in the tourism industry while simultaneously increasing Uber’s industry reach.
Uber’s strategic step to enter the tourism industry in this market will likely pay off in the future, nevertheless the company’s constant entrance in other industries will continue to increase its platform power. While in the future likely being market leader in various industries; the risk of power abuse emerges. Should there be more regulations to stop/limit these platform companies and their constant increase in industry presence?
Wow, that’s a pretty cool new service! I would definitely be down to try this if I ever came across it. But are you sure this innovation is disruptive though?
Judging from your cover picture, this ‘watertaxi’ looks just as premium and high-end as we’re used to from Uber. I can hardly imagine this service being cheaper or inferior to ferries in the transportation market & regular boat tours in the tourism market. Uber’s boats are probably not only faster, but by the looks of it this service is also privately instead of public. I would say this is a major flag for it being targeted to a more up-market segment.
As outlined by the Christensen HBR article content during lectures, an innovation is only disruptive when it originates from a low-end or new market foothold. For this service neither seem to be the case. As mentioned above these speedboats do not appear to be low-end and, as you argue in the article yourself, it is already competing in two existing markts – which doesn’t make it a new-market entry either.
In my opinion, the only thing that might maybe change the dynamics of this case is the actual pricing. If it is actually cheaper on top of it being faster and private, this makes a more compelling case for disruption. Therefore, more information about the pricing of this service is needed before we can conclude it as disruptive.
Nice article, Lena!
Answering to your question to further discussion, I think there should be regulation enough that ensures that the company pays its taxes within the country it operates on, and this has not always been clear. Also, I think governments should find a way to make Uber comply with employee regulations, which doens’t happen because Uber sees drivers as a sort of freelancers.
From what I can understand, tourist boats do not need special licenses from the government or any regulatory entity to be able to carry passangers in Croatia, and that is one of the major controversies regarding the taxi industry. Normally, in these kind of touristy attractions customers get ripped off, sometimes because thre is not enough competition between incumbents, other times because there is some kind of unspoken agreement between the few operating companies on the price. Thus, in my opinion, everything that makes the offer more dynamic and at the same time lowers the price or enhances the quality of the service for consumers should always be welcome. Also, Uber brings more transparency on the price, which is very good.
Do you agree?
https://www.independent.co.uk/voices/uber-tfl-london-taxi-black-cabs-regulation-a7964066.html
http://www.dubrovnik-guide.net/croatiaboating.htm#documentation
http://visao.sapo.pt/actualidade/economia/2016-10-11-Afinal-a-Uber-paga-ou-nao-impostos-em-Portugal-