Uberfication business threat
If something similar as Uber happens in your market or business then your company comes under severe threat as a similar offering is available from many sources providing more flexibility at lower prices.
Uberfication market
When buyers and sellers are able to find each other digitally directly and allowing the buyer to select based on rating and price, Uberfication is happening in your business.
The digital platform does not provide services but only connects a customer with a demand to a supplier, who provides a service – the digital platform only takes a commission.
Uberfication eliminating companies
No longer the concept of a company with assets and workforce needs to be in place as is shown by Airbnb: there is no one company with a lot of assets (rooms) involved but solely individuals and a digital platform.
Something similar is in place in China: producers and sellers offer products on Alibaba or AliExpress and the end customer buys directly from them.
No more traders, distributors as goods are shipped directly from producer to end customer which cuts down significantly on pricing as all the logistic intermediaries are eliminated. At the same time the level of goods in inventories are also lowered significantly.
Uberfication characteristics
There is more that affects society, markets and businesses:
The characteristics of Uberfication are:
– A mobile access to a platform for the client convenience for his on demand requirement.
– The avoidance of most or all of the regulations that apply to conventional providers of the service.
– The providers of the service are not employees of any company but are independent contractors.
– The flexibility is primordial for both the clients as well as the providers (independents).
– The pricing is based on the demand for the availability of offering which in most cases will result in lower pricing for the customer.
– Social security for the providers is a far cry.
Uberfication prerequisites
Any business that can be traded on a digital platform and requiring any kind of asset that is widely available is vulnerable for Uberfication.
Businesses of heavy investment goods and typical B2B products are likely not running the chance to get Uberfication. Still very common B2B products could also be Uberficated if companies would offer their assets for temporary usage on a digital platform. For example a vorkheftruck could be rented out over the weekend by businesses closed over the weekend.
If consumers or businesses buy and use your relatively high investment value products then Uberfication could happen to your business too.
Has your business already encountered an Uberfication or could it happen?
