Driving Disruption: How Uber Upended an Industry

Remember standing in the rain helplessly trying to hail a cab? Having no idea how much a trip would cost, how long it would take or if the driver would even agree to it? How about arguing over routes and — quite literally — sliding into disgusting back seats?

Our last newsletter introduced VUCA, a theory the U.S. military adapted to make sense of the volatile, uncertain, complex and ambiguous nature of a post-Soviet world. We also discussed how the auto industry is in the throes of something similar right now. This edition, we highlight Uber, whose founders recognized a VUCA situation and disrupted an entire industry.

Volatility

When Uber launched in 2010, 500 million people were using Facebook, Amazon was delivering to doorsteps and people had handheld computers more powerful than those that landed people on the moon. Yet, taxis were a crapshoot; riders never knew what they were getting themselves into. Varied pricing structures and payment methods, motley standards of cleanliness, poor reliability and spotty customer service were the norm.

Uncertainty

Uber upended all of that with tech. It created convenience and clarity and instilled more trust into the taxi sector for everyone involved. Suddenly, riders could select their vehicle, see their driver’s history, know their route, pay their fare and never have a trip turned down, all on their phone. Drivers could also rate riders, giving everyone transparency into who they were doing business with.

Complexity

City drivers — including cabbies — navigated by the two Cs: congestion and construction. Everyone believed they knew best, no one did. Uber flipped that script with real-time GPS routing to optimize trips. It also essentially invented a new type of employment, the gig worker. Pretty much anyone with a vehicle could drive when and where they wanted without having to jump through local regulatory hoops.

Ambiguity

Uber continues to embrace a mission to clarify ambiguity via innovation. It’s a leader in autonomous driving and sustainable transportation solutions. Whatever happens to the industry next, Uber plans to be part of that chapter rather than be passed by.

Uber-ing

Uber hasn’t been immune to controversies during its 15 years of explosive growth, but there’s no doubt it’s one of the biggest business success stories of this century. In 2023, it was operating in 72 countries with 130 million monthly users and 7.2 billion annual trips according to Statista, and has a current market cap of $133 billion.

In cities across much of the world, Uber is there. It moves people around, delivers their meals and groceries, and its freight division even helps keep supply chains moving. That pioneering spirit has also allowed Uber to join a select group of companies whose branding has become a verb. “Ubering” is now something millions of people say when on the move.

This newsletter also strives to be pioneering. In future editions, we’ll tell you how Armour Group plans to attack the VUCA environment Finance & Insurance finds itself in today. If you’ve got any ideas, please comment below.