On-Demand Services Are the Future — But Most Startups Miss This Important Fact
Brian Scudamore
Founder & CEO: 1-800-GOT-JUNK? and 2 other exceptional home service brands. Dragon investor on CBC’s Dragons Den. Bestselling author.
When you think of tech-driven industries, junk removal is probably not first on your list. Like all of our brands, 1-800-GOT-JUNK? provides a simple service — no need for fancy apps or complicated algorithms. That is, until now.
Lately, it seems like every industry has undergone a process of “Uberification”, as companies capitalize on consumers’ desire for on-demand services. Basically, burgeoning startups (like Recycle Track Systems (RTS), Paintzen and Dolly, for example) have combined technology with a physical service to create a lucrative business opportunity — all powered by and operated from a smartphone.
The idea is surprisingly simple: these companies act as aggregators that match independent service providers with customers through a digital platform. Through the app or website, you can easily schedule a junk pick-up, painting job, or moving service, without having to do your own price comparison or read through endless reviews. Each offers its own unique set of perks: RTS, for example, allows you to track when the truck will arrive and where it goes once it leaves your door — better yet, they do it all with LEED sustainability certification.
You might think these technological revolutionaries would make us a little nervous about our fate. But instead, we’re watching them closely to see what we can learn. And just like they have their competitive advantage, we have ours: we deliver an unparalleled customer experience through professionalism and quality control.
Companies who neglect this final part of the customer journey (in this case, the last mile where you follow through on the service) risk compromising the entire B2C relationship. When you take your customer-facing employees out of house, you put your reputation and quality assurance into someone else’s hands. If these emerging startups are truly the Uberification of our industries, they’d be well-advised to examine the troubles the rideshare giant has faced itself — poor vetting processes for drivers and a misleading rating system, to name a few.
Of course, in a tech-driven world, we’d be naive not to embrace and leverage new technology to further our business. We regularly revisit how we can best meet our customers’ needs, and bring in experts to help us out. From what we’ve seen, the ‘Ubers of Everything’ have hit the nail on the head with what customers are after: an easier process, from first booking to a service provider knocking on your door.
There’s no doubt it’s a high-tech issue. In fact, we once considered building our own app for 1-800-GOT-JUNK? to provide a service similar to RTS. But we realized no one wants to download an app for a one-off service like junk removal (same goes for painting and moving). Sometimes, a customized app acts more in the company’s best interests — not the consumer’s.
We’re not a tech company and we’ll never pretend to be. Instead of joining the race to develop our own high-tech software, we have a different way to innovate: through people, not product. Simplifying the booking process might be where you win customers — but it’s a commitment to customer service that will keep them in the end.
Startup Operations Leader | Tech Repair Innovator | Working On Sustainable Solutions For Consumer Electronics | Passionate About Helping Startups & Small Business Succeed
7 年Good article. I think it all boils down to the "easier process' for any and all services. On-Demand service is the future of almost all service providers but not every service provider is a ride share service that people need on a daily basis. Every company needs to find their own unique solution for customer demand.
Artificial Intelligence and Baseball
7 年Last mile will eventually be solved by technology, especially with the rapid development in machine learning, and especially in this day and age when gen Y and gen Z do not necessarily prefer human customer service. It is true that mobile app will not work as you mentioned, for one-off services, but there are new approaches in which download isn't necessary, for example, bots. This is a very simple prototype built over a long weekend a few months back: https://vimeo.com/221669539
Coach | Strategist | Fractional CMO for Small Business
7 年In a world where earned media is the golden egg, the customer experience is vital to repeat business and customer satisfaction.
@Amazon | WW Pre-Owned & Trade-in Operations Leader | +19 years in Reverse Logistics + Tech | #Repair #Sustainability #CircularEconomy #CS #Retail #ESG #DFS #Tech | CTIA RLSQ Board Member | Speaker
7 年Great article!
CEO at Deeded
7 年Great post Brian. You hit the nail on the head - the last mile and the results you get is what matters. You can order your lunch with an app, but if the food you get is horrible, what have you achieved? While it's easy to say that every industry can get 'uberized', there's a huge variability that comes with the complexity of tasks and the motivation of those performing them. Even simple services like Uber are inconsistent. One driver can be super friendly and greet you with bottles of water and mints while others won't won't even turn on the air conditioner on a hot day. Some drivers care about their ratings, others might drive 5 hours a month when they need a few bucks and not care as much. I know some of the companies you mentioned are eventually banking on AI and robots to remove the human variability out of equation, but in the meantime, as you said, the customer's experience is what a really matters.