Uber disrupted an industry, you should too

Technology is making it cheaper and easier to share assets on a large scale, this new trend is known as the sharing economy. Statistics show that renting can replace ownership where assets are expensive and underutilised. The sharing economy gives access to physical and human assets (time, space and skills) via a peer to peer service. Simply, companies build trust by brokering rental agreements between parties so the owner makes money from an underused asset while renter pays lower rates. Leading this charge is Travis Kalanick, the CEO and Co-Founder of Uber, the ridesharing service

Uber connects drivers to passengers, operating in 58 countries and 300 cities worldwide with an estimated value of $50bn. Uber’s model should not be transplanted to the Caribbean however regional entrepreneurs can learn the following tricks from Kalanick leadership style as Uber disrupts a traditional industry.

1. Involve those that are economically inactive

Amazon and eBay widened the scope of goods and services easily available to customers. The sharing economy goes a step further by finding ways for otherwise inactive persons to participate in the economy. For the drivers of the one billion cars on the road that are inactive 96% of time and the cities dedicating over 15% of their space for storage, Uber is an attractive opportunity. With an app and a vehicle, a person can become an independent contract working for Uber. On the other hand, Uber partners with financial institutions so drivers can purchase new vehicles.  An expensive asset now earns more as drivers get flexible work. These support systems alongside its logistics technology keeps participation growing and sustainable as long connecting to passengers is efficient.

Success in the sharing economy is getting others involved in sustainable economic activity. It encourages business models that unlock the earning potential of underused assets. As people participate competition will improve customer service by encouraging investments in better assets and incentives to maintain a high quality. The sharing economy is an opportunity with a low barrier of entry for those with an entrepreneurial spirit to make money from their time and assets.

2. Solve common problems with scalable solutions

Uber has changed the way the transportation industry worked, passengers are free to moving knowing technology will always link them to a driver. The company used a technological based solution to increase efficiency rather than replacing existing vehicles. Getting better cars on the road cannot solve the negative effect on productivity of traffic and inefficiency in transportation. Fortunately, high mobile used and broadband penetration means Uber’s can connect drivers to technology that helps them make better decision about earning more money per hour and passengers get an efficient alternative to sluggish transportation.

Uber disrupted transportation by solving a universal problem with a scalable solution that feels the same in different locations. The quality and experience is constant with minor differences based on context. Companies in the sharing economy build their brand by offering solutions that are reliable, scalable and adaptive to different environments. Caribbean entrepreneurs should build enterprises that can exist across the islands with a consistent quality.

3. Work tirelessly building on past failures

Kalanick is tireless and obsessive in achieving goals with a leadership style that sees a need in the marketplace and fills it. Uber is building “a network of transportation as reliable as running water, everywhere for everyone”. His entrepreneurial skills are used to know how the business generates value and where to reduce cost. Regulators and competitors are faced head on as the company taking bold moves like operating in regulatory grey areas and starting price wars with competitors. Kalanick’s modus operandi takes past failures to improve his ability to select a course of action knowing the potential consequences. Uber keeps to the key moves which made it successful including raising funds privately to avoid unnecessary scrutiny and improving its efficiency as it expands. The more restrictive environment of the Caribbean makes entrepreneurial tenacity and in-depth knowledge key to success. Local entrepreneurs must focus on their objective and work tirelessly to achieve it.

Overall, Uber popularity is connected to the reliable economic collaboration with its drivers. As the Caribbean changes how it uses technology, the sharing economy can widen opportunities for employment and starting low cost disruptive ventures. It calls for bold entrepreneurs committee to innovation using scalable solutions that can make others participate in the economy.

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Joshua Hamlet is an evangelist for the importance of collaboration. His company Inspire Consulting focuses on education and mentoring for Caribbean entrepreneurs and start-ups. He has a Bsc in Psychology and Msc in International Relations.