Uber: A modern example of obsolescence
Since its introduction a few years ago, Uber has severely disrupted the taxi industry - is it an example of modern obsolescence that businesses face?
Cars replacing carriages. MP3 players replacing CDs and records. Telephones replacing telegraphs. History is peppered with examples of technology disrupting existing industries, leading to the obsolescence of a product and sometimes even the decline of an entire sector.
While we like to think we can all move with the times, there are many examples of obsolescence in the modern world that we all can learn from. For example, let's look at Uber - and the way its rise has prompted significant shifts in the taxi industry.
A step ahead of competition
A Deloitte Access Economics paper from 2016 on the impact of Uber highlights the measures it has taken to benefit consumers, including:
- Integrating payment systems into an app
- Easier tracking of drivers with maps
- Rating systems for feedback and consumer complaints
By folding all of these into one app, Uber uses technology to render a lot of traditional taxi services obsolete - namely, the use of call centres and phones for booking, feedback and tracking. Rather than employees of taxi companies servicing phones to organise all of these, consumers can do it with the push of a button.
It's classically designated as a disruption rather than an obsoletion - but it could mark the end of services that are not based in apps. The industry disruption is far from over, as many companies, like the freshly minted Zoomy, have adopted the same technology to take on Uber, but using registered drivers (somewhere Uber often faces legal trouble in Australia).
How does this relate to your business?
How do you know when and where the disruptor of your industry will strike? Will it be you?
Businesses that invest in the latest technologies and instil a culture of innovation understand the importance of their investment to their survival.
One of the more popular methods to fend off obsolescence is to access the latest technologies on finance. In fact, the Australian Equipment Lessors Association estimated that in 2015, local businesses spent $37.9 billion on general equipment finance.
Equipment finance allows businesses to invest in Research & Development or marketing, rather than sink cash into a depreciating asset. This allows them to keep up with advancements that may have rendered previous operations obsolete.
In the case of the taxi industry, Zoomy improved on the innovative model of Uber that had been already disrupting the industry. It's niche, yes, but a fine modern example of the threats and opportunities many small businesses face when evolving and adapting to the constantly changing business landscape.
Whether it is more efficient manufacturing equipment, a new gadget or even more fuel-friendly vehicles, whatever developments you need to keep up with, the finance team at Classic Funding Group can help you get there, with the right financing solutions.
Get in touch with the Classic team on 1300 780 895.