UBER vs. Taxi: There is more then meet the eye in the battle

The battle between UBER and the taxi industry is raging and we are all watching the fight.  There is a good news and a bad news for the taxis of the world:  The good is that they can survive this disruption if they do the right things.  The bad news? They won't if they keep ignoring 3 basic underlying human needs.

Actually, your small business is also at risk of facing a similar disruption one day if it doesn't take care of these invisible needs. Even if your business is well versed in producing and delivering its services or products, being oblivious to these can be very costly down the road.

Beyond the actual obvious needs being filled, consumers are driven by subconscious elements that can become prime target for a competitor entering the market.  These are the top 3 that need to be addressed.

1. Need for Connection: Humans are social animals.  We get up in the morning and the yearning for connection is pretty much high on the list. We connect with our mates, pickup our smartphone to see what is happening in the world, turn on the radio or tv.  Anything that connects us to the world.  Even when we do not want to be bothered, we need to know the world is around us.

Over the last many years, trends have been setting in in the taxi industry: A driver glued to his earpiece discussing in a foreign language what is for dinner, a thick plexan glass separating the back seat or a rude driver that seemed annoyed by your presence. Far from great connecting experiences.

All of a sudden, UBER comes in the picture with a promise of drivers that choose to drive you.  It seems like they look for the social aspect of the drive as much as the monetary gains from it.  Stories of UBER drivers and passengers connecting socially as an added benefit abound in the media. Would you rather get a "lift" from a taxi or from a UBER driver?

In your small business, are you investing time and resources to do so with your clients, prospects and partners?

2. Need for Safety: Everyone wants to feel safe. That need takes many shapes and exist at so many different levels.  The obvious "I want to be alive by the end of the day" comes to mind, but safety also means to know we have the right tools to handle daily challenges and that "we will be okay".

Safety in the context of a taxi ride comes in different shapes.  As a client, we need to know we will not be taken for a ride literally and end up paying twice the amount for it.  Another concern? Payment.  In this era of debit and credit cards, who has not been stuck with a taxi that did not take them or worse, had a machine "that didn't work"... Nobody wants an unwelcome surprise of rushing to the nearest ATM to pay for a ride.

These concerns probably have not stopped many people of taking a taxi, but their existence is real and a prime target for a disrupting service. UBER comes along and by the very sheer nature of its technology, offers a magical safety net for them:  An integrated mapping service that actually recommends the best route and an automated payment process. Bingo.

In your small business, what are implementing to reassure your customer and make them feel safe?  How about speed of delivery? Pricing stability? Documentation on your product safety?

3. Need for Change: As much as we look for stability and safety in our lives, change remains a basic need to be met. We actually crave change. We keep on looking for it everywhere.  Even the most mundane activities require something different every now and then.

Taking a taxi is a quite consistent experience in itself:  Get in the car, be driven, get to destination.  What is there to change?  That probably was the paradigm in taxi fleets in many cities of the world.  Some have made an effort to innovate but the average taxi fleet has pretty much remained at a stand still.

How much more refreshing could the UBER offer be in this context? Hail your ride on your smartphone, be surprised by different cars every time, meet different types of interesting drivers and pay in a completely innovative way.  A powerful shot of change to hit that craving.

In your small business, are you making sure to implement changes in your offering regularly?  A refreshed logo every 5 years?  A storefront update?  A rejuvenated packaging?

As much as the UBER Vs. Taxi battle is fierce and ever present in the media, the real important battle we, small business owners, should be watching for is the battle to consistently and consciously work on meeting these 3 basic needs of connection, safety and change.  Whatever business we operate in, these are real but unfortunately often underlying and invisible, until a competitor comes out with a solution that addresses them in a more satisfying way.

What is one thing your small business does to meet the underlying needs of (1) Connection, (2) Safety and (3) Change?

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