Marel Q1 2024 Investor Presentation from May 8, 2024
Consider this before building an uber for x
1. Consider this before building an
Uber for X
If you’re like many entrepreneurs around the world who are looking
to build Uber for X - you’ll want to read this first, especially if you
want to build a better startup.
The idea that an app can allow consumers to request a service on
demand is an appealing one. Service professionals get access to
immediate work, which also adds to the value of this concept.
We’ve all seen this executed in the transportation industry with
great promise, now so many feel that the same concept can be
broadly applied to other industries as well.
While this sounds like a solid line of reasoning there are some
special considerations to take into account.
The issue from the outset is how to effectively execute on this idea
of building Uber for X. Startups who build this kind of tech have
been attempting to use the Uber model as a blueprint to transform
the enter service based economy.
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2. We can see this in service industries such as dog walking, car
cleaning, tutoring and many more. These are the successes but
we’re also seeing a number of service-related industries where
entrepreneurs have attempted the Uber based concept, only to be
met with failure.
One of the reasons so many are failing is because the developers
are underestimating the difficulty and speciality of these service
related areas and how they fit into the Uber model.
There must be an on-demand component readily available within
the particular service area being developed, and this requires a new
blueprint that will build upon what the consumers desire in the
moment, along with what the professionals in the area are willing
and able to deliver.
To do this, you must maximise value, and this involves making your
app highly convenient for the consumer, while providing a maximum
utilisation rate for the professional.
Consider the skill and schedule needed
When you set out to evaluate an Uber-type of product for the
consumer, there are two main factors that need to be considered.
This involves the notions of skill and schedule.
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3. In terms of skill, it’s important to determine what knowledge the
professionals need to have in order to fulfil the services that the
consumer is requesting.
In terms of schedule, you need to take into account how often the
services need to be provided to the consumer and if it makes sense
to develop an Uber based model in the first place.
Skill
You have to consider which services are considered to be
specialised in nature and which are considered to be a commodity.
If the service you’re looking to offer is closer in scale to a
commodity, the smaller the actual range in terms of service quality.
Driving a car locally is a good example, it doesn’t take much skill to
drive a passenger from one location to another. It’s something that
most adults can do, making it a commodity, and because of this the
price per mile won’t vary that much, because all professionals
driving will be doing exactly the same thing.
When a skill is a commodity, the consumer can request a service
with just a simple tap. This is because any professional can fulfil the
request given its basic nature.
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4. This is the main reason Uber has been so successful.
Schedule
The Uber philosophy is built upon being able to offer a service on
demand. It doesn’t necessarily mean right now, but it does mean
the service needs to be provided when the consumer wants it.
When it comes to transportation, this usually means the consumer
needs the service immediately, which is why drivers might find
themselves having quiet periods and then spurts of busy periods as
consumers are more in demand of their services.
With tutoring the schedule can be determined in advance and the
service provided lasts more than just a few minutes. Some services
might take a few hours, making it more valuable to the professional.
This makes it hard to match professionals with consumers, but
there’s usually time to do this as the service is not required
immediately.
The return on investment must be equally beneficial for the
consumer and the professional in order for such a concept to work
and not all service related industries are suited to this.
Consider this before you build your Uber for X
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5. If you’re convinced that you’ve found a service-related sector of the
economy in your area that will work with an Uber model, there are a
few things you should do - building a minimum viable product is
one.
When you think about the consumer, you need to consider the
specific service related industry that you’re about to disrupt. As you
do this, consider the skill sets that are needed and compare them
with the urgency of the services that will be requested by the
consumer.
Once you do this, you’ll be able to focus on the components of your
app that will create a convenient and positive experience for the
consumer and one that will cause them to use your app opposed to
the more traditional ways of requesting that same service.
You’ll also want to think about your app from the perspective of the
professional. You need to think about conversions and how likely it
is that you'll retain users. You will need to strike a fine balance that
will result in the most economical of utilisation rates.
This takes work but you'll end up having more success if you do this
from the start.
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6. The more energy and effort you put into building the consumer and
professional relationship from the get-go, the better the likelihood
that your app will succeed.
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