Technological Disruption and the City Taxi

I am fascinated by all things related to the ongoing entry in to the Information Age. 

A bit more than 100 years ago the street lamps in major cities were powered by gas.  Every evening a fleet of trained individuals would pan out across the city igniting the city's gas street lamps.  Every morning they would extinguish them.  Along came electricity and quickly those jobs were all eliminated.  Great safety and cost savings improvement for the city and the inhabitants therein.  Terrible for the people who lost their job and had no skills for anything else.

Technological advances always result in disruption of the status quo.  Today is no different.

What do you know about how taxi services are regulated in our biggest cities?  Nothing?  Count me there too.

City managers long ago recognized the need to regulate the number of taxis in a city boundary so as to prevent overcrowding of taxis on the streets.  These managers, however, also saw an opportunity to make money regulating that task.  Enter the taxi medallion.

A taxi is required to have a taxi medallion to do business within city limits.  New York, Chicago, all of the big U.S. cities do this.  A finite number are created.  As you can imagine when demand outdraws supply the price goes up (ECON 101).  Owning your own taxi medallion was the gold standard and a dream realized for generations of middle America.  The price could go north of $1 USM.  Yes, million, for a taxi medallion so you can drive a cab in city limits. People would save for years and take out a loan the size of, or larger than, most home mortgages.

With the advent of UBER and Lyft the value of these medallions is plummeting.  No longer able to compete and dragged down by a massive loan now underwater we are seeing a dramatic rise in suicides among long-time city livery and taxi drivers.

Disruption comes with a cost.

Read more here:

https://www.nbcnews.com/news/us-news/shadow-uber-s-rise-taxi-driver-suicides-leave-cabbies-shaken-n879281

Interesting Reading.

J.W. Gant

Uber Quits China

I really like the stories over on Bloomberg.com.  Great news, great analysis, and a broad set of topics.

Here is a snippet from this latest:

Not so long ago, American tech giants viewed China as theirs for the taking: 1.4 billion people, a growing middle class, an affinity for American pop culture from Titanic andFriends to Michael Jackson. And, apparently, a tendency to see U.S. goods and services as attractive or superior.

That triumphal script was again rewritten as Uber conceded defeat in its no-holds-barred dust-up with Didi Chuxing. After a costly battle in which both sides shelled out billions subsidizing rides, Chief Executive Travis Kalanick decided to call off the war, agreeing to a deal in which the local champion acquires Uber’s China operations in return for a seat on Didi’s board and a slice of the Chinese company. The move came only a year after the famously brash Uber impresario declared China, the world’s largest ride-hailing market, his most important target.

In other words, Kalanick came, he saw, he most certainly didn’t conquer.

Read on:

http://www.bloomberg.com/news/articles/2016-08-02/the-humbling-of-american-tech-giants-in-china

Happy Reading,

J.W. Gant

The Future of Retail Payment

I completely agree with this article.  The future of payments will be a seamless interaction with the customer.  The old point of sale will disappear from many retail stores (though shrinkage interests will ensure some of the old methods).

Mobile & digital in all of its forms will provide new ways.

Read on:

http://www.digitaltransactions.net/news/story/Payments-Execs-Already-Foresee-the-Store-Checkout-Yielding-to-_Uberesque-Approach_

Here is a snippet from the piece:

While mobile wallets, near-field communication, and EMV have focused all eyes in the payments industry on the physical point of sale, some mobile-payments executives are starting to prepare for what they see as the fading away of the traditional checkout counter.

Technology already exists that allows customers to order ahead and pay, to order while standing in the aisle in front of the merchandise, and to pay for services like car rides without an actual checkout. Now some see these processes ultimately rendering in-store checkouts obsolete.

Happy Reading,

J.W. Gant

Next Generation Apps Deep Linking One App to Another

Foursquare and Uber.  Two apps that seem natural fits.  A customer searches for a restaurant or store, finds it, and wants to get there.  Uber can make that happen by sending a driver to pick you up.

How should the two apps interact to close the loop on this?

With the help of 'Button' it happens quite naturally.  Here is one story on the subject:

http://www.mediapost.com/publications/article/251008/foursquare-deep-linking-partnership-with-button-le.html?edition=83316

Here is a snippet from the piece:

When a Foursquare user has indicated interest in going to a place that was searched for, Button's DeepLink Commerce platform serves an Uber button, allowing them to order an Uber to their destination with a few simple taps. Rather than using an API, which is much more difficult to integrate, Button's technology pulls information from the Foursquare app, and deep links this content into Uber, sending traffic from one app experience to another.

Here is a look at Button:

http://www.xconomy.com/new-york/2015/06/02/how-button-pushed-its-way-into-the-midst-of-uber-and-foursquare/

Here is a snippet from that piece:

“There should be more connectivity in the app world,” says Button CEO and co-founder Michael Jaconi. “We’re trying to solve that.”

On Monday, his New York-based startup announced its software was being used in a partnership that gives people the ability to book Uber cars through Foursquare. Just about a year old, Button’s software is a kind of bridge that allows a feature from one app to appear as a “button” within a third party’s app.

In particular, Button wants to be the connection between apps that are part of daily spending habits such as dining, travel, and deliveries, Jaconi says.

Passive apps running in the background helping us with our daily lives.  Perfect.

Happy Reading,

J.W. Gant

Uber Now Delivering Fresh Food

Have you heard of Uber?

Then again, why would you be reading my blog if you hadn't?

Uber

Mobile payments, through Uber.  Prepared food delivery, through Uber.  What's next, grocery delivery, through Uber?  This little story on Supermarket News tells what you need to know:

http://supermarketnews.com/blog/why-uber-matters-food?eid=forward

Happy Reading,

J.W. Gant