Is it the strong-arm brand doing whatever it takes to disrupt the entrenched boys’ club industry of taxis and town cars? Or was it the sleek and friendly service that gives ordinary folks an executive transportation experience? But, now the experience is not centered on black town cars; but Corollas, Accords, anything but a town car.
Right now, it’s both, and judging by the $52B market cap, the financial sector is just fine with that. Customers don’t seem to mind either. We’ve heard our share of business travelers argue the level of Kalanick’s boneheadedness in the past over coffee or drinks — then Uber home. These stories are even creating their own Uber lore, worth rubbernecking from the sidelines as a venture-backed case study.
But let’s not forget the drivers. The Uber experience is really in their hands. Their treatment of customers is what really makes the Uber brand work and ultimately turns strong-arm management tactics into a cause for conversation and vigilance rather than revolt. So far,efficiency and convenience win out. Why? The service works. It’s easy, and itgives regular working stiffs — not just top execs — access to the status and style of the town car experience, now at a premium. With the new Gig Economy Workers bill in California; Brand, CX and Pricing strageies will need to evolve.
While Uber’s two-faced brand isn’t politically correct or ethically palatable, disruption has never been pretty. Uber seems to be one of those tech sector companies bold enough to earn status inside the silent rule of companies so disruptive they can’t fail.
What defines brand success? Financial valuation?Customer experience? On both these counts, before their IPO Uber had been doing just fine. Which doesn’t mean management will get a pass forever for its tactics. But for now, a great service outweighs the downsides of bad behavior. Can CX offset inflated valuations as Uber’s marketcap drops and WeWork IPO valuation continues to fall? How will this impact investors and customers view on the next wave of unicorn IPOs - WeWork, Airbnb, Slack, Postmates, and Peloton?
