The Uber Game, a news game
from the Financial Times, has won gold honors in the 2018
International Serious Play Awards competition
in the Corporate category.
The Uber Game is a
text-based adventure that provides players with an immersive experience of an
Uber driver’s life. In the game, the player gets put in the seat of an Uber driver,
whom has a family to support and a $1,000 mortgage payment coming up in a week
— so you’re hitting the streets hoping to make enough money in fares to keep
yourself in the green.
You have the option to play on “Easier,” and
“Harder” difficulties. In the former scenario, you have good credit and can
afford to live in San Francisco, while in the latter you have bad credit and
must live in Sacramento.
From there, you must choose the right options
to maximize your earnings, from choosing to buy a car charger and a data plan
to working longer hours to hit bonus quests for extra cash. Do you return home
to keep a promise to your son, or keep driving to earn more money? Do you drive
30 minutes to chase a 3x surge pricing?
At the end of the game, your profits are
measured against your costs, and presumably if you hit that $1,000 profit you
can make your mortgage payment.
Game Proposition versus Business Model Canvas Uber
According to the developers, The Uber Game is based on real reporting, including dozens of
interviews with Uber drivers in San Francisco. Released in October 2017 through the Financial Times website, the game accompanied an article published by the newspaper titled Uber: The uncomfortable view from the driving seat.
“We made
this news game because we wanted to explore new ways to help people emotionally
understand a subject. We hope that by asking the player to make meaningful
choices as an Uber driver, we can shift their perspective. Maybe by making a
game, we can spark their curiosity and prompt them to critically examine the
constraints and biases of systems like Uber and other gig-economy platforms.”
The Uber Business Model Perspective
Uber is the most prominent example of how to apply the platform
business model to the sharing economy. They are admired by investors, innovators
& entrepreneurs and not so much by some others. Uber is also the best
example that innovation is not just about technology.
Over all the recent excitement, some of the
most important elements of their business model remain under-reported and
little-known.
Innovation
Tactics posted early this year a must-read piece, Business Model Canvas Uber, promising that “by the end of the article you would know
more about Uber than most people do.”
The Business Model Canvas (BMC) invented by
Alexander Osterwalder is currently one of the most popular strategy tools. It
is a great vehicle to explain business models in a structured way and Innovation
Tactics has been using it for platform businesses.
When it comes to the BMC Value Proposition, “Uber
is a multi-sided platform and as such it has to have a value proposition to
both sides, the passengers as well as the drivers,” says Innovation Tactics.
“For riders, the value propositions are that it
is the best way to get around, to be able to call a ride with one tap 24/7 and
track the driver arriving. For drivers, it’s the opportunity to earn, the
freedom of choosing their work hours and the ease of getting started. All propositions fall into what economists
call reduction of search costs and transaction costs which is the predominant
feature of multi-sided platforms.”
In detail, for the customer (riders) this
means:
1. Fast pick-ups (often 3-5 mins)
2. Lower prices than comparable taxi ride (exception: surge
pricing)
3. The App provides an estimated fare and duration of ride
4. Track the cab on map
5. No need to tell the driver the destination
6. Cashless transactions (exceptions exist)
7. Rating system that allows for feedback
8. Secure and safe
Some of the value propositions for the drivers
(supply side) are:
1. Additional source of income
2. Flexible working schedules
3. No boss
4. A dedicated driver app that helps with earnings, navigation,
etc.
5. Ease of payment process
6. Ease of joining
7. No upfront investment in joining (pre-existing car or ability
to hire through Uber)
8. Ability to earn above average in peak demand (the driver app
shows surge areas)
9. Ability to get customers (passengers) at no cost to the
driver
10. No need to argue with passenger on any damages, spills, etc. as platform
manages this
Innovation Tactics has also
assessed Uber’s business model within its industry setting, using Professor
Michael Porter’s Five Forces framework:
“Value
proposition for supply side: compelling. Due to the indirect network
effects and the scale that Uber has reached in some cities, they can offer low
idle times which lead to comparable per hour wages as taxi drivers but in less
absolute time on the street.
Value proposition for customers: compelling. Lower transaction and search costs, shorter
waiting times and lower costs
Innovation Tactics wraps-up genuinely
hoping readers have gained a lot of new insights on Uber’s business model. “Most
articles on Uber barely scratch the surface. I have attempted to give you the
big picture as well as all important details,” it concludes.
Please find the full article here