SO – Class2

Trends in modern economy:

1) Rise of shared economy, gig economy

2) 9-5 job is less preferred. They prefer flexibility.

3) inclination for independent service provider/ independent contract

Platformisation – all services are getting platformised.. using internet smart phone. Connecting
service to customer with platform.

System need to be free of friction

Amazon vs JioMart for grocery.

Jiomart – 1) not able to buy what are they require. 2) late delivery 3) late refunds 4) rotten grocery

For most part, uber is friction free

1) Rider/driver – signup process is relatively easy. Signup in 3,4 steps instead of 10-12 steps

2) digital payment

3) 50 drivers 100 riders .. case1 vs 100 drivers 50 riders..case2

Case 2 payment for riders is less. In this case, dynamics of supply and demand to find pricing

4) no onerous rule based beahvioural interventions – automatically taken care of feedback/reviews

Economic standpoint for drivers:

In case of uber drivers they have to pay for their own fuel, depreciations and maintenance,
insurance.

Economic advantages of associated with uber as against taxi is not overwhelming.

Value proposition: drivers perspective

1. flexibility

2. medallion limit in conventional taxi system

3. uber rating system – makes drivers/passengers well behaved

4. ex. 9 – uber drivers are much younger to taxi drivers. Highest educational attainment. heat map

Tensions in the uber model:

2019 motor vehicle act revamp, 1988

Surge pricing cap. By govt.

Mindset associated with taxi driver – fixed price.

Surge price s spl case of dynamic pricing. Broad things that drive dynamic pricing –
Dynamic pricing

- Supply demand gap

- Competition also affects pricing
- Customer’s ability to pay
- Lawsuit in 2013 – orbiz airlines

SO class 6

Convenience of cluster – give convenience to customer

Negatives – near to competition

Saturation marketing

1. drive out competition/ overwhelmed the competition (taken care of external part)

2. huge awareness of customer awareness, need for advertisement is reduced

Same not possible fo riphone