Uber

              Uber is an innovation because the entrepreneurs have
managed to create a service that adds new value to the customers.

By offeringconvenience of moving from one place to another with

however many people you want and in whatever style you desire

according to your budget of course.

 

They envisioned the problems:

• The missing connections between the user and the driver- no
  communication, no control.

• Lack of guarantee of a quality service.

• Premium pricing of the ‘black cabs/ street cars at the stations
  or shopping malls- unfair to visitors and tourists of a new
  location.

• No guarantee of safety and registered drivers

• The presence of unfriendly and unreliable middle men (brokers) that results in inefficiency.

• Irregular arrival times of the taxis.

 

             These opportunities were spotted by Uber’s entrepreneurs and they were able to identify a new way to address them which created value for the customers. They saw the connection between a phone app and a car that could improve efficiency of the transport industry and satisfy both the drivers and the customers and their very many needs listed above (Bessant and Tidd, 2008).

 

             According to Jamie Notter, this became the change that unlocks new value. In return, the entrepreneurs were able to shift the economic resources namely: phone app, and vehicles from an area of lower productivity and yield into those of higher productivity yield and productivity (Drucker, 1985).

 

             Uber has used a broad set of strategic moves such as their strategic partnership with Alexandria real Estates equities Inc. based in California to form a cluster and network base for innovation that reinforces the idea and as their research base research is essential for innovation.

 

              This innovation caused a paradigm shift in the process of hiring a taxi from the view of the customers and then the process for drivers by offering flexibility and efficiency as well as a reliable feedback mechanism that affects their rating (Bessant and Frances, 2005). This increases loyalty and convenience and quality for the customers.