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Are You Solving The Right Problem Case Study Analysis

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Yes, an isolated individual with a truck and a few hours of free time might be able case study deliver a few packages at lower cost than case solution average UPS delivery van, but it is ludicrous case study argue that independent truck drivers responding case study delivery requests from a cellphone app in their spare time could drive UPS out of business and serve its entire national market at lower cost. An individual with nothing else case study do could decide case study use his car case study serve Uber passengers for a few hours on Saturday night, but Uber could never replace all existing taxi capacity nationwide with guys driving their personal cars for a few hours when it happened case study fit their schedules. Serving case solution global car service market requires massive fleets of full time drivers and dedicated vehicles. Uber is no more a ridesharing company than United Airlines is a planesharing company. Uber has always claimed it designed so that people could just push a button and get a ride and hundreds of other startups have pursued this on demand model in other fields such as food delivery or office supplies. But case solution operational costs and challenges of taxi service and delivery/logistical services have been known for decades, including huge demand peaks, unplannable volatility demand spikes when it rains, and empty backhauls. Mitigating these costs requires advance knowledge of customer demand, and integrated, centralized operations planning. Package delivery companies can arrange trips case study minimize unproductive backhaul mileage, and can shift lower priority deliveries case study off peak times. The instant gratification that on demand services are supposed case study provide make all these costs and challenges worse. Resource utilization plummets because more drivers and vehicles must stand by case study serve case solution Saturday night peak, but driver assignments cant be optimized because people who wanted case study just push a button and get a ride wouldnt book their trips in advance, and Ubers business model eliminates case solution possibility of centralized operations planning. For these reasons, none of Ubers many attempts case study expand into other on demand services, such as UberEats, UberRush, UberFresh or UberEssentials have demonstrated any ability case study expand outside of narrow niches, and none of case solution many other startups focused on on demand services have become profitable, growing businesses.