Mark Alexander Strategy in Action Auber May 26, 2015 The article I used to help me figure out what I thought was going to happen with Auber five to ten years down the road was the undercover Auber driver. It sparked a few interests from the horrible pay that the drivers are making to the problems in different cities with the people who had medallions. Even their statement of going to a completely drivers business in the near future is a shock to me, which I didn’t know they were getting into and is the main concern to me about the future of the company.
The world does seemed to be headed rapidly to drivers cars as you can see from cars that can park themselves to major companies such as Tests and Google who are investing heavily into drivers cars. For Auber it seems like the directions to go in. However that means a lot more expenses to the company. First of all do not think that Auber should build their own line of cars, however they should work with one of the large companies such as Tests or Google to get the cars from them.
This will save Auber from having to tart up the production themselves, which saves on factory, material, storage, distribution, and every other cost that comes from starting up a factory. Going back to the article it talks a lot about the costs to drivers. Besides having to use their own cars, paying for gas and future costs of maintaining the car, the drivers also use their own insurance policies. Most which can refuse the drivers claims if the insurance agency finds out its related to Auber.
In this new drivers system Auber will be responsible for all insurance acquisitions from accidents and more. Now there will probably be much fewer accidents in this system button will still have to have a policy in place just incase. My future scenario is that Auber decides to start up a factory and begin construction of a completely autonomous experience with the drivers system. Once the change to drivers cars occurs feel that Auber will spend way too much money on developing their own cars where they could just purchase them and implement their system to the car.
Another way to go is o partner with a car manufacturer to have them develop the car where Ulcer will create the technology. Once their fleets is assembled their revenue should greatly increase due to a few factors. First no more paying drivers to do the work, the trip is all revenue for Auber. Second with a drivers system there will be fewer accidents and faster service. This will raise customer satisfaction and possible return usage. Finally the rates would drop even more possibly eliminating people to own their own cars and rely on services like Auber.