Its interesting to see an outcome in the Pizza war that has been flourishing in New South Wales. One of the chain of big name Pizza shops has closed its doors and will send a large number people back into the job market while the surviving chain is now offering Pizza's for just five dollars - delivered !
In the Capitalist system in which we live it is competition that drives prices to new lows. There is always someone who thinks they can sell a product cheaper and the usual outcome is that this drive for the cheapest price sends the less efficient competitors broke. Survivors are prepared to work incredible hours for wafer thin profits in the belief that they will be the sole survivor and will then enjoy getting a higher price for their product.
The latest innovation to burst on the restaurant trade is the home delivery option headed by Uber. Clever advertising is convincing people that they can have the meal of their choice delivered to their door with the widest possible selection of cuisine. This rapidly increases pressure on all aspects necessary to achieve the promised result and it is now clear that expectations can not be consistently met. A lot of restaurants are having second thoughts about that idea.
This game changer was the intrusion of Uber into the taxi market. This was a very regulated industry and taxi number plates changed hands at a premium because the number of cabs allowed on the road was strictly limited. Uber crashed into that market when it induced citizens to bring their own cars and drive people to their desired destinations under the Uber booking umbrella. That broke dozens of laws and ordinances but Uber has deployed an innovative defence and seems to have gotten away with the intrusion.
We now have the situation of the existing taxi industry and Uber running a cab service side by side. The difference is that Uber drivers do not accept cash for fares and these are deducted from the passengers nominated credit provider. To use Uber, you need to have your credit details listed with Uber and your mobile phone will actually allow you to view the approach of the car which will deliver your ride.
Uber is attracting custom on the basis of speed of service, courtesy - and reliability. The conventional taxi industry was notorious for long service delays and missed appointment times. With Uber you are told the make, model and plate number of the car coming to pick you up, and even the drivers name. It blends the difference between using a cab and having a privately chauffeured vehicle get you to your destination.
Uber is the new mode of thinking in the innovation world. The innovators are people who desire to break rules and bring change and it is now clear that Uber is a permanent part of our transport system.
The final result of this food delivery concept is still not clear. That is very much a work in progress and once again the sorting out made by competition will deliver winners - and losers.
In todays world, no industry is safe when the innovators decide to target it with competition.
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