Where regulation is non-existent or almost non-existent, there lies an opportunity. An organized business that identifies such an opportunity and executes flawlessly usually has it good. This is the story of Uber.
Oh, did I say the rating system also keeps both riders and drivers in check leading to an awesome experience not the norm in these climes.
How do you differentiate an Uber cab from regular private cars? Absolutely impossible. Welcome to the invisible and mind blowing on-demand economy.
I will bet with you that nothing will happen and no one will be hustled.
Precisely my point. Will the taxi drivers stop every single car to figure out who is an Uber? Will the omo-onile Godfather lobby trump the car manufacturer lobby which is making out on how easy it is for people to buy cars as investments (financed by uber rides)? I don’t think so.
How you recognise an Uber cab and Private Cab? Will they stop each and every car to get to know weather it is an Uber or not?
Mark Zo
Thank You. There is alot of knowledge on your blog/website and I love it.
Thank you, I appreciate.
They are having it good because they are solving a real problem, for a growing market at a decent price.
My brother don’t take this the wrong way. I believe the market is still more offline that online and I think more startups need to move from behind their computers and hit the streets but a lot of the ideas in this your piece are very dangerous.
Anybody asking Supermart.ng to set up a grocery store to compete with SPAR etc (who by the way, they source some of their groceries from) does not understand the technical insight that drives Supermart’s business. Supermart is catering to working mothers or busy professionals who often have to leave work in rush hour to go and pick up groceries. Those people do not need an offline location. The want supermart to deliver to their home and they pay for it. The other thing is there is a reason why SPAR etc sell groceries that 90% of the population can’t afford. That reason is rent. Many people will prefer to go to Mile 12 to buy groceries than buy from SPAR because money doesn’t grow on trees. The technical insight that drives Supermart’s business is that they can organize this grocery market without raising costs by paying rent to warehouse goods. Simply go where the goods are pick up and drop off. Their value is in the logistics and how that ties into a specific kind of customer experience. They have no business setting up stores all around Lagos burning up cash by paying rent and store workers.
Uber my Uber!!.. abosolutely amazing execution… international business strategy blended with local content.
Yeah you’re simplifying my point of view a bit. I’m really speaking beyond lagos. Supermart.ng may be targeting a niche market, fine I understand that, I’m cool with that. But they’ll never appeal to a mass market and that’s what retail is all about, volume. Without volume your prices can’t compete with a Shoprite and now Walmart. I think the reason all these delivery things are coming up en masse is because people still haven’t navigated the offline space fully. Understandably, offline businesses need more capital and its difficult to raise money in our system. In the beginning people thought Shoprite couldn’t succeed because Nigerians like open markets but Shoprite has helped countless small manufacturers sell their goods and their clientele is skyrocketing. And they have a mall expansion approach (really smart BTW). The obsession with online things is the reason jumia and konga sell more clothes than clothing outlets at the malls. So there is DEFINITELY a market for clothes offline if its well marketed because people want to physically see the clothes.
Back to my point about lagos, the market and entrepreneurs have to understand that there’s a market offline before there’s one online, especially when targeting the mass market in Nigeria. I may not be seeing the internet revolution future, tho. But like I said in the article, Home WiFi adoption is shockingly low, same as DSTV. Someone that knows the stats told me there are less than a million DSTV subscriptions in Nigeria. So there are definitely too little WiFi subscruptions, most of it being in offices by the way. I think Jason of Iroko even wrote a piece about how most Nigerians watching movies use it during office hours, which shows that they don’t have connection at home.
Let me use a personal example. I’ve been trying to find out all over where I can get original Hollywood DVDs in Nigeria. Yeah there may be some small shack somewhere (still haven’t found tho), but we need a known brand name in that space selling original movies because some people hate the poor quality of pirated copies. Another example, drinks.ng. I read an interesting piece by the founder and my conclusion is that drinks.ng is going to become an offline store with delivery options in the long run. Drinks.ng is targeting a market of people who want large quantities of drinks for an event or something but the small quantity buyers will rather not order online. If drinks.ng invests in marketing offline and setting up neighbourhood stores it’ll be a huge hit, knocking out Shoprite as king of drinks. Why? Because Shoprite isnt homely, its way too public and people in neighbourhoods just want some drinks and they leave.
I guess my point is focusing on the offline market doesn’t mean abandoning the online. When people think of America they just think of the big tech names Google, apple, Microsoft, Amazon, etc. People don’t realise Walmart, ExxonMobil, 3M, Koch Industries, GM, GE, CostCo, Big banks, big telecoms etc and other companies are the foundation of their economy. That’s why I’m wary of this online frenzy, things online are akin to the fashion industry, one day you’re it the next day you’re dead.
You have made loads of valid points but to end it with ‘online is akin to the fashion industry’ is quite a strange way of ending. I might be reading too much to your words but seems like you regard ‘online’ as some sort of fad that will soon pass away.
And here we are communicating in a digital market (radar), exchanging goods (opinions), at a fair price (words)…that’s the same online, you think will fade like ‘fashion’?
Lool maybe my metaphor was too strong. I mean relative to offline businesses. Yeah its weird having this view on radar. But online forums come and go everyday, radar is pretty solid tho.
All those type of “accidents” are bound to happen before real progress is made… Every solution brings with it new problems… Sitting back and waiting for a hypothetical perfect time, event or regulations will never happen… It used to be the wild wild West before the seemenly perfect first world the USA has become…