Becoming a disruptor doesn’t just require innovation, it means considering an existing model, finding its pain points and coming up with a...
Becoming a disruptor doesn’t just require innovation, it means considering an existing model, finding its pain points and coming up with a solution that is not only smart and lucrative, but it also changes the culture.
Startups that seek to find a way to disrupt an established industry have an advantage, there is a foundational process already in place. It is understood that there is a need, and the novel approach a business takes is to identify just how to fulfill that need in an improved way, making the service cheaper, more convenient, or just remodeled for a more modern experience.
Transportation has always been an industry to watch for the disruption that took place quickly. Historic images showing traffic side by side from 1900 and 1913 demonstrate that in just 13 years, horseback was completely taken over by the automobile. Similarly, in just 7 years the number of Uber rides in the US overtook the number of taxi rides (the tipping point was in 2016 and Uber keeps growing).
The point is, the transportation industry is a good leader for other industry success and acts as a lightning rod for potential disruption. So what can be learned that is universal for any disruption-based startup?
Investment takes many tries before true success
In 2009, Uber’s initial funding round was just $200,000. The following year they raised $1.25 million from their angels. In the 10 years that have followed they have been through 22 funding rounds with a current worth of over $68 Billion -- making them the most successful current startup. While this all happened relatively swiftly for Uber, it does demonstrate that it takes a number of rounds to get where you want to go. Currently, they are aiming for a valuation of $120 billion for their IPO, supposedly set for early 2019.
Be collaborative, even with those that might seem like competitors
When ridesharing took off, you better believe that auto manufacturers took notice. While they surely hoped that car sales would continue to clip along, they were not naive to the fact that the industry had broken wide open. Then these car companies then began to invest heavily. Everyone wants to be in on the next big thing. Uber hooked up with Toyota, Mercedes, and Volvo and they are continuing to work together to innovate.
Always look to the future
Resting on your laurels is how startups become flashes in the pan. It’s essential to be agile or risk disaster. In transportation, it’s relatively universally accepted that the biggest disruption in the industry is yet to come in the form of autonomous cars. Despite early failures, Uber is responding by investing heavily in technology.
Even if you feel you have the next best idea for ways to disrupt an industry, there is information you can learn from those who have come before. Below, The Zebra has put together a comprehensive look into recent transportation disruptions from ride shares to scooter rentals with further glimpses into what more can be learned from the success of companies like Uber, Lyft, and Lime (which features dockless scooter rental).
Startups that seek to find a way to disrupt an established industry have an advantage, there is a foundational process already in place. It is understood that there is a need, and the novel approach a business takes is to identify just how to fulfill that need in an improved way, making the service cheaper, more convenient, or just remodeled for a more modern experience.
Transportation has always been an industry to watch for the disruption that took place quickly. Historic images showing traffic side by side from 1900 and 1913 demonstrate that in just 13 years, horseback was completely taken over by the automobile. Similarly, in just 7 years the number of Uber rides in the US overtook the number of taxi rides (the tipping point was in 2016 and Uber keeps growing).
The point is, the transportation industry is a good leader for other industry success and acts as a lightning rod for potential disruption. So what can be learned that is universal for any disruption-based startup?
Investment takes many tries before true success
In 2009, Uber’s initial funding round was just $200,000. The following year they raised $1.25 million from their angels. In the 10 years that have followed they have been through 22 funding rounds with a current worth of over $68 Billion -- making them the most successful current startup. While this all happened relatively swiftly for Uber, it does demonstrate that it takes a number of rounds to get where you want to go. Currently, they are aiming for a valuation of $120 billion for their IPO, supposedly set for early 2019.
Be collaborative, even with those that might seem like competitors
When ridesharing took off, you better believe that auto manufacturers took notice. While they surely hoped that car sales would continue to clip along, they were not naive to the fact that the industry had broken wide open. Then these car companies then began to invest heavily. Everyone wants to be in on the next big thing. Uber hooked up with Toyota, Mercedes, and Volvo and they are continuing to work together to innovate.
Always look to the future
Resting on your laurels is how startups become flashes in the pan. It’s essential to be agile or risk disaster. In transportation, it’s relatively universally accepted that the biggest disruption in the industry is yet to come in the form of autonomous cars. Despite early failures, Uber is responding by investing heavily in technology.
Even if you feel you have the next best idea for ways to disrupt an industry, there is information you can learn from those who have come before. Below, The Zebra has put together a comprehensive look into recent transportation disruptions from ride shares to scooter rentals with further glimpses into what more can be learned from the success of companies like Uber, Lyft, and Lime (which features dockless scooter rental).
Infographic: The Best Disruptive Innovation Examples Like 'Uber' in Transportation Industry
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