The practice of hiring vehicles for transportation goes back to the 17th century.
Dateline London 1635, the Hackney Carriage Act was the first legislation passed controlling horse-drawn carriages for hire in England.
Dateline Paris 1640, Nicolas Sauvage offers horse-drawn carriages and drivers for hire.
The taximeter was invented by the German inventor, Wilhelm Bruhn in 1891. The taximeter measured the distance or time a vehicle traveled and allowed an accurate fare to be determined.
It is widely believed Gottlieb Daimler built the world's first dedicated taxi in 1897 called the Daimler Victoria. The vehicle came equipped with the newly invented taximeter and was delivered to Friedrich Greiner, a Stuttgart entrepreneur who started the world's first motorized taxi company.
By the end of the 19th century, automobiles began to appear on city streets throughout America. It was not long before a number of these cars were hiring themselves out in competition with horse-drawn carriages.
Soon horsepower was removed from horses, and natural resources would be the horsepower to move vehicles. Gas-powered taxis came first to Germany, Paris, and London, and then to New York in the year 1907.
The Travis Kalanick of his day was Harry Allen.
Allen created The New York Taxicab Company and imported 600 gas-powered taxis from France in 1907, and he borrowed the word "taxicab" from London.
To ensure his vehicles were full and quickly recognized, he painted his taxis yellow.
Flash forward over 100 years later, and we now have Uber.
A company which owns no vehicles.
A company which employs no drivers.
A company with a valuation of $120 billion.
This valuation makes the company one of the most valuable transportation companies operating anywhere on the planet.
Consider Uber's valuation is more than General Motors, Ford Motor Company, and Fiat Chrysler Automobiles combined.
At a $120 billion, Uber's is worth more than double the average of companies in the NASDAQ 100 Index on a price-to-2018 sales basis. It gives the ride-hailing company a multiple of about 12 times, compared with an average of 4.8 times for the index.
Big numbers for sure, but why?
Three reasons:
1. Global scale
2. Reduced friction
3. Reduced anxiety
Uber's global scale is stupendous.
Where Harry Allen was limited to the five boroughs of New York City, current Uber CEO Dara Khosrowshahi can provide transportation in 65 countries and over 600 cities worldwide, plus the company completes 15 million trips each day.
Uber has access to 3 million drivers who can move passengers from airports to city centers, from nightclubs to after-hour parties.
Also, as a consumer of the service, your experience and expectations can be harmonized regardless if you are in Indianapolis, London, or São Paulo.
Uber has dramatically reduced friction.
The premier etiquette organization, The Emily Post Institute, yes there is such an institute, recommends tipping your taxi driver between 15 and 20 percent of the total trip fare. Plus If you've traveled with luggage and your driver has helped you, it's proper etiquette to tip more. Beautiful, no set guidelines.
Also, you'll need to find out ahead of time if your cabbie accepts a credit card. If you don't make sure and you don't have enough cash, you'll have to leave your luggage and gear as collateral as you stumble around Singapore's Changi Airport at o-dark-thirty to find an ATM.
Hop in Uber anywhere, anytime, and you'll never need cash. You'll never need to fumble with credit cards and swiping. You can tip as suggested and even add commentary on the state of the car's interior and the cabbie's choice of music.
Uber has significantly reduced anxiety.
Most places allow a taxi to be hailed or flagged on the side of the street as it is approaching. Another option is a taxi stand. Finally calling a central dispatch office for a taxi ride is an option.
So ringing up a ride isn't new, even if it is via an app. Get an Uber is the same as call a taxi.
Uber didn't create new technology; it deployed consumer behavior tactics. Before 2009 users of taxis had no knowledge when a cab would appear on their street, when a taxi would arrive at your door, or who is behind the wheel.
Now with a comfort inducing screen and the anxiety-reducing Pac-Man-like vehicle avatar displaying your ride shuffling across a map to pick you up, you now have knowledge.
The knowledge that your ride will appear, when it will arrive, and who is behind the rule - plus the most anxiety reducing tactic - you can inform family and friends where you are in your journey and when they can expect you - further reducing their stress.
Lessons here for entrepreneurs and thought leaders:
Few ideas are new. Uber is executing the 17th century idea of taxis and the 19th century idea of telephones.
What is new are the tactics Uber is employing to execute these old ideas.
Having a service or product that allows you to be global from day one.
Having a service or product that allows you to reduce end-users burdens.
Having a service or product that allows you to reduce end-users uncertainties.
-Marc
Marc A. Ross specializes in thought leader communications and global public policy for public affairs professionals working at the intersection of globalization, disruption, and politics.
MOU, Munich Security Conference, Millennials, Michael Gianaris
MOU, Munich Security Conference, Millennials, Michael Gianaris
Marc Ross Daily
February 15, 2019
Curation and commentary from Marc A. Ross
Reporting from Alexandria, Virginia
Marc Ross Daily = News + Analysis at the Intersection of Globalization + Disruption + Politics
TOP FIVE
✔️ Munich Security Conference: A masterclass in backroom diplomacy
✔️ Wellbeing trend for healthier office furniture
✔️ First Democrat debates for 2020 set for June
✔️ 'Amazon isn't bigger than New York'
✔️ Atherton, California = The wealthiest town in the United States
ROSS RANT
Talk to strangers: It will change your life.
GLOBALIZATION
Munich Security Conference: A masterclass in backroom diplomacy: Every year, powerful global leaders gather in Munich to discuss peace and diplomacy. But the conference is not just a show of power, it is a diplomatic laboratory of possibilities that takes place behind closed doors.
Chinese, US trade negotiators inch toward an agreement: WSJ reports, negotiators concluded weeklong talks and made some progress on a memorandum of understanding that could serve as the basis for a deal that President Trump and Chinese leader Xi Jinping could later finalize at a summit.
US-China trade talks finish with little sign of progress: FT reports, teams had hoped to produce ‘memorandum of understanding’ to facilitate Xi-Trump summit.
The Chinese love an MOU.
US and China will continue trade talks next week.
Chinese state media: “both sides are satisfied”...
Reuters: Mnuchin says US had 'productive' trade meetings with China
Wonderful. What does that mean?
Mnuchin calls US-China talks ‘productive’ as deadline nears: Bloomberg reports, the two sides have failed to narrow the gap around structural reforms to China’s economy.
@onlyyoontv: “We are willing to adopt a cooperative approach to resolve and promote an agreement acceptable to both sides. However, cooperation requires certain principles.” - President Xi’s reminder to the U.S. that #China has its own bottom line in trade talks, says state media @XHNews
Nigeria votes: Forecasters are split over who will win Saturday’s election between President Muhammadu Buhari and his main opponent, Atiku Abubakar. The nation of 200 million people has faced numerous election rigging, which has marred almost every vote since Africa’s biggest oil producer got independence from the UK in 1960.
Ecuador and the IMF have launched formal talks about a potential financial bailout for the South American country.
OTD: In 1965 Canada flew its newly adopted red maple leaf flag for the first time.
Spain votes: PM calls snap election for April 28. This will be Spain's third election in four years.
Theresa May suffers fresh Commons defeat: MPs voted by 303 to 258 - a majority of 45 - against a motion endorsing the government's Brexit negotiating strategy. The defeat has no legal force and Downing Street said it would not change the PM's approach to talks with the EU. But Labour leader Jeremy Corbyn urged Mrs May to "admit her Brexit strategy has failed" and to come forward with a plan Parliament would support.
FT: Brexit vote ‘shambles’ blows hole in May’s authority
The resurgent left: Millennial socialism: The Economist reports, a new kind of left-wing doctrine is emerging. It is not the answer to capitalism’s problems. https://econ.st/2DPQwBB
What is more problematic - populism or socialism?
DISRUPTION
Wellbeing and noise concerns fuel "accelerating" trend for healthier office furniture: Soundproof pods, saddle-shaped chairs, adjustable-height desks, and wobble boards were in abundance at Stockholm Furniture Fair last week, as privacy and wellbeing become essential aspects of office furniture design.
Pricing algorithms can learn to collude with each other to raise prices: If you shop on Amazon, an algorithm rather than a human probably set the price of the service or item you bought. Pricing algorithms have become ubiquitous in online retail as automated systems have grown increasingly affordable and easy to implement
NASA wants to get to the moon ‘as fast as possible.’ But countries like China and India are racing there, too.: WP reports, like the Cold War space race, the new lunar activity is fueled by national pride and a quest for scientific discovery. But this new Space Age also features a third factor: Greed.
End of fast fashion? Millennials are increasingly buying clothing that's characterized by durability and utility. This has led to a surge of interest in brands like The North Face and Patagonia.
POLITICS
It's an emergency: Trump plans to sign a spending bill that keeps the government open and will then declare a national emergency to seek more border-wall funding.
WP: ‘Off the rails’: Inside Trump’s attempt to frame a border wall defeat as a victory
Ted Cruz: Make ‘El Chapo’ pay for the border wall
William Barr Confirmed as Attorney General.
First Democrat debates for 2020: As many as 20 Democratic presidential contenders could qualify for the first two televised primary debates beginning in June. The DNC said the candidates will need to achieve at least 1% in a series of polls and show an ability to raise money online to qualify for the first two debates.
The first debate will be televised by NBC News, MSNBC and Telemundo while the second debate, in July, will air on CNN.
The DNC said the debate slots will be chosen at random and a maximum of 10 candidates will appear on stage during the individual debates.
National Council For the American Worker: Apple CEO Tim Cook and IBM CEO Ginni Rometty are joining Trump’s business advisory board to help come up with solutions to prepare millions of Americans for the shift toward automation and artificial intelligence in the workplace. Cook and Rometty will be joined by other business executives, including the CEOs of Walmart, Lockheed Martin, and Home Depot. The group also includes two governors and leaders from trade groups. The board will be co-chaired by Secretary of Commerce Wilbur Ross and Ivanka Trump.
State Capitalism with American Characteristics.
I can't wait for Team Trump's Department of Software, Agency of Fintech, and AV Czar.
Peggy Noonan: Republicans need to save capitalism: Democrats have gone left, so they’re not going to do it. The GOP needs a renewed seriousness.
LAT: Trump's company scraps plans for new hotel chains, blaming politics
THOUGHT LEADER TACTIC OF THE DAY
Speak at three conferences - think adjacent possible when it comes to venues and topics.
COMMERCE
CNBC: Amazon says it will not build a headquarters in New York
"We will proceed as planned in Northern Virginia and Nashville, and we will continue to hire and grow across our 17 corporate offices and tech hubs in the US and Canada."
NYC tells Amazon no way and leave, but the city is totally cool with a Duane Reade and Rite Aide on every corner.
Congratulations citizens of Long Island City ... You stopped the future.
NYT - Editorial: New York returns 25,000 jobs to Amazon: As the company cancels its plans for a major Queens campus, anti-corporate activists got what they wanted at a great cost.
'Amazon isn't bigger than New York': meet the man who killed HQ2: Guardian reports, Michael Gianaris turned his outrage into leverage when he was appointed to an obscure state board – and soon after, the company called the project off.
@pkafka: Reminder that Google is buying approximately all the real estate in Manhattan south of 23rd street and it’s NBD.
Apple's plans to launch its new iOs TV streaming service in either April or early May.
JPM Coin: JP Morgan is rolling out the first US bank-backed cryptocurrency to transform payments business.
Richard Waters: Everything still to play for with AI in its infancy: IBM and Google’s differing approaches highlight extent to which field is wide open.
CULTURE
$450,696: That’s the average household income in Atherton, California, the wealthiest town in the United States for three years in a row now.
How the US has hidden its empire: The United States likes to think of itself as a republic, but it holds territories all over the world – the map you always see doesn’t tell the whole story. http://bit.ly/2DJj3bA
Extension, EU, Exercise, Europe, Emerging
Extension, EU, Exercise, Europe, Emerging
Marc Ross Daily
February 14, 2019
Curation and commentary from Marc A. Ross
Reporting from Alexandria, Virginia
Marc Ross Daily = News + Analysis at the Intersection of Globalization + Disruption + Politics
TOP FIVE
✔️ Trump considers 60-day extension for China tariffs
✔️ Europe's shrinking middle class
✔️ Exercise may help to fend off depression
✔️ Andrew McCabe: Every day is a new low in Trump's White House
✔️ How Michael Jordan became a brand
ROSS RANT
Risky ≠ Dangerous
GLOBALIZATION
Bloomberg: Trump considers 60-day extension for China tariff deadline
Trump said he was open to letting the March 1 deadline for more than doubling tariffs on $200 billion of Chinese goods slide, if the two countries are close to a deal that addresses deep structural changes to China’s economic policies.
A spokeswoman for US Trade Representative Robert Lighthizer declined to comment.
Trump is so desperate for a big, we goin sizzler, blow out the candles on the birthday cake deal that it's hard to see how his art of the deal skills will be more successful with 60 more days.
US and China resume talks to resolve trade impasse: FT reports, Washington argues Beijing’s backing of Chinese companies distorts markets.
Politico: China aims to run out the clock to get Trump and Xi to the table on trade
“The Chinese looked at the State of the Union stare-down and the shutdown stare-down and could well be thinking to themselves that maybe Trump is an easier negotiator than Ambassador [Robert] Lighthizer,” said Scott Mulhauser, who served as chief of staff at the US embassy in Beijing under the Obama administration.
US trade demands have China fearful of 'color revolutions': Nikkei reports, 'structural reforms' touch the foundations of Communist Party rule.
Taiwan foreign minister: reunification with China 'not an option': Joseph Wu, the foreign minister of Taiwan, told DW that Taiwan could provide a model of democracy for China. However, China would need to accept that Taiwan is an "independent political entity" for relations to improve.
China’s 'ham-handed' PR moves hurt its global image: Nikkei reports, Chinese President Xi Jinping was hailed last year as the new keeper of the global economic order. This year he was denounced at Davos as a grave threat to freedom.
Europe's shrinking middle class: Since the recession of the late 2000s, the middle class has shrunk in over two-thirds of the European Union, echoing a similar decline in the United States and reversing two decades of expansion.
France's unemployment rate falls to lowest level since 2009.
EU heading for collapse just like the Soviet Union, warns Soros: The Times reports, George Soros has warned that the European Union is “sleepwalking into oblivion” and risks collapsing like the Soviet Union. Citing the spasms of upheaval in Italy, Britain and Germany, he said that Europe had drastically underestimated the threat from its “internal enemies” and was on the cusp of tipping into “the nightmare of the 21st century”.
The Times: Snap Spanish election looms as Catalans reject national budget
Bloomberg: Trump's foreign policy discord drives wedgebetween vital allies
“We have never seen anything like this. The problem with this administration is that they seem to have this genuine antagonism towards the European Union in ways that are frankly scary.”
Germany preps a plan B for Trump's foreign policy 'zigzag': One of Washington’s closest allies in a fractured Europe struggles to adapt to the Trump administration’s unpredictable policy moves.
DISRUPTION
Think big, work small: A new study finds that small teams of researchers do more innovative work than large teams do. The new research, published on Wednesday in the journal Nature, is the latest contribution from an emerging branch of work known as the science of science — the study of how, when and through whom knowledge advances.
Exercise may help to fend off depression: Jogging for 15 minutes a day, or walking or gardening for somewhat longer, could help protect people against developing depression.
POLITICS
Manafort broke plea deal: A federal judge ruled that former Trump campaign chairman Paul Manafort lied to investigators about his contact with an associate linked to Russian intelligence.
“As part of his plea deal, he faced up to 10 years in prison ... But by breaching his plea agreement, he now likely faces the rest of his life in prison. His only hope of avoiding that fate is a presidential pardon.” -@PaulaReidCBS reports on Paul Manafort
Andrew McCabe: Every day is a new low in Trump's White House: The president steps over bright ethical and moral lines wherever he encounters them. Everyone in America saw it when he fired my boss. But I saw it firsthand time and time again.
60 Minutes: McCabe says he ordered the obstruction of justice probe of President Trump
The former FBI acting director tells 60 Minutes about the measures taken to ensure investigations into President Trump wouldn’t "vanish."
.@ScottPelley's full interview with former FBI Deputy Director Andrew McCabe will air this Sunday on @CBS' @60Minutes.
US CPI report which was stronger than expected.
Two years into Trump's presidency, Pew reports Americans remain most satisfied with the state of US military strength and preparedness (78%) and the nation's security from terrorism (68%).
Tariffs Hurt the Heartland: US businesses paid an additional $2.7 billion in tariffs in November 2018, according to data from a coalition of business groups fighting Trump’s trade tariffs.
Voters 2020: Millennials and Gen Z will make up 37% of the 2020 electorate
Do you ever feel like Gen X doesn't exist?
Daniel Henninger: Maybe it’ll be Beto: The Democrats are going to lose if their nominee can’t hold a stage with Trump.
It's the age of personality trumping policy.
Reuters: Democrats swear off big money, but will it hurt their 2020 White House chances?
COMMERCE
Airbus pulled the plug on its slow-selling A380 superjumbo.
How Michael Jordan became a brand: Michael Jordan remains the OG signature shoe king 16 years after his last NBA game and 21 years after his last championship. His Air Jordan brand, introduced by the Chicago Bulls superstar in 1984 and launched by Nike in 1985, created the basketball sneaker branding market. In fiscal 2018, Nike revenue from the Jordan Brand line hit nearly $2.9 billion. https://lat.ms/2DBkFEy
No endorsement deal? No problem. Spencer Dinwiddie created his own sneakers brand: Brooklyn Nets player Spencer Dinwiddie, ignored by the big sneaker companies early in his pro career, launched a self-endorsed brand, K8iros (pronounced “Kyros”), and debuted his new footwear this season. And each time he plays this season, he’ll be wearing a one-of-kind custom shoe designed by Los Angeles artist Troy “Kickasso” Cole.
Levi Strauss plans to go public — again. Files IPO under symbol LEVI.
Canada Goose to open new factory in Quebec as profit beats expectations.
Juventus tests ‘Ronaldo effect’ in global bond market: FT reports, the Italian football club seeks fresh funding after paying €100m for Portuguese star.
CULTURE
Jude Webber: ‘Roma’ is channelling a changing political zeitgeist: Alfonso Cuarón’s drama focuses on the ordinary Mexicans the new president has promised to represent.
THOUGHT LEADER TACTIC OF THE DAY
Invite a reporter your admire to coffee - do this ten times this year.