TECH TALK
CAN AVIATION ACTUALLY BE ‘UBER-IFIED’?
BY JOHN PAWLICKI
MOST HAVE HEARD OF AND MANY HAVE ACTUALLY USED UBER. IT HAS BECOME THE POSTER CHILD FOR THE NEW USER-TO-USER ON-DEMAND ECONOMY, DRIVEN VIA MOBILE APPS AND CASHLESS FINANCIAL TRANSACTIONS. THE MORE FORMAL TERM BEING USED TO DESCRIBE SUCH COMPANIES IS ON-DEMAND MOBILE SERVICES (ODMS). IT IS DRIVEN BY SMARTPHONE-ENABLED SOFTWARE APPLICATIONS THAT MEET A SET OF CUSTOMER DEMANDS WHICH ARE FULFILLED OFFLINE (IN-PERSON). PRIVATE JET SERVICES HAVE NOW JUMPED ON THIS TREND, AND ARE SEEKING TO BE PART OF THIS EXPANDED SHARING ECONOMY.
Before we examine this eff ect on the aviation market, let’s delve into how ODMS works by looking at Uber to better understand the underlying process.
An Uber customer initially
downloads their app and sets up an account that is tied to a credit card. They create a profi le of themselves, and optionally, can include a picture so that drivers will be better able to spot them at pickup locations. When a customer requests a ride from Uber, they must provide a predetermined destination and their current location, and Uber quotes a fi rm price and arranges for a local Uber-screened driver in their area to provide the service. (These drivers need to meet a certain set of requirements to qualify for this and must pass background checks). After the customer has been taken to their destination, the Uber application automatically pays the driver using the customer’s credit card and takes a cut for the company. Each party rates the other, which incentivizes each to be a better person (one can only hope), and allows Uber to block drivers and riders who are not up to snuff . Rather straightforward, isn’t it?
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DOMmagazine.com | march 2016 Most other ODMS companies
follow a similar process and have injected a dose of modern technology (GPS-enabled apps and a centralized scheduling mechanism) with social media (ratings of drivers and their cars, as well as how nice a customer is) to expand on the typical taxi experience. Additionally, the absence of cash for a transaction gives more convenience and safety for all parties. Uber and its competitors (the better-known ones being Lyft and Sidecar) have disrupted the stale taxi industry with (usually) lower pricing and easier, more reliable services, timely transportation, ordering and paying for services. Uber is arguably the poster child for ODMS, but it is in good company with dozens of like-minded services in many other industries, as shown in the chart on page 33 (credit to Steve Schlafman, RRE Ventures). The ‘on-demand’ economy has
proven to be eff ective in connecting people seeking and soliciting services, and has out-competed many legacy companies in these sectors, hence the term ‘uberifi cation.’ Aviation is now being aff ected by this sweeping eff ect.
The Victor app supports comparing, booking and managing private jet charters
WILL THE FAA ALLOW AIR
TRAVEL TO BE UBERIFIED? There are a number of instant- booking private jet companies (and some for helicopters, too) that are just as quick and easy to use as Uber. All of these have Uber-like smartphone apps for booking trips and handling trip details.
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