Uber's business is not one where the data can be cached or deployed through CDNs. This level of personalization at the scale Uber operates brings problems. But getting that engagement is tough.Īccording to Ranney, "Each person connecting to Uber is having a unique experience with highly personalized data. What Uber has exposed is that companies can transform a business if they engage with customers more effectively. What makes Uber so incredibly successful is not its business model, but how easy it is for people to work inside of its business model. How many businesses are built around dispatch systems? Cleaning services, mechanical support, technical support, even food and education services can be controlled through dispatch. But perhaps they are not so unusual.Ĭonsider this: At its core, Uber's business model is a dispatch system. They seem to have unique business models that you could never hope to duplicate.
These companies have no inventory and no products, and yet they are worth billions. The list of companies modeling the disruptive sharing economy and crowdsourcing is well known: Uber, Airbnb, Etsy, etc. The problems Uber faces-and the tools it uses to solve them-are common to enterprises around the world. And Uber's approach is not as unusual as it might seem. Yes, the company has a great business model, but its explosive growth was only possible with a relentless focus on performance. But is its success really that ephemeral? I recently sat down with Matt Ranney, chief systems architect for Uber, who explained that it all comes down to performance engineering. Uber is the quintessential "unicorn"-not much of a track record, but a valuation that tops $1 billion.
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