CX Bold Moves: Uber Bets On Self-Driving Cars With Big Volvo Purchase

Editor’s Note: This post is part of a series of CX Bold Moves. See all the DoingCXRight CX Bold Moves stories.

For anyone brave enough to imagine the future it is clear that autonomous vehicles are coming and that the flying cars taxi chase of The Fifth Element will be a reality soon after. The question that remains unanswered is who will be part of the future of transportation. More and more players are claiming a stake in the multibillion market place, but like any innovation the odds of winning are 50%/50% until the industry gets mature enough for us to even see what it will be. So who are you betting on? Uber? Lyft? Yourself?

The Uber bet

Uber is going for the vertical integration – the whole pie. The future industry of urban transportation will be made of players in three different categories: cars, self-driving software, and ride-sharing network. With the #UberVolvo deal Uber made a stake in the cars part of the equation. They already have the ride sharing network and the in house research and development of self-driving software.

Every company struggles with the right balance of internal development vs. partnerships. There are pros and cons of either approach. The factors in the final decision are costs of maintaining the technology (capital vs. operating), level of customization available (much harder when the technology is built by a partner) and speed to market (depending on the staffing level of the internal teams the speed can be faster or slower if the R&D is internally driven). Uber is betting on taking all the risk and owning all parts of the autonomous vehicle ecosystem.

The Lyft bet

In contrast, Lyft approaches the future through partnerships. Their vision improving lives with the world’s best transportation inspires the creation of cities for people, not cars. In the last two years they have formed multiple partnerships with various small and big players in the new tech space. The choice of partners: Waymo, nuTonomy, Drive.ai (self-driving software) and the large direct investment by GM (cars), proves that Lyft plans to be an integral part of the autonomous vehicle solution (ride-sharing network), but not the whole technology stack.

Their strategy is much more tactical in nature. Lyft does not need to build the whole future of urban transportation. It suffices to be the bolt without which the system will not function. The success of this approach is founded on successful partnerships and is collaborative in nature.

The George Hotz belt

And if you still want to own a car in the future, the self-driving platform Openpilot and the Neo device may be the way to go. The Neo will transform your Honda or Acura into an autonomous vehicle that you can control with Openpilot. George Hotz’s company Comma.ai has activated users to share driving data to perfect the self-driving algorithms for the future by learning from drivers today. In his opinion “Self-driving cars need nothing but engineers in order to solve it.”

The approach to autonomous vehicles of Lyft is more congruent with the sharing nature of the future economy. Sharing is rooted in partnering and collaborating with others. The future generations are less likely to associate themselves with a conglomerate that monopolized the market space. It looks like Lyft, although a smaller player, does have the more sustainable strategy to autonomous vehicles. Then again, we are missing a big piece of the puzzle. We really do not know how the government will play in this space and if it will come up with regulatory obstacles that require a lot of funding to overcome.

Smart brands put equal time and energy in building partnerships with the government agencies. So far Uber is behind on that front too. Both Uber and Lyft are making bold moves in the autonomous vehicles space. The question is, who has the winning strategy?

*All opinions expressed on the DoingCXRight Blog and site pages are the authors’ alone and do not reflect the opinions of or imply the endorsement of employers or other organizations.

 

 

self-boarding with facial recognition at a JetBlue gate.

CX Bold Moves: JetBlue Paperless And Deviceless Boarding

Editor’s Note: This post is part of a series of CX Bold Moves. See all the DoingCXRight CX Bold Moves stories.

This year JetBlue entered the ranks of the innovators who disrupt industries and not only imagine the future, but also build it. With our award winning facial recognition boarding technology we were able to provide a preview to our customers of what traveling will be in the future. The fact that JetBlue’s facial recognition trial was named as one of the 100 greatest innovations of 2017 by Popular Science was one of the many signs we received about the excitement of the public about innovation in the airline space. JetBlue realized that our customers are not only ready, but also eager to step into a world of  new experiences that are personal, helpful, and simple.

So why is it so hard to eliminate the friction points on the travel journey and enable repeatable, intuitive, and empathetic experiences when we fly?

Variability is almost impossible to manage

In the book “Uncommon Service” Frances Frei and Anne Morriss lay a whole customer management process for successful brands. They present several examples of Progressive Insurance and Shouldice Hospital where through different processes these organizations are able to select the right customers for the experiences they have built. Airlines cannot do that. We cannot choose who we fly. Since the industry is driven by small margins, every customer flown counts. JetBlue’s mission bring humanity back in the air travel is driving us to welcome on board anybody who would like to fly us. And we consistently design all our product and experiences with that in mind!

Integrated experiences are based on integrated technologies

The future of flying is here only if we are able to integrate virtual reality and other technologies in a meaningful way that adds value. In JetBlue we are collaborating with JetBlue Technology Ventures and Strivr to test VR for training of our maintenance crewmembers.  The technology is more advanced in helping with decision making and not necessarily recreating the feeling of loading bags under the plane. For those immersive experiences the integration, build and scaling of the experiences is much more complex. Integrated and intuitive experiences are not hard to imagine, they are very complex to create and personalize.

Somebody has to pay for it

The moment we begin scaling and implementing customer journeys that use technologies of the future, we have to build the business case and its ROI. CFOs see customer experience design projects as process effectiveness work that increases output of existing infrastructure. Customer experience is much more than that of course, but knowing your audience is half the battle. Regardless if you agree with finance or no, you need the funding they hold. If you list the funding and maintenance requirements for a VR or a biometric solution very quickly you will see that to extract value from future technologies, you also need other future technologies to be cheaper. We all depend on a faster network (5G, 8G, 10G?) and even cheaper storage (cloud that is free to maintain and does not hit your operating expense every year?). Until that happens we probably will trial more and scale less.

We all share the excitement for the possibilities that new technologies like facial recognition and VR bring to us today. Some of us even venture to realize and share those possibilities with our customers. Customers have the power to add and co-design their experiences, which is really exciting too. In JetBlue we  used facial recognition boarding  to lead the industry. Our innovation was embraced by our customers and that is why we all won at the end!

# biometrics #facial recognition #VR #disruption # customer experience # game changer #NY Times #JetBlue

 

 

*All opinions expressed on the DoingCXRight Blog and site pages are the authors’ alone and do not reflect the opinions of or imply the endorsement of employers or other organizations.