The term ‘disruption’ is increasingly being applied in conversations about what lies ahead for automotive. From buying cars online to autonomous driving features and subscribing to vehicles, players and pundits are referring to these things as disruptive. But are they really, or is the term being overused and misused? 

In this video you get a preview of my discussion with DrivingSales.com Members Bill Playford and DJ Snyder about what these things really mean and how dealers can cut through the rhetoric to make educated and informed decisions that pave the way for a bright future.

Note: This is only a preview of our conversation that aired originally on our live weekly broadcast. For the complete conversation, visit the AutoConverse Podcast.

This is a preview of my conversation with DrivingSales Member Cliff Banks that aired live on May 9, 2018. To listen to the complete conversation visit the podcast. 

For the last 100 or so years, five fundamental aspects of the industry have stayed relatively the same: Product, Manufacturers Distributors/Dealers, Buying Experience, Ownership Experience.

However, all signs point to change, serious change, and disruption. But when, and how? Who will be the winners? Who will be the losers? 

Cliff Banks, from TheBanksReport.com and a well-respected industry veteran and insider, sits down with me for a discussion around the forthcoming Era of Uncertainty, how the franchise dealership model will be affected, and what the real meaning is of the idea of "disruption" in the automotive industry.

Enjoy!

*AutoConverse ON AIR is a live weekly broadcast that explores people, ideas, and technologies related to how we get around (mobility) and how we are connected (connectivity). Learn more. 

This is a preview of our weekly show AutoConverse On Air that aired April 25, 2018 featuring DrivingSales Members Jason Stum and Chris K Leslie. 

In this episode we open up with a discussion about the proposed new franchise Bill AB 2107 in the California Legislature. We then get into a discussion about the new Amazon Key In-Car Delivery service being rolled out, along with a conversation about how businesses are failing on Twitter, and an update on Google's rollout of mobile sites in it's index.

Please enjoy, and for the complete show you can listen to the podcast.

If you’ve already gotten used to ordering everything from books to slippers on Am azon, then their next move might not surprise you that much. Recently the mega e-retailer announced its plans to begin selling cars online. While the news has been a surprise to many, the fact is, selling cars isn’t new to Amazon – and they aren’t the only ones looking into their online options.

Amazon has already been selling some cars to smaller markets in Europe. In Italy, Amazon offers a handful of Fiat models and the company is working to build a new company based in Brussels to expand the European market.

Volvo and other online car sales

In the States, Volvo has already experimented with online sales options. In some markets, Volvo, along with a few other companies, have worked with concierge online sales which allow people to go through the entire buying process online. The only contact they have with any dealership is when they meet to take delivery of the car.

It’s a service that has met with some success. Amazon hopes to build on this success by adding test-driving options that make online buying more attractive to reluctant customers.

Customer research by Amazon

Amazon has already launched a customer research portal designed to provide a foundation for its larger launch down the road. They have also been working with Mercedes-Benz and are reportedly exploring different ways to give online customers test drive options. The company is playing close to the vest with their next release and they have not released many details or a firm timeline.

Whatever happens, the public is already excited to see how Amazon will change the way we buy cars and how traditional dealerships will adjust to remain competitive.

Originally published on autoconversion.net.

When Uber first appeared on the scene, skeptics were quick to point out how easily the company could fail.  An army of freelance, casual workers putting in time whenever they felt like it and customers willing to trust a smartphone app with payment and location information?  It seemed like a set-up positively doomed for failure.

The rise of Uber

But, despite the naysayers, Uber taxi flourished and inspired its biggest competitor, Lyft, as well as a slew of start-up services and Uber-inspired on-demand apps.  They also inspired a national conversation on how freeing – and how confining – freelance can be, for Uber drivers.    The company effectively changed the landscape of personal transportation – empowering freelance drivers and giving people more choices when it came to getting from Point A to Point B.  In many ways, they have been held up as the ideal start-up: a simple idea that filled a need and became part of our pop culture.

But, although Uber offered creative insight into new ways of organizing workers and creating custom services; their marketing and public relations disasters have shown how bad press can undermine even the best business plan.

Uber CEO mishaps

In December 2016, Uber’s CEO Travis Kalanick was tapped to join President Trump’s economic advisory council.  This put him and, by extension, all of Uber under greater scrutiny.   What followed was a series of public mishaps which have led to Kalanick’s recent announcement that he was “taking a leave of absence” from the company.

Shortly after his appointment, the President’s travel ban was announced.  Taxi drivers in New York went on strike as a protest and the NY Taxi Workers Alliance called for drivers to refuse pickups from the airport.  During the protest, Uber sent out a tweet about turning off surge pricing for customers requesting pickups from JFK.  The backlash was almost immediate, with critics slamming the company for taking advantage of the situation.  In the end, Kalanick came out publicly against the ban, resigned from the President’s Council and committed millions in legal aid to immigrants.  But by then, #DeleteU ber was already trending and the damage had been done.

Uber accused of pervasive culture of sexism within the company

In February, Susan Fowler published a piece on her blog about her experiences as an engineer with Uber.  In the piece, titled “Reflecting on One Very Strange Year at Uber” she openly discussed the sexual harassment she claims to have dealt with at the company as well as the HR department’s refusal to follow up on her complaints, which included chat messages from her boss about looking for someone to join him and his wife in a threesome.  The post was shared widely and did become the driving force behind investigations into the Uber company, which led to the firing of more than 20 people.

In March, it was reported that Kalanick and a group of fellow executives had visited an escort bar while on a trip to South Korea.  One of the executives was a woman from Uber’s marketing department who later complained to HR that being stuck in the bar with the men calling out numbers for escorts made her feel uncomfortable.  At one point she reported to HR that  “It made me feel horrible as a girl (seeing those girls with number tags and being called out is really degrading).”

Doing what they could to work it out

Many times, Uber tried to remedy the situation publicly.  Presumably, this was to assure the public that even though the Uber corporate culture might be rough around the edges, they were doing what they could to work it out.  After the slew of sexual harassment allegations, that had levied against them, the company hired high-profile women like Apple exec Bozoma Saint John and Professor Frances Frei, author of Uncommon Service: How to Win by Putting Customers at the Core of Your Business.

But for every step they took publicly, there were new scandals waiting in the wings to reveal the Uber need for lessons in reputation. A leaked email from Kalanick ultimately illustrated the ‘frat house’ culture better than any allegations being touted by former employees and customers who had filed complaints about sexual assaults from Uber drivers.  Kalanick’s email consisted of warning about a ‘puking surcharge’ for employees who partied too hard and a reminder not to throw kegs off of “tall buildings”.

Is Uber doomed or will it survive?

In the end, Uber may not survive.  If it doesn’t, the company’s demise will have been brought about – not by problematic business decisions, but instead by a string of PR debacles and their own corporate culture, which has been described as toxic by many.  But even if their efforts prove to be too little too late to save the company, Uber will leave a lasting legacy for entrepreneurs looking to capitalize on the growing service industry as well as providing a real-world example of just how important – and powerful – a company’s reputation can affect its future.

Originally Published on AutoConversion - Is Uber Doomed to Fail?