Uber may have disrupted the transit industry, but how is it
impacting the world of digital commerce? In a recent
MagentoLive UK session, Peter Sheldon, VP of Strategy at
Magento Commerce, revealed how the ride-hailing service is
effecting everyone’s business. Here are four important
takeaways from Peter’s talk…
1. Effortless Buying
The first thing Uber did was make the ride-hailing mechanism
effortless. Now you can summon a ride with just a few taps on
your smartphone. Amazon also applied effortless buying to the
world of digital commerce, by offering a ‘Buy with 1-Click’
button. With the Amazon Echo, or Wand, you can now order your
groceries using just your voice.
Space X and Tesla founder Elon Musk plans to take this idea a
step further with his new company, Neuralink.
His goal is to create a cloud-based AI extension to the human
brain, designed for people with severe brain injuries. By using
the same “consensual telepathy” technology, we could soon make
a purchase just by thinking about it.
2. Frictionless Checkout
Uber has taught us how to pay for things subconsciously. When
you exit the car, the transaction happens invisibly. The
payment is so natural that sometimes it’s easy to forget you’re
paying. In commerce, we are moving towards quicker, easier ways
to checkout. Apple Pay already uses one-touch syncing and
fingerprint recognition. PayPal One Touch allows you to breeze
from site to site without logging in.
Amazon is now piloting a completely frictionless retail program
in Seattle called Amazon Go. In this store, you can just pick
up what you need and walk out—without getting arrested. There’s
no physical checkout, it’s like paying for your Uber.
3. Mobile Web Revolution
While everyone was aiming for mobile-first, Uber went straight
to mobile-only. Mary
Meeker’s ‘2017 State of the Internet’ report revealed
the average American spends 3.1 hours a day using their mobile
phone. One of the biggest challenges for retailers is to
deliver exceptional mobile experiences and increase mobile
conversion rates. Many retailers have used native apps to do
this, but the problem is getting consumers to use them.
The newest benchmark on mobile is ‘one-second responsiveness.’
But is that possible without a native app? At Magento we
believe the next wave in great mobile experiences is
Progressive Web Apps (PWAs). PWAs increase responsiveness
on your mobile, delivering a fast, app-like experience in the
4. Consumerization of Delivery
Uber riders expect their car to arrive in minutes, and can
track the driver’s arrival on their smartphone. With Prime,
Amazon’s customers expect two-day delivery. We are living in a
consumer’s world, and these mega-companies are driving
aggressive expectations for delivery and transparency.
How can other businesses disrupt delivery? There is talk about
drones, but FAA and aviation regulations can provide hurdles.
However, autonomous vehicles driven by GPS are already being
trialed by brands including Domino’s Pizza. In Australia,
Krispy Kreme is using Magento Shipping to provide doughnuts
on demand–schedule a delivery up to three months in advance.
Walmart is even asking their employees to deliver packages
on their commute home with the help of efficient order
management systems. It’s clear that businesses big and small
are thinking outside of the box.
Change is happening fast. Are you ready for the future of
commerce? Schedule a demo to see how Magento Commerce
can prepare your brand for anything. Go Now.