Alec has been on the road since 4 am. He’s picked up three fares all morning. The arrival of Uber has hit him and other Melbourne taxi drivers hard. According to Alec, the taxi industry has seen a 40% decline. He says he earned as much twenty years ago as he does today. He complains bitterly about the regulators and his bosses—now in his fifties, he reckons he’s too old to switch jobs.

Joey hasn’t been driving as long as Alec. But he understands why many riders prefer the convenience of Uber. He knew as soon as the ride-hailing app arrived in Australia there was no way he could compete on speed or price. So he made a conscious decision not to try being faster or cheaper than Uber, but to find and serve a group of riders he could delight instead. Joey operates a small airport transfer car service. He charges the same rate as a taxi but provides a more personal, upmarket service with the intention of attracting repeat business clients. Joey’s strategy is working. He doesn’t have to drive the city streets finding customers for his service because he’s intentionally designed a service for his customers.

The more deliberate and specific we are about who we want to serve, the better our products and services will be.

Image by Matthias Ripp