greenpencil Disruptors come to the snow clearing business
Uber 2.0: Risk and reward O
ne of my new
favourite TV shows is Silicon Valley. The fictional protagonist is an awkward programmer in California who founds a software company to market his unparalleled file compression algorithm. I enjoy it because the show is about a business environment completely alien to me — the tech world. It’s a world where disruptors are generally the heroes, as they drive innovation that improves a product or service in an unexpected way.
Disruptors have changed the retail economy, as people can now use apps to borrow or rent tools, cars, bikes, and even land to garden on. Many chain stores now sport a sign at their entrance By Sarah Willis saying, ‘Order online, pick up in store,” encouraging their customers to shop at home with clicks and swipes. Technology and GPS have also caused great change in the winter maintenance business in the last 10 years. But it is about to be disrupted again, as a new emerging model is making it possible for landscape and maintenance contractors to target very specific service areas for their work, as well as reduce the cost of the sales cycle in order to get a signed service contract — without ever meeting the client. In this model, developers have taken the Uber
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rideshare idea one step further and become the matchmaker for the homeowner wanting his snow cleared, or lawn cut, and the contractor who is looking to add more clients on maintenance routes. One app uses an algorithm created by the developer to determine the price of the quote, and another sets the service cost based on the size of area to be cleared and the priority level of service required by the homeowner. What is missing from the equation is a formal contract between the homeowner and company. With the click of a mouse or button you can receive a job with all details sent to your phone, while you are plowing your route. Payment is received with another click of a button. Is a contract with no human contact the brave new world of service companies? Whether it is, or isn’t, remains to be seen, but creative disruptors can challenge us to change for the better. However you get your next job though, making sure you have insurance coverage is still a best practice. Whether the software developer works only with reputable companies through industry associations, or the developer is named as an additional insured on your policy, it falls to you to protect yourself and your business. In Silicon Valley, the disruptors lurch from extreme highs to lows and back to highs again, as tech business models can change faster than their computer processors. In the case of the service industry, it will be interesting to see if microchips and wireless air waves can replace the human connection. LT