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3 Conditions for Disruption

3 Conditions for Disruption

These are the conditions for disruption, and I’ll use Uber as the example.

A market is ripe for disruption when:

1. Existing solutions are far below satisfaction

And yet users tolerate existing offers because there is no alternative. Taxis are stereotypically old, smelly cars, with gruff drivers, and high friction payment systems that leave people itching to get out of them. Enter Uber… In dating, people literally say, “I hate this app” but continue to use it for lack of alternatives.

2. System Capacity is massively under-utilized

The basic exchange system of buyers/sellers, creators/consumers is completely inefficient. Before Uber, there were many cars going unused, and many riders who could use a ride, but didn’t want to deal with the hassle of calling a cab, and waiting for an unclear period of time for it to arrive. And there remains a massive number of people who want to take people out, and who want to be taken out.

3. Lack of Transparency, Progress and Control

Trust is created when we feel like we have the real information (e.g. driver reviews), a sense of progress (we see where the car is on the map), and a sense of control (we can cancel the ride if we want). In dating apps there is no accountability, little progress when it feels like there’s only swiping and texting. And very few controls to create and choose experiences.

Next I’ll describe how markets are disrupted.

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