Is the Gig Economy really important? How Amazon, Netflix, Uber, and Airbnb have become so successful? What is the main purpose of Uber and Netflix? Many of us want to be rich, successful, and respected persons and some of us want to build Billion Dollar Business Models to become a more powerful person. Have you thought about it if it is not as difficult as we might think?
- Amazon: Changed the way people shop, taking over a huge part of the retail industry.
- Airbnb: Changed the way people in hotel stays.
- Netflix: Reinvented the video and movie rental industry.
- Uber: Changed the way people form transportation. E.g. ride-sharing
Let’s back to our question – How? It is an undeniable fact is that they spend their time on IT infrastructure, but for sure technology alone could not have accounted for their success. It is possible to be heard a term called “user experience” by many of us and this term has become really important because those unicorns focused on their users’ expectations, needs, desires… etc. I think it is the basic explanation of the user experience.
Let’s look at more detailed explanations of the two of them:
What is the main purpose of Uber as a Gig Economy?
There are many Gig Economy examples such as Amazon, Netflix, Uber, Airbnb. However, in this paragraph, I am going to explain Uber.
Based on Wikipedia’s description of Uber is an American company that offers vehicles for hire, food delivery (Uber Eats), package delivery, couriers, freight transportation, and, through a partnership with Lime, electric bicycle and motorized scooter rental. What I remember is Uber can be the early adopter of the Gig Economy, and what is obvious thing is that the way people form of transportation was changed by its service. I would like to give you statistics about Uber trips by year and according to Forbes, Uber provided 6.9 Billion rides in 2019 – Such an amazing!
Looking at things from a different perspective is really matters because as all we know taxies are concern with regulations. For example, if I want to go somewhere, I have to call a cab or search for it and if I am lucky I can find one; or if I am on a street and need a cab, first the taxi drivers have to be satisfied with my “long trip” because of price. Let’s say my trip is not “long”, they even do not let me get a ride. On the other hand, Uber provides a passenger-friendly riding experience, it is easy to order a cab with a simple app and there are really flexible pricing options whether the trip is long or short because it has a user-centric experience.
What is the main purpose of Netflix as a Gig Economy?
There are many Gig Economy examples such as Amazon, Netflix, Uber, Airbnb. However, in this paragraph, I am going to explain Netflix.
The main purpose of Netflix is to focus on its users and what they wanted. According to the latest numbers, Revenue earned by Netflix in Q1 of 2020 is $5.77 billion. The behind story is similar to Uber because as I mentioned they focused on what customers want, desires, and what are their frustrations and etc. What do customers want? They want to be able to watch different kinds of movies without high prices and limitations. So if I give you a basic answer to what Netflix is doing is a subscription-based rental system. Moreover, Netflix has a different pricing structure around the world. Here’s what you get with each plan:
- Basic: The Basic streaming plan costs $8.99 per month and has the most limited features. You can only use it on a single screen at a time (which is fine if you’re the only user of the account), and resolution is limited to standard definition (SD), which is equivalent to old, pre-HD television.
- Standard: The Standard streaming plan costs $13.99 per month and allows you two watch on two screens at a time in high definition (HD).
- Premium: The Premium streaming plan costs $17.99 per month. For that, you can watch on four screens at once (ideal for a large family), and you can video programming in HD or 4K Ultra HD, if available.
There is a link that similar to this topic if you would like to read how the advertisement systems work https://globalaihub.com/ai-for-advertisements/
All these businesses having their services with the help of big data and data analysis. They identify their customers’ expectations and doing analysis but of course to be able to make data meaningful they need huge datasets. In addition, they need to expand their businesses more, and more and it means attracting new customers is the other step. Therefore, they need to improve their business models and revenues with different solutions, and all solutions are related to each other.