This Is the World Uber Has Made

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Uber has become so pervasive that the company is changing our vocabulary.

In everyday settings, we use Uber as a verb (as in “I’ll Uber to the ball game tonight”). In business settings, we use the term “uberization” or “uberfication” to refer to companies creating on-demand services such as home delivery of groceries or healthcare on demand. The Uberization of our vocabulary is a perfect example of how technology enables a change in consumer behavior. Thanks especially to the uptake of smartphones and apps, consumers are making purchasing decisions faster, and we’re expecting businesses to respond on our terms. The Uberization of our own consumer behaviors explains why Amazon has been embracing the use of automated drones to deliver goods faster and why brick-and-mortar businesses ranging from Nordstrom to Walmart are partnering with ride-sharing services to offer home delivery as well.

But is an on-demand world a happier one?

Walmart on Demand

On June 2, Walmart’s Chief Operating Officer Michael Bender announced that the $482 billion brand is piloting a grocery delivery program in select markets. Customers using the service will place grocery orders online and designate a delivery window. Walmart personnel will prepare their orders and may have a ride service such as Deliv, Lyft, or Uber deliver the items to the customer’s door. Customers will pay a delivery fee directly to Walmart as part of their online order rather than fuss with paying a driver along with the grocery order. If the process works as Walmart intends, customers will be able to order what they want online once, and all the prep and delivery will occur behind the scenes. As noted on Walmart’s blog, Sam’s Club has been piloting a similar program in Miami since March.

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Buy Buttons Try to Make Holiday Shopping Convenient

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The holiday shopping season has become anything but seasonal. Brands ranging from Amazon to Target are offering Black Friday sales well in advance of Black Friday. And the development of buy buttons on platforms such as Instagram and Pinterest has made holiday shopping as convenient as ordering gifts from your sofa: no more running around in the slush and snow taking in ornaments, carolers, and visits to Santa as part of the holiday rush. My new blog post for SIM Partners, “Will Buy Buttons Appeal to Holiday Shoppers?” examines the impact of buy buttons on holiday shopping and discusses how brick-and-mortar retailers might offer alternatives to them. Check out my post and let me know if the convenience of buy buttons is affecting how you shop.

Welcome to a New Era of Convenience Shopping

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Buy buttons are taking convenience shopping to a whole new level. In recent weeks, Instagram and Pinterest announced new buy button features that make it easy for consumers to purchase goods and services directly from their apps. Facebook, which began testing shoppable ads in 2014, announced an expansion of its program. Google confirmed that the search giant is developing a buy button so that shoppers can make purchases directly from Google ads. Why the interest? In a word: mobile.

It’s easy to see why these digital brands are instituting buy buttons. In the United States, online commerce accounts for but 7 percent of all retail sales. According to Forrester Research, by 2017 the Web will generate $370 billion in U.S. sales, or 10 percent of the total. By making it easier to conduct transactions online, the likes of Google, Instagram, and Pinterest hope to stake a claim to the $3.3 trillion in sales that will occur offline.

But why are we seeing a proliferation of buy buttons now? There’s something else going on: since 2013, consumers have preferred using their mobile devices over laptops and desktops to interact with retailers online. The shift to mobile has profound implications:

  • Mobile consumers have an immediate intent to purchase: according to a recently released report by Google, I Want-to-Go Moments: From Search to Store, half of consumers who conduct a local search on their smartphones visit a store within 24 hours. Nearly half of consumers trying to decide on a restaurant do their local search within an hour of actually going.

In I-Want-to-Go Moments: From Search to Store, Google noted that the number of “near me” searches (searches conducted for goods and services nearby) conducted by consumers have grown by 34 times since 2011; and 80 percent of those searches are conducted on mobile devices.

“With a world of information at their fingertips, consumers have heightened expectations for immediacy and relevance,” wrote the report’s author, Matt Lawson. “They want what they want when they want it. They’re confident they can make well-informed choices whenever needs arise. It’s essential that brands be there in these moments that matter — when people are actively looking to learn, discover, and, or buy.”

You can sense the wheels spinning at Facebook, Google, Instagram, Pinterest, and Twitter, where consumers and brands share the same space: if consumers are collapsing the journey from awareness to purchase on their mobile devices, why not remove the friction of sending them offline to buy something? Why not use buy buttons seal the deal the moment when initial research and consideration occur on mobile devices?

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