Kevin – this is a question I ask myself and wonder what is taking them so long to come east! I guess I see the argument that they want to stay local and be exclusive, but I believe that a move east will be necessary as the chain continues to grow and saturates the west coast market. In addition, I also think that the decision to not franchise and let others take on the capital risk of opening up a new store will slow growth and allow competitors in the northeast, such as Shake Shack, to gain market share and crowd out others from entering in the future. I would think that they should follow in the footsteps of Chick-fil-A when they finally moved to New York, which caused huge excitement and publicity for the company.
Yael – nice job! I agree with your post on Uber’s business model and the reasons for its success, especially with respect to how its operating model matches its customer promise, such as minimal wait time, and customer and driver feedback mechanisms. While Uber has faced various regulatory pressures in the US and has overcome them, such as in New York City, they are facing further pressures overseas, such as in Paris where there have been violent protests by taxi drivers. When looking on the international scale, I’m curious to hear your views on whether you think these are temporary challenges or if there are structural factors in these markets that will keep Uber out.
Great post Tony, and it is good to see the primary research you conducted!
In your opinion, do you believe there is a fundamental flaw in the operating model where the business may fail if changes are not made, or do you think that if operational improvements were made, the operating model serves the customers and company well? There are obviously, several areas of weakness that you have identified (cleaning tire rims, real estate used for self-service vacuuming, and time needed for detailing) but I wonder what the return on investment would be for improvements, especially given varied demand for services throughout the day vs. a continual backlog that would need to be worked through.