SPEAKER: So the most important reason why customers love Uber has its source in the design of the app and the service. As you'll see later, design innovation fits into the value proposition block. When you need a ride, you just pull out your mobile phone and tap a button to order a car. The phone's GPS knows exactly where you are. The driver knows where you're going because you enter the address on your phone as well. And the app has your credit card number, so there is no financial transaction between you and the driver. 

Now just imagine all the steps that have been deleted compared to the traditional taxi industry. Before, you needed to find a taxi company phone number. That already was a huge obstacle. Then you would need to talk to an operator and tell them your address. Then they would send you a taxi to pick you up, but you couldn't know exactly when it was coming. And finally, you would need to take out a payment method and use it manually at the end of the ride. 

So Uber literally combined all these numerous steps into a few button taps on a well-designed mobile app. So here design innovation is key, but not so much the visual design, as we will explain later, but mainly the service design, the easier and more convenient customer journey through the service from the order until you are delivered to your destination. 

That's already a rule to remember for any business-- reduce the steps that your customer has to go through to enjoy your service as much as possible. Think about their actions from the moment they want to buy something from you and the moment they finally get it. How can you make it easier and faster for them? And for Uber, this innovation also extends to the channels, obviously. The channels block is about sales and delivery channels, and so here Uber app is definitely an innovation. 

The sale happens through a mobile app and not through a website booking or a phone call to a taxi company. But, of course, for Uber, this doesn't stop here. Next innovation which makes Uber so successful in financial terms is a legal one. So Uber claims to be a technology company and not a transportation company. This is very important because they treat their drivers as independent contractors and not employees. 

So in terms of Uber internal processes, their drivers are considered key partners on the business model canvas and not key resources. If drivers were Uber employees, it wouldn't be as profitable for them anymore because they would need to pay way more taxes, and so it would also be more expensive for their clients. 

So Uber is constantly navigating a complex legal landscape on a slippery slope, and that can be very dangerous. For now, though, it works. Also, the software that Uber created allowed it to innovate on the revenue model, as well, with the surge pricing. It automatically raises the prices when demand is high and offer is low, and so both the drivers and the company can earn more money. 

This is called dynamic pricing, and it's one of the innovative pricing strategies that we'll discuss about later in this course. And finally, once you take all these major business models innovations together, there are yet more consequences for the other blocks of the business model. For example, more customers are ready to use Uber services than taxis. A lot even never considered using car transportation services before Uber came to the market. 

So as you can see, Uber's most attractive features for their customers are the innovative design of the service and the lower prices because Uber internal processes are different compared to the traditional taxi industry. 

And if we talk about Uber's disruptive global success. Of course, we have to mention their huge investors and their ruthless execution, but that's another topic. The origin of their success can be found in their business model innovation, which offers a better service to customers and lower prices. 

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