Uber pitching ride-hailing as alternative to courtesy shuttles

SAN FRANCISCO—When pressed, many tire dealers and auto repair/maintenance shop owners would admit that while offering a courtesy shuttle/loaner car service is a necessity, it is one that can be disruptive and/or costly to a shop's operations.

Ride-hailing pioneer Uber Technologies Inc. recognized this a few years ago and began pitching its "Uber for Business" platform to car dealers across the country as a viable courtesy shuttle alternative.

Now the San Francisco-based company is targeting the automotive aftermarket service sector with a revised platform that it claims will speed up the process of coordinating courtesy rides for customers, especially for companies in the automotive space, while also potentially reducing costs and enhancing the customer experience.

"Customer satisfaction in the automotive sector can have a profound effect on a business' health," Neal Watterson, global head of guest products and general manager of Uber for Business, said.

"The ability to provide exceptional service and easy, efficient transportation—whether it's to or from a dealership or providing timely roadside assistance—is of increasing importance," he said, adding that the updates to the Uber Central/Uber Vouchers products will help business customers manage and distribute transportation benefits more efficiently.

Outsourcing a shuttle service can also provide other indirect benefits for the tire dealer/auto repair shop owner, Watterson said, in not having to have an employee (and vehicle) dedicated to the service and/or pulling a counterperson or auto tech off his or her job to perform the task.

The new features incorporated into the Uber Central and Uber Vouchers services—which make up a central part of the Uber for Business platfor—were developed based on user feedback, Watterson said, and are designed to enhance auto aftermarket companies' ability to elevate the customer experience and address transportation needs in real-time.

Uber for Business—which Watterson describes as a "B2B2C" business model—launched in 2014 and grown steadily since, the company said, by providing "seamless and efficient transportation solutions" for service-sector businesses.

According to industry research cited by Uber Technologies, enhancing the customer experience could improve automotive-related sales by as much as 24 percent. Adopting courtesy ride solutions through Uber for Business can help businesses build customer satisfaction and loyalty, further supporting their market differentiation efforts, Uber said.

In a conversation with Tire Business, Watterson said the enhancements to the Uber Central and Uber Vouchers products were undertaken to provide business owners more flexibility in setting up a program that meets each dealerships' specific needs.

For example, he said, business owners may choose to limit the geographic scope of how far they want Uber drivers to take customers or to provide customers a voucher with a set dollar amount.

From a nuts-and-bolts perspective, businesses that use the service provide their customers via the Uber app with a voucher that the customer then applies to the ride. The customer controls booking the return ride back to the dealership as well.

Among the factors influencing a business' decision to outsource its shuttle service—according to Larry H. Miller Dealerships, a Salt Lake City-based car dealer—are:

• Each ride is custom-suited for each customer;
• Customers prefer this to a shuttle, where they might have to sit through three or four other drop-offs; and
• Customers prefer it over a loaner car — quicker, easier, no liability or stress.

Among tire dealerships that have been trialing the Uber for Business platform is Allen Park, Mich.-based Belle Tire Distributors Inc.

Uber Technologies also is pitching the enhanced Uber for Business platform to auto repair companies as a complement to their roadside and/or towing services, arguing that stranded motorists prefer being picked up and delivered back home or to work instead of riding in the tow truck back to the dealership.

"With roadside assistance, time is of the essence, and our partnership with Uber for Business addresses this priority," according to Chris Spanos, CEO and co-founder of Urgently Inc., a Vienna, Va.-based digital roadside assistance platform.

"In a recent survey," Mr. Spanos said, "nearly two-thirds of motorists expressed the importance of having a rideshare available in the event of a breakdown, with convenience as the most important factor. Urgently's partnership with Uber for Business allows motorists to opt for a ride with Uber that allows them to go directly to their next destination, rather than riding in a tow truck to where their car is being repaired."

Uber Technologies lists on its website a number of advantages for using Uber for Business, including:

• Average time of arrival is under 5 minutes;
• $1 million in liability coverage for every ride arranged;
• Free to set up and no minimum spending required;
• Centralized billing; and
• No separate app needed—customers are notified of trip details via SMS text.

In addition to the direct and indirect benefits cited above, Mr. Watterson cited one other indirect benefit aftermarket businesses could accrue from using Uber for Business: Gaining Uber drivers as customers for tires and automotive service.