What is uberization? And how does it matter in relation to equipment financing?
Essentially Uberization is “the conversion of existing jobs and services into discrete tasks that can be requested on-demand; as seen in the adoption of the business model used by the taxi service Uber” (“Uberization.”). Marketplaces are seeing a shift in service platforms which allow for more freedom to the user and increased business opportunities to the other party or parties involved. This terminology is relatively new, but accurately describes the shift in industry.
When applied to equipment financing, Uberization is filling a gap in the market. Banks or other lending sources have relied on brokers to serve as the marketplace professional. This would cause the customer to rely heavily on the broker and their service losing all control of their sale.
It is incredibly expensive to buy equipment and to keep on top of maintenance. With this in mind, and the recent spike in small business ownership, there is an increased demand for equipment leasing services (Tirey, Vernon). The desired services cater to modern businesses by cutting out the middle-man, and by moving to a more automated leasing experience.
Through innovation in these new industries the old, inefficient, and time consuming ways of equipment financings past are being fazed out for more automated equipment leasing platforms. Now with the advancement of Uberization, FaaStrak has found a way to create a marketplace controlled by the user to enhance the equipment leasing experience as the user.
Tirey, Vernon. “‘Uberization’ and Other Top Trends in Equipment Finance.” Equipment Finance Advisor, Equipment Finance Advisor, Inc., 16 Feb. 2016, www.equipmentfa.com/articles/5182/uberization-and-other-top-trends-in-equipment-finance.
“Uberization.” Definition of Uberization, Collins, www.collinsdictionary.com/us/. submission/17695/Uberization.