Rideshare expert: Killing the dealership 'courtesy shuttle'

Welcome to another episode of the Car Dealership Guy Podcast.

Today’s guest is Charles Mizrahi, Head of Automotive Partnerships at Uber for Business. Charles talks about how Uber developed its automotive solutions platform and helped dealers solve decades-old transportation issues.

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(3:27) - Charlie’s background and career

(4:53) - Ideating Uber for Business

(10:44) - Penetrating the car business during Covid

(12:44) - What are you working on today?

(15:07) - What’s the value of offering a service that is so simple on the surface?

(19:16) - What are the use cases for this product?

(22:12) - What’s the future of dealership transportation?

(23:51) - What do you have on the horizon to bring innovation to the industry?

1. Charles’ background

Charles got his start in tech sales right out of college, launching his career at Yahoo before joining the startup that turned into Grubhub. His experiences at the two companies, both of which operated on a purely digital platform, gave him useful insights into how businesses use technology to solve problems, information that served him well when he was offered a job at Uber.

2. What makes Uber special?

He notes that upon joining Uber, he quickly realized that the company placed a big emphasis on problem solving and collaboration. These characteristics would eventually translate into initiatives like Uber for Business, which exist to overcome challenges left unanswered by the status quo.

3. What is Uber for Business?

Uber for Business was created to answer the problem of employee business travel, which at the time of its inception was largely handled through specific avenues like taxis or black car services. Realizing that there was a need for a streamlined solution that gave employers more control over their workers’ day-to-day, Uber devised a modernized approach, one that used an online system. The platform created to serve this niche would go on to be used in Uber Eats.

4. Entering the automotive sector

Uber began to delve into the automotive space after examining the problems consumers faced at the dealership, like long wait times and arranging transportation. Thanks to the creation of its guest solutions suite, which allowed businesses to arrange rides for a third party, the company was able to tailor a solution specifically for dealerships. 

5. Growth spurt

Charles notes that the idea really took off during the pandemic. Dealerships began connecting with Uber organically, most searching for alternative transportation solutions as typical ridesharing platforms became inoperable to quarantine measures. While leveraging their dealership partners to get referrals for more clients, Uber also sought out ways of embedding itself into the automotive community, networking with those within the industry and attending conventions and conferences.

6. Selling dealers on Uber

When talking with dealers, Charles is careful not to pitch Uber as a replacement for other solutions but rather as an additional tool in their shed, one that offers flexibility in times of need. Emphasizing the impact of reliable transportation on CSI scores has helped Uber rapidly expand its automotive services.

7. What does Uber for Business offer dealers?

Uber offers three options for its dealer clients. One of these is Uber Central which allows dealerships to dispatch a vehicle for a customer. Payments are handled entirely by the dealer, with all arrangements being made through text so that the customer doesn’t have to download the Uber app. Another is Uber Vouchers, a system that allows dealers to give credits to clients who may have longer service appointments and need multiple rides around town. Finally, Uber Direct functions as an on-demand parts delivery service. 

8. Other uses

However, while dealers primarily use Uber for service rides, Charles notes that many rely on the platform for a variety of other services, including vehicle pickup and dropoff, employee and executive travel, and food delivery. 

9. Saving money

One of the reasons dealers are often excited to work with Uber is the savings that come with replacing fixed costs with flexible options. Sixty-seven percent of dealerships working with Uber said they saved cash by using the platform’s ridesharing services, and in one instance cited by Charles, a Honda store actually saved $45,000 annually by replacing its shuttle fleet with Uber drivers.

10. What’s next?

In the future, Charles expects to see dealerships prioritize having a healthy balance in the transportation offers they provide to customers. He anticipates a shift away from legacy shuttle services that dealers have relied on for so long, however he clarifies that those options will likely always exist in some fashion. Uber plans to continue evolving its services and incorporating feedback from dealerships into its automotive-focused solutions.