Opinion: In SEMO, alternate app trumps Uber, Lyft

It’s become a common practice among most travelers and smartphone users.

When in a new city, especially without a vehicle, customers can tap their phones a few times to almost instantly send a vehicle to their exact location via Uber or Lyft.

It’s incredibly convenient, and it may ultimately spell the end for taxicab companies.

On a recent trip to Cape Girardeau, my experience was similar – but Uber and Lyft were not involved.

Instead there was carGO, which if you’re familiar with Uber and Lyft, works pretty much as you might expect. Enter your destination, request a ride, and off you go. It even has its own version of Uber Eats, allowing users to order carryout from restaurants that don’t offer their own delivery.

CarGO is an interesting case study.

What’s most fascinating is how carGO, a much smaller, regional ride-hailing service compared with Uber and Lyft, is dominating in southeast Missouri.

If you Google “Cape Girardeau ride hailing” and other variations of that phrase, carGO is at the top of the list. Obviously, the developers have their search-engine optimization game down pat.

Further, carGO appears to have built a loyal following of drivers – so much so that Uber and Lyft almost feel nonexistent.

As a test, I tried Cape Girardeau destinations on both Uber and Lyft. Uber delivered a message saying its service is “currently unavailable in your area.” Lyft, while available, estimated much longer travel times, even for short distances.

It’s worth noting I asked Uber and Lyft spokespersons and both said their services were readily available in the Cape Girardeau market. The evidence at hand points to carGO as the primary player.

The carGO experience was mostly seamless. The rides to and from destinations were quick, about on par with Uber or Lyft. There was one glaring negative: CarGO automatically charges gratuity if the user doesn’t close out of the ride quickly after arriving. That’s probably a strategy for clientele who often use ride-hailing services. People who have indulged in alcoholic beverages have a tendency to be forgetful. It’s a bit exploitative in that way, but the onus is still on the user to be sure to close out the ride if they want to set their own tip amounts. Comparatively, Uber and Lyft don’t automatically charge gratuity.

In the case of carGO, Cape Girardeau residents have gone with the hometown service. CarGO is based out of Cape Girardeau, and the city has a tight-knit feel. It makes sense that David would triumph over Goliath in this particular situation.

According to CarGO’s website, the company launched in February 2017 in Cape Girardeau and Jackson, and after completing 50,000 rides and deliveries, it expanded to Poplar Bluff and Farmington with plans to enter southern Illinois. CarGO has built its own small pocket of market penetration in the area known as the Heartland.

There is certainly business wisdom to glean here. Most prominently, a small company is successfully battling two multibillion-dollar competitors. It’s rather astounding.

When Uber and Lyft came to Springfield, they quickly made short work of this market. Taxis were all that existed before, and while they’re still around, their use among my friends and colleagues have dipped or stopped completely. One co-worker even told me she attempted to use a cab at the airport, but after a frustrating experience, she’s switched to Uber. She called it a “faster and less-convoluted service” than what she experienced at the airport.

Interestingly, I discovered local business Springfield Yellow Cab Co. does have an app. Curious, I downloaded it, but the app indicated it would take 30 minutes to get a taxi to my current location. Put simply, that doesn’t compare with the typical 2-3 minute arrival times of Uber and Lyft drivers.

Even so, props to Springfield Yellow Cab for adapting. The company clearly hasn’t given up, despite arguably superior services entering the Queen City.

For startups, this kind of case study is easily applicable. If a small tech company in Cape Girardeau can compete and win, why can’t one in Springfield or anywhere for that matter?

If you have a dream but are deterred by competitors, you definitely still have a shot. To use carGO’s example, marketing and branding are clearly important. It’s a complex concept, to be sure, but timing, name recognition, product validity and marketability are key. And remember the old “try, try again” adage.

Take Bill Gates’ advice: “Success is a lousy teacher. It seduces smart people into thinking they can’t lose. It’s fine to celebrate success, but it is more important to heed the lessons of failure.”

Web Producer Geoff Pickle can be reached at gpickle@sbj.net.