Topic 3: eBusiness Applications
& Success Stories

Uber was conceived in Paris in December 2008 by Travis Kalanick and Garrett Camp, launched its first trip in July 2010, entered Sri Lanka in January 2015, and moved into food delivery by April 2015. PickMe, a product of Digital Mobility Solutions Lanka (Pvt) Ltd, started development in June 2014 and launched its passenger app in June 2015 as a solution to Sri Lanka's outdated transportation system.

Value Propositions:

• To Passengers: Lower wait time, lower price, ease of access, and enhanced safety vs roadside hailing.
• To Drivers: Flexible working hours, extra income, ability to choose rides, and access to a large passenger pool.

Cost & Revenue for Uber:

• Costs: Infrastructure (servers, app maintenance) and employee salaries.
• Revenue: Commissions from rides, Surge Pricing premiums, and premium ride tiers.

Surge Pricing Mechanism: Uber's algorithm applies a multiplier to the standard fare when demand exceeds supply. Higher prices simultaneously discourage price-sensitive passengers and incentivise more drivers to come online, closing the supply–demand gap.

Counter-example — New Year's Eve 2014–15 Surge Outage: When the algorithm failed in New York City, drivers had no financial incentive to work. Driver supply fell sharply, the completion rate dropped below 25%, and wait times spiked — confirming that Surge Pricing is essential for marketplace equilibrium.

Online food ordering allows a customer to place an order via a mobile app or website and have it delivered to their location. Payment may be online, cash-on-delivery, or card-on-delivery depending on the platform.

How UberEats Works (step-by-step):

1. The customer browses partner restaurants and places an order through the UberEats app.
2. The partner restaurant accepts, prepares, and packages the order.
3. An UberEats rider picks up the packaged order from the restaurant.
4. The rider delivers the order to the customer's doorstep.
5. The customer tracks delivery in real time.

Key Success Factors of UberEats:

• Leveraged Existing Infrastructure: Built on Uber's technology stack (GPS, payment systems, driver network), drastically reducing market-entry cost and time.
• Street-Routing Software: Uber's proven routing algorithms were repurposed for optimal delivery.
• Existing Customer Base and Driver Loyalty: Uber's registered users and drivers gave UberEats an immediate market at launch.
• Consumer Willingness to Pay for Convenience: Modern consumers accept a delivery premium to receive meals at the doorstep rather than travel to a restaurant.

• Customers order from numerous restaurants island-wide directly within the PickMe app.
• PickMe riders collect and deliver orders to the customer's address.
• The app displays estimated delivery time, delivery fee, and restaurant approval ratings.
• Both delivery and self-pickup options are available.

Online education is the practice of teaching and learning conducted over the internet where instructors and students are geographically separated. Related terms include e-learning, distance education, blended learning, virtual learning, and cyber-learning. COVID-19 massively accelerated adoption, forcing institutions to use Moodle, Zoom, and Microsoft Teams.

Kaplan & Haenlein Classification Framework:

• MOOC: Open-access, unlimited enrolment; certificates require payment.
• SPOC: Competitive application; limited cohort; scheduled per student availability; may charge tuition.
• SMOC: Large-scale; all students must be simultaneously online (live streaming, virtual group work).
• SSOC: Real-time, small cohort — resembles a traditional seminar conducted online.

Benefits of Online Learning:

• Schedule flexibility — students access materials at any convenient time.
• Reduced costs — no commuting, accommodation, or textbook expenses.
• Geographic flexibility — enrolment in institutions in different countries.
• Wider programme selection — not constrained by location or timetable.
• Improved technical skills through regular use of digital tools.

Challenges of Online Learning:

• Requires high intrinsic motivation and self-discipline; high dropout rates.
• Risk of social isolation and excessive screen time.
• Dependence on reliable internet connectivity and devices.
• Technical difficulties can disrupt learning continuity.

Moodle as an LMS: Moodle (Modular Object-Oriented Dynamic Learning Environment) is a free, open-source LMS created by Martin Dougiamas (v1.0 released August 2002). Used by schools, universities, and enterprises globally, it provides a single, secure, integrated environment for personalised learning. Key activity types include: Assignments, Quizzes, Forums, Glossaries, Lessons, Feedback tools, SCORM packages, and Surveys (COLLES/ATTLS). These activities support asynchronous communication, assessment, and collaborative knowledge-building — mirroring the interaction patterns of physical classrooms within a digital environment.

Online banking (also called Internet Banking or Web Banking) allows users to conduct financial transactions over the internet. Almost all services available in traditional physical branches are now offered digitally. Sri Lankan examples include People's Bank, Sampath Bank, and Commercial Bank (ComBank Digital).

Key Services Offered Through Online Banking:

• Money transfers — within the same bank, inter-bank, and international remittances.
• Online bill and utility payments.
• Opening new savings or fixed-deposit accounts.
• Loan applications and repayment management.
• Credit card payments, statements, and limit management.
• Real-time transaction monitoring and SMS/email alerts.

Disadvantages of Online Banking:

• Usability barrier: Elderly or non-technical users may find platforms confusing or inaccessible.
• Trust deficit: Some customers are reluctant to trust digital systems with sensitive financial data, preferring face-to-face interactions.
• No cash withdrawal: Physical cash can only be obtained at ATMs or counters — online banking cannot replace this.
• Cybersecurity threats: Platforms are vulnerable to phishing, credential theft, malware, and man-in-the-middle attacks.
• Technology dependency: Services are unavailable during internet outages, device failures, or maintenance windows.

The eBusiness applications in Topic 3 — spanning ride-hailing, food delivery, education, and banking — share several common success factors while demonstrating sector-specific strategies.

1. Solving a Real, Unmet Need
Each application addressed genuine friction in the customer journey. Uber solved the problem of finding a safe, fairly-priced ride on demand. Moodle addressed the need for a flexible, open-source LMS for geographically dispersed learners. Online banking removed the constraint of branch operating hours. Successful eBusiness applications are built around customer pain points, not technology for its own sake.

2. Leveraging Existing Infrastructure
UberEats reused Uber's GPS routing algorithms, driver network, and payment rails — drastically reducing time-to-market and capital expenditure. PickMe Food similarly leverages its existing ride platform. eBusiness applications that build on existing digital assets scale faster and more cost-effectively than those starting from scratch.

3. Network Effects and Critical Mass
Ride-hailing and food delivery exhibit two-sided network effects — more passengers attract more drivers, which reduces wait times and attracts more passengers. Uber's Surge Pricing maintains this equilibrium during demand spikes. The platform's value grows non-linearly with user numbers on both sides of the marketplace.

4. Ease of Use and Accessibility
Zoom's rapid COVID-19 adoption was driven by its low technical barrier — easy installation, low data usage, and an intuitive interface accessible to non-technical users such as school teachers and elderly learners. PickMe's single-app approach (ride, food, market, flash, truck) similarly reduces friction by providing all services under one interface.

5. Trust, Safety, and Security Mechanisms
All applications incorporate trust mechanisms: Uber and PickMe use driver ratings and real-time trip sharing; online banking implements multi-factor authentication and encryption; Zoom uses password-protected meetings, waiting rooms, and end-to-end encryption. Trust is a prerequisite for eBusiness adoption across all sectors.