Your first job, and what you should look to do

I write this post as I feel very passionately about this question. What am I supposed to do when I first get a job?

I went through a similar phase a few years back, when I started working at my first job. 

There were several things that rambled on in my head, as I struggled to balance life, work, and all things around it.

It is only when I look at it now, does it all make sense, and I wish someone told me these things as I was entering the work world.

The way we are raised makes a huge difference in our attitudes, and our expectations from the world.

In school, our peers, our friends often leave us with the feeling that we need that “extra” thing to be “happy”. As a result our very definition of “happy” starts getting linked to things that are not in our control.

The secret of a happy professional life lies with you, and you alone. And it all stems from the way you define happiness.

When a young engineering graduate joins an IT firm, the world suddenly is thrust upon her/him. More often that not, there is that growing need to earn more, do more and be “successful”. While there is nothing wrong in that, as a notion. What is perhaps not right is tying it to things that are way beyond control.

I had a professor while I was studying at the Asian Institute of Management, who told me, when I was 28, that you should focus on the stuff you can control, and forget about the things you cannot control.

In that small line, was hidden a lifetime of learnings, and something that I am still understanding as I go through life.

The notion that you deserve more than what you are getting is absolutely bogus, and only breeds misery, and in turn leads to lack of productivity, and whatever chances you have of succeeding are diminished.

News flash: The world doesn’t owe you a thing. You have to work towards getting it.

To give you an example, more than often I have heard conversations among folks who work at IT organizations that go like this:

A, working at an IT services company says, “Oracle pays way more than our company does at the same level, and here I am doing the same work. I deserve more money than this, so I am going to focus on getting a new job”

Some questions that spring to mind are:

•  What is the basis for such a notion? A friend came and told you this? Maybe you should check if that is actually true or not. If true, if indeed an Oracle pays an entry level engineer more than your company is paying, you should find out what kind of work you are made to do while there. You need to understand, first and foremost, the yardstick of comparisons are different, Oracle is a “manufacturer” of software, whereas, companies such as an Infosys, a TCS, or a Wipro are software  “Services provider”, in other words, they solve tickets, and they do this cheaper than anyone in the world. And they typically work for companies that implement an Oracle solution, or an SAP solution among a ton of others.
• What is the future potential of income? While with IT companies, you have a chance to travel to a client location, and while there, you can earn more than your peer at an Oracle maybe.
•  What are the other hidden incentives that your company offers when compared to others? I am sure there are a plenty of them, its’ just that we take so many things for granted, that we fail to see them. For example: an Infosys offers laundry services to all its employees. They have huge washing machines and air-dryers, available for all its employees to use at a very minimal cost. Which is very very cool.

What I am trying to say is, companies want you to be happy as people, and want you to be the best that you can be. It is up to you to value that, and be the best you can be.

Why do I take such a philosophical tone? How about this, you do the best you can do, and I can guarantee, you will learn new skills, you will learn how to wade through the politics that plagues most companies, you will start to stand out among the crowd, and slowly and surely, better opportunities will find their way to you.

I will leave you with a few thoughts to chew on.

When you first start working, spend quality time learning what work you are doing, and why it is important in the larger scheme of things.

Figure out how to do your job best. Then focus on doing it differently. Figure out processes in and out, and then think about how you can be better at doing it.

Then pitch your ideas to people who will value and appreciate this insight into doing things.

While you are at it, you may want to ask yourself if this is something you want to do for the rest of your life or not. If not, then what is it that would interest you?

The time I would suggest you spend doing this would be north of at least a year.

And while you are at it, remember to focus on eating right, working out, sleeping well, pursuing your hobbies, reading books that you enjoy, and lastly, meet as many people as you can, and if you fall in love, by all means, do! Just don’t be a jerk to people, be courteous, and humble. These are qualities that will stand you in good stead.

In all likelihood, you will have a great life, and trust me, as you are reading this, you will be incredibly successful in life, and will have all that you have ever wanted. It is just a matter of time, and you need to put in the effort, and be very patient. Do things that feel right, and don’t be an a**hole. 

Advertisements that make my head hurt: Part 1

I have been wanting to put a message out there for companies who have sub-par brand managers, and even worse agencies executing the adverts. I wonder where the concepts of brand maps, concept boards went when I look at these adverts.

I also feel bad for the company that puts these ads out, because clearly it doesn't help create the connect they'd wished for, or does it? I leave it to you. To me, it simply makes my head hurt. And if anything makes me never want to invest in these products.

I will continue to enhance this post, with more adverts... But here are a few to get you started.

Contender number 1: The Vivo IPL 2016 advert.

Now this advert, I am sure the brand manager thought that the message he wanted to convey was good. The association that the team tried to create was that of positive thinking. But, unfortunately, the song that plays in the background makes ones blood pressure rise.

So here it is for your viewing pleasure.

Contender number 2: Rupa Vest Advert

I do not want to say anything about this. Zohan has been copied shamelessly. I am not even sure what the message is this guy is trying to convey

Contender number 3: Oppo Smartphones

All I can say about this is, OH MY DEAR GOD! WHY!

Hritik Roshan looks like a creep trying to fix eye bags on Ms. Sonam Kapoor. Who herself manages to use filters to change her look from that of a normal human being to a South-East Asian woman. Why, I ask, WHY!? And why do we have a guy playing the accordion in the background is beyond me, and honestly adds to the irritation quotient of the advert.

I know Chinese companies generally make terrible adverts, but this one takes the cake, simply because of the amount of money they must have spent on the slots, the actors, and the agency.

Contender number 4: Vimal Pan Masala

I don't know what Pan Masala has, as in terms of contents, but I am sure people do not start hallucinating the way they show in this advert. Ajay Devgan ought to revisit his career choices again.

Contender number 5: Lyra Leggings

Now I have been assaulted by this ad quite frequently at cinemas. I hope Prachi Desai goes back to making chapatis at home that she was doing anyway, after starring in Rock On, because quite clearly her career did not go any where.

Contender number 6: Manyawar
I have decided I will never let anyone I care about wear Manyawar clothing. Why? Well because of this advert.

Contender number 7: Sprite

I am not a huge Sprite fan, and after seeing this advert, I am thankful I stick to drinking Amul Masti, a spiced buttermilk, and after seeing this commercial, I recommend you don't drink Sprite  out of care for the intellect and intelligence of a normal human.

Contender number 8: Frooti

Now, I respect Shahrukh Khan as an individual, however I firmly believe he sucks at acting, dancing, and generally at films. Not to forget even at adverts. I only hope folks at Frooti wake up, hire a better agency, and re-look at brand ambassadors.

Here is the commercial that makes absolutely no sense to me. Again, the brand is so powerful, and Parle is loved by the masses so much, the product manages to tick, despite the horrendous adverts, and the terrible brand ambassador.

Contender number 9: Thumbs Up

Salman Khan shouldn't have been retained as brand ambassador for the company, after his frequent run-ins with the law, is what I feel. However, if he was retained, at least make him star in adverts that don't say: "Kuch toofani karte hain" (lets do something that's terrifying)

After all, maybe this toofani bit landed him in trouble in the first place. Unfortunately, the drink is loved by the masses, given its slightly "coarser" taste when compared to other dark colas in the market. The target segment that favors this drink also varies, it is not just the young, urbane, risk taking junta, but is also loved by the slightly mature populace. Given its' origins, a Thumbs Up becomes an instant hit when paired with a spicy biriyani, or a oily chhole kulche/ bhature.

Contender number 10: He Deodrants

So the point of this advert is, if you do not use this deodorant you shall never be interesting. Also, this kind of proves what we all have known for a while, that deodorants are like your bag of wafers, filled with air. In fact in this advert, it seems the gas is lighter than air.

I will rest my case for now, but I will come back with more on terrible adverts, that make your head hurt.

Uber/Ola and Why I think Surge Pricing is not the solution

There's been a wide array of reactions on social media about the ban that the Delhi government imposed on surge pricing on Uber and Ola cabs in New Delhi. The Delhi Government did this as part of their on going rule to control vehicular traffic by enforcing the odd-even rule.

Now before I put forward my arguments against surge pricing, and talk about my observations and experiences, I would like to go talk about a few things. Namely, what exactly is surge price, and what are driver incentives, and how they tie up to form part of the business models of these aggregator businesses.

The following narrative, is based on my experiences with Uber in Kolkata, New Delhi, Bangalore, and Jodhpur. I single out Uber because I have found Uber to be better than Ola with their price points and services. I have had some harrowing experiences with Ola, which is why I haven’t availed their services in over a couple of years now.

The Quick and Dirty Business Model

Uber and Ola are car "aggregator" services, their value-proposition or core offing is an app that provides consumers with cost effective options of availing safe, clean and air conditioned taxis. These taxis are the business partners with these aggregators. Uber calls them "Driver Partners". Uber is right now not making any money, and is "investing" in India. The drivers are paid by Uber weekly. The app is maintained by engineers in the US, and uses Google Maps APIs. (this is my guesstimate though). The distance between points is measured via GPS locations, and is most of the time, accurate up to 5 meters.

In Kolkata there are two categories of Uber, namely, Uber Go, and Uber X. UberGo charges 7 bucks a kilometer, and X charges 9 bucks a kilometer, on top of a minimum fare.

Surge Prices

Now to match demand with supply, they introduced the concept of a surge price. If the demand for cabs in a particular area is high, and availability of cabs is low, they implement a “surge price” that, they claim, encourages more drivers to go to these “demand hot-spots” to help commuters get taxis. As to its efficacy, I have no idea, as I haven't had access to their data.

In principle, this sounds logical, and is in fact welcome, as this solves problems on both sides of the coin. That is, helps commuters get cabs, and also incentivizes drivers to go to hot-spots. This, though, is in theory only, as I will explain with my specific cases.

Driver Incentives

Let me talk about Kolkata as an example. When Uber first launched in Kolkata way back in 2015, to get drivers on board, Uber announced ridiculous incentives. Some sample schemes were: Drivers will get 5 times the amount that comes up on the “meter”, with an additional 300 bucks per ride, irrespective of the duration and length of the commute.

Driver numbers surged from a mere 200 cabs to a whopping 20,000 cabs in a span of a year.

Today there are about 20,000 Ubers on the road, and a similar number of Olas. This number might change, as a lot of Uber cab drivers are migrating to Ola. I will talk about this in a bit.

(*this data as obtained from my interactions with various senior “driver partners” with Uber)

Now with such a huge number of cab drivers, Uber changes its incentive strategy from time to time, usually on a bi-weekly basis, as it tries to manage both the demand and supply side of things. By demand side of things, I mean, their marketing team runs promos such as:

• Avail a minimum of 3 rides in the next 3 days, and get a chance to win 100 rides
• Refer a friend to Uber, and you get 3 free rides, and your friend gets 2 free rides.

For supply side of things, as of two weeks ago, the incentive structure was:

• Complete 11 trips in a day, you get an incentive of 2400/day (with a certain rating)
• Complete 14 trips in a day, you get an incentive of 3000/day (with a certain rating)

Now the amounts that I quote might not be exact, but it’s in the right range, with a tolerance of 10%.

The ratings I refer to here, are the ratings passengers give drivers after completing a trip. (on a scale of 5, usually the floor rating is that of 4 to be eligible for most incentives)

Uber incentivizes drivers to complete more trips during “peak hours” i.e., during the morning office commute time, and evening office commute time. At times Uber also pays driver partners an extra x % on top of the metered fares.

On the driver side of things, those who enrolled with Uber during its initial days, made a killing, earning any thing from between 200k to 300k INR a month. As a result working for 20-25 days in a month earned them awesome money. If some stories I hear are to be believed, people paid off a Swift Dzire sedan loan within 6 months.

Some other positives that stemmed from its initial days of "incentives" were, that these drivers were able to send their kids to better schools, and have a better life in general.

Some “owners” (entrepreneurs who bought the cars, and hired a driver for 15k to drive for 8 to 10 hours a day) made a killing, investing in more cars, and enrolling them with Uber.

This was the hook Uber used to on-board more “Driver Partners”.

Now with the passage of time, incomes from Uber has reduced significantly. Drivers who brought their own cars on loans, are struggling to balance their EMI payments, enhanced lifestyles, and car maintenance costs. Summer months become especially challenging, given that the air conditioning remains on most of the time, resulting in more operating expenses.

Hypothetically, now, a driver who completes on an average of 14 trips a day, earns up to 150k. This however is a tough task, as now there are more cars on the road, so there is plenty of supply and demand hasn't increased at the same rate yet.

Given these factors, “owners” push their drivers to:

• Complete more trips, and
•  Earn “more” per trip by plying during surge hours, at surge "hot spots".

“Driver-owners”, too, follow these guidelines.

How this Ties to Surge

Now given this context, Uber drivers now earn more when they drive on surge rates, in these "hot spots". What is ideal is, making short trips within a surged location. This way, the driver is able to complete the stipulated number of trips, and also able to make the extra incentive money.

Gaming the Surge: The case study

Now my office location is a little far away from the downtown, and invariably, every morning and evening I witness crazy surge rates (anything between 2x to 5x), as cabs are hard to come by when you need them most.

This got me thinking, if it was really a surge, or if the system was somehow getting gamed.

This thought was triggered off when I observed that there were about 4 to 5 Uber cabs in the vicinity, which were not showing up on the app.

I did some digging around and this is what I found.

Uber drivers congregate at locations where they see consistent historic surges during “peak hours” and log off of their Uber Driver apps. For example, if the surge kicks in at 5PM, they will reach the location at 4:45PM and log off.

This leads the system to think that there are no cabs in the vicinity. The driver partners keep logging in from time to time on the Uber "Passenger App", to check where the surge is at.

When it reaches a fairly meaty number, they log back in and desperate “riders” book rides via the app.

Now the beauty/dark side of the surge is that the surge rates are "on" for a period of 30 minutes (on an average), after which it refreshes itself based on number of requests and number of Ubers in the area.

The moment the surge starts to drop, the drivers simply log off again, and wait for 30 minutes for it to go up again. As a result it creates an artificial shortage of supply.

Agreed, that only the most desperate commuter would be willing to pay higher rates (at times 3 to 5 times the norm), but it still leaves one with the feeling of getting fleeced. To make matters worse, I have witnessed surge rates of about 7x near the airport, the AIRPORT!

You might ask me, then what about completing the number of trips in the given time. Uber drivers have found yet another ingenious, and admittedly cruel, way to game the system. And I have fallen prey to this more than once.

The Uber driver requests the passenger to not enter the destination on the app. Before the rider arrives at his/her destination, the driver quickly ends the trip about a kilometer from the destination. Post this, the driver requests the rider to book the same cab once more, only this time to change the mode of payment to cash.  All this while the driver and rider are in the car. What this leads to, is the driver gets two rides in the same time from the same passenger. The passenger isn’t asked to pay for the second “cash” trip, and the driver ends the trip within a kilometer or less.

What the driver does is within the rules of what is possible, as a result this creates a win-win situation for the driver, AND commuter. Why? Well, because this saves the commuter a surged rate for a kilometer, and helps the driver completes 2 trips on a surged rate. Yes, the driver doesn't get paid for the second trip (its been booked in cash, remember?) but his cost for a kilometer is 5 bucks anyway.

What this does, and why it’s not helping: My opinion

This leads to tremendous frustration at the commuter end, and frankly, I can’t help but feel a little cheated. This is also not the permanent solution a bigger problem, as there are aspects that require deeper, more mature thought.

I will talk about them one by one.

Luxury vs Economy

When you start talking about providing “premium” services at affordable rates, it causes some amount of cognitive dissonance. Not for any other reason, just because such a thing is rare, and perhaps is unheard of.

Last a company tried doing this (affordable-luxury) in India, employees did not get paid for a year, and the “King of Good Times” borrowed a whole lot of money from banks that he’s now struggling to return.

This makes “premium” rides an affordable commodity which can be dangerous if not executed well, and at the same time make for a highly attractive market opportunity, if executed well.

Sustainable Business Model?

What concerns me is the way the two aggregators are playing the game right now. The costs are getting driven further down with each player trying to capture market share.

As a fall out of this fight to death, what bothers me most is the driver incentives scheme.

For example, Ola in Kolkata recently announced, that they will pay drivers an additional 25k to get the bumpers of their cars painted in Ola Green, and announced an incentive structure that betters that of Ubers’. As a result a host of drivers went and signed up with Ola, while still retaining their Uber phones. (this is why I am not sure on the exact number of Ubers and Olas on the road, but as of three weeks ago, Uber had around 20,000 cars)

What these kinds of initiatives create is a very tiny short-term gain, but impacts the life of the driver in significant ways, because with this one time capital injection, the driver will not be able to plan his/her life in the long run.

The commuter will look at the cheapest option and book rides there. But that doesn’t solve either ones’ troubles, because drivers will figure out a way to game the system again for their benefit.

While the competition in the market is good for the consumer, it puts a lot of pressure on those meeting the demand.

The other thing that bothers me, is that both these aggregators are fighting till one of them runs out of money and dies.

Problem is they are betting with investors’ money, but ultimately people might get affected, after all, all this money has a source, even if it is your Angel, Seed, and Series A-to- Z funds, and in some cases with irreversible incidents.

Is this a sustainable business model? No, it is not. No business wants to lose money, they will have to turn into a profit making venture before they can even think of going the IPO route.

Will they get the money via IPO which meets their expectations when they go public? Maybe not. But this is a topic for another blog post.

My proposed solution: Initial thoughts

It’s not that I am against surged rates. I am not too overtly fond of times when surges exceed reasonable limits. When a lever doesn’t act in the intended way it needs to be revisited and re-imagined. I would like to see a ceiling for surged rates that would prevent the commuters from getting fleeced by drivers trying to make more money, at the same time "encourage" drivers to go to surged "hot spots".

This alone, however, wouldn’t work. Driver incentive schemes should be relooked at. Maybe rewarding drivers based on rider feedback, and miles covered, instead of the number of trips covered, can be looked at.

I am not trying to paint the drivers in a negative light here. They are doing what they can do within the system, while its still fair. They aren't breaking any law at all.

All I am saying is, the system can be gamed, and there need to be certain checks in place to stop this from happening.

Maybe raising the floor prices can be a start. Raise the floor, cap the ceiling. Maybe this might create avenues for further creative aggregator companies to step into the marketing. Who knows, we might have better services.

This requires deliberate thought, and a comprehensive execution plan of action that is aligned to what the aggregator envisions for the Indian market.