Uber-esque service for yachts in Dubai? We’re in the same boat
dubai — The world’s superyacht manufacturers are sailing towards a major disruption of their traditional business model, with the CEO of UAE-based shipyard Gulf Craft predicting the rise of an Uberlike pattern of shared ownership and complex charters among the world’s ultra-wealthy.
Erwin Bamps believes the next generation of ultra high net worth individuals (UHNWIs) will increasingly prioritise experience over possession. They will still want the use of superyachts, but will be far less interested in owning the asset. In fact, they will see ownership as a restriction.
“We are going to see a time when traditional idea of a yacht ownership starts to follow the same path as car-sharing services — more convenient than a traditional taxi, and a real alternative to owning a car,” says Bamps. “The same principle will easily apply to luxury yachts. Imagine a global, technology-driven service that delivers the yacht you want, at the location you want,
Imagine a global, technology-driven service that delivers the yacht you want, at the location you want, at the time you want, and can arrange a private jet to fly you there
Erwin Bamps, CEO of Gulf Craft
at the time you want, and can arrange a private jet to fly you there.”
Bamps notes that this will no longer be a question of how much wealth customers have, which has traditionally been a defining difference between those who charter a yacht and those who own one, but rather about how millennials will choose to spend their wealth as they become a significant presence among the UHNWIs.
“This generation will have grown up placing much more emphasis on experience, and much less on owning a physical product,” he explains. “These are people who have never owned a record collection — or even a CD collection — music and movies are something they download or stream online. Where they step beyond that, it is because they want something extra, so while CD and DVD sales have fallen, live music and cinemas continue to thrive as a premium experience. It’s the experience that matters, not the physical item that creates the experience.”
A closer comparison for yacht builders is the motor industry. The rise of Uber and other ride-sharing platforms is prompting carmakers looking to establish their own carsharing programmes, as an addition to their traditional sales channels. While there are parallels with older shared services, such as taxis, a combination of advanced technology and shifting customer habits is rewriting the rulebook.
“Technology is going to drive this change,” said Bamps. “We are going to see some very complex charter networks evolve to cater for this market, making sure customers get exactly what they want.”
— business@khaleejtimes.com