How, then, does an elevator company compete?
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Every elevator ride is basically a local one. The elevator stops 5, 10, 15 times on the way to your floor. This is a hassle for you, but it’s a huge, expensive problem for the building. While your elevator is busy stopping at every floor, the folks in the lobby are getting more and more frustrated.
[ . . . ]
Otis’s insight? When you approach the elevators, you key in your floor on a centralized control panel. In return, the panel tells you which elevator is going to take you to your floor. With this simple presort, Otis has managed to turn every elevator into an express. Your elevator takes you immediately to the 12th floor and races back to the lobby. This means that buildings can be taller, they need fewer elevators for a given density of people, the wait is shorter, and the building can use precious space for people rather than for elevators. A huge win, implemented at a remarkably low cost.