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Uber Case Study

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Uber Technologies Inc. (www.uber.

com) is an American international transportation network


company headquartered in San Francisco, California. The company develops, markets and
operates the Uber mobile app, which allows consumers with smartphones to submit a trip
request which is then routed to Uber drivers who use their own cars. Uber now operates in 600
cities in 65 countries, providing more than 10 million rides each day. By the end of 2018, Uber’s
market value was around US$72 billion, with expected revenues for 2018 around US$10billion.
However, since it began operation in 2012,Uber’s net income has been negative.

It is estimated that worldwide there are 75 million ‘loyal’ Uber passengers, who are served by 3
million Uber drivers worldwide, 0.75 million in the US, and2.25 million drivers in the rest of the
world.

Consumers appreciate Uber, and rival services like Lyft in the US, Didi Kuaidi in China and
GrabTaxi in South-East Asia, because they tend to be cheaper than conventional taxis, cleaner
and more reliable. Uber’s freelance drivers typically pay Uber around 20per cent of their fares.
For many of Uber’s freelance drivers, flexible working hours and being spared the formalities of
qualifying as a conventional cabbie area an advantage.

Uber is a case study in how to construct a ‘platform’, a digital service on top of which other
businesses can be built. As it arrives in a city, it launches a vigorous recruiting programme for
drivers, offering them incentives to sign up. Its fares are ‘dynamic’– they undercut conventional
taxis most of the time, but go up when it rains, or when there is some other reason why
demand for rides is high.

This encourages more of its drivers onto the roads when they are most needed. This in turn
means that customers can always get a car quickly, even if it sometimes costs a bit more. This
encourages them to keep using Uber, in turn providing lots of work for its drivers. In recent
years Uber has moved into new fields and diversified its core offering, by introducing peer-to-
peer rides through UberPOP ride sharing through Uber Pool and various levels of luxury options.
Furthermore, Uber has also started funding research into autonomous cars.

Uber’s presence in cities has provoked a reaction among regulators. Taxi drivers have also taken
on the company with protest and violence against Uber drivers

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