Uber Technologies Inc.: Calling a cab for the Taxi Industry?
This case study examines the rise of taxi apps, in particular that of Californian company Uber Technologies Inc. It assesses the strengths and weaknesses of the new service, and scenarios which present both opportunities and threats.
Features and benefits
Analysis of how technology has disrupted indudstry in the past and how it is currently doing so in the taxi operator industry.
Detailing what Uber is, how it has grown so strongly and what its future plans are.
Evaluating the threats to the company and how it has responded to them.
The proliferation of smart phones has presented an opportunity for innovation across the economy. This has been extended to personal transportation, where a number of apps have been established, including Uber. Since 2009, Uber has grown to serve over 100 cities across three continents, with a pre-money valuation of $17bn in July 2014.
Uber possesses many significant advantages. Its cost structure is significantly cheaper than that of traditional taxi operators, and demand for the company's app appears to be insatiable from both customers and investors. It has strong growth prospects in cities across the globe and presents an innovative product that consumers appreciate.
Uber's cavalier attitude towards legal status and in expansion has drawn closer scrutiny. Elsewhere, there are elements of the industry which seek to make itself as accessible as Uber via technology, and other competitors (such as Lyft) also represent a threat to the company's success.