Uber started as ‘private luxury car service’ for

Uber Technologies is a privately
held, global, transportation company based on technology is rapidly expanding
worldwide started its operations in 2009, founded by Travis Kalanick and
Garrett Camp in San Francisco, California. The company was initially started as
‘private luxury car service’ for the executives of Silicon Valley. The company
made profits from this niche market by linking its drivers with the passengers
(customers) through a smartphone technology via an app.

This service made a rapid growth
in its first six years and it was highly successful startup.by 2014 it was available
in almost 53 countries and 200 cities of the world. The growth by rapid
geographical expansion has led to this success. Such expansions attracted high
profile investors such as Google and Ashton Kutcher and also the large venture
capital firms.

Uber adopted surge pricing strategy.
Fares fluctuated and adjusted according to a mathematical formula. This strategy
was considered against the laws but Kalanick defended it and sometimes lowered
some of its rates. Uber kept 20% of the fare and paid the driver 80%. Its yearly
revenue was about $726 million.

Business model was simply about
ride-sharing platform for keeping consumers and drivers connected and
satisfied. It did not directly hire drivers just connect them with the
passengers. It was offering different types of services varying worldwide.
Passengers can select from the available types like UberX, UberXL, Uber Black,
UberSUV, and UberTaxi.it was providing several advantages to drivers, they were
guaranteed to be paid.it also had specific criteria to for its drivers
mentioned on its website.

Uber faced number of challenges
from the arising conflicts from the taxi and limo regulatory agencies but it
countered these efforts by insisting that its merely a service not
transportation company. It also faced safety issues, for that it claimed to
check driver background checks, extensive screening and insurance.

Taxi and
limo were the traditional competitors of Uber while another group of companies
having the same business model were a major threat to Uber these including
Lyft, Hailo and Sidecar. Lyft was one of the largest competitors with differential
positioning strategy as anti-UBER and offer peer to peer rideshare service. Uber
responded to Lyft strategies by advertisning. Internationally Uber competitor
was Didi Kuaifi in China, partnered with Lyft in 2016.

As social
media is one the biggest platform for advertising and promoting, Uber also started
its promotion through Facebook, twitter and YouTube. Its motto ‘Everyone’s
Private Driver” was there on these platforms. Kakanick designed its logo
himself and he also used his personal account for promoting. In addition it
also performed other promotional activities to grow its business.

As with
service Uber also started product offering in the delivery space like UberEATS
and UberRUSH for food and items delivery’s .Uber continued its growth in such services
Amazon came up with the delivery option on demand. So should Uber compete with
Amazon in this market or should focus on its core services? Should it also need
to continue its growth scale platform?