A Case Study: Uber Technologies Inc.

1028 Words 5 Pages
Background
“Tap a Button, Get a Ride’’, this meaning leads to Uber Technologies Inc. Uber is online transportation network company, is an American worldwide company, based in San Francisco, California. Established in 2009, by Garrett Camp and Travis Kalanick. The Company was initially founded as UberCab. Now, the service available in over 66 countries and 507 cities worldwide. (Uber, 2008).

How it is work : (Software) Uber have application through the smartphone platform, which allows the customer to submit a trip request to drivers their work in. Uber drivers who receive the request will be the nearest one of the customer. It will alert the drivers with destination and location of the customer. The application offered luxury vehicles including
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(Tsotsis, A. 2012, July 1).
Uber have some differing elements such as disposable income, tourist volumes, the availability of substitutes, and special events are demand factors that are uncontrollable in the entire market. However, corporate profit, quality of services and vehicles, convenience, and price are all controllable factors.

Threat of New Entrants
Currently Uber dont have protect from new ride-sharing in this business, that can offer same service with charge lower price for the same distance. On the other hand, Uber does not have any proprietary elements like raising rates that can making it easier for other new entrants from competing and penetrate in the industry. The problem is Uber faces high threat from new entrants that are expected to lesser initial capital to jump start their operations. These factors will likely limit Uber’s profitability. (Uber Technologies Inc).

Bargaining power of supplier
While Uber did not own cars and utilizes outsourcing strategy. The original business model in Uber highly dependent on drivers and partners their owning own ride as
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this services not orderly it is using as needed. The switching cost is also lower for customers because Uber provide this service through free application which is easy to reached by customer that make Uber insure best price for there client comparing with other competitors that make Uber in the lead of providing ride services. Customers are sensitive to price changes and that make a big chance for substitutes and competitors in the industry. The buyers are the essential power can limit the amount of income for Uber that make it as a strong force in the industry, that a positive choices for

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