Uber Technologies Inc.: A Case Study

The idea of sharing is not a new concept. For example, offering a friend a ride is a familiar concept of sharing resources for free. However, what is new about sharing is the ability to capitalize off sharing services for payment. Smartphone applications have given rise to what has been dubbed the “sharing economy”. According to the Saturday Evening Post, the sharing economy is defined as “a type of business wherein resources are shared through the distribution and trade of products and services using information technology” (PRESS, A). The focus of collaborative consumption with smartphone applications through sharing is an area of immense potential. The application allows consumers with potential needs to connect with suppliers willing to …show more content…
develops, operates, and markets the Uber app. The Uber app allows consumers with smartphones to submit a ride request. The request is automatically sent to the closest Uber driver in the area with an alert of the location of the consumer. Uber provides a condensed “How Uber Works” guide for consumers on the website. First, a consumer requests a ride option with selections to see wait times, the size of the ride party, and price. Uber offers consumer ride options such as Uber Economy (UberX, uberXL, and UberSelect), Premium (UberBLACK, UberSUV, and UberLUX), Accessibility, and Carpool (uberPool) (Uber). Then the consumer enters the pickup location and taps for the request. Second, an Uber driver comes to the consumer. The consumer is able to see the driver 's contact information, driver rating, detailed vehicle description, and progress of the vehicle on a map to the ride request location. Lastly, the consumer pays and rates the driver when the vehicle arrives at the desired destination. The driver also rates the consumer on the quality of the trip. Star ratings, on a five star scale, allow the consumers and drivers to give feedback about the trip and hold everyone accountable to the policies established by Uber, as well as promote a respectful and safe environment for riders and drivers. For payment, the consumer’s credit card information is kept on file to pay the driver. The app also contains features such as “Send Status”, which allows consumers to …show more content…
Primarily, Uber’s strategy is to position itself at the forefront of the transportation industry. The app experience is personable by allowing the user to select the ride request options and submit feedback. The experience is on-demand and efficient by allowing the consumer to submit the location electronically and alerts the consumer as the driver arrives at the designed location. In order to penetrate the market and compete with taxi companies Uber’s promotions tend to focus on free rides through referring a friend to use Uber, free rides up to an identified amount, and discounted