Uber: Leading the Sharing Economy
(7 pages of text)
Case (Pub Mat)
Uber was a technology company that relied on its mobile app and word-of-mouth advertising to reach customers interested in its transportation services. It prided itself on being an on-time, stylish, unique, and modern transportation option. However, in 2014, Uber faced many challenges and questions as an industry incumbent. Could its business model succeed despite being heavily reliant on buyers’ willingness to pay a substantial premium in some situations? Could the model be sustained and expanded into cities worldwide? How could the regulations protecting the taxi industry be overcome in so many diverse markets? Finally, how could Uber position its business model in a way that would create entry barriers to keep rivals out of the market?
- To demonstrate how Uber developed a successful business model to not only overcome challenges posed by many critical forces but also to attract and retain customers.
- To examine how Uber leveraged its initial customer base to attract a substantial number of loyal customers and how it expanded its product and service offerings.
- To provide an example of a business model that capitalizes on the sharing economy, as well as an example of a hub model that unlocks capacity across the entire supplier and buyer network.
- To demonstrate a model that is very scalable. Once Uber has mastered its playbook for market entry, it can use the same playbook for all of its new market entries.
, network model
, rapid expansion
, hackney carriage
, regulatory issues
, surge pricing
, point-to-point transportation
, lightweight infrastructure
, value proposition
, global strategy
, service diversity
Transportation and Warehousing
United States, Medium, 2014
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