Evaluating Factors of Success of Uber Technologies
Uber Technologies Inc. provides a peer to peer ride-sharing transportation service through its platforms, which can be accessed via its websites and mobile apps. The application Uber, allows you to hail a ride from a stranger, and save cash at the same time. Uber Technologies Inc. started the ride sharing economy and soon it gave birth to food and grocery delivery systems as well.
In terms of consumer benefits, Uber is often priced lower than taxi and consumers can now secure a car or taxi from a smartphone from any location in advance without the need to physically call a taxi. To most people who use such service, they see ride-sharing as economic freedom, in that they no longer have to pay expensive prices to get a ride. Their key factors for success are that they basically started the concept of ride-sharing, which is the evolution of Taxis. Comparing to tradition taxi service, Uber is much cheaper and more convenient to get rides in an untraditional manner. Uber is also making the taxicab industry more reputable by providing rides that are clean, offering up quality customer experiences, and accepting different forms of payments. In addition, they also made the experience more customer oriented as they allow customers to track their vehicle as it is in route to them. Therefore, it is much safer and easier to operate.
Uber’s customers are not only limited to people that needs a ride, Uber drivers are also benefiting as Uber is creating jobs for drivers that are having difficulty finding work in the city. Many individuals that have some spare time and needs more income can become a qualified Uber driver, who will be connected to people that need rides located within the same geographical area. This is also one of their core competencies.
Uber’s main competitor is Lyft, and both companies had to spend big on subsidies to drivers and promotional discounts to riders. Currently, Uber is winning in the marketplace because it offers service in many more countries than Lyft and have many more upscale options for people who want something more luxurious and spacious. According to the CNBC, Lyft had 19 percent of the enterprise ride-sharing market in the first quarter versus Uber's 81 percent in the US. Speaking of competitive point of difference, Uber uses noncommercial cars, which is the same as their key competitors, Lyft. However, Uber drivers avoid costly commercial insurance, taxi medallions and other expenses that provide Uber service a cost advantage over traditional taxi services.
