Uber.

Uber, a personalized car service app, has in the past couple of years grown exponentially. The way it works is through a smartphone app. The customer makes an account with Uber, adding their credit card when they start. From that point on the only thing the customer needs to do is press ONE button and they can have an SUV, blackcar, or even a wheelchair accessible vehicle within minutes.

Uber has had legal issues because of taxi companies drawling lawsuits against them. In cities where Uber is present (relatively every significant city) taxi services are suffering. The convenience and safety of an Uber is highly appealing for those that can afford the extra few bucks that an Uber costs.

After this past week, Uber has become a force to be reckoned with in the world of finance. Investors valued the company at a staggering $40 billion dollars. But rather than sell the company, its owner plans to follow in the steps of Facebook by going public. Currently, small amounts of the company are being offered off to banks like Goldman Sachs but soon I believe we will see an IPO like Twitter except Uber has real revenue and actually makes money. While raising cash doesn’t seem to be an issue, the legal and privacy issues may pose a problem to this innovative “start up”.

We will see how this develops in the near future. Personally, I am a huge fan and customer of the company. Living in Philadelphia, I need to quickly get around in a comfortable and safe way. Uber is awesome.

3 thoughts on “Uber.

  1. I saw recently that Uber was banned in India and Nevada. The concept of Uber is definitely innovative and helpful to consumers, but it has hit a series of roadblocks.. With legislators weighing taking action against the firm it seems that its market could fall and that it may not have the staying power of taxis. How can Uber protect its market share from legal action, especially with its drivers breaking the law in multiple areas? It may be able to undercut its competitors in the status quo but its low costs seem unsustainable if there is serious legal action.

  2. I suspect that in practice it will prove very hard to ban Über-like products (services?). But this begs the question of why a city might limit taxi medallions (and thereby hold base fares higher). What public policy does this represent? Mandating minimum service levels? trying to make it profitable to have taxis on the streets 24/7?

  3. If the concept becomes large and profitable enough, what keeps Google from doing something similar? Google Maps could offer faster trips with traffic advisory, could match people with similar interests (i.e. girls with girls, football fans with football fans, people with some sort of mutual friend, etc.), and could probably offer a more legitimate interface to work within. Further, information could be synced across applications. Google’s big data should without a doubt present expansion opportunities relative to Uber. Ultimately, I am not really sure what Uber offers besides a connection interface. I won’t be investing when they go public.

Leave a Reply