· Uber’s ambition towards self-driving car technology integrated with their services
· UberElevate – Local Air Taxi Service?
· Competitive pressure
· Government regulations and legal threats towards Uber
· What to consider when the IPO is released
Uber’s ambition and vision for the future
Uber was founded in 2009 and is recently valued around $70 Billion. They have the largest market share in ride sharing industry by far and I believe that they will remain as the top dog in their market if they avoid some pitfalls.
Considering Uber has the best financial strength, customer base and brand awareness, they will be able to leverage a move into other ventures. Uber has already done this by creating UberEats which is an online meal ordering and delivering service.
However, the key venture to move into is self-driving car research and how they can partner with automotive companies to integrate them into their ride sharing services.
The first company to perfect the self-driving cars into their business will be able to snag a huge share of the market and operate at a competitive advantage. However, one obstacle to achieving this would-be government regulation against self-driving cars and other safety ramifications that come with this new technology.
In addition, Uber has ambitions of developing UberElevate in the future which would be a local air taxi service. Hearing this makes me excited because this would change the entire ride-sharing industry if it comes to fruition.
If Uber developed this air taxi service, they will be competing with the commercial airspace industry which has a massive market share. Imagine paying a fraction of a price for a flight than what you pay through major airlines.
Even though this won’t happen for years it is still exciting to think about and something to consider for when Uber releases their IPO. These grandiose visions may allow them to maintain their monopoly on the market.
Threats Towards Uber
Uber is arguably the most popular global transportation technology company in the world, but has started to see some competitors emerge in this new market. Their main competitor is Lyft (which is only a quarter of the size of Uber) which offers similar services to Uber, but also face small competition from companies like Fasten, Haxi and Via.
These competitors will not stop in their fight against Uber and are looking for other competitive advantages to steal some market share from Uber. One advantage that Lyft has over Uber is that they have a PR friendly brand and has had less legal action taken against them. Other ride sharing companies also have received positive reviews in terms of positive customer services and treatment towards their drivers.
In addition, Uber has competition with taxi services, but Uber has the competitive advantage in terms of price because of less regulation which allows Uber to price their services lower.
Other threats that they have against them will be legal and regulatory threats that they have already faced. One of their biggest potential lawsuits would be from their drivers because they want to be considered as employees and not as contractors. Uber does this to avoid paying social security, Medicare, healthcare costs and workers compensation claims.
They have also had conflict with user privacy concerns, data breaches, safety concerns and other criticisms.