Uber

            Uber is a venture that has successfully exhibited the use of smartphone and application-based technology  as vehicles to cause a disruption in the Taxicab/ Limousine industry in the global market.

 

            According to the theory of disruptive innovation, Christensen (1997) defines diruptive innovation as the new technology that encoaches at the bottom of the market (innovator and early segments) with alternative values; e.g. more convinient, and cheaper. Similary, since Uber was founded in 2009, Uber has grown rapidly. By December 2014, Uber increased its value to approximately 40 billion dollars. Uber has also essentially disrupted the UK market, threatened the Asian market and have begun a revolution in the West-African market Lagos, Nigeria to be specific by offering the regions a paradigm shift from its existent non-efficient and uncoordinated means of travel. To a more standardised and convenient one where the users are at the centre of its business model.

 

            Uber offers alternative values to the consumers by using app-based, GPRS, and online payment technology in order to solve current issues; e.g. lack of taxis in some places and some moments, inability to estimate the range of time, and insufficiency of cash. In addition, Uber provides a flexibility to the community drivers to gain an extra income while they finished their own job. Women multi-nationally are also empowered to the flexibility offered by Uber to make extra income whilst still performing the role of a mother, wife, student or professional simultaneously.

 

Ultimately, Uber is positioned in the minds of the consumers as:

• Convenient (Users)

• Empowering (Women)

• Flexible (Drivers)

 

            Customers who have an eye on the budget have the UberX, customers who seek for comfort and luxury have a preference of both the Black cab and/ or the Limousine. At an affordable price –just at their fingertips. Taking the control from the drivers and the brokers with the running meters.

 

            By not having any tangible assets in the form of owning taxis and or offering license plates, Uber has been able to cut down costs, regulation taxes and jurisdictions because technically, they are simply just an app. Apart from cost accrued from operations and acquisitions of map providers *** Uber has a high profit margin- the major evidence of its profit maximisation capacity.

 

            Presently, it can be seen that Uber has successfully conquered Taxicab/ Limousine industry in many cities around the world. In 2016, the evidence was shown by the bankruptcy of Yellow Cab Cooperative (CNBC, 2016).