How does Uber ridesharing work?

Urban Transport

What Is Uber

Uber Climb

Urban Transport

A technological innovation applied to ridesharing vs urban transport has caused an earthquake in the economic, political and social paradigms of the world.

Application

Whoever believes it is just an application is wrong. Who also thinks that it will be the last company with these effects, becomes wrong again?

Over Time

The need has always been there: a move from point A to point B. Over time, the need has changed in form, but not in the background.

They used to be carriages pulled by horses; today they are vehicles. Due to its economic, commercial and productive nature, the movement between individuals began to regulate for centuries.

As Uber has escalated and touched local actors, the controversy has been unleashed through demonstrations of support or rejection. Therefore, it is worth asking: what is Uber? What paradigms does it break and why? How did Uber climb? What happens there where it goes? What implications does the evolution of Uber have? And, where is it going?

What Is Uber?

Uber was presented in 2009 as part of an incubator in the city of San Francisco. Its value offer was to use an application that would become an alternative to move around the big towns quickly, scheduled and cheaper than a taxi. After raising capital, Uber began with a strategy of priorities similar to that followed by the Tesla car brand. First, it focused on the segment of the population with the highest purchasing power and after dominating the said market, offered alternatives for other, more economic sectors.

Many governments, unions, and taxi companies have protested against Uber, arguing that he uses unlicensed and unsafe drivers without a driver's license. The company says that it is not about removing the traditional taxi business, but about expanding the market through the shared economy. Travis Kalanick, founder, and CEO goes further. In the entrepreneurial world, Uber is considered a Unicorn, one of the rare companies that for the millions of users that attract and the billions of dollars of sales that they have, are quoted in valuations of more than 1 billion dollars.

The numbers of Uber impress anyone since it operates today in almost 300 cities in 59 countries of the world. Its value in the market is double that of Twitter. It is in talks to obtain 2 billion dollars of liquid money, so its valuation would grow 25% and make it the most valuable enterprise in the world.

sharing a ride

In the words of Bill Maris, head of Google Ventures, Uber is already the fastest growing enterprise I've ever seen. Also, it is already profitable, especially in more mature markets. They are in busy cities like New York, Washington DC, San Francisco, Chicago and Los Angeles, where they generated between 1.5 and 2 billion dollars last year. (Shontell, 2014)

But within all the money that the company receives, there is something that had not been seen before: Uber not only obtains resources from its investors and their customers but also drivers 'invest' in the company by making their private vehicle available who wants to pay to transport them, which prevents the 'burning' of cash for investment in assets.

carpooling vs ridesharing

This confirms that the shared or collaborative economy is a business that generates intermediaries that become rich and powerful because of the invaluable information they collect, keep private and use in their favor.

And above all, Uber is one of the exponential organizations that break with our conceptions of a whole industry. "Instead of using armies of huge employees or physical plants, it is a smaller organization focused on information technologies, which dematerializes the business of intensive physical goods characteristic of the 20th century, through the creation of new products and channels of revenues in just months. "(Diamandis & Kotler, 2015) That is to say, the largest and most valuable transport company in the world, does not own a single vehicle. Get detailed information on how you can become a rideshare driver at https://rideshareguide.net.