AnthonyH Fedderman PaPer

Henriquez1
Anthony Henriquez
Professor Fedderman
ENC0017
1 August 2016
Revised Intro and Working Body Draft
Uber’s Mobile Application Success Story
While late for a business conference in Paris, Travis Kalanick and Garret camp
found it difficult to find a taxi anywhere in the city in a timely manner. During this Paris
visit they noticed that customers had no control over when a taxi would arrive or even if
one would show up period. After great observation Kalanick and Camp started
“UberBlacks” as a small start up accessible only around San Francisco and invite only
(Ingham). After notable investments from celebrities like Jay Z and Ashton Kutcher, the
buzz of Uber grew beyond the state of California and became a household name. Uber is
now operating in 250 cities across 51 countries along with over 12 million users around
the globe (Ingham).
It is worth noting that for a small such a young company to have such large
numbers in the matter of six years, this proves that Uber has become one of the most
successful businesses in mobile applications technology. It is no wonder that people all
over the world have received with making it a huge success. The story and the success
behind is one that could be emulated by other taxis which existed before or those
upcoming. The current technological development should be an inspiration to businesses
in the current world. The two business-minded people worked around the availability of
technology and the development of applications to come up with a master idea.
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To begin, Uber has become one of the most successful businesses in mobile
applications technology because of the convenience it provides of being able to get a
driver to you with the tap of a finger. People all over the world spend about sixteen hours
on their phone on the internet and with the applications installed in Smartphone’s; it
becomes easy to work using a phone. The taxi industry has been surrounded by many
rules, regulations and sometimes cartels that dominate and control the efficiency of the
business. With Taxi and cabs being highly regulated and Uber having no obligation to
comply with those rules, Uber took advantage of creating their own regulations. Those
regulation known as the “50% Premium” charged customers for using their Smartphone’s
to find out the prices, locations, and times of arrival of their Uber cars (Ingham). This has
been their best competitive advantage over the other taxis in the industry. Another
interesting aspect that has made the Uber Taxi services a success is that the first ride is
always free for most clients. This has made it act like a bait to the new customers who
frequent the area. Their level of security is also high which gives the riders the
confidence they need to ride in their taxis. This means that they employ highly qualified
staff with the right kind of training.
Another of their advantage that has contributed to their success is the qualified
staff and personnel that they employ as drivers. They do a thorough training and teach on
the ethics that they need to handle the different customers that they may face each day as
they work. This is a high contrast to the other industries as they just employ their drivers
based on other factors other than ethics. Maintenance of the application is highly efficient
as it gives the rider and the owner of the taxi the exact position on the Google maps. The
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user is able to calculate the distance and the time that the driver will take to reach where
they are as well as where they want to be taken.
The penetration of Uber into many markets has not been met with a clean
acceptance by the other competitors. The high level of efficiency from the taxis has made
most of not all to go out of business. There have been legal and court cases as the others
seek to kick them out of the industry as there have experienced losses due to the
oncoming development and expertise of the Uber. Petropoulouse argues that if they
charge very low kicking the others out of business. In this case, a distance that the others
charge around $ 50 would be charged $ 15 by the Uber Taxi Association. With time
however, the others have come to accept that they are there to stay. This has seen most
drivers and private owners place their cars on the company as they rake more advantages
than in other places. The Uber management should however be cautious to maintain their
level of service delivery and ensure that they are not over crowded which will affect the
quality of services that they offer.
Like any other taxi industry, Uber has faced challenges in their service delivery
but have managed to rise above the short falls that they go through. They have done this
through a stipulated speed which reduces the rate or possibility of getting involved in
accidents. Drivers are always watched hence there are reduced cases of the driver
assaulting the riders or the incidence of kidnapping which has been a major issue
affecting the taxi industry. The drivers at the beginning were always under threat as other
taxi drivers threatened to have them beaten up as a method to scare them away to curb
competition. This came through the demonstrations and the treat to have the court
intervene and send them out of business.
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One of their best strategies that have worked for them is that celebrities have
endorsed and indentified with them which acts as a way of marketing. This has been their
best advantage as many people especially the young take that as an initiate that the taxi
business is right. The Uber Taxi services do not discriminate on the age of their customer.
The Uber services will continue penetrating more markets in the world and though there
might be a little bit of negativity in the beginning. Petropoulouse argues that within ten or
so years, the industry may need more of such like Uber to make ensure that the travel
industry gives the best quality of services to travelers. This means that the people can
expect a complete turnaround in the taxi industry. A positive aspect and lesson that the
others should learn is that the customers have high expectations of what they want and
they want to get value for their money. That has been one thing that the Uber Company
has specialized hence the success within a short time. They have demystified the aspect
of overcharging and made it affordable for everyone.
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Works Cited
Petropoulouse, Gergios. “Uber and the economic impact of sharing economy
platforms”. Bruegal. 22 Feb. 2016. Web. 27 Jul. 2016.
Ingham, Edmund. “Start-ups Take Note: Uber Made It Big, But Did They Get It
Right?”. Forbes. 5 Dec. 2014. Web. 27 Jul. 2016.
“ Quora Question: Why was Uber so successful?” Newsweek Europe. Quora
Contributor. 4 Jun. 2016. Web. 27 Jul. 2016.

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