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Uber’s Growth momentum – Drivers behind the Business Model

June 20, 2014
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Uber’s Growth momentum – Drivers behind the model

Uber which began as a mere mobile app company in 2009 is now deemed as an established player in the field of hire and ride sharing services, operating in more than 35 cities worldwide.

Present scenario - Uber

Let’s dwell upon the reasons attributable to Uber’s unprecedented growth.
  • Earlier, booking a taxi by the people was no less than a nightmare. They had to wait on roads, hailing at the taxi and then bargaining with the drivers for fare reduction. Uber understood the frustration of the customers and tried to make its imprint on untapped market.
  • The customers while waiting for Uber taxi can actually enjoy the experience of monitoring its location on the mobile app, giving them the peace of mind that their order was received and a taxi was about to reach them.
  • After reaching the destination, the mobile app automatically charges fare on your card which relieves the customer of handling with cash.

    Moreover, the company saved millions of dollars by avoiding traditional marketing tactics and instead relied upon word of mouth in order to spread word for its services. Uber has no doubt leveraged upon significant growth opportunities as briefed below:

    It made special arrangements for holidays and events, nightlife, weather, sports etc. This makes the life of people easier and travelling via Uber becomes an experience for them.

Future Prospects

Motivated by tremendous increase in gross revenues, the CEO of Uber has announced its foray into non taxi business segments like courier services etc. Needless to say, Uber is not just a car service, it’s the future of logistics. As the newly created tagline “Where Lifestyle meets Logistics” aptly depicts, Uber will eventually become an all purpose utility in time to come and Uber currently synonymous with car service might soon become obsolete.


Uber has been accused of illegal taxi operations in various jurisdictions. In a major event, some groups have lobbied against Uber as a threat to their livelihood. Uber, a transportation start-up has given a serious competition to the players in similar business segments.

Road Ahead!!

Uber’s case study has set an example to the budding entrepreneurs and startups to excel in their respective fields. With its accelerated growth model, Uber’s job is now to prepare hard so as to overcome existing legislation and ensure sustainability in the long run.


About the Author

Prior to co-founding EduPristine, Pawan has worked as an investment banker with Standard Chartered and Basel II Consultant with Crisil - A S&P Company. He has worked extensively on company valuation, price negotiation and taking companies public. He holds an engineering degree from IIT Bombay and MBA in finance form IIM Indore. He has written articles on finance for a national daily and a few portals. and takes lectures on finance for various corporates and B- Schools.


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