UBER HAS VENTURED AGGRESSIVELY IN OTHER BUSINESS DOMAINS TO DIVERSIFY ITS OFFERINGS. HERE'S HOW.
The world of tech & business has converged recently to proffer many tech behemoths. Most notably, American entrepreneurs have used the internet to create many digital platforms to satisfy a myriad variety of consumer needs & wants. As per my analysis, Uber is trying to build a modern transport behemoth.
So lets take a look at some interesting avenues which Uber has entered:
UBER EATS
Bypassing its main service of Uber Cabs in revenue, Uber Eats has emerged as a boon for Uber Inc allowing it to stay afloat in such desperate times. This service focuses on delivering food from restaurants (both local & global chains like McDonald's). Recently it also acquired US based delivery app Postmates (delivery from small & medium sized enterprises). This signifies it focuses more on online delivery on a more local basis & sees Eats as a major cash cow for the future. It has also considerably increased the market share of Uber Eats in the US market. The graph below shows the market share of Uber Eats in USA.
UBER AI LABS
It seems like AI is omnipresent these days in the business world. Created as a subsidiary of Uber Inc. in 2017, the focus is on development of AI & Machine learning which can be used by Uber to enhance its self driving capabilities & also integrate AI in internal app management. (example; Price hike in peak hours). For this, it has acquired Swipe Labs, Otto & Geometric Intelligence.
UBER FREIGHT
Acting as an agent between carriers (truck drivers) & shippers (cargo transportation agency), Uber Freight is revolutionizing the trucking industry one truck at a time. It uses Uber's mapping technology & combines it with its network of drivers & shippers. It has helped drivers to combine routes, have flexible routes, choose their time of work & get paid hassle free. On the other hand, the shippers get the job done at reasonable rates on time. For facilitating the transaction & connecting both parties, Uber takes a fixed percentage commission from both. Lucrative business model isn't it?
UBER ELEVATE
Dubbed as the future of urban mobility, this is one of the most ambitious projects of Uber. The company lays emphasis on air travel. It says its vision is to make inter city as well as intra city travel affordable & accessible to all. It has futuristic projects under development like Uber Copter & Uber Air. For more on this, check their official website HERE.
KEY TAKEAWAYS
The importance of AI is highlighted again. All the major companies have now either acquired or set up their own AI research labs. This points towards the major role AI will play in future business operations.
Uber has been smart enough to adapt to changing business challenges. During this pandemic, it stopped investments in its primary venture (car operations) due to lack of travel. Instead it solidified its position in the home delivery sphere.
Air travel seems a bit ambitious at this stage to be honest. Its too expensive & the traffic levels on the road are not that high to justify such drastic measures.
The business model of Uber's can business is not too competitive & easy to replicate. Various clone apps copying Uber's idea have emerged in various market giving the American giant a run for its money. Such developments are not good for its long term prospects.
NOTE: Uber's Chinese operations are sold to DiDi & Uber has acquired its major adversary in the Middle East, Careem.
I predict Uber Freight will be a major source of revenue in the future. Its disrupted the industry already & Uber has emerged as a major player. Due to its extensive user base, mapping technology & troves of data, Uber has a real competitive edge.
As an end note, I would like to say that Uber is one of the most controversial companies I have seen so far. its self driving cars & former CEO Travis Kalanik have been criticized rightly. I would urge you to watch this video for more.
THATS ALL FELLAS.
If you want to keep gaining knowledge, here's a similar piece on Elon Musk's less known ventures:
https://parshaddesai09.wixsite.com/website/post/elon-s-ecosystem
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