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Uber Business Model: How Uber Dominates A New Market

 

As a pioneer in ridesharing, Uber has enjoyed enormous success in almost every market it has launched in. The Uber business model for operating a ridesharing business has been copied by many other budding companies. The model seems to work as evidenced by the company’s growth over the years. Uber has proven to be a flexible source of income for drivers and Uber fleet owners. If you have a car registered on the Uber platform as a driver, you get to drive on your own schedule and be your own boss. It is safe to say that Uber has empowered people who are interested in partnering with the rideshare giant in various markets.

The Uber business model has remained the same since its official launch in 2010. The company takes a pretty aggressive stance when it launches in a new market. Uber Business Model

So how does this model work? Let’s take a quick look at how Uber has dominated new markets over the years.

 

The Uber Business Model

 

Aggressive Marketing

Uber enters into a new market with the intent to dominate almost immediately. The company adopts various marketing channels to get the word out. Users can download the app via various channels like Facebook, Google and other social media platforms. Also, people get rewarded for referrals. Marketing tactics take an “in your face” approach that leaves competitors rallying to compete fairly. Uber is valued at a whooping $69 billion and has enough funds to help get the word out.

 

Driver Recruitment

New drivers get huge sign-up bonuses. Existing drivers also get mouth-watering referral bonuses that encourage drivers to recruit others. Drivers who don’t have access to their own cars are linked to Uber partners who have cars registered on the platform but do not want to drive. Also, leasing programs are created to help drivers who don’t have their own vehicles have access to cars and potentially own these cars. In May of 2016, auto giant Toyota announced that it would be entering a partnership with Uber. Uber and Toyota would work on creating new leasing options that would allow Uber drivers lease vehicles with Toyota Financial Services providing financing to these drivers.

 

Dispute government policies

In Austin Texas, the issue of finger-printing drivers prompted Uber to halt its operations in Austin, Texas. Uber argued that requiring drivers to be fingerprinted as part of criminal background checks would hamper their seamless registration process. This is just one of the many instances where Uber has thumbed its nose on policies that it disagrees with in a new market.  Uber fights these city regulations as the Uber business model aims to make the sign-up process for new drivers as hassle-free as possible. However, the company has come under fire and faced lawsuits due to its perceived “relaxed” security policies when registering drivers on the Uber platform.

 

Dirt Cheap Prices Uber Business Model

To get more riders on the platform, the company’s brand management team goes into overdrive. The platform is painted as the greatest thing since slice bread. People from all age groups are targeted and the company slashes its prices. Since the company has enough funds to expend, it can afford to make prices dirt cheap while paying drivers the difference. This way, both riders and drivers are happy.

 

Once the company feels that it has become a city favorite, prices are raised again and some of the promos come to an end. However, when a new competition enters into the picture, the whole cycle repeats itself.

 

 

Conclusion

It seems the Uber business model is taking a shift for the better as the company has sold to competitors in major regions.  According to Uber’s new CEO Khosrowshahi, Uber’s business model and strategy will be focusing on systemic growth, “one of the potential dangers of our global strategy is that we take on too many battles across too many fronts and with too many competitors… going forward we will be focused on organic growth—growth that comes from building the best products, services and technology in the world, and re-building our brand into the mobility brand that riders, cities and drivers want to support and partner with” He said.

This statement was made to explain the company’s exit from Southeast Asia and merging with rideshare company, Grab. The company also merged with Yandex in July 2017 after investing $225 million into the venture. Uber also merged with China’s Didi chuxing.

Mergers are not necessarily a loss. When a company isn’t making any headway in a market, it’s important to know when to either cut your losses or form strategic partnerships. It seems Uber is doing the latter.

 

 

Are you an Uber Driver and/or Entrepreneur? Did you enjoy this post? Are you looking for other ways to optimize your Ridesharing Business?-If your answer is yes to all three question, and you have not downloaded our kit(s) – you need to do so now and join thousands of other Uber drivers by clicking the Download link at the top right of this page, or by going here or here.

 

 

Uber Sells To Yandex Taxi In Russia

 

Rideshare giant Uber sold its stake in Russia to Russian based competitor, Yandex Taxi thus signaling the end of Uber in Russia. The company merged with Yandex Taxi in July 2017 after investing $225 million into the venture. According to CNBC news, Uber will own 36.6 percent of the company while Yandex Taxi will keep about 59 percent. The rest will be shared among employees of the company. Yandex TaxiYandex invested $100 million into the venture and the company is now valued at about $3.725 billion. The company will operate in in Russia, Kazakhstan, Azerbaijan, Armenia, Belarus, and Georgia.

 

Yandex Taxi

Yandex Taxi is a subsidiary of Yandex, a Russian search engine. It is also Russia’s biggest online taxi hailing service. Yandex Taxi lets users order an official taxi on the website or via the app without calling a dispatcher. Before the merger, Yandex Taxi was reportedly used by about 200 Russian taxi companies that conveyed passengers by operating about 20,000 taxi cabs. Since the merger, the company has grown tremendously.

 

How to use Yandex Taxi

  • Download the app on your Android device or iPhone
  • Enter your pickup location. The service automatically determines your location. Proceed to tap “Next” if you want to confirm your location.
  • Click To and enter your destination address; this allows a fixed fare to be calculated for your ride.
  • According to Yandex Taxi website, you have the opportunity “to enter up to three intermediary addresses (tap +). You can only make changes to a route that includes intermediary addresses while placing your order.”
  • Choose a type of service and select your payment method. You can switch payment method from cash to card.
  • A comments section is provided for any additional information that will aid the driver find you.
  • Complete the ride request by clicking “Order taxi”.

 

Conclusion

This isn’t the first time Uber will be surrendering to competition in a region. The company announced in March 2018 that it will be exiting Southeast Asia and selling its business to rival, Grab. In August 2016, Uber’s former CEO, Travis Kalanick issued a statement on his Facebook page confirming news that Uber’s China Business will be uncharacteristically merging with Didi chuxing, a Chinese ridesharing giant. Healthy rivalry is good for any industry. The goal is to provide affordable and convenient transport solutions to riders all over the world. These mergers seem to be doing just that.

 

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Self-driving Company nuTonomy Partners With Lyft

 

Lyft  is set to take on the future and compete fairly in the future of rideshare by debuting self-driving cars in Boston. Lyft partnered with self-driving company nuTonomy to pilot its first set of self-driving vehicles. This service was rolled out at the end of 2017 and riders are being randomly matched with these self-driving cars. However, these vehicles are not completely autonomous; a human driver is placed behind the wheel to take over if the need arises. The pilot began in Boston’s Seaport district and will hopefully move to other cities soon.

Lyft announced this partnership with nuTonomy earlier in 2017 and then piloted the service at the end of the year. According to nuTonomy, the aim of this partnership is two folds: ‘First, we want to let members of the public experience driverless vehicles firsthand, so they can better understand the impact this new technology will have on their lives. Second, based on feedback from pilot participants, nuTonomy’s engineers will adapt and improve our system, so that we can deliver an autonomous transportation experience that is extremely safe, efficient, and comfortable.’ nuTonomy

 

So how will it work?

NuTonomy has been operating self-driving vehicles in Boston since January of 2017. Tests were carried out in a park somewhere safe within Boston out of the way of regular traffic. As the service is now fully operational, riders will be randomly paired with one of these self-driving nuTonomy cars.  All you do is request a ride with Lyft and you could be paired with a self-driving car.

 

Conclusion

This timely development couldn’t have come at a better time for Lyft. The company’s biggest rival Uber has been beset with many unfortunate incidents and even experienced a change in management. The roll out of a driverless service without any incident helped to put Lyft at the forefront of rideshare. However, the company’s rival Uber is also testing its driverless vehicles in Pittsburgh. Uber also working with Hyundai and has acquired OTTO – the self-driving truck technology company. Already, we have more people embracing the concept of driverless cars. It is safe to say that the future of driving will see most vehicles becoming partly or fully autonomous.

 

 

Sign up to have our blog posts (catering to Uber Partners and Drivers) delivered to your email every week!  In exchange for signing up we will give you our highly rated report with suggestions to help you increase your Uber Revenue. We cover trending topics relevant to the success of your business as an Uber car owner or driver, as well as cutting edge improvements on how to improve the management of your business: like how to better control costs and increase your revenue. Thanks again for visiting! We look forward to hearing from you about your experience and being a part of your new growing business!

 

Uber Freight: How It Works

 

The trucking industry in America is valued at a whooping $700 billion-a-year. As the face of the auto industry is changing, the trucking industry is experiencing a revamp of its own. The rideshare model and the autonomous driving technology are being introduced into trucking. The aim is to simplify the process of engaging trucks and also reduce the stress on truck drivers and owners. Already at the forefront of rideshare and web based transportation services, Uber is taking on freight as well with Uber Freight. uber freight

With the aim of eliminating the middleman, Uber freight links carriers with shippers. Through an app, carriers book the load they want to transport and they can see immediately how much they will be paid. To make things easier, the app is free to use. All carriers are paid within 7 days.

 

 

Who is Eligible to register on Uber Freight?

  • Only carriers with authorized carriers with MC or DOT numbers are eligible
  • Sign up on the Uber freight website and select if you are a carrier or shipper
  • Expect to be contacted by company representatives
  • You will be asked to submit a few documents to confirm that you are an authorized carrier
  • Have No Conditional or Unsatisfactory Safety Rating

 

 

You must submit the following as well:

  • Proof of Insurance
  • Bank Account Information to make your payments through direct deposits

 

How does it work?

  • First download the app on iphone or android then register/signup
  • Select the load you are interested in carrying
  • Book it and the app will confirm it
  • The type of freight currently available is 53’ dry van and reefer.
  • Carriers are paid within 7 days of receiving an accepted proof of delivery
  • Uber freight also pays for accessorials for loads booked via the app.

 

Conclusion

Typically, shipping companies get matched with carriers through brokerage firms and the broker takes a commission. With Uber freight, carriers have the luxury of deciding which load they want to carry at their convenience. Uber believes by eliminating the middle man, the entire matching process is cost effective for all parties involved.

 

Sign up to have our blog posts (catering to Uber Partners and Drivers) delivered to your email every week!  In exchange for signing up we will give you our highly rated report with suggestions to help you increase your Uber Revenue. We cover trending topics relevant to the success of your business as an Uber car owner or driver, as well as cutting edge improvements on how to improve the management of your business: like how to better control costs and increase your revenue. Thanks again for visiting! We look forward to hearing from you about your experience and being a part of your new growing business!

 

More About Truxx; A Truck Sharing Start-up

 

Trucking is an integral part of any economy. Moving items across town, from city to city and even cross country is part of everyday life. It can be nerve wracking organising vehicles to convey your loads to a preferred destination. If the items to be moved are very large in size, trucks or pickups will have to be utilised. Everything used to be so manual: contacting a trucking company or van owner; booking their services and then following up until the driver arrives to pick up your items. The entire process can take a toll.

In a bid to simplify the process of engaging truckers and van drivers, the rideshare model is being incorporated into the trucking industry. The industry is embracing the concept of ridesharing. Truxx, a truck sharing start-up was founded to act as an intermediary between those who need large vehicles and such vehicle owners in their community. Whether as a last-minute need or to be scheduled for later use, Truxx aims to meet this need.

 

How does it work? Truxx

Using the Truxx free mobile app, users can place a request for a pick up or van driver to help him/her move items. These van owners can even be neighbours who have listed their vehicles on the app. The company has termed the service “your buddy, with a truck.”

 

Types of products Available

TruxxMe

This product serves users who do not need help loading items into and off the vehicle. They just need the driver and the vehicle to help convey the load to their requested destination. This will cost users about $25 per half hour.

 

TruxxHelp

With this offer, the driver will help the user load and unload the vehicle. The user will be charged about $35 per half hour.

 

TruxxRetail

This covers the partnership Truxx has with retail stores and services like Shop Your Way. Users stand to earn Cash Back in points to shop in select stores.

 

Drive with Truxx

 

To become a driver, go here

  • Please note that you will undergo back ground checks
  • You will also be asked to present certain regulatory and mandatory documents to prove driving eligibility.
  • Drivers will earn 70% of whatever the customer is charged. You will be reimbursed for toll fees and all tips will be given to you.
  • Drivers are paid within five business days.

 

It is impressive to see start-ups vying to change the face of the trucking industry.

 

Are you an Uber Driver and/or Entrepreneur? Did you enjoy this post? Are you looking for other ways to optimize your Ridesharing Business?-If your answer is yes to all three question, and you have not downloaded our kit(s) – you need to do so now and join thousands of other Uber drivers by clicking the Download link at the top right of this page, or by going here or here.

 

Using Uber in Atlanta ATL Airport

 

Hartsfield-Jackson International Airport (ATL) is regarded as the busiest airport in the world. With 207 international and domestic gates, over 100 million people pass through this airport annually. It is normal to feel lost when confronted by this amount of traffic and getting a ride out of the airport can seem like a daunting task. Whether visiting or returning home, using Uber in Atlanta ATL airport is a good way to go.

The Uber services available in Atlanta are the non-commercial UberX, UberSELECT and UberXL and the commercial UberBLACK and UberSUV.

UberX is the mid-tier priced Uber service, and it also gets the most patronage from Uber passengers across the globe for this reason. UberXL is the 6 passenger version of UberX. It is dominated by inexpensive but nice vehicles that can carry more passengers than the UberX. You can say it is the larger version of the UberX service. UberSELECT vehicles are classy mid-tier level luxury cars. UberBLACK riders should expect to be picked up by professionally trained drivers who dress to suit the service. UberSUV is the 6 passenger version of UberBLACK

In 2017, the Hartsfield-Jackson International Airport began the construction of giant canopies to cover the curb area of the airport. Due to this development, Uber riders requesting UberPOOL, UberX, UberXL, or UberSELECT rides will have to take a walk to designated South & North Economy Lots at the domestic terminal to get picked up. Wait till you get to the designated lots before placing a ride request.  Uber in Atlanta

According to Uber, riders will have to follow these steps to get picked up:

 

South Terminal

  • Gather your luggage from baggage claim then follow the Rideshare signs situated by the South Baggage Claim 5.
  • Ride the escalator that leads to the lower arrivals level and exit through the door marked “LS2”.
  • When you get to the Rideshare Pickup zone, place a ride request. The walk to the pickup zone will take an average of 5 minutes depending on the amount of luggage you will be handling. Be sure to wait till you get to the pickup zone before placing a request. Drivers are charged for waiting in the lot for more than 15 minutes. This way, you are already waiting and your driver doesn’t have to be charged for parking fees.

 

North Terminal

 

  • Gather your luggage from baggage claim then follow the Rideshare signs situated by the North Baggage Claim 4.
  • Ride the escalator that leads to the lower Arrivals level and exit through the door marked “LN2”.
  • Walk about 800 feet to the rideshare pickup zone then place your ride request.
  • Text or call your driver and let him or her know where exactly in the zone you are waiting.

 

UberBLACK and UberSUV Ride Requests

UberBLACK and UberSUV riders will be picked up “curbside from the lower Arrivals level of either Domestic Terminals.”

 

Conclusion

It is expected that the construction going on at the Hartsfield-Jackson International Airport will take about 2 years. Things should return to normal after the project is completed. Using Uber still remains as seamless as possible and riders can ride in comfort and ease.

 

Are you an Uber Driver and/or Entrepreneur? Did you enjoy this post? Are you looking for other ways to optimize your Ridesharing Business?-If your answer is yes to all three question, and you have not downloaded our kit(s) – you need to do so now and join thousands of other Uber drivers by clicking the Download link at the top right of this page, or by going here or here.

How Uber Rival Karhoo Closed For Business

 

Rideshare is becoming widely popular with people all over the world embracing this mode of travelling or commuting. As a pioneer in rideshare, Uber has faced competition from other companies who aim to take on the rideshare giant in different territories. Karhoo was one of such companies. Sometimes these competitors triumphed after a fierce rivalry with Uber. In August 2016, Uber’s former CEO, Travis Kalanick issued a statement on his Facebook page confirming news that Uber’s China Business will be uncharacteristically merging with Didi chuxing, a Chinese ridesharing giant. This was an unprecedented move as Uber is known worldwide for its aggressive territorial stance in countries where it operates.

In March 2018, Uber stated that it will be exiting Southeast Asia and selling its operations in the region to rival Grab. While these are quite shocking, we must note that there are only three instances so far where Uber gave in to competition. Karhoo

Karhoo, founded in 2014 which sought to incentivize drivers by charging 10 percent commission, sadly ceased operations in 2016 citing shortage of funds. It was reported that the company raised about 250 million dollars but blew through the funds. The company is yet to confirm these reports till date. The company issued the following statement below:

“It is with much regret that we have to announce that Karhoo has had to close its service and is now looking at the next steps for the business. The Karhoo staff around the world in London, New York, Singapore and Tel Aviv have, over the past 18-months, worked tirelessly to make Karhoo a success. Many of them have worked unpaid for the last six weeks in an effort to get the business to a better place.

Unfortunately, by the time the new management team took control last week, it was clear that the financial situation was pretty dire, and Karhoo was not able to find a backer. We would like to thank our staff, our partners, the fleets around the world that shared our vision, and the hundreds of thousands of people who downloaded the app and supported what we were trying to do.

The world needs a Karhoo.”

 

What We Think

This doesn’t come as quite a shock. Most startups thrive by taking huge risks which can result in positive or negative growth. This is why we see startups rallying to raise funds from various investors so that these risks have some financial backing and do not end up crippling the company. Uber continues to dominate the rideshare industry after an infusion of funds from various investors. The company is now valued at a whooping $60 billion and counting.

Karhoo’s decision to charge drivers 10 percent commission seemed like a good move at first but with dire consequences. Big companies like Uber and Lyft charge driver 20 – 25 percent commission on each ride. Rideshare companies need money to function and the commission charged off rides is a huge avenue for making back the money expended on growth pursuits.

The news making rounds is that Karhoo is poised to make a comeback after being acquired by financial arm of auto giant, Renault. We look forward to seeing how the company manages this new opportunity to compete again in the rideshare industry.

 

Are you an Uber Driver and/or Entrepreneur? Did you enjoy this post? Are you looking for other ways to optimize your Ridesharing Business?-If your answer is yes to all three question, and you have not downloaded our kit(s) – you need to do so now and join thousands of other Uber drivers by clicking the Download link at the top right of this page, or by going here or here.

What To Know About Embark Self-Driving Trucks

 

It’s been said over and over again; autonomous cars are the future. This has prompted many vehicle manufactures to initiate plans that will help them compete fairly in the future. The automotive world is changing and less people want to actually own cars. Ride share has become a global phenomenon and interest is shifting towards self-driving vehicles.

The merits of self driving vehicles far outweigh concerns raised by critics. There is a great need to reduce accidents caused by human error and dependency. Is this technology perfect? Not at all, but the Embark Self-Driving Truckshope is that it will help reduce car accidents.  America’s $700 billion-a-year trucking industry is also undergoing a revamp with trucking companies embracing autonomous technology and incorporating it in their trucks. In this post, we will shed some light on Embark, a self-driving trucking startup.

 

More about Embark Self-Driving Trucks

 

Embark self-driving truck is a startup known to operate a long route of automated freight using a large fleet of trucks. In 2017, the company raised $15 million in a Series A funding. The fund will be utilized for acquiring new talents to join the company’s team and also to increase the number of trucks on the road. Embark’s trucks are equipped with autonomous technology that focus on driving on the freeway while the drivers will handle driving within the city.

According to the company, the aim is not to eliminate humans entirely but to reduce human dependency and makeup for the shortage of qualified truck drivers. This will also reduce the strain on truck drivers who no longer have to drive all the routes.

In February of 2018, Embark completed a coast to coast trip of 2,400 miles from Los Angeles to Jacksonville. The truck had a safety driver behind the wheel to take over if the need arises. Due to the presence of said driver, the truck had to make scheduled stops which made the trip last a total of 5 days. Embark is hopeful that the trip would last 2 days in normal circumstances.

The company is growing and hopes to acquire about 40 trucks to boost services by year end.

 

Conclusion

The emergence of self-driving trucks is a welcome development that will greatly reduce the strain on truck drivers. These trucks drive thousands of miles cross-country regularly; this can begin to take a toll on drivers.

In 2016, rideshare giant Uber launched “the world’s first Self-Driving” taxis in Pittsburgh which received mostly positive reviews. The company later moved on from taxis to self-driving trucks by acquiring trucking company Otto. The face of trucking is changing and drivers have less work to do if the autonomous technology is fully incorporated. Now, the trip can be shared between drivers and the self driving technology these trucks are equipped with. This is a win-win for everyone; humans still get to keep their jobs and the trucking companies have better control over their fleet and human resources.

 

Are you an Uber Driver and/or Entrepreneur? Did you enjoy this post? Are you looking for other ways to optimize your Ridesharing Business?-If your answer is yes to all three question, and you have not downloaded our kit(s) – you need to do so now and join thousands of other Uber drivers by clicking the Download link at the top right of this page, or by going here or here.

More About Careem- Fast Rising Uber Rival

 

Many cities are subscribing to ride sharing to ease traffic congestion and air pollution. Ride share and car pooling are geared towards reducing the carbon footprint in our environment. Also, providing affordable transportation plays an important role in the spurt of rideshare companies globally. This has seen the emergence of a plethora of rideshare startups striving to compete in the industry. By reducing the number of cars on the road and providing affordable transport services, rideshare companies are fast becoming the preferred mode of commute.  Uber, a pioneer in ride share is facing competition in various cities. careem

Careem, a transport company based in Dubai is giving Uber a run for its money in the Middle East, North Africa and South Asia. With presence in 13 countries and over 90 cities, Careem is offering a service that seems to be driver-focused. While also offering impressive services to riders, Careem drivers who are labeled as “Captains” are made to feel that they matter in the scheme of things.

 

More About Careem

The company which started as a web-based car booking service was founded in 2012 by Mudassir Sheikha and Magnus Olsson. Careem is currently valued at $1 billion after a series of funding. In 2017, the company announced that it will be extending maternity leave for women and hopes to have a female workforce of 20,000 by the year 2020.

 

Become a Careem driver

To drive for Careem, all drivers must meet the following requirements:

  • Be at least 18 years old
  • Have a valid driver’s license
  • Have a smart phone
  • Have a car that meets your city requirements
  • Undergo screening tests including drug tests, criminal background checks, credit checks and even driving tests.

Once you have passed required checks, you now have the opportunity to earn money on your own schedule as a captain.

 

Ride With Careem

How does it work?

  • Download the Careem app
  • Register to drive
  • Select your preferred car and book now and schedule for later
  • Receive your captain’s details
  • Track your captain’s ETA

 

Conclusion

In Egypt, Uber and Careem have faced stiff protests from local taxi drivers who feel that TNCs enjoy unmerited favor from the government. About 40 Local taxi drivers filed a suit for the government to suspend Uber and Careem’s operating licenses, citing that these TNCs violated Egyptian traffic laws. The ban was suspended by Egypt’s Judiciary court and both companies are operating with no hassles currently.

Careem is expanding and has even introduced a scooter service in Egypt. Uber and Careem seem to be competing fairly for now and both are enjoying tremendous success in the region.

 

Sign up to have our blog posts (catering to Uber Partners and Drivers) delivered to your email every week!  In exchange for signing up we will give you our highly rated report with suggestions to help you increase your Uber Revenue. We cover trending topics relevant to the success of your business as an Uber car owner or driver, as well as cutting edge improvements on how to improve the management of your business: like how to better control costs and increase your revenue. Thanks again for visiting! We look forward to hearing from you about your experience and being a part of your new growing business!

Uber In Southeast Asia Exits; Sells to Grab

 

Uber’s strategy took a surprising shift when the company announced in March 2018 that it will be exiting Southeast Asia.  The rideshare giant will be selling its stake in the region to Singapore based, Grab signaling the end of Uber in Southeast Asia.

This isn’t the first time Uber will be surrendering to competition when faced with tough opposition. In August 2016, Uber’s former CEO, Travis Kalanick issued a statement on his Facebook page confirming news that Uber’s China Business will be uncharacteristically merging with Didi chuxing, a Chinese ridesharing giant. This was an unprecedented move as Uber is known worldwide for its aggressive territorial stance in countries where it operates.

Citing reasons behind the merger, Travis stated, “Sustainably serving China’s cities, the riders and drivers who live in them is only possible with profitability. This merger paves the way for our team and Didi’s to partner on an enormous mission, and it frees up a substantial resources for bold initiatives focused on the future of cities — from self-driving technology to the future of food and logistics.”

Now, Uber will be exiting 8 cities in Southeast Asia: Singapore, Indonesia, Philippines, Malaysia, Thailand, Vietnam, Myanma and Cambodia.

Uber stated it won’t receive any cash from the sale. The company “will get a 27.5% stake in the combined company. Around 500 colleagues across the region will transition to Grab, and over the coming weeks we will help our customers move to Grab’s apps” Uber’s current CEO, Dara Khosrowshahi said in a statement issued on the company’s websiteUber In Southeast Asia

 

What This Means

Southeast Asia is the third market Uber will be exiting after facing strong competition. This has prompted people to ask if Uber is shedding weight and going light. The company is known for dominating new markets even if there is strong opposition and these recent moves are a clear departure from Uber’s strategy.

To shed more light on this, Khosrowshahi said “One of the potential dangers of our global strategy is that we take on too many battles across too many fronts and with too many competitors… going forward we will be focused on organic growth—growth that comes from building the best products, services and technology in the world, and re-building our brand into the mobility brand that riders, cities and drivers want to support and partner with.”

 

What we Think

This is a wise move by Uber in Southeast Asia. Why expend resources in markets that are generating no profits and are clearly dominated by stronger opposition? If you stand to gain more by selling off struggling operations and making strong partnerships, then by all means do so. Grab has a stronger hold in Southeast Asia where its food delivery, car pooling, cashless payments and bike share services are available in 191 cities. Uber in Southeast Asia didn’t seem like a profitable business in the long run thus, prompting this shocking exit. UberEATS and Uber’s ridehailing services will now be available on Grab’s app.

 

Sign up to have our blog posts (catering to Uber Partners and Drivers) delivered to your email every week!  In exchange for signing up we will give you our highly rated report with suggestions to help you increase your Uber Revenue. We cover trending topics relevant to the success of your business as an Uber car owner or driver, as well as cutting edge improvements on how to improve the management of your business: like how to better control costs and increase your revenue. Thanks again for visiting! We look forward to hearing from you about your experience and being a part of your new growing business!

 

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