Question

In: Economics

Imagine that you are the CEO of uber. Please show us about uber international expansion: provide...

Imagine that you are the CEO of uber. Please show us about uber international expansion:

provide an overview of the international expansion for uber .

How did the uber expand globally?

How did uber expand?

What was the top obstacle or barrier of uber faced? What happened?

Solutions

Expert Solution

From starting as a cab aggregator in the US in 2009, uber has come a long way. Expanding internationally to 632 cities worldwide, Uber has spread its network immensely. Uber was initially began with the idea to build an app which would help people obtain premium black cars and was ideated for metropolitan areas.

But once the idea got hit, the company started expanding worldwide.

Uber currently is moving aggressively in the middle east and Asia pacific regions apart from being active in America and Europe. Uber has a major share in UK, Spain, France, and Minor in Russia, Germany, India, etc. Uber expanded by various methods, one of them was to acquire other local ride hailing businesses in the various regions.

Further Uber either took the firm stance of competing in the local market against the competitors (Like in India) or merge with them(like in Russia)

Further uber also started its food delivery business called uber eats as an extension of services offered by the company. The service faces a lot of competition from its competitor food delivery aggregators like Zomato. In some markets uber eats had to give up under the pressure of its competitors, like in India and it got acquired by its rivals.

Uber faces a lot of obstacles/barriers globally.

· The first and foremost is its business model itself. Uber incurs huge costs and earns less profit. In some countries the app is running in losses. Further, Uber also faces stiff competition from the local regional apps like Taxify in France, Ola in Inida and UK, Cabify in spain for its ride hailing business.

· The other challenge is from the internal stakeholders, i.e. through strikes from its drivers demanding better compensation schemes.

· Due to strict national policies in some countries, like In economies like China or Russia, Uber had to merge with the local competitor to stay put in the business.

· Further , countries like Japan prohibit by law activities like ride sharing which increases Uber’s difficulties to enter the market.

· It has been burning a lot of cash and ling running on losses and the need to become profitable is posing a lot of difficulties to the company.

   


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