In: Economics
1) What are the economic conditions of globalization that allow Uber to function across the world
It is considered a global, economically productive firm because
it provides a service that people desire for a smaller cost than
was previously offered. The fact that is relies on local inputs
(labor) and is a service (nontradable good) does not mean Uber is
not productive or economically beneficial.
Consider this simple situation:
Hopefully we can all agree that process 2 is more efficient and
economically beneficial to the world as it allows the same output
for less input or, in other words, more output with the same
input.
Uber is focused on building its business, which is what has made the brand so ubiquitous that it has become, like Google, a verb as well as a noun. The company has expanded its mission from providing rides on demand to reinventing transportation. It is efficiency that has led to new services that can reduce costs as well as emissions, the most notable of which is uberPOOL. POOL, which matches riders heading in the same direction for a shared trip, now makes up 20 percent of Uber rides globally.