You are on page 1of 19

Program & Batch:

Term:
Course Name:
Name of the faculty:
Topic/ Title :
Original

PGDM 2014-16
3
Business Innovation in Networked Economy
Prof. Reema Khurana
UBER CABS
Original

or Revised Write-up:
Group Number:
Contact No. and email of Group
Coordinator:
Group Members:

2
9654907546
ft14apalakkashyap@imt.ac.in
Roll No.
Name

Sl
.
1
2
3
4
5
6

1401-02141
1401-03028
1401-03055
1401-01040
1401-02043
1401-01125

Vishrut Joshi
Apalak Kashyap
Deepika Kumari
Bhairavi Gupta
Felix Joy
Rakesh Boddu

1 | Page

Project Title: UBER - HOW A TECHNOLOGY FIRM IS


CHANGING THE TRADITIONAL TRANSPORTATION MODEL

INDEX :
Sl No.

Topic

Page No.

Introduction

About the Enterprise

Meaning of Innovation

Need for Innovation

Type of Innovation

11

Relevance of Innovation

14

Sustainability of Innovation

14

Conclusions & Recommendations

16

References

17

2 | Page

Introduction:
Travis Kalanick and Garret Camp together founded Uber, a technology
start-up in 2009. It has its headquarters in San Fransisco, California. They
have always tried to innovate at the meeting point of lifetyle and
technology.The car service application first came into existence in 2010.
The company started receiving venture funding late 2010 from investors
in the silicon valley and till 2011 with big names like Goldman Sachs
coming in to invest, the total amount increased to $49.5 million. The
company is valued at over $18 billion. Initially Uber offered only luxury
cars for hire named as Uber Black but with advent of time they also
launched UberX, a more affordable service involving hybrid cars in 2012
and wide spread promotions were done through on-demand ice cream
trucks. They started their expansion by late 2012 and are presently
operating in more than 230 cities across 46 nations.The company claims
to add 20000 new jobs each month. They also struck a deal with auto
manufacturers to lessen the cost of ownership of cars to encourage
drivers and also announced an insurance plan for drivers for their own
personal coverage, specially in the absence of customers in the car. Uber
has become a poster child of m odern operational invention. Their robust
branding and effective technology has given the transportation industry a
very feasible soultion which in turn has helped in the global expansion of
the company.

About the Enterprise:


Uber can simply be defined as a Taxi service but it is not just a simple taxi
service like others, it is in fact a platform for taxi services. Thus, it is a
rideshare as well as a taxi service company and it aspires to be
everyones personal driver. Uber is constantly evolving with the fastchanging world and making cities more accessible by flawlessly
connecting riders with drivers and at the same time,providing them with a
convenient and hassle-free experience. It is essentially, a cab service that
does not own cabs but rents them out, USP being a Mercedes or Audi
costs as same as a Toyota or Hyundai.
A smartphone application receives requests from users and then sends
these trip requests to the company drivers. The customers send their city
and address to a specific number provided by Uber.The application can be
downloaded on android and iOS platforms and customers can call the car
to their preferred location and and travel comfortably to their destinations.
The cars used by the service are not necessarily owned by Uber, instead
they have strategic tie-ups with car companies to ensure that they always
3 | Page

have cars on the road all round the clock. The differentiating factor from
other cab services is that, payments here can be made only with a credit
card. The whole sequence is a cash less and fully automated process.
With Uber, there is no need to wait in the streets and waive your hands to
call a cab. All that is needed is to push the ride button in the application
installed and a notification is sent whenever the cab reaches the location.
Even the cabs location is trackable from the application. The application
detects the GPS and finds the closest available driver. The consumer need
not even specify the destination at the time of booking. The real time
component is of utmost importance to Uber and hence the ETA for the cab
keeps on changing when it is moving towards the consumer. After
reaching the destination, the consumer need not pay in cash. The fare is
automatically deducted from the consumers credit that is saved in the
respective application. Uber gets a portion of the total fare as commission
and the rest of the fare goes to the driver through an automated process.
Also the consumer knows the name of the driver and the driver too knows
the consumer. So if a consumer liked the driving experience they could
rate the driver which would make his overall prifile better. The driver also
rates the consumer which helps the company to analyse the trend so that
the next time the same consumer calls for a cab, the driver who gave that
consumer a higher rating would be sent to yhe consumer so that each
consumer has a good experience with the company and increase the
brand loyalty for the company.
Ubers model is based on disruptive innovation the transportation
inndustry and hence, legal issues has always been associated with the
compnay. They have been always in battling state with taxi drivers and
companies and still continue in their mission to become an altenative in
regard to the present cab services. The companys functional model can
be explained with the help of a simple scenario:
Suppose I have car, may be high-end, may be hybrid anything. I use my
car for say about 2 hours everyday. The rest of the time it remains idle.
Uber allows me to utilise my car idle time by letting me rent it to them for
this idle span of time. They have many such driverless cars and its totally
upto the driver or the owner of the car to accept the price Uber offers
although most of the time the price is accepted. The car is booked
keeping in mind the convenience and charges are compiled.
The Uber registration process comprises of the following steps:

Sign-up through website or through the mobile application


Accept the terms and conditions
Credit card Information
4 | Page

Downloading of the application in the phone

With such simple and easy sign-up process, no surprise they get over
4,00,000 sign ups every month and the number is increasing with every
passing day.

Uber basically operates five different kinds of car. They are as follows:

Taxi: They are binded by a contract to run the services for the
company
SUV: Suvs are useful when the number of people travelling is more
UberX: The cheapest option among all, mainly can be categorized as
a car for everyday use
Black Car: Basically high-end cars for a opulent riding experience
LUX: Expensive service for the style sensitive customers

Application
Uber

Countries in App store


Top 1000
137

Countries application
operates in
25

Ubers innovation can be understood by taking a simple scenario:


One person needs a ride. Another person has a car and free time. Uber
provides the solution by linking the two persons: Ride-sharing. This peer
to peer relation has been a diruptive innovation on Ubers part in the
transportation industry. Some of its innovative ideas have been:

Variants of Uber: With offerings of five different variants to cater to


varying consumer needs starting from a high end limousine to a
more efficient and inexpensive hybrid car
Surge Pricing: The company uses algorithm based strategy which is
dependant on demand and hence the price varies likewise. High
fares when the demand is high and low fares when the demand is
less.
No tip policy: Totally automated and cash free system as the fare is
paid by credit card in the mobile application and even the
commission system is automised.
Split fares: A newly launched feature which lets customers who have
the Uber application installed on their phones to share the cab and
henceforth the fare as well.

5 | Page

Information Provider: The company portrays itself as a information


provider by connecting riders with third party transportation
providers

Meaning of Innovation:
With businesses expanding globally with the advent of time, Uber has also
evolved. Back in 2009 they expanded to a few cities every year but as of
today, Uber connects with new cities in almost a day to day basis.
Customers in Canada were the first clients of Uber. Soon this trend caught
up in many other parts of the world and it is pure innovation that the
company comes up with which is the biggest reason for their great
success. Also with Application Program Interface growing exponentially
Uber decided to provide Application Program Interface to be built into
third party applications. For instance, airlines connecting to Uber
Application Program Interface to book cabs for their travelling passengers.
The company foresaw people looking for viable alternative and ways to
travel and Uber aligned their marketing strategy towards it and the
company also very well knew that the same strategy would not work for
all places. So they made their strategy region specific to cater to the
needs of only that regions customers to properly utilize their main word of
mouth strategy to spread their mission and vision.Mobile phones
becoming an indespensable part of peoples life and people using it for
the simplest of the jobs and keen to use the service to call a cab for
themselves, Uber captured the demand. It made life very easy for the
population as they need not book a cab even in harsh conditions such as
rains or snow. They also need not argue with drivers over petty matters
such as fare or tip as the whole process is automated. Also with on
demand service, the vehicles are cleaner; the drivers are friendly, soft
spoken and well mannered.
Customers becoming more price sensitive, Ubers most efficient
innovation is through its policy of its service pricing. Uber believes in
sharing economy by providing platforms where everyone is encouraged
to become enterpreneurs. This has a considerable impact on any nations
economy as it enhances competition and consumer choice thereby
encouraging people tobecome micro entrepreneurs and at the same time
boost the total consumption level of the nation. Uber has been trying
vehemently to modernize the transportation industry by pushing it to the
digital age. They have mastered the concept of collaborative consumption
by matching available car seats with customers opting to ride in a very
efficient way through means of only a mobile application. Also the
6 | Page

dynamic pricing concept, in which the price varies as per demand


generated i.e. higher demand generates higher price and low prices are
characterised by decreased demand.
The world is evolving very fast alongwith the transportation industry with
the introduction of new technologies, newer methods to capture the
market and increased consumer expectation and this has led to traditional
taxi companies be at war with services like Uber and other ride sharing
companies. The major attributes of companies like Uber prospering can be
directly linked to reasons such as waiting for cabs, rude behaviours by taxi
drivers and dirty and not so comfortable vehicles. The traditional taxi
companies were ignoring this simple reasons and Uber addressed this
problems effectively which helped them to gain a large chunk of the
market from the traditional companies. They are succesful not just
because they answer the consumer needs, but also because of the
innovative an unique affair offered by them. The main reason why Uber
has prospered is mainly due to the fact that Uber respons very quickly to
new technologies and in this modern world, companies thet refuse to
innovate will very fast fall behind the pack.
Innovation has proved it time and again as to what it is capable of. History
has been witness to many such events such as the internet taking over
print media, e-commerce giving tough competition to reatiling and Uber
making the taxi industry get out of their comfort zone. However,
regulation has always been a barrier to innovation as they often deploy to
rules to help the present firms survive so that competition is present in
the markets. Examples can be cited of countries like Germany which have
resisted the invasion of Uber because the market is already
entrepreneurial in nature with most operators running family owned
bussineses. Uber however has been brave enough to say repeatedly that
no laws apply to the company as the concept of sharing economy was
invented even before the laws were made and as such, it cannot be held
accountable.
It is also important to understand that Ubers prices never fall below the
base rate as customers accept the prices easily if it is characterized by a
discount as in the case of movies where prime tickets are never offered at
price leeser than the normal price. Even its prime competitor Lyft which is
also involved in ride sharing services ahs inroduced this concept of
dynamic pricing by offering happy hour pricing with decreased charges in
slow business hours.
Ubers innovation has come from simple innovations to encounter daily
problem. For Singapore where more than 800 million GPS records of more
7 | Page

than 80 million trips were analysed and it was seen that the shortage of
cabs on that day was not due to high demand but because the cab drivers
were hessitant in plying fearing accidents might occur. But with Uber,
come what weather customers are sure to to receive their booked ride.
Thus, Uber solved this problem through surge pricing as they could lure
drivers to ply by offering them more money and thereby increasing supply.
Although this concept has come under fire many times with instances
such as a lady when she was charged a tremendous bill on a stormy
christmas night as the bill charged was 8x the normal price. However this
is what promises reliability with drivers willing to ply. Also, its luxury
service is purely optional and on such nights the company even sends
reminder indicating the customers of the surge pricing rate and at that
point of time the customer always has an option and of course, that kind
of reliability never comes without a price.

Type of Innovation:
Certainly Uber is disruptive innovation in the industry of transport but
these disruptions are byproducts which arose more out of Ubers
adaptation to their competitors. By rising a platform, middlemen have
been drastically reduced and also raised the potential to reach more
customers. They offer various kinds of srvices such as:

Spot to Spot Services competing directly against traditional taxi


services
Airport Taxi to transfer passengers to and fro between cities and
airports
Intra City Service runs on longer routes between major cities
providing competition to bus services
Fixed duration rental service for customers who offer their cars for
taxi services in the unutilised time and in return receive payments
for their services
Time and distance packages offered basically by small time
operators who offer their servces for a pecific time for a specific
price. These services mainly operate in the unorganised sector
working for various companies for transportation purposes.

Uber has always been associated with various issues and early this year in
Paris, some traditional taxi drivers had attacked Uber cabs drivers by
smashing windows and mirrors which shows the industrys reluctance to
change.These incidents occurred because the traditional cab drivers
thought Uber was creating unfair advantage, but it was totally the
opposite. It was simply advancement of the service with the efficient use
8 | Page

of technology which resulted in convenience and better responsiveness


from the customers point of view. And change is something that cannot
be kept away from any business; change is definitely gonna come and its
solely upto the company to adapt to the change. For businesses change is
to drive more products and increase their share of the market. The quicker
they adapt, the higher are their chances of reaping more profits. So,
businesses need to embrace change and that is exactly what Uber has
done. Companies like Lyft and Sidecar are also embracing this model of
Uber.
Uber has been time and again called a disruptive innovation but if we
analyse it carefully we can see that it has not disrupted the
transporatation industry by any chance. Let us look at Uber from its time
of inception. When it was first launched as cars on demand, the prices it
charged were more than 50 % higher than what normal cabs were
charging even without their concept of price surging . It was in fact
made the luxury products more easily available to the masses. If we take
the example of UberX, wherein people with late models could become
drivers of Uber was giving opprtunities to the masses by empowering
them. Their applications and services continue to grow with every passing
day with innovations like you get an idea of your fare when you enter your
destination or the option of sharing of fare or searching for riders from the
UberPool. Some more of its advantages are as follows:

It is very convenient and reliable


The cars are much well maintained and are in excellent running
condition
The drivers are very well mannered and efficient
The entire fare processing is done in a very transparent way
It is also cheaper when compared to other traditional cabs in case of
UberX

Thus, it is safe to conclude that Uber never disrupted the transportation


industry as claimed by them; they were rather outsmarted by a more
efficient product. Its demand has been constantly growing over the years
with safe and reliable rides reaching all those masses that may have been
neglected till a few years ago. Even when they were expanding, instead of
offering a deaf ear, they themselves created frameworks such as
insurance for both the driver and the rider insurance of $ 1 million in case
any kind of mishap occurred on the road. This ensured customer safety
and was a win win situation for both the driver pool and the customers.
Even the ride sharing that was first put up by Uber has been accepted to
be different from traditional regulatory schemes. The biggest pros that
can be found out on analysis are as follows:
9 | Page

A very safe experience and at the same time a stylish and trendy
experience
Language barriers do not exist anymore
More driving time in turn making drivers earn more
Regain of trust in taxi service
Credit gain for a job done nicely

Uber has really gained rankings even amongst the youths with the likes of
those who do not want to drive to theatres and restaurants, specially bars
as drink and drive is a criminal offence and it is very dangerous and the
government should encourage such practices instead of imposing strict
regulations on such companies.
The basic existence of the company depends upon the following points:

People dont move around


People dont have time for that
People are willing to pay to reach their destinations

Uber has not changed the overall fundamental structure, it is still the
same old service, it just got better. Even when it comes to the crowd
sourcing, as they are not owned by the company they need not pay any
maintenance charges on them except for the maintenance of the
application as they also have cashless transaction as they receive
payments via credit card and the company need not pay any transaction
charges on them.
Basically Ubers concept explains their detailed understanding of the
market scenario. The company uses the market inventory in the form of
its drivers and connects it to market demand in the form of riders or in
other words its customers. Also it derives demand by solving the
customers problem by saving him from hassles like calling a cab to unfair
fares. They leverage the markets capacity to fulfil the needs of the
masses. They understand that it todays world, businesses survive only if
their customer retainment is high and thus they just do not fulfil only the
role of transporting peoplebeginning from getting into a cab to getting out
at the destination but they also try to make it a memorable experience
and offer a more personal service so that customers get emotionally
bonded to the company as customers remember pleasant experineces for
a very long time. And the best part is its simplicity and ease of use for the
customers as all they do is calla cab from their app and even the cash less
transactions. They also offer a lot for its employees; they being an
indispensable part of their service and offer full scale marketing for the
purpose of recruiting drivers and also offer them various benefits like
accident insurance, easy financing for vehicles and such other offers. They
10 | P a g e

also realise the importance of customer feedback which makes them know
the secret to be on the minds of its consumers which also makes it easier
to respond with their system of ratings by customers as well as drivers
and analyse them to suit the customer needs. All these things matter
more whwn you are in a foreign country where it is difficult to
communicate whwn you do not know the language of that state. Also you
do not need to worry about currency exchange as the transactions are
cashless and with that you get the reliability of the brand that you have
already used and known.The broader mission and vision of the company is
what keeps acting as a catalyst to keep on continously innovating to have
a tremendous impact among the customers globally. They do not just see
themselves as a cab company but a broader perspective in the definition
of a transportation network which finally will help in the long run
susteinance of the company. These are just some of the ways of the
technological innovation used by the company to acquire new customers
and retain the older ones.
Analytically analysis reveals that Uber is growing by peer to peer (P2P)
platform that reduces entry barriers. The companys business model
explains and gives us the perception of it being a premium service
provider. Many taxi services have also entered into contracts with the
company and this helps the company to bank on the fleets and
manpower of the companies and intensify its operations by making its
supply chain more efficient with the effective use of technology . Analysts
have defined some main causes of disruption which are:

Surplus Contribution
Disintegrated purchase
Inept operations

Uber has disrupted the transportation industry by exploiting all these


factors efficiently and at the same time their exapansion strategy has
been very aggressive when it comes to expanding in newer markets
It is also building its brand name through this and bits and parts of this
model is also being used in finance related companies and in the near
future will be extended to many other sectors. It is model which can be
leveraged so that it is a win win situation on both sides pf the transaction
i.e. both the person who is making the transaction to the person which is
receiving the transaction. This is the way in which the company is
transforming the whole transportation business.
The greatest innovation which is in fact an invisible innovation is the way
it has revolutionized the payments. It is like Uber is more into payment
service rather than taxi service. It has uncovered a strategic secret when
11 | P a g e

it comes to payments which states that customers do not mind paying


their fares but easy and convenience in payments always makes them
happier.
Uber also has brand ambassadors in almost all the major cities it operates
which helps the company in its branding process. Below is a rundown of
what those brand ambassadors do:

Represent Uber and create awareness for the brand


Outdoor events activation
Keep the Ubers community manager updated
Reach monthly assigned targets

In this era of digital economy, value addition have shifted fro established
players and moving to companies which are continuously exploring. The
new start ups are rising exponentially and in the process are dislodging
many established players from their comfort zone and what is adding to
their advantage is infrastructure today can be easily replaced with rent as
a service. This allows them to concentrate more on operations and gain a
stable posture in an ever changing landscape.

Type of Innovation:
Traditionally there had been three basic choices for consumers who
wanted an automobile for public transportation ,First choice was that they
could buy a car-this will cause the consumer to incur the cost of
automobile and burden of ownmership .Second choice was that they could
rent one automobile from auto rental agency .The third and the final
option is to hire a taxi- if the customer happened to be in area with service
of taxi.Uber has made a disruptive innovation in personal transportation
industry.The following diagram depicts the disruption in personnal
transportation industry

12 | P a g e

However today a car seeking consumer has a wide variety of options


ranging from owning a car to pick up rental service , ridesharing and
renting by hour.Now we will see the disruptive innovation that has
changed the entire transportation industry which was mainly due to
widely adoption of smart phones and ecosystem which allowed that
allowed the participants to innovate collabaritely .The second reason for
the change in personal tarnsportation industry is the spread of mobile
based geographic positioning system(GPS).It was mainly this two system
that allowed in creation of new business models serving personal
transportation market.
The innovation that uber created in personal transportation industry was
mainly technology based.Uber was the first of its kind to use mobile and
GPS in the field of personal transportation. Ubers business model allowed
consumers to rent a car to thier exact location.The main highlight of
Ubers business model was that it created a technology paltform that was
simple and elegant to use.There where many startups which follwed the
path of Uber, they included Sidecar and Instacar.
Now let see how does the Uber mobile application works, when consumer
press a buton in Uber application ,the application sends a message to
near by Uber cab driver. When the Uber cab driver accepts the job the
person who is requring the cab service receives name, photo, phone
number, type of vehichle, registration number of the vehichle and driver
aslo recieves the details of the person who is booking the cab service. So
13 | P a g e

both the driver and person who is booking the cab is not anonymous.
When a person download the Uber app he/she needs to give his/her
personal details and credit card number to Uber, so when one person
books cab using Uber and have completed his trip the bill amount will be
automaticaly deducted from his credit card.
After the ride is over the passenger and driver is required to rate their
counterparties i.e, passenger needs to rate the driver and driver needs to
rate the passenger. Both the ratings are in a scale of 1-5. This type of
rating system helps the uber in knowing both the passenger and driver
.This feature also helps Uber to provide a reliable, safe and good quality of
public transportation to the passenger. If any of the partner fails to
provide a quality service ,uber have the right to terminate the partners
contarct. As Uber have the credit card details of the passenger who have
travelled , Uber can easily charge the passengerif he/she had done some
damage to the cab.
Uber has also innovated the price startergy of the cab services.There are
mainly three types pricing stratergy in Uber; Fixed airport rates,standard
rates and dynamic pricing.Uber was the first to introduce dynamic pricing
stratergy in personal transporation industry. This stratergy of dynamic
pricing model helps industries like Uber to better manage their demand
and supply.Electronic payement is also included in the pricing structure of
uber.
The firm employs heat map and predictive alogorithm to predict the
demand of cab in different times of the day. The predictive analysis also
help in mangng the demand and suply of taxi service. The algorithm
analysis how many times an app has opened and clusters the customer on
the basis of this analysis.God view is an operation management that
displays all the active customer requsts and all active Uber drivers in
order to maintain the quality of the system.
Ubers innovation has restructered the entire global economy. Uber has
incorporated a new business paradigm which includes the following

Goverment lobbying for relief


Focus on cost reduction
Job and skill transition
Job creation
Uber were able to create high value by its new model

In the new business model developed by Uber is a one model which helps
the Uber to offer simple and affordable service by keeping the operating

14 | P a g e

cost low as possible there by scaling up the business when compared to


its competitors.

Relevance of innovation:
Uber has completly changed the personal transportation industry in
several ways. First change that Uber has bought into the personal
transporation industry was that the smartphone application is intergrated
with the google map ,which helps the customer to see the nearset Uber
cars and helps them in hailing the nearest Uber car.This mobile application
also helps the person who is hiring the cab by giving him/her information
about the cab driver and the ratings given by other customer.Onces the
consumer have booked the cab driver ,the driver either calls or text the
customer and confirms the order.Once the customer has reached the
destiantion the mobile application charges the customers card and
customer is free to for his day. This also helps the customer in a way that
he/she doesnt need to deal the cab driver with cash,tips,change etc..
There are many problems in personal transportation industry which Uber
is tacking .The main problems that have been tackled by uber are poor
cab infrastructure in many cities,dirty cabs, late night cab service in some
cities, drivers unwilling to accept credit cards. While lauching Uber in San
Francisco, the promerts were knowing that they were going to intract with
community who were continously looking for new service and tools that
would improve their quality of life.
Uber has also introduced some other initiatives like Uber car pool which
help people to share a ride if the consumers are from near by area. Some
other initiatives of uber are Uber couriers service which is offering
cosumers parcel service and Uber Boat.

Sustainability of the innovation :


From the time of launch itself the Uber didnt want itself to viewed as
typical cab service or cab comapny.The promoters of Uber exploited the
employees ability to innovate the challenges that where in the personal
transporatation industry.Uber exploited the vulnerability in the personal
transportation industry, as all other existing firms belived that sector will
15 | P a g e

not change and did not spent any dollar in the innoavtion of transport
industry.Uber exploited this situation and came up with a new business
model.
Uber used a technology enabled stratergy know as noise entry
stratergy ,which helped them to find a place in this sector.Uber was able
to understand the growing frustration among many customers with the
cab industry and also was able to realize the techincal incompetence with
the incumbent firms. Uber also understood the growing smart phone
penetration all around the world. The main advantage of mobile
applciation technolgy is that it is straight forward and the learning curve
assosicated with that is also very small.
Uber used noisy marketing startergy to market itself.Company was
successfull in using all forms of mass media including Twitter and
Facebook, which helped the company to showcase its product. The other
important thing about uber was that it was able to correctly measure and
capture inputs and outputs. Uber employed many kinds of sophisticated
technology to measure the customer service which inluded product,speed.
The main factors that might have lead to the sucess of Uber are it does
not need to incur the expense related to car ownership,licenses,operation
cost,insurance and day to day expenses. Uber used a ranking system
which allowed the customer to rank the drivers according to thier service,
this ranking system in turn helped in motivating the driver to offer better
service in terms of on time avaliablity, having a clean car and offering a
professional service to the customer.
Uber not only transformed the experience of riders,it also benefited the
drivers .Uber did not directly employed any drivers but they acted as
market aggregators that acted as laison between customer who need cab
and drivers who where near by.This created a win win situation for both
the drivers and people

Recommendations :
Intense City-by-City Launches:
One of the main reason for the quick expansion of Uber is that they have
acknowledged that growth is not size fit all. This means that what that
might have worked in San Francisco may not have worked in Chicago or
Delhi. What Uber did was that while lauching they took it city by city, with
efforts to talioring the service accoding to the locality.

16 | P a g e

Beacuse each country, city have its own politics,law and regulation which
differ from others. So while lauching Uber in a city it needs to adopt
according to unique topology of each new market. Kepping this thing in
mind Uber needs to go each market and identify who all are the right
suppliers and what all are the special interset in that market , by taking
this dynamics into account it will be easy for Uber to be successfully from
the start iteslf in new cities
The intense City-by-City launches will help Uber to overcome recent
controvesies that happened in India. In India first controversy Uber faced
was from RBI regarding its payement method,payement method adopted
by Uber didnt take into account the guidelines given by RBI. After long
fought battle between RBI Uber had to change its payement system to a
secure payement system as menotined by RBI. If Uber could have taken
into account the taxi regulations in India it wouldnt have landed in recent
Delhi rap controversy

Creating an WoW experience:


Uber has successfull came up with creating an wow experience in some
parts of U.S.A. They should start this creating Wow experience in rest of
thier market.Company can come up with some innovative ideas like

Ondemand roses for special events like valentines day


Promotional coupon offers
On-demand food items

Leveraging growth opportunities form other sectors:


Uber should try to take leverage from other sectors .These include

Nightlife and Restaurants


Events and holidays
Sports

Uber has always had experienced resistance from traditional cab drivers.
One thing thing the top managemnt should take into account is that how
they can overcome this ressistance and how to create a win win situations
for all

Conclusion :
17 | P a g e

From Uber its clear that uber is a big idea executed correctly in the true
engine. Uber have bulit a smart team which is able to expolit that growth
engine into full extent. Uber not only have sustainable engine, it also
fueled by rocket fuel, this can be understood from its public perception
management, its relationship building capabilities with the existing taxi
drivers and its special promotions that highlighted the potential of Uber.
Uber completly redefined the personal transporation industry with its
disruptive ideas.Uber also helped in changing peoples long enriched
habits and beliefs.Ubers
disruptive innovative idea also helped in
creating market place in many other sectors by connecting people in a
common platform like Airbnb.
The main threat Uber and many other diruptive innovation is that they will
not be outlawed but it is the quite the opposite, it will be the law and
regulation that will dimnishing the innovatve ideas. Number of cities have
put regulation to uber like Delhi state goverment banning the service in
the state and Oklahoma City has put new regulations for Uber. But one
thing to keep in mind is that when there is consumer demand for this kind
of service, the consumer demand will overpower this kind of regulations

References:
http://www.cmtelecom.com/news/will-2015-be-the-year-of-apis
http://www.smartertravel.com/blogs/today-in-travel/what-you-need-to-know-aboutuber.html?id=18090888
http://www.mirror.co.uk/news/technology-science/technology/what-uber-taxi-appsparked-3674925
https://support.uber.com/hc/en-us/articles/201968463-How-is-Uber-different-from-astandard-taxihttp://www.quora.com/What-is-Uber
http://www.innovationmanagement.se/2014/10/14/taxis-vs-uber-a-perfect-exampleof-resistance-to-change/
http://knowledge.wharton.upenn.edu/article/an-uber-problem-for-cities-balancinginnovation-with-regulation/
http://www.adn.com/article/20141026/andrew-halcro-uber-and-innovation-are-goodanchorage
http://www.technologyreview.com/review/529961/in-praise-of-efficient-price-gouging/

18 | P a g e

http://www.straitstimes.com/news/opinion/more-opinion-stories/story/ubers-constantoverreach-20141213
http://firstbiz.firstpost.com/corporate/ubers-innovation-may-be-coming-at-the-cost-ofcustomers-drivers-when-regulation-is-weak-112958.html
http://www.beckershospitalreview.com/healthcare-blog/uber-s-3-innovation-lessonsfor-healthcare.html
http://whartonmagazine.com/blogs/why-uber-is-a-poster-child-for-operationalinnovation/
http://www.reviewjournal.com/opinion/uber-safe-innovative-job-creating-alternative
http://www.qsrmagazine.com/denise-lee-yohn/how-be-uber-fast-food
http://www.bangkokpost.com/opinion/opinion/439247/uber-drives-industries-toinnovate
https://medium.com/@cbkrish/payment-regulations-innovation-the-case-of-uber-inindia-4c10551e10d8
http://www.innovabrics.com/news/item/194-uber-epitomising-disruptive-innovation
http://www.chicagotribune.com/news/opinion/commentary/ct-uber-innovationrepublican-perspec-0807-20140807-story.html
https://www.techdirt.com/blog/innovation/?company=uber
https://growthhackers.com/companies/uber/
http://www.technologyreview.com/review/529961/in-praise-of-efficient-price-gouging/
http://www.ocpathink.org/articlepdf/2779.pdfhttp://www.seregassembly.ie/docs/Tim_Fritzley_InTune.pdf

19 | P a g e