Uber provides rides on demand, which is similar to the process of booking a taxi in any country. Initially when it started, it was in direct competition with the Chauffeur Service Industry as it offered Limousines on Demand with its “Uber Black Service”.
Next step forward was allow normal vehicles into the ecosystem, making it in direct competition with the taxi booking system in whichever country this was implemented.
How they spread so quickly worldwide by just providing an application! without having to bear any of the costs or responsibilities for providing the actual transportation service and by actually charging those responsible for providing the service (The Partners) a 20 to 35 percent charge which Uber sets, is simply an amazing business concept.
The best part comes in the form of fare surges! which Uber deems appropriate according to the rules of supply and demand. This happens when there is a sudden catastrophe and Uber comes to the rescue with “Helicopter Taxi” pricing. They (Uber the app provider) still get between 25% to 35 percent for each trip.
The industry grew because UBER offered a better option and cheaper option for Taxi Booking in every country without dipping in its own pockets for having a Taxi Fleet in these countries. Yet UBER posted a lost of a few billions.
Did UBER kill the Chauffeur Service Industry? They could have if they did not get greedy!
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