Consultancy
Uber and its innovative business model
Uber is the company that has revolutionized the transportation industry.
Its innovation is based on the creation of an App, based on hiring a taxi service.
While taxis and remises in all cities of the world fought in a tight competition to obtain the greatest number of customers, with the appearance of Uber finally taxi drivers and remiseros joined forces against a common enemy, but that took time.
During the years in which this new business model was emerging, taxi drivers and taxi drivers did not seek innovation to improve the transportation service.
Although they knew the shortcomings they constantly faced, such as not being able to circulate under certain weather conditions, times when they were most required by customers, among other failures in the service, they still continued with their standard model of contracting the service by telephone.
Uber, the company that arose from the need of its founders, highlights in its service the importance of Added Value, in order to guarantee safety and improve the experience of use of its clients.
How was Uber created?
2008 was the year of the birth of Uber, when on a winter afternoon in Paris, Travis Kalanick and Garret Camp were desperately looking for an urgent transport, but the vehicle never appeared.
From that need and disappointment, the friends had a brilliant idea: if it was so risky to get public transportation while on the street, why not resort to calling someone through an application specially designed for that?
So it was that a year later, the same guys founded the company with the name UberCab developed in Silicon Valley, San Francisco, USA.. This was the first version of the app aimed at a new digital-based business model that was beginning to innovate the transportation industry.
For 3 years, UberCab became a small company to request vehicles that, despite being somewhat expensive at first, was very profitable, since it provides novelty and greater security to the passenger, using GPS that controlled each trip and left a record in the database.
In 2011, the same founders finally decided to change the name to simplify it: Uber and the expansion began.
Despite being a more expensive service than the common taxi, its business was consolidating in San Francisco and later in New York. But the big international leap came from its foray into the European market, after the company reached a value of 60 million dollars through several investments from people interested in the project.
One of the great investors was none other than Jeff Bezos, the founder of Amazon, which allowed him to further expand his business around the world.
In 2012 Uber launched the UberX service, a low-cost transportation project that allowed users to drive their private car on behalf of the company.
A year later it inaugurated its service in India and some cities in Africa, increasing its presence in more than 35 countries.
That same year, Uber received an investment of $258 million from Google Ventures, which helped the company raise $3.76 billion.
The fight between taxi drivers and Uber
At first, taxi drivers and taxi drivers complained about the success of Uber and its business model that threatened to take the traditional transportation service out of circulation.
Violent protests arose from taxi drivers and others close to their cause, who attacked Uber drivers and sowed chaos in the streets.
As in any innovative business model, after a period of certain tranquility and exponential growth, some complication arises that forces you to test how strong and solid the business is that is trying to make its way among so many competitors.
Sometimes this is more than achieved, but other times it is not, and it is necessary to retrace one's own steps to rethink the concept of what the company wants to convey to its customers.
The obstacles did not stop appearing and then in 2016 the company was expelled from Texas and Hungary, generating losses valued at 2.8 billion dollars.
However, as hard as these setbacks were, they were not enough to stop Uber from expanding as the largest new digital contract transportation service in the world. This reality not only gave it strength, but added significance and very soon, in 2019, Uber was selling shares on the New York Stock Exchange for 100 million dollars.
We understand that the traditional business model of the people transportation service lost to Uber's proposal, because it put its own interests first to the detriment of the needs of its customers.
And that was exactly the opposite that Uber did, because starting from being also dissatisfied customers of traditional transportation, its founders felt the genuine need to create an improved service for all customers who, like them, have concerns that are generally not taken into account.
In this way, the importance of added value in Uber's digital service is revealed, which ensures passengers reach their destination without delays for a price worth paying for.
Uber's added value and latest updates
Uber offers several travel options, including the ability to request a luxury car, split the fare with another passenger, or travel in a dedicated assistance vehicle.
These are some of the different types of services it offers, depending on the city you are in:
UberX: a car that aims for comfort, new and spacious models with first-class drivers for up to three passengers.
Exec: premium travel in high-end cars for up to three passengers.
UberXL: an everyday car for up to five passengers.
Uber BLACK: a high-end sedan for up to three passengers.
Uber TAXI: an associated taxi for up to three passengers.
Uber SUV: an SUV for up to five passengers.
Uber LUX: a high-end luxury car for up to three passengers.
Uber POOL: Share your ride with other passengers and you'll automatically be charged a guaranteed split fare.
Assist: An UberX option that is designed to provide additional assistance to seniors and people with disabilities.
Uber is available in more than 10,000 cities around the world. You can see if it's available in your city using the Uber website.
We found a company that by building a new business model not only manages to position itself as a globally recognized brand, but also manages to remain over time despite the vicissitudes that threaten its permanence, an advantage that not all companies that face various crises can successfully resolve.
Without a doubt, the reason for Uber's triumph was the importance of the added value that reflects its service to be there when others are not and offer what others did not imagine.
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