Uber-Everyone’s Private Driver

Uber is an American mobility company that has presence in over 80 countries.They were founded by Travis Kalanick and Garrett Camp in March 2009 out of San Fransisco, USA.Their founding is traced back to an incident that Camp and Kalanick had when they were unable to find a cab service to take them to a music concert back in 2007.A silicon valley startup founded out of necessity is what describes Uber.Uber is a revolutionary player that has completely elevated the shared mobility space both from the perspective of the driver and the consumer.They had their IPO back in 2019 with an initial price of 45$ and 180 million shares.

Uber currently trades at 41-44$ with a market cap of 82B $.Their success is owed to their strategy and their actively developing platform.They have solved a major issue which has allowed them to gain a huge consumer base and also a large number of contractual drivers.They just act as intermediary and make revenue using commissions from both sides of the transaction.Another revenue stream includes advertisements and transaction based revenue when they market fares higher than normal during peak hours.

Uber has a price forecast of 70$ with a high prediction of 82$ and a low prediction of 48$.The median price represents a 66% increase from the last traded price.This implies a growth stock and this growth can be contributed to several enhancements that have been made to the software and the business model.Their active collaboration or takeover strategy is another key aspect of their predicted increase.Uber has had good growth in the past and its prices have stabilised in the past year meaning a good increase in the current year.

Uber is one of the silicon valley giants and their business model revolves around commission based earnings for providing rides to drivers and convenience to passengers.They have lowered taxi fares for passengers while providing rides to drivers throughout the day.Uber also provides some of its drivers with vehicles which means they are empowering low income workers without backend security which is a great move to lessening the socio-economic gap in society.They are also releasing special vehicles termed as Uber Access for disabled people providing empowerment to them.Uber is also heavily invested into technology for self driving cars as they say that the most essential cost in the mobility space is the fees to the drivers.This would increase profits for Uber but would also drastically reduce employment which is seeing heavy critics in the form of labour strikes.Uber is also looking to maximise its revenue streams with the launch of new services such as Postmates which delivers food from restaurants and Cornershop which is an online grocery store.They also face heavy competition in regional markets which they try to solve either using predatorial pricing strategies or by signing deals dividing markets.They are trying to gain on customers who take day rentals instead of single trips as they are usually the price insensitive customers but this is a hard market to capture says Uber CEO as customers always prefer long established brands.Uber is also on contract with Hertz Rentals for utilising their 100,00 Tesla Model 3s as cabs on lease which will prove to be an environmental friendly and cost efficient move for Uber.Uber has been involved in a series of accusation over sexual harassment and gender pay gap issues.They have also been under investigation by the Department of Commerce for supposed use of offshore companies to minimise tax liability.The company was also part of the data breach controversy and had to pay heavy fines in 7 countries for the same fairly compensating the leaked users.All this information highlights how Uber is a revolutionary service with a good market share but constant negative actions are affecting the brand and can potentially lead to the downfall of Uber.