Business of Apps
It is only a small app – but Uber has had a massive impact on city transportation since its official launch in San Francisco in 2011. Latest figures suggest that the service is available in over 66 countries and 507 cities worldwide. Since Uber’s launch, lots of other companies have replicated its business model, a trend that has come to be referred to as ‘Uberification’
The Uber mobile app allows smartphone owners to submit a trip request, which the software program then automatically sends to the Uber driver nearest to the consumer, alerting the driver to the location of the customer. The Uber app automatically calculates the fare and transfers the payment to the driver.
Apart from coining its own tech phrase, Uber is a prefect example of disruptive technology in action as it has created a new market, or in this case a new value network, that has disrupted an existing market (taxi services) and value network, displacing established companies.
Not everyone is happy about Uber’s rise to dominance. How did it become so successful and controversial? Download our special two-part report on the facts and figures to see what makes Uber tick.