Analysis Of Uber

Name brand recognition is a powerful thing and becomes even more powerful when your name brand starts being used as a verb to describe that item. For instance Kleenex is a brand of tissue and Band-Aid is a brand of bandage, but when you need one of those items you rarely hear someone ask for a tissue or a bandage. You hear people say, “Pass me a Kleenex,” or “I need a Band-Aid”. Uber, despite being a relatively new player in the car service game, has already established that type of name brand recognition. Although Uber may seem like nothing short of a wildly successful company, there has also been some backlash and critics of the newly developed car service. Here we will take a deeper dive and explore a couple of reasons why Uber is a positive

Specifically because of the two reasons I stated under the positive aspects of Uber. The cost effectiveness and ease of use make it a no brainer for my personal consumption. In addition, the incentive that Uber offer for referrals and first time riders also increases the appeal. From a business approach, I think that Uber has laid the foundation for a very successful company and they were able to do this through a mix of product differentiation and cost leadership. Typically, when a company uses product differentiation the customer has to pay more, but is willing to do so because they feel the product is superior. However, in Uber’s case, a majority of the time you receive a superior service for less. In a sense Uber has essentially achieved the unachievable by offering a superior product for less. As previously stated in the positive aspects of Uber, an Uber car is almost cleaner, safer, and less expensive than a traditional taxi. In comparison to taxi services, Uber is undoubtedly superior and has achieved that through their pricing strategy and product differentiation . Although, I currently am a supporter of Uber, after reading the articles on the backlash they have received and learning more about their treatment of employees I have some skepticism about the company moving forward. In an ideal world a company as innovative and successful would also be a great employer and be one of the top places to work. However, this does not seem to be the case for Uber and I will be interested to see the effect it has on business moving