Uber is an app that allows people who need a ride to connect with a driver through their app. Since Uber Technologies Inc. was founded in 2009, this service is available in over 200 cities worldwide. Recently, Uber began a campaign to raise around $1 billion to finance the businesses rapid expansion. New investors as of recent have been lining up at the door to get in on this opportunity, this may be because of the current technological stage we are in, but do you think this stage will last? How much longer do you think new investors will keep showing up wanting to put their money in this business? There is competition in the field, a similar app called Lyft which as of recent has raised $250 million earlier this year for their own business expansion. These two companies have reportedly engaged in rough tactics to recruit drivers, leading to a former executive of Lyft being sued when defected to Uber for breach of contract. Personally I really like the app, I use it all the time back home to get around town, it’s quick and it’s cheap. I’m not saying I am the next investor but I can see why people are jumping at the chance to get on board of this rising business. I’m interested to see how much longer Uber can keep up the rate of expansion as they have now.
I agree and believe that this is kind of a monopoly market and that there is more growth as i believe in the longer run more apps would be released and then the Uber would lose its monopoly and would not be as successful.
ReplyDeleteIt will be interesting to see what Uber plans to do with the money they raise. $1 billion is not a small amount and could be used over many aspects of a business. I agree that the competition with Lyft has pushed Uber to come up with more creative innovations in recent times. Uber recently partnered with Spotify so that passengers can listen to their own music while they are driven around.
ReplyDeleteI'm sure this is a question that Uber has considered immensely over time. It's interesting to monitor Uber and Lyft in terms of analyzing how each company spends their money. Obviously Uber has more room to spend but how will Lyft continue to compete if Uber is flying off the charts. I'm curious to see which will succeed in the long run as I don't feel either company will be comfortable being equally popular in the future.
ReplyDeleteUber is a very effective and ideal app, and I think that it will continue to expand, and investing in their campaign is not a bad idea at all. I feel like the money the investors put in, they will get out through the services of Uber, since it will still be around. Although there is competition in the market, I personally have never heard of Lyft and think that Uber is doing a better job advertising and obviously they are doing pretty well, despite a competitive market.
ReplyDelete