Uber's Strategy as a Competitive Business Model of Sharing Economy

Uber's Strategy as a Competitive Business Model of Sharing Economy

José G. Vargas-Hernández (University of Guadalajara, Mexico)
Copyright: © 2020 |Pages: 19
DOI: 10.4018/978-1-5225-9928-9.ch006

Abstract

The aim of this chapter is to analyze the different strategies that take Uber to join the global market successfully, positioning itself in different countries, and to analyze how these businesses and strategies that follow become successful to the extent that Uber is doing, not just one city but many in several countries around the world. In order to accomplish this, it is necessary to reference a previous literature review on collaborative economies business model that is appropriate to identify the different theories that may be applicable. As a result, the analysis of this work shows the determining factors that have placed Uber as one of the leading companies within its area of influence and ends with some recommendations on the conflicts that the firm presents when entering a new market.
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Background Of The Problem

Today globalization plays an important process, because by this concept can be eliminated some barriers between countries. Through technology has been a way these barriers have been eliminated, since technological innovations often come equally to different countries and at different times around the world, so it can be seen different products with similar characteristics, which is called as a standard product, regardless of whether they are produced in different cultures.

The story so before it started this century tells that the common way to establish a company along the story is that the company or the plant reached the place where he would have operations, had a physical place, and was established formally. Now it is seeing a new trend in strategies and ways of doing business in enterprises as a platform generated by its operations, profits, sales and everything related to business dedicated activity. Which have started with this simple idea is now changing the way people are transported in large cities, according to the Uber definition is the smartest way to move and luxury at low cost.

Key Terms in this Chapter

Business model: It is a conceptual structure designed as a system to support the methods of business viability, the means to fulfill its purpose and goals, financing, resources, operations, customer base, generation of revenues and profits.

Strategy: It is the orientation and delimitation given to resources and capabilities of a firm in relation to complex and uncertain competitive market environments in order to accomplish the vision and mission of the firm.

Collaborative Economy: It is a set of initiatives based on horizontal networks with the participation of a community and formed by individuals who have something to share and others who need them with the purpose of giving, swapping, borrowing, trading, renting, and sharing products and services based on distributed trust and decentralized power.

Technology-Based Company: Also known as tech company, it is a firm focusing on the development and manufacturing that uses leading edge scientific and technological knowledge systematically and continuously to produce new goods or services with high added value.

Uber: It is an acronym to mean ultimate, best for above in German. It also has the basic meaning of over, beyond, extremely good. As the trade mark and global brand of a private transportation incorporated company, Uber has been changing inner-city transport structure.

Private Market: The structure of transactions that are negotiated directly between two parties and can take any form.

Transport Incorporated: The act or process of moving people or things through different means of transport from one place to another subject to a patronage or ridership refers to the number of people using a transit unit.

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