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26.10.2015
Success Clues - Millionaire Advice 6 Great Ideas For Hot Mobile Apps Buying Online Real Estate (Websites) On A Credit Card 3 Self Employment Myths - Debunked 3 Ways To Save On Startup Business Costs 5 Ways To Create A Winning Pitch Online Business Advice For Newbies 5 Blogging Tips To Keep You Going Is Google Plus Worth Your Time? Get future updates delivered straight to your inbox by subscribing to the Webpreneur newsletter. The question of how Uber would spend its billion-dollar investment was never really much of a riddle. But with its ten-figure cushion, the San Francisco-based ride-hailing startup can be more cunning about how it tries to get huge. Yesterday, Uber announced it was lowering UberX fares by 20 percent in New York City, claiming the cuts would make its cheapest service cheaper than a regular yellow taxi. Whether this strategy is really sustainable for Amazon after twenty years of existence is a question endlessly debated among shareholders. To keep spreading quickly, Uber needs to aggressively recruit new drivers, which could be difficult if price cuts also meant cuts to driver pay. But keeping drivers behind the wheel is ultimately an operational issue that Uber so far has handled adeptly.
That strength, however, doesn’t have as much to do with the quality of the argument as it does with the quantity of people who support it. You don’t have to spend half an hour getting ready and another half an hour getting to work. You won’t have to spend money on gas and less driving means less money spent on your car. There could be increased stress in your life because you don’t rely on your employer for a paycheck every two weeks.


Basically you just have to alleviate such negative things to simplify things and make it easier for you to handle. That follows a 25 percent decrease in the San Francisco Bay Area announced last week, and a similar drop in Los Angeles UberX prices revealed earlier last month. Fiddling with prices has led to driver unrest, and the company’s assurances that drivers can make more than $90,000 per year in New York have been met with skepticism.
Much more dangerous to its future prospects are ongoing threats from regulators and lawmakers to shut Uber down, or at least severely curtail its freedom to operate.
The more riders Uber can get in its cars and accustomed to having its push-button convenience as an option, the less incentive politicians have to stay on Uber’s case.
But when you work at home your social life gets affected due to the lack of human interaction. The company says UberX drivers in California (though apparently not in New York) will still get paid their standard 80 percent portion of what the fare would have been before the discount. On Twitter, Kalanick argued that lower prices meant drivers could make more, because increased demand would lead to more rides booked per hour. So, add us to your ad blocker’s whitelist or pay $1 per week for an ad-free version of WIRED. But for Uber, playing in the new realm of the so-called sharing economy, the stakes are higher, since so many entrenched interests are trying to regulate it out of existence. In cities, underselling traditional taxis gets more riders in UberX cars, striking a blow against yellow-cab competition. The strategy has worked so far in San Francisco, though various state-level attempts to rein in Uber are still in play.


With not just success but survival on the line, Uber has even more incentive to expand as rapidly as possible. It grows quickly, and its popularity explodes as its brand becomes nearly synonymous with the disruptive service it’s offering. Uber has survived many other efforts to restrict its service, though these victories are often incremental, and seldom come without extensive time and effort.
If Uber can survive its many political battles, it stands to become a huge, and hugely valuable, global enterprise.
If it gets big enough quickly enough, the political price could become too high for any elected official who tries to pull Uber to the curb. Demand spreads, and Uber follows (it now operates in about 140 cities in 40 countries around the world).
Low prices and free shipping deals eat away at profitability, but they also keep customers coming back. Its strategy here is much less traditional taxi and much more typical dotcom: grow the user base as quickly as possible and worry about making money later. Uber CEO Travis Kalanick has expressed admiration for Amazon founder Jeff Bezos, who is also an investor in the transportation company.



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