Uber: Will their magnificent rise last?

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protest_against_uber_-_budapest_2016_01_18_2Uber has become one of the most successful companies in recent times, building upon its distinctive capabilities and climbing from strength to strength. It has embarked on impressive technological innovation in order to create a unique taxi-like service whereby customers can request transport that arrives in minutes. Uber has become a leader in the personal transportation market, which is estimated to be worth around $10 trillion a year globally.

One of the main reasons for Uber’s success is its effective pricing strategies. The company is renowned for charging prices which are affordable, especially in comparison with a number of other taxi services, allowing it to grow its market share. Furthermore, Uber has benefited from utilising a dynamic pricing system, whereby the customer is charged a higher price for journeys during peak hours and holidays.

However, there are a number of companies that have begun developing self-drive technology which could act as a major threat to Uber’s market dominance in the long-term. Companies such as nuTonomy and Tesla have already invested large sums of money into self-driving cars. Can Uber sustain market dominance with human-driven cars when the novelty of self-driving ones look so attractive? Then again, one could argue that Uber has benefited from the lurking threat of self-driving cars. It has motivated them to invest, innovate and build strong brand loyalty, which has allowed them to keep ahead of rivals and may ensure survival in the long run. However, others argue that the quick-thinking of Tesla and the innovative genius behind nuTunomy may prove too much for Uber to compete against. Ultimately, it would seem that the outcome of the battle between these companies rests in the laps of the consumer. If consumers choose to place their trust in self-driving cars Uber could find itself left behind.

For now Uber remains the firm to beat in the future transport race. However, the emergence of a number of competitors has led to many questioning whether Uber will join the long list of fallen giants, such as Yahoo, or whether they will be able to build upon their ever-growing success and against all odds continue to be the firm to beat.