Uber Clinches $1 Billion Investment in Self-Driving-Car Unit
The ride hailing company, headed for its IPO next week, aims to dominate the world of transportation, from food delivery to freight. It’s still not making any money.
In this article, we see the author Elliot Brown depicting an Uber company that has a bright vision that would make consumer be carless in a couple of years by providing them different ways transportation. Either by “electric bike and scooters for short distance” consumer could decide by using Uber as their primary way of transportation. But with this grand vision from Uber to be the primer service for customer in rental bikes, scooters, self-driving cars, and robo-trucks how can Uber be successful if its losing money?
In this article, the author state the reason why Uber has been losing money did not take in consideration other start up that have “deep pocked” behind them which could in fact provide consumer with less expensive delivery service then Uber food delivery services. Secondly, Uber in Latin America has in fact lost much revenue due to an internal threat that have in fact lowering or even flattened it wages completely. Lastly the threats, of new startups in the US has also has had an extensive hit, ballooning to a $3.7 Billion dollar lost with in a 12-month period. Which marks, this the worst lost before a company IPO is to go public. Though Uber is trying to find ways to manage it still believe that innovation, is the key for the success so that’s why a move to go public was establish. Even Uber executive, have stated this and believe this is the key for success to have low prices and have more people ride with them.
How does this relate to Marketing?
Reading this article there was some major flaws one the aspect that the company did not plan to take in consideration of the aspect of its threats especially in other startups such in Latin America. “Didi” the main competition of Uber in China appeared within the region with heavy investment, which again show me that the company structure in other part of the world was not prepared for these external threats. Secondly its price points of the product that they are selling, there either a bit slow to establish a price point to have a stable market area.
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