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  • Essay / Uber Analysis - 1028

    Specifically because of the two reasons I mentioned under the positive aspects of Uber. The cost effectiveness and ease of use make it a no-brainer for my personal consumption. Additionally, the incentive offered by Uber for referrals and new riders also increases the appeal. From a business perspective, I think Uber has laid the foundation for a very successful business and they have been able to achieve this through a mix of product differentiation and cost leadership. Typically, when a company uses product differentiation, the customer has to pay more, but is willing to do so because they believe the product is superior. However, in the case of Uber, most of the time you get superior service at a lower cost. In a sense, Uber has essentially achieved the unattainable by offering a higher quality product at a lower cost. As previously stated in the positive aspects of Uber, an Uber car is almost cleaner, safer and cheaper than a traditional taxi. Compared to taxi services, Uber is undoubtedly superior and has achieved this through its pricing strategy and product differentiation. Although I am currently a supporter of Uber, after reading the articles about the backlash they received and learning more about the treatment of their employees, I have some skepticism about the future of the company. In an ideal world, such an innovative and successful company would also be a great employer and one of the best places to work. However, this does not appear to be the case for Uber and I will be curious to see the effect this has on companies moving.