Question

Explain why Uber has largely driven the taxi companies out of the ride industry.

Answer 1

Uber has been successful in driving out most of the taxi companies out of ride industry majorly because of its predatory model of business.

The company does not own its own cars or drivers, it simply runs an app which connects drivers to customers.

Since the taxi industry earlier was heavily regulated and it was difficult to get licenses, Uber helped ease the availability of taxi rides to customers by helping one customer reach out to multiple taxi drivers at one time, sitting at even the remotest places.

Also, the pricing model was such that prices set were too low, which made customers prefer technology driven,easily accessible and low prices Uber over other taxi companies.

This helped Uber drive so many other companies out of business.