Sunday, April 16, 2017

Uber Wants to Rule the World. First It Must Conquer India.


I found this article interesting because it talks about how Uber is trying to expand into India and are using “UberDosts,” or recruiters, who are paid by Uber for each driver that they bring to the company.  The recruiters must deal and train people, some who have never worked before, driven before, or have never even used a smartphone before.  Uber is using an aggressive approach to take over the market in India.

The reason for this aggressive approach could be because Uber was recently forced to leave China after getting beat by a competing service, Didi Chuxing.  Uber will not let this happened again and is making sure India goes better.  Uber currently is operating in 29 Indian cities in India, but there have been some problems, including competition.  A well-funded competitor, Ola Cabs, operates in around 100 cities and offers more services that Uber.  Both companies are fighting to control the market, but agree that their efforts can transform India because travel has become much more affordable, safe, and available.  The two companies also offer jobs, which are changing the lives of hundreds of thousands of drivers.  Drivers make between 30,000 and 60,000 rupees a month, or $450 - $900, which is above the average income.  Both companies continue to face multiple problems, but believe that the long-term push and change will be worth it.  Uber feels as if there are no problems that they cannot overcome and that they will become more profitable in the future.

Link:  https://www.nytimes.com/2017/04/14/technology/uber-india.html?ref=business&_r=0

4 comments:

Anonymous said...

I think that it is interesting that Uber is able to impact the market so much with its presence around the world and driving markets to offer better and safer travel. No matter who wins out in the market share, the general public will be better off.

Unknown said...

This is an interesting article. The competition between Uber and Ola Cabs makes me think of the fight between Didi and Uber in China several years ago. When Uber first came to China, Didi had developed very well. Didi occupied many cities through giving out telephones and subsidies to drivers and distributed a large amount of vouchers to consumers in advance. At that time, the price for using Uber or Didi is really low, almost zero. However, this did not last long because companies cannot afford that amount of expense for a long time. At that time, prices increased and the market came clam. I'm looking forward to seeing who will win the India market.

Unknown said...

It is interesting to see the aggressive policies that Uber is using to break into the Indian market. This market is slowly becoming one of the most important emerging markets and creating new jobs in India could help contribute to the growing success of not only Uber but also India. However, It is alarming to see the practices that Uber is doing. Having the recruiters train people that have never driven before can create issues. It will be interesting to see if Uber can emerge into the Indian market and fight the competition for some dominance especially since they were kicked out of China.

Anonymous said...

This article was a interesting read. Uber is always being talked about how they have changed the way of transportation. it will be interesting to see if Uber will be able to beat out the competition in India since they were not able to do so in China. I think it is interesting that they have recruiters out there trying to get drivers and riders, I think that this will work good for them because half the battle of Uber is knowing how to use it. it will be interesting to see how this all works out.