Categories Analysis

Uber: A global ride-hailing service on paper

Uber is the most widely expanded ride-hailing service in the world. And yet, despite its omnipresence, the company seems to be the most vulnerable to falling out as well. As rivals around the world are gradually proliferating operations into new markets, Uber seems to have hit a glass ceiling.

Notably, most rivals enjoy a home-market advantage, be it China’s Didi Chuxing or Russia-based Yandex Taxi. A few others, meanwhile, enjoy the patronage of an entire region, such as Careem in the Middle-East and Grab in South-East Asia. While Uber does operate in many of these markets, it has failed to gain a cultural reckoning, thereby creating a lacuna for rivals to prosper.

Separately, Uber, unlike its rivals, is struggling in its home ground, thanks to a set of scandals and negative publicity. Regional rival Lyft has been quick to swoop in and grab the pie, increasing its US market share to around 30%, by March this year. The company also recently bourgeoned into neighboring Canada, a key market for Uber, posing a further threat.

Global-operating-locations-of-major-ride-hailing-services

Other competitors have also been pretty romped up on their global expansions. One of Uber’s oldest rivals, India-based Ola Cabs, on Tuesday announced its plans to expand into three major cities in New Zealand. This comes on the heels of the company launching operations in Australia and United Kingdom earlier this year.

In China and Russia, Uber had to concede defeats after multi-year battles against Didi and Yandex Taxi for market dominance, following which, the company inked consolatory deals to acquire a minority stake in both the competitors.

Meanwhile, in Japan, two regional rivals, Tokyo Musen and Nihon Kotsu started operations together through a pact earlier this year, to gain an advantage over foreign firms Uber and Didi Chuxing. The scenario is similar in Europe, though Uber certainly holds a better foothold in this region. However, Uber’s constant spat with the European regulatory authorities could give its rivals, primarily Taxify, the much needed fillip to take off.

Uber names Rebecca Messina as its first CMO

Uber has plenty to resolve ahead of its planned IPO next year, a major one being tacking the ever-increasing and growing rivals across the world.  It’s not going to be a smooth ride for sure.

Most Popular

PG Earnings: Procter & Gamble Q3 profit climbs, beats estimates

Consumer goods behemoth The Procter & Gamble Company (NYSE: PG) announced financial results for the third quarter of 2024, reporting a double-digit growth in net profit. Sales rose modestly. Core

AXP Earnings: All you need to know about American Express’ Q1 2024 earnings results

American Express Company (NYSE: AXP) reported its first quarter 2024 earnings results today. Consolidated total revenues, net of interest expense, increased 11% year-over-year to $15.8 billion, driven mainly by higher

Netflix (NFLX) Q1 2024 profit tops expectations; adds 9.3Mln subscribers

Streaming giant Netflix, Inc. (NASDAQ: NFLX) Thursday reported a sharp increase in net profit for the first quarter of 2024. Revenues were up 15% year-over-year. Both numbers exceeded Wall Street's

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top