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The Biggest Threat Facing Uber

Uber, on its surface, seems like a company that has very few issues. First off, it has a great business model. Just one benefit, Uber is responsible for almost no inventory, as drivers provide their own cars, which vastly reduces its risk. There is plenty of demand for Uber. The taxi market in the United States alone is estimated at $11 billion a year (it is even larger in other countries, particularly Japan), and it has the potential to hit more rural, previously-untapped markets. And margins do not have to be that high for them to make a lot of money, as roughly20 …Read more »

Is Uber’s Audacious Recruiting Tactic Smart Business?

Earlier this year, Lyft drivers across the nation were experiencing a familiar phenomenon: they would pick up an Uber recruiter acting as a passenger, who would then spend the entire trip convincing the Lyft driver to take a job driving at Uber. Specifically, the drivers were offered more money per hour and up to a $1,000 bonus to join the rival driving service, according to various news reports.  The move was just part of a master plan by Uber entitled Operation SLOG designed to crush their biggest competitor. It is hard to argue that the plan is ethical, as Uber …Read more »

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