Interesting Startups: UBER

UBER

An on demand transportation system which connects users to taxis based on their preferences. Users can use the app to select and book a taxi category (cost efficient/luxury). The taxi in the selected category closest to the user is alerted and attends to the customer. Fare estimates are also given to customers beforehand on the app.

Why I find this Interesting?

- Low capital required since taxis are not bought; Scaling is easier and faster
- Technology backend useful for optimizing the entire process and checks on the system; Backbone can be replicated to any geography 
- Customer gets a taxi in the shortest period since the closest taxi driver is alerted
- Customer selects the taxi category he/she wants and has an idea about the costs involved
- Drivers can focus on driving and leave customer acquisition on Uber
- More business for Drivers as better marketing by Uber

My Concerns

- Safety since drivers are not on Uber's payrolls; Uber does a detailed verification of the drivers though
- Customer Experience may take a beating as model is dependent on vendors (taxi drivers)

Overall, the UBER model is an awesome model and has been able to disrupt the public transportation system in the world.

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