INVESTMENT AND PRICING STRATEGY

AT UBER

A quick synopsis on Investment management at

UBER.
Anshika gupta
B.B.A. LL.B Semester 1
SVKM’s NMIMS- Kirit P. Mehta School of Law
Hyderabad, India
Email: anshikagupta21112002@gmail.com
Subject: Finance

ABSTRACT
Uber Tech. Inc. which is generally known as uber, is an American company,
which provides transport services. Based in San Francisco with operations
in over 900 metropolitan areas worldwide. Founded 12 years ago by Travis
Kalanwik and Garrett Camp. Uber has many more services such as food
delivery, package delivery, couriers, freight, transportation. While the taxi
services attain maximum of share, uber has managed to give a new look to
the tradition services of taxis. Uber at this point has 101 million active
users worldwide. From being involved in controversies and going through
a catastrophic phase in the initial years to becoming the most valuable
startup in the world and then reporting huge losses midway, it was not at
all a cakewalk for uber. The ride hailing company facilitates 17 million trips
on a single day and is offering 180,000,000 shares and expects the price to
be between $44to$50. Uber pays around $78 to its drivers since 2015.
What has made them so successful is the fact that the revenue model of
uber is unique. But the question is that how does the company itself make
money? Well that is the purpose of this research. In this research report
we will be exploring how uber generates its revenue?

INTRODUCTION TO UBER

Traditional taxis are same as uber? Well not really. We see dozens of taxis
lined up outside a hotel or any other place and waiting for a long period of
time. This is because the inefficiency that the customers are not able to
connect with the taxi drivers and reach their destination and taxi drivers
do not have an up to date information regarding where the customer
actually is and their location.

Traditionally dozens of taxis wait for a longer period for some passengers
and in return receive minimum fare. It’s an extremely wasteful and
inefficient transportation model that dozens of taxis have to wait outside
for fewer passengers instead it is better that a group or a dozen of
passengers who want to reach the same destination get matched to the
taxi driver and reach their destination through ride sharing.

Now imagine taxi coming to you rather than you going to the taxi that to
just by booking your cab on a mobile application, easy and convenient in a
way.

What uber actually is? A taxi service? Maybe. Public transport? Not
really. Uber actually is a ride sharing app. Uber is an application that
connects drivers with riders. At first glance uber appears to be very similar
to any other taxi service. It employs drivers in the metropolitan cities and
provides transportation facility to users of all kind.

Customer books the cab through the uber app available on their smart
phones, while paying the fare at the end of the ride. On the other hand
drivers use the GPS and related new technology to find the best route
possible. The fare of the ride is decided on the basis of distance travelled
and the time customers spend travelling. This is the primary source of
revenue for uber.

Uber was founded in the year2002 by Garrett Camp and Travis Scott. Uber
is one of those few companies valued over $70 billion. Uber already
received equity funding of $22.2 billion. Uber raises its fund very
professionally and have some very big investors.

Objectives
1. The objective of this research is to study how funds are
efficiently and effectively managed by uber.
2. How uber emerged as the most valuable company financially.
3. What is the investment and revenue model of uber.