Uber began in 2009 as a fresh idea about an outdated method of transportation. You no longer need to stand on the street corner and hail a taxicab, as you could use your smartphone and summon a ride through this app instead. For the first time, getting into a car with a stranger suddenly seemed to be a great idea. While the company enjoyed high levels of growth for several years, the past two years have been a financial roller coaster due to fierce competition, increased charges, and new driver demands. Has Uber seen its day?
Uber is a hundred-billion-dollar company. However, since 2017, they have fallen on hard times. Their major competitor is Lyft, but other companies like Ola and DiDi are also taking some of the profits that Uber once demanded. In August of 2019, Uber reported a loss of over $5.3 billion for the previous quarter. However, the company estimates that it will finish out the year with only a $1.3 billion loss. In 2018, Uber made a profit of $11.3 billion. Why is the company losing so much money? Has the once-grand idea now turned into a passing phase? Will they still be in business five years from now?
When you employ subcontractors to use their personal vehicles, it sets the company up for some challenges. Even though many drivers pass the background checks and have an adequate car, it doesn’t stop incidents from occurring. Many people say the inspections of the vehicles aren’t enough. Poorly maintained automobiles and accidents are becoming commonplace. The ride-share service completes over 15 million rides each day. There are 50,000 drivers that are contractors with Uber, and the app has over 8 million users. Is it any wonder that the company has seen a surge in automobile accidents?
Is This the End of Ride-Sharing?
Uber has received a great deal of bad publicity in the past year. Ongoing investigations and lawsuits over employment practices have shed a negative light on the company. With major losses in the billions, Uber could face challenges staying afloat and moving forward. The company needs to have a banner year in 2020 if it wants to stay alive in the market. Since the company is constantly reinventing itself with programs like Uber Eats, there is hope that it will continue to grow with new innovative ideas. The years ahead will point toward the future trend for Uber.
Ride-sharing seemed like a great idea that worked well for over a decade. However, it may have run its course. With investigations, safety concerns and fierce competition, it may be time for Uber to reinvent itself or park the cars once and for all.
Here’s another article you might like: Bad Uber Rating Could Get You Banned