Why Uber can cost 70 billion dollars

In June, 2014, the company Uber stunned everyone - attracted 1,2 a billion dollars in funding, and its value was then valued at 17 billion dollars. A year later, the mobile application on call machines managed to attract another 6,7 billions. And now, as сообщает The New York Times, Uber is planning another billion-dollar fundraising campaign. The company itself believes that its market value already reaches 60-70 billions of dollars.

Read in our article A detailed story about what the phenomenon of Uber.

Uber can become a monopolist in the taxi order market, as leaders among social networks (Facebook) and search engines (Google), which significantly slow down the growth rates of their competitors.

However, the question so far is whether Uber, like Facebook and Google, can become a global leader in its field, not only in the United States, or in some countries will it give way to competitors in the domestic market. For example, such a struggle awaits Uber in India and China. The desire to impose rivalry in these countries as soon as possible can also explain the company's attempts to raise funds so swiftly.

The peculiarity of the work of Uber is ordering services via smartphones, and passengers prefer a network with a large number of cars, which reduces the waiting time for taxis. Uber drivers themselves are attracted, in fact, by the same clientele. The company provides an opportunity to use taxi services even in cities with low population density and in suburbs where taxis are rare.

The company regularly improves the quality of customer service - Uber will always offer a car that is as close as possible to you. In addition, you can follow in real time a taxi approaching you and know exactly how long you have to wait.

At the same time, Uber often prefers to pay fines, rather than obey the law. The company had problems not only in the USA, but also in Europe, including France, Germany, Italy and the Netherlands. Most often, they were associated with a mismatch between the rules of service and legislation - first of all, in the absence of relying licenses for the provision of services, as well as undercharges. Some countries have banned some or all of the services of Uber.

However, Uber has plenty of opportunities for financial growth. Society often underestimates the potential of technology startups, because it is difficult to predict how this or that innovation can change a person’s life. The high quality of search services from Google has made the Internet much more useful, and Facebook has become not just another site, but a real communication tool for a huge number of people all over the world.

It is for the same reasons that Uber has an obvious potential, which in future allows this company not only to dominate the market, but to change it beyond recognition, which no traditional taxi can count on.