Uber, as we know is a mobile location-based taxi service which allows anyone to pick a drive and anyone to earn money by giving a ride. But this article is not about the Uber App, it is about their newest addition (think: public transport) and why did they decide to take a step in the opposite direction?
A controversial move
When Uber started off, the whole idea of the app was to help people get from point A to point be with ease and luxury as compared to public transport. This obviously put a dent on the usage of public transport and that is exactly what it was meant to do. Drive more people to use Uber so that their own company grows while making billions in profit.
So why did Uber add public transport to their offering?
Uber wants to move into the everyday business now. Be a household app that gathers services that you might use every day. Uber also realized that more cars on the streets have resulted in meaningful increases in air pollution and congestion while remaining unaffordable for many commuters.
They are aiming at economies of scale. The CEO himself stated that they want to change their business model to be an ‘every day’ app. They would be competing with Google maps to provide information to everyday public transport users. In lieu of the same, they are integrating their food delivery app with the Uber app as well.
The changes are vivid now. Instead of directly jumping on the map section of the app, you will now be prompted to select what service do you want to render now. A quick click will take you to the desired page. Also, Uber says that those who need a ride will grab an Uber regardless of them offering public transport information.
They aim to be a one-stop-shop. The same way Amazon is headed. While many argue that this will put a dent in their net revenue, I think Uber is planning for the later years more than the present.