Abstract
This thesis is a case study of Uber. The research questions are 1. How do ridesharing platforms evolve from startups into large-scale market disrupters? 2. How can ridesharing platforms augment its user base and capture more segments within the transportation business? Uber’s scaling is traditional. The initial growth consisted of capturing the high end of the market. Later on, Uber moved down market, making ridesharing affordable for the masses. The master stroke was to devise a scalable business model that was replicable in different markets. More unique is Uber’s managerial approaches. Uber has devised novel strategies to overcome challenges thrown up in front of her. In short, Uber has leveraged its vast user network and partnered-up with outside forces to solve intractable tasks. These task networks have corroborated to turn the tide against the push back from taxi operators and unfriendly regulatory authorities. They have also aided Uber in the competition against other ride sharers. Uber’s decentralized structure consists of multiple innovative task networks. Local teams take initiatives which continuously spawn out new services and products. Simultaneously, Uber’s autonomous car project is a vast innovation network. The goal of the network is to bring the novelty first-to-market. Above all, the recruitment of drivers is the key to Uber’s scaling. This thesis claims that macro conditions in the labor market make it easy for the app to add new workers. Furthermore, venture funding gave Uber economic leverage to add users at a rapid pace through low prices and subsidized driver earnings.