The drastic competition increase in the global transportation network industry raised – is Uber going out of business – question. Hard to believe how billion dollars’ worth company could be questioned if it is going to be bankrupt. However, business field can become much more crucial for multinational corporations due to spread operations. Especially corporations who are not open to change are usually end up going out of business.
Certainly, Uber cannot be considered among old-fashioned companies with troubles adapting the change. The company is the pioneer in the transportation network proving company’s level of creativity. However, rumors have spread so quickly and created predictions of possible bankruptcy. So, if it’s not about Uber’s creativity, why do people whisper?
Uber’s Short Story
UberCab has been found in March 2009 by Garret Camp. In 2010 May, company has launched its official services and mobile app. In the beginning, UberCab was only serving as black limousine service provider. The company has dropped the “Cab” part in their name and changed it to Uber as well as expanding its services. Later, Uber has become very popular by providing alternative services for taxi rides. After becoming a popular brand, Uber has spread its operations across the world. Currently, the multinational corporation serves in 570 cities worldwide.
What are the Key Sources behind – Is Uber Going out of Business – Rumors?
No doubt, coming up with an idea to build a multinational corporation is like hitting the lottery! Yet, reserving the business on high standards is much tougher. Uber’s main problem is the business itself because the charm is related to idea. Of course, there is need for investment and building operations; however, the idea itself is essential. From this perspective, competitors easily copied and applied Uber’s business in different market.
On the other hand, Uber was affected by the #DeleteUber campaign created against the brand. Thousands of people deleted the company ad in very short time as a reaction. This movement might have also triggered is Uber Going out of Business Rumors.
Read more about: Boycott Uberr Movement
How Copycats Could Possibly Effect Uber?
Uber mostly faces struggle with the local companies operating in the same industry. Mostly, local companies compete with the price as they cannot stand against the brand name. Competition in pricing can cause major troubles for multinational corporations due to higher costs in managerial and operational expense segments. In the Chinese market, Didi keeps nearly ninety percent of the market share which makes it hard for Uber to change local habits.
In 2016, Uber has received 3.5 billion dollars investment from Saudi Arabia’s sovereign wealth fund. Public Investment Fund’s managing director Yasir Alrumayyan takes a seat in the board after the deal. During this deal term, Uber’s worth was announced as 62.5 billion dollars although there are some experts say that this value is just a dream. No matter what Uber’s real value is the company needs to increase its investments for stronger future.