Publications
Publications
- November 2015 (Revised January 2017)
- HBS Case Collection
Uber: Changing the Way the World Moves
By: Youngme Moon
Abstract
In 2015, Uber is building what may be the largest point-to-point transportation network of its kind; it is literally changing the way the world moves. But unlike traditional transportation logistics companies like FedEx, Uber has an incredibly lightweight infrastructure: it owns no vehicles, employs no drivers, and pays no vehicle maintenance costs. Instead, its network relies on peer-to-peer coordination between drivers and passengers, enabled by sophisticated software and a clever reputation system. But despite its remarkable early success, Uber is an extremely polarizing company. Its business model is highly disruptive, and while disruptive innovation can be a good thing, it is also true that disruptive companies tend to break things. This is certainly true for Uber and is one of the key tensions in the case: Uber's innovative business model is outpacing many of the laws regulating its industry, and while it is going to take the regulatory system some time to catch up, Uber doesn't appear to be willing to wait.
Keywords
Service; Innovation; Pricing; Customer Loyalty; Uber; Taxi; Sharing Economy; On-demand Economy; Marketing; Operations; Strategy; Disruption; Customer Satisfaction; Transportation; Consumer Behavior
Citation
Moon, Youngme. "Uber: Changing the Way the World Moves." Harvard Business School Case 316-101, November 2015. (Revised January 2017.)