Uber… Your days are numbered! – 5 Reasons Why Uber will Eventually Fail.


 

 

I knew that it would be a matter of time before some company would come along to go after the ride sharing giant. According to a recent article in Forbes, a new ridesharing  company called Juno appears to be just that company to slay the ridesharing dragon.

Five Reasons Uber Will Eventually Fail

1. Competition

Let’s face it. Uber is no more than a technology application. And it’s that technology innovation that filled a much needed gap with the taxi industry’s dispatching problem. Passengers needing to go somewhere no longer have to wait up to an hour for an available taxi to pick them up from home. Lyft’s C.E.O., John Zimmer claims to be gaining a significant amount of the rideshare market. And now, comes Juno with plans to treat drivers better.

2. Litigation

Uber has a number of lawsuits that have been filed against them. I have heard as many as 150 lawsuits but I can’t confirm that to be correct. In any case, the big one is the class-action lawsuit in California. It is this lawsuit that can hit Uber in the pocketbook for possibly billions.

3. Arrogance

I can’t remember ever witnessing a company operate with such arrogance as Uber. Since it inception, Uber has appeared to have ignored government regulations in cities across America and many countries that it operates in globally. It appears that Uber ignores media requests for a comment every time the company names comes when a driver or passenger brings attention to some problem that have had with the ridesharing service.

Recently in France, two Uber executives were charged with running an illegal taxi service. According to GeekWire, the two executive had several memory lapses in court.

4. The Flight of Drivers

Uber last month slashed their fare prices in over 100 cities. That business decision made somewhere in Uberland has caused a lot of pushback from drivers that have resulted in strikes in major cities like New York and San Francisco, a failed attempt to disrupt the Superbowl, and just a number of drivers leaving Uber for it’s competitors. I always thought that business schools taught that a good business relationship is to be a win/win for everyone involved. It’s possible that Travis Kalanick didn’t take that class.


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5. Bleeding Red

Uber seems to be losing on the financial balance sheet too. Back in January, an unverified financial investment document was leaked that shows Uber was spending a lot more money to attract drivers and customers than revenue brought in. With all things considered, the trajectory of financial survival can only get worse.

 

 

DISCLOSURE: I am a Lyft driver and will earn compensation through Lyft’s referral program if you choose to sign up for Lyft rideshare services through my link.

 

7 Comments on "Uber… Your days are numbered! – 5 Reasons Why Uber will Eventually Fail."

  1. Ive been With Uber for 2 years ive seen my earnings start at $1200 weekly to $400 minimum 75 hours a week Shame on You Travis

  2. Uber business model defy logic. The company did not own the tools which produce the the services that generate billions of dollars to Uber organization.
    Their business concept was so flood to the extent that they rigidly fix the fare rate at 50% below the market rate.
    Uber decreed that the customers, should not to give tips to the Operators who own the vehicles, buy gas daily, clean and maintain the vehicle, incur accelerated depreciation on the vehicle daily. Saddle Operators in debts and force them to seek Public assistance to survive after working 60-80hrs per week.

  3. All Uber Operators should make their voice known positively.
    I recommend that All share ride Operators should put a sign in the vehicles indicating that they gratefully ‘Accept Tips and Gratuity.’

    After all, all Americans are endowed by their Creator, with inalienable right: “Life, Liberty and pursuit of happiness.”

    Why should Uber limit the earnings of Operators making less than $5.00/hr?

  4. What is the page # for the ban on asking for tips?

  5. Really! I wasn’t aware of that. Best of luck for the drivers.

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