Uber’s Successful Business Strategies

Uber’s Successful Business Strategies

To be successful in any business, a company needs to think of and implement effective business strategies. If there is no proper policy or strategy behind a company’s business operations, the company is bound to fail.

Uber’s Successful Business Strategies

A company needs to learn from the business challenges it faces and better its business strategies in order to survive in the market and in this competitive world. Uber is a cab-hailing company that has done just that.

These are the business strategies that Uber had employed to become successful in the cab-hailing business. It had faced some operational challenges while doing its business and had employed some clever tactics to overcome them.

Uber’s business tactics to overcome its business challenges

Uber had employed these clever business tactics to overcome the challenges that it had faced in its business operations. They are:

Passenger safety

It’s always “safety first” in any domain. Safety is the foremost thing passengers look forward to while riding a taxi cab. The driver should be polite and professional and he should drive in a safe manner while obeying the traffic rules.

The comfort of the cab, cleanliness of the cab, the route taken to reach the destination, etcetera are all secondary to ride safety.

In 2014, there was one horrific incident in which an Uber driver shot dead six people randomly while doing a ride. This incident dented the reputation of Uber badly and Uber realized it had to give more priority to passenger safety to maintain its reputation.

Uber then added a feature called the ‘SOS Panic button’ that calls 911 directly in case passengers face emergencies during their ride. Once this feature was introduced, Uber rides became safer and Uber drivers became more polite and professional. Thus, Uber’s reputation was restored.

Taking criticism of regulators positively

When the regulators of a country ban a service, company founders and CEOs give negative remarks about that country in its leading newspapers and in the leading newspapers of other countries.

Uber was banned in London during September 2017 due to safety concerns. Uber’s CEO, Khosrowshahi then did not lash out at the British Government for banning them. Instead, he took a gentler approach towards the regulators.

He realized that Uber should enhance its safety standards rather than criticize the British Government for taking legal action. Khosrowshahi also realized that people’s opinion about a company really does affect the reputation and business of that company.

He, therefore, strove to improve Uber on all aspects rather than slam the British Government for legal action. This is what he wrote in an email to all of Uber’s employees:

“While the impulse may be to say that this is unfair, one of the lessons I’ve learned over time is that change comes from self-reflection. The truth is that there is a high cost to a bad reputation…it really matters what people think of us, especially in a global business like ours, where actions in one part of the world can have serious consequences in another.”

After Uber had heightened its safety standards, Uber’s operating license had been renewed for another 15 months. This was a great strategic success for Uber and it sent a message to cab-hailing companies around the world about how to deal with regulators of a country.

Not being too hasty in implementing new technologies

When self-driving cars were introduced during October 2014, Tesla’s founder, Elon Musk said that they would replace manned taxis by the end of 2015 but that did not happen. Almost all the taxis that you see on roads today are manned taxis.

There are implementation difficulties (due to rogue drivers) that prevented the large-scale implementation of self-driving taxis.

When self-driving cars were introduced in 2014, Uber’s Advanced Technologies Group head, Eric Meyhofer stated, “there will be a long phase of hybrid autonomy, where autonomous vehicles will be gradually deployed…while drivers will continue to serve most of the consumer demand.”

Had Eric thought the same way as Elon and sacked all of Uber’s drivers, a great resource and reputation tragedy would have come to Uber. Uber would have gone out of business all over the world. Eric’s patience and foresight had saved Uber from going out of business all over the world.

So, if you are the founder of a cab-hailing firm, don’t be too hasty in implementing new technologies. Thoroughly analyze the practicality of the idea and implement it gradually if it can be implemented. Gradual implementation of new technologies will bring to light any operational flaws in them.

In case you want to launch your own cab-hailing business and develop your own Uber Clone app, you should consider approaching Smart Car to develop a cab-hailing app for you.

Low ride fares

Last but not the least, Uber has maintained low fares for its rides to keep its customers happy. The working class constitutes the majority of the world’s population and they look forward to getting economical taxi cab rides. Uber has also upped the bonuses given to its cab drivers to keep them happy as well.

They have experience and expertise in the domain and they will develop a cab-hailing app with advanced features at a very reasonable price for you. Your Taxi Booking software, developed by Smart Car, will give your customers a great ride experience.


If you face a problem in your business, do not get disheartened or run away from it. Instead, think of innovative ways to overcome the challenges you face in your business. It’s the only way you can learn and grow in your business domain and it’s the only way you can survive in the market. After all, learning is a continuous process and life is a series of challenges (of different kinds).

Deepak Rupnar
After working as digital marketing consultant for 4 years Deepak decided to leave and start his own Business. To know more about Deepak, find him on Facebook, LinkedIn now.

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