|Founder(s)||Garrett Camp, Travis Kalanick|
|Headquarters||San Francisco, California, U.S.|
|Area served||United States|
|Key people||Travis Kalanick (CEO)|
|Services||Vehicles for hire|
Uber is a venture-funded startup and Transportation Network Company based in San Francisco, California that makes a mobile application that connects passengers with drivers of vehicles for hire. The company arranges pickups in San Francisco Bay, Bangalore, New York City, Los Angeles, Seattle, Chicago, Boston, Washington, D.C., Toronto, Johannesburg, Cape Town, Lyon, Paris, Mexico City, Berlin, Philadelphia, Dallas, San Diego, Amsterdam, Atlanta, Denver, Indianapolis, London, Melbourne, Minneapolis–Saint Paul, Munich, Phoenix, Stockholm, Sydney, Baltimore, Detroit, Milan, Sacramento, Rome, Taipei, Singapore, Zurich and Montreal.
Initially, Uber drivers had cars such as Lincoln Town Cars, Cadillac Escalades, BMW 7 Series, and Mercedes-Benz S550 sedans. After 2012, Uber added a wider selection of cars to market to a broader cross-section of the market, called UberX. Cars are reserved by sending a text message or by using a mobile app. Using the apps, customers can track their reserved car's location.
Uber was founded as UberCab by Garrett Camp, and Travis Kalanick in 2009. The first prototype was developed by Garrett and Travis with help of Oscar Salazar & Conrad Whelan, both friends of Garrett from grad school. In early 2010 Travis then met Ryan Graves, who became Uber's first full-time employee to launch San Francisco. Uber service was officially launched in San Francisco in June 2010 with Ryan Graves becoming CEO in August of that year. Ryan Graves later stepped down from his role and Travis Kalanick was made the CEO. Ryan is currently the VP of Operations and a Board Member.
The domain name "uber.com" had been owned by a social networking and blogging company which had shut down its services in September 2008. In 2010, the domain name was transferred to the Uber cab service via a purchase from Universal Music Group.
The company has gradually expanded its service to cover more cities. Travis Kalanick said in December 2011 that in response to growing demand, Uber is also planning to target 25 more cities outside the United States in the coming months.
The company received venture funding in late 2010 from a group of super angel investors in Silicon Valley, California, including Chris Sacca. In early 2011, Uber raised more than $11.5M in Series A funding led by Benchmark Capital. In late 2011, Uber further raised $32 million in funding from several investors that include Goldman Sachs, Menlo Ventures and Bezos Expeditions bringing their total funding amount to $49.5M.
In April 2012, Uber tested reservations for conventional taxis, at lower rates, in Chicago.
In July 2012, the company entered the London market with an initial staff of about 90 drivers of Mercedes, BMW and Jaguar. On July 13 in honor of National Ice Cream Month, Uber launched Uber Ice Cream, which added the ability in 7 cities to summon an ice cream truck for on-demand delivery, and bill the purchase to a user's account. Starting on July 3, 2013, Uber started offering experimental UberCHOPPER rides from New York City to The Hamptons for $3000, via cab and helicopter.
On August 22, 2013 Uber has closed $361.2 million in its latest round. The round values Uber at around $3.4 billion pre-money and $3.76 billion post.
On September 4, 2013 Uber announced its first sports deal. Partnering with the NFL Players Association to promote safe rides for NFL players, Uber, plans to appeal to a more mainstream audience for the future.
On November 1, 2013, the day of the LAX Airport Shooting, cars were restricted from accessing the airport, forcing stranded travelers to flee the airport via foot. Uber offered free rides for these people at the nearby crossroads of Vicksburg and 98th St. The Twitter account of Uber Los Angeles sent out tweets to make travelers aware of this service. Uber would drive passengers anywhere within the Los Angeles Metropolitan Area free of charge.
Regulatory opposition and approval
Uber has been accused in several jurisdictions of illegal taxicab operation.
In May 2011, Uber received a cease-and-desist letter from the San Francisco Municipal Transportation Agency, claiming that it was operating an unlicensed taxi service, and another legal demand from the California Public Utilities Commission that it was operating an unlicensed limousine dispatch. Both claimed criminal violations and demanded that the company cease operations. In response the company, among other things, changed its name from UberCab to Uber. In the fall of 2012, the California Public Utilities Commission issued a cease and desist letter to Uber (along with rideshare companies Lyft and SideCar) and fined each $20,000. However, in 2013 an interim agreement was reached reversing those actions. In September 2013, the CPUC unanimously voted to make the agreement permanent, creating a new category of service called "Transportation Network Companies" to cover Lyft, UberX, SideCar, and InstantCab and making California the first state to recognize such services.
In January 2012, an Uber driver's cab was impounded as part of a sting by the Washington D.C. taxicab commission. The commissioner said the company was operating an unlicensed taxicab service in the city. Following a social media campaign by Uber's users, the D.C. City Council voted in July to formally legalize this type of service, with no minimum fare.
On August 1, 2012, the Massachusetts Division of Standards issued a cease and desist letter to Uber, on the grounds that the GPS-based smartphone app was not a certified measurement device. But on August 15, the agency reversed its ruling after prodding by Governor Deval Patrick, saying that technique was satisfactory because it was under study by the National Institute of Standards and Technology.
On October 5, 2012, Uber was sued by the taxi and livery companies in Chicago. According to the release, Uber is accused of violating Chicago and Illinois laws designed to protect public safety, consumer protection and fair practices.
The New York City Taxi and Limousine Commission has discouraged drivers from participating in Uber, resulting in suspension of Uber's New York taxi service in October 2012. Uber's premium sedan service was not affected. When Hurricane Sandy hit New York later that month, Uber drew criticism for doubling prices as part of its "surge pricing" system. (Uber ultimately waived its fees and passed on all of the fares to its drivers, and defended its pricing by noting that it tripled the number of vehicles available.)
A September 2012 article in the Vancouver business press reported a dispute with local regulators. On November 22, 2012, Uber announced that it was exiting the "Secret Uber" stage in Vancouver and raising its rates to $75 per hour to comply with provincial regulations. As of December, Uber had not applied for a license from the city.
On December 5, 2012, officials at the City of Toronto charged Uber with "25 municipal licencing offences, including operation of an unlicensed taxi brokerage and unlicensed limo service". City officials said they had advised the company to comply with local regulations. Rival taxi dispatch apps had obtained licenses.
As of the summer of 2013, Uber is being sued by drivers who claim didn't get some of their tip money.
Pricing and payments
Uber's pricing is similar to metered taxis although all hiring and payment is handled exclusively through Uber and not with the driver personally. If the Uber car is travelling at a speed greater than 11 mph, the price is calculated on a distance basis. Otherwise, the price is calculated on a time basis.Cite error: A
<ref> tag is missing the closing
</ref> (see the help page).
During holiday times such as Halloween or New Year's Eve, Uber increases its prices to "surge price" levels to reach an economic equilibrium by attracting more drivers. Uber has also used surge pricing during extremely inclement weather, such as a July 8, 2013 rainstorm that flooded many streets in the Greater Toronto Area. Customers receive notice when making a reservation that prices have increased. During New Year's Eve 2011, prices were as high as seven times normal rates, causing outrage in response. Uber co-founder Travis Kalanick responded that "because this is so new, it’s going to take some time for folks to accept it. There’s 70 years of conditioning around the fixed price of taxis."
Additionally, Uber has been known to promote its services with promotional codes for first time users.
Marc Andreessen said that he would love to invest in Uber. He told CNET, "Uber is software eats taxis. [...] It's a killer experience. You watch the car on the map on your phone as it makes its way to you." The New York Times has called Uber "clever but costly," noting that the cars are "particularly nice by livery standards" and that pickup times were slow compared with traditional New York City taxis and black cars.
Several drivers have credited Uber for increasing their potential earnings by 30%. The drivers and riders rate each other after each trip, improving the experience for both the driver and the rider.
Uber faces competition from lower-cost real-time ridesharing startups such as Lyft and SideCar. To compete at lower price levels, Uber has introduced UberTaxi (partnerships with local taxi commissions) and UberX (non-luxury cars such as Toyota Prius Hybrids). This move has led to dissatisfaction among existing Uber limo drivers who have seen their earnings decrease.
Uber has had multiple limited-time offers, featuring specialty vehicles, to promote their services. One such offer was for hiring ice cream trucks to come to a specific place, including one of several ice cream packages, for a flat fee. Another had Back to the Future enthusiasts flocking to the San Francisco Bay Area and offering rides in DeLorean DMC-12s to people through Uber's mobile application, as part of a joint promotion effort with General Electric.
Uber has also offered slightly more practical promotions from time to time. For example, they offered helicopter service from New York City to The Hamptons during the July 4th weekend, and also offered ferry service during the 2013 BART strike to help with the additional transit load.
On October 29, 2013, widely considered to be National Cat Day, Uber offered a limited time kitten delivery service. In addition to their car services, Uber allowed users to select a "Kitten!" delivery button. This service cost $20 and included 15 minutes of playtime with the kittens, plus cupcakes and t-shirts. The proceeds from this promotion were given to local animal shelters. The kitten promotion was only available in San Francisco, Seattle, and New York City.
- Goode, Lauren (June 17, 2011). "Worth It? An App to Get a Cab". The Wall Street Journal. Dow Jones & Company.
- Uber - Learn More
- Rao, Leena (September 22, 2011). "Uber Brings Its Disruptive Car Service To Chicago". TechCrunch. AOL.
- "In Another Strike Against The Competition, Uber Lowers UberX Prices In San Diego, LA, And DC". Techcrunch. 2013-10-03. Retrieved 2013-10-11.
- Uber Blog » California Clears Uber to Continue and Expand Operations
- Look Out, Lyft: Uber CEO Travis Kalanick Says It Will Do Ride Sharing, Too | TechCrunch
- Arrington, Michael (December 22, 2010). "Uber CEO "Super Pumped" About Being Replaced By Founder". TechCrunch. AOL.
- Jackson, Nicholas (November 16, 2010). "Hailing a Cab With Your Phone". The Atlantic. The Atlantic Monthly Group.
- Bremmen, Nur (December 7, 2011). "Six innovative mobile apps to keep your eye on [LeWeb]". memeburn.
- Ha, Anthony (October 16, 2010). "UberCab raises $1.25M to end your futile search for taxis". VentureBeat. Reuters.
- "Exclusive: Uber CEO Lays out Road Map--Helicopters, Motorcycles and Food Delivery". LAUNCH. LAUNCH Media. August 16, 2011.
- Shankland, Stephen (December 7, 2011). "Car service Uber raises $32 million, launches in Paris". CNET News. CBS Interactive.
- Uber Experiments With Lower-Priced Taxis In Chicago Through Newly Launched Labs Group, ‘Garage’ | TechCrunch
- Dredge, Stuart (July 2, 2012). "Apps Rush: Uber, Google Analytics...". The Guardian.
- Albanesius, Chloe. "http://www.pcmag.com/article2/0,2817,2407069,00.asp". PC Magazine. Retrieved 14 August 2012.
- "Uber Looking To Raise An Uber Round Of Funding Led By TPG, At A $3.5B Valuation".
- Lunden, Ingrid. September, 4th 2013. "Uber Inks Its First Sports Deal, Partners With The NFL To Promote Safe Rides For Pro Footballers" http://techcrunch.com/2013/09/04/uber-inks-its-first-sports-deal-partners-with-the-nfl-to-promote-safe-rides-for-pro-footballers/
- "Uber offers rides to stranded LAX travelers".
- Siegler, MG (May 25, 2011). "Uber CEO: I Think I’ve Got 20,000 Years Of Jail Time In Front Of Me". TechCrunch.
- Lawler, Ryan (31 Jan 2013). "A Day After Cutting A Deal With Lyft, California Regulator Reaches An Agreement With Uber As Well". TechCrunch. Retrieved 17 July 2013.
- Yeung, Ken (19 Sept 2013). "California Becomes First State To Regulate Ridesharing Services benefiting Uber, Lyft, Sidecar, and InstantCab". TheNextWeb. Retrieved 19 Nov 2013.
- Greene, David (January 31, 2012). "Upstart Car Service Butts Heads With D.C.'s Taxis". NPR.
- Uber, Maker of Summon-a-Car App, Wins in Washington - NYTimes.com
- Michael B. Farrell (2012-08-15). "State reverses ban on Uber car service ordering app". Boston Globe.
- "Uber Sued By Taxi And Livery Companies In Chicago For Consumer Fraud And More". TechCrunch. October 5, 2012. Retrieved October 6, 2012.
- Uber shuts down New York City taxi beta, may see light at the end of the (Lincoln) tunnel in February (update: TLC responds) - Engadget
- Uber Doubles New York Driver Pay To Get More Vehicles On The Road (And Eats The Cost) (UPDATE)
- "Ride-for-hire alternative enters market". Business In Vancouver. Sep 18, 2012. Retrieved December 12, 2012.
- "Uber to Raise Minimum Charge for a Ride to $75". Techvibes. November 22, 2012. Retrieved December 12, 2012.
- "Black sedan service hits regulatory speedbump". Business In Vancouver. Dec 4, 2012. Retrieved December 5, 2012.
- "Taxi app company Uber charged with licensing offences". Toronto Star. December 5, 2012. Retrieved December 5, 2012.
- "Uber: A Lone Rogue in Toronto". Toronto Sun. October 18, 2012. Retrieved December 5, 2012.
- Arrington, Michael (March 2, 2011). "A Week With Uber And This Blogger Is Totally Hooked". TechCrunch. AOL.
- Thomas, Knowlton (July 9, 2013). "Uber Toronto Activates Surge Pricing During Storm, Triggering a Bad PR Storm of Its Own". Techvibes.com. Techvibes.
- Clay, Kelly (October 27, 2011). "Is Uber Really a Good Alternative to Taxis?". LockerGnome. Lockergnome.
- Bilton, Nick (January 8, 2012). "Disruptions: Taxi Supply and Demand, Priced by the Mile". Bits. The New York Times Company.
- "Happy Holidays from Uber, FREE RIDE!". Seattle PI. Retrieved 7 January 2013.
- Sloan, Paul (December 19, 2011). "Marc Andreessen: Predictions for 2012 (and beyond)". CNET News. CBS Interactive.
- Brustein, Joshua (May 16, 2011). "The Smartphone Way to Beckon a Car". The New York Times.
- Robbins, McLean (December 19, 2011). "Uber - your new luxury car service app". Gadling. AOL.
- Ortutay, Barbara (3 September 2013). "Uber brings back on-demand ice cream trucks". Retrieved 7 September 2013.
- Statt, Nick (6 September 2013). "Uber offering rides back in time with DeLorean promotion". CNET. Retrieved 7 September 2013.
- Amira, Dan (1 July 2013), Uber Will Ferry Hampton-Goers Via Helicopter This July 3rd, retrieved 7 September 2013
- Floum, Jessica (3 August 2013). "No BART Monday? How about a boat?". Retrieved 7 September 2013.
- "Uber is delivering kittens for National Cat Day". 29 October 2013. Retrieved 3 November 2013.