The Neo-taxi giant Uber, was and is one of the most successful companies that tactfully acquired a baren market and grew by leaps and bounds. However, recently, Uber is slipping down the list of the middle-class’ preferred transport service, and its prices are slipping out of people’s pockets. The company’s growing pompous attitude and other economic factors are resulting in prices skyrocketing. Uber’s rates depend on a number of factors, most of which are logically flawed and causative of discontent among the masses. 

Rise of the Neo-taxi

Four-wheeled public transportation services were extremely unpopular, for both customers and drivers. Drivers were paid less as the fare was government-regulated and the maintenance of the vehicle remained the driver’s sole responsibility. On the other hand, growing strikes and diminishing availability of said transportation means meant that it wasn’t man’s first choice. This created a big hole in the market for accessible public transportation and Uber jumped in to fill that gap. The company combed through the current structure’s faults and rectified them once and for all. It laid out a blueprint for the next-generation transportation wherein the common man could sublet a car to the company, who would in turn allocate a driver for it. This made the car not the driver’s responsibility and satisfied their monetary demands. Owners if Cars would stand to benefit as well as the market was huge and ripe. In its formative years, Uber raised $ 0.4 billion. 

In the near past, it has been observed that Uber has been hiking their prices for meagre distances and is hence, growing increasingly unpopular in the market. Higher than normal rates for short as well as long distances is a recipe for doom. The company opines that it has established itself and is entitled to hike its rates as per their will. However, they must acknowledge the fact that fame is a fickle thing and popularity doesn’t stick too long. For example, earlier, for a range of ten kilometers, Uber would charge customers anywhere between 150 and 200 rupees. Now, prices soar as high as 350 rupees; more during peak hours. Speaking about peak hours, when the demand for Ubers increase, prices soar subsequently. However, it is evident that Uber has been charging peak hours’ prices otherwise and higher prices when experiencing high demand. 

Coronavirus

The infamous past two years have been an existential nightmare for numerous companies around the globe. The same can be said about Uber, to an extent. The coronavirus did prove to be detrimental to the company’s profits. To counter, the company decided to implement methods such as: protective film dividers, regular sanitation Etc. Employing the aforementioned measures, the company was able to win the people’s trust and come out the other side. 

Amidst the ever changing opinion on Uber’s present actions, other competitors are capturing the market, which once Uber used to. Alternative choices like Ola, Meru and traditional taxis are fighting for providing accessible air-conditioned transportation at affordable rates, now that Uber has made itself a niche product. Besides this effect, Uber has also witnessed setbacks in sales and switching of loyalties which is inadvertently going to cause the company to either return to its intended market, or close down altogether. Another rather unpleasant outcome that can be predicted is that other competitors raise their prices as well, making the neo-taxi market a niche product altogether. 

As a company that saw an opportunity and grabbed it, Uber has done well in all spheres, including expanding into various other fields. Although it continues to grow unpopular, it just may be able to get through this problem and emerge as the big daddy once again.

Is Uber still worth a man’s penny?

Given Everything, Uber is still one of the best products in its market. Given its growing and global reach, it still remains preferred to date. Factors like inflation may influence its hike but it’s not limited to that. Owing to your requirements you may make your choice.

Will Uber survive?

It can be assumed that Uber is here to stay for another decade or so. However, depending on how the company reacts to the consumers’ complaints, the fate of the company hangs in the balance surely if not soon.

Would Government interference help?

Definitely not. Uber grew owing to the fact that it was privately managed and regulated. Government interference to bring down prices will be like history repeating itself, as it did with the traditional taxi. 

How is it affecting the company’s stock market value?

Neither positively nor adversely. The company’s stock value is and has been on the rise, giving investors no reason to withdraw support. During COVID-19, the company did see some grey days but it was able to weather through it successfully. Subsequently, one can also be right to assume this shall continue to be the case. Currently the forecast is quite unclear and things may go any way.