Case Study of Uber

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How Would You Classify the Type of Innovation in Uber Self-Driven Taxis?

Uber has chosen a very interesting strategy to represent its unique product (Uber to deploy self-driving cars’ 2016). The company has developed a service innovation, promoting company’s overall success. Moreover, the enterprise concentrates on customers’ needs and shows its interest by giving them a possibility to test the service (Smith 2015). The self-driven technology belongs to the category of incremental novelties, because it is in-built in a car as its component, enlarging its capabilities and adding supreme functions.

The director of Uber Travis Kalanick has chosen the development of a network through a link with different well-known brands. This strategy belongs to ten types of innovations introduced by Smith (2015). Uber’s leader closely cooperates with Volvo, and the company confirms its participation in the project. However, the entrepreneur has not stopped on one firm and announced further cooperation with other world-famous enterprises, expanding the network innovation. Such networking gives good possibilities to test the new service and to take advantage from the work with different firms (Smith 2015). Moreover, it multiplies promotion and makes it more aggressive. Additionally, Travis Kalanick has not chosen small companies, but works on a global scale with big producers. Such strategy is vital after he has raised $10 billion from backers in order to testify their expectations.

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Uber also actively uses customer’s engagement, because it provides trials for interested and potential buyers. It is another type of innovation (Smith 2015). Such tests give a possibility to experience advantages of the new service. Additionally, people may understand the necessity in self-driven taxis and will invest their funds in this innovation. The majority of car-users understand all benefits of transportation by car, but not all realize global changes in the driving style. Moreover, the leader of Uber plays on customers’ emotions with unexpected marketing moves. First, he has kept the service in secret and has suddenly revealed it giving the possibility of trials. Such moves cause even greater customer’s engagement.
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Critically Discuss the Challenges Facing Uber in Exploitation and Diffusion of This Innovation. How Can These be Addressed?

Every innovation is followed by a number of challenges. Nowadays, in the global economy, it is not enough to come up with a unique idea, because it will not be implemented without proper marketing (Gault 2010). Tension caused by the novelty through its comparison with the Mars space fantasy can tackle the challenge of marketing. The description of a vision provides further assistance in attracting attention to the innovation in order to tackle the challenge of introducing an unknown and new product in the market. A surprise used to strike potential customers can overcome the challenge of insufficient interest in the new technology. In general, a step-by-step approach is optimal for any kind of an innovation strategy.

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People associate innovations with wonders (Hoffmann & Lecamp 2015). Uber is introducing the service gradually offering trials to interested people to avoid the challenge of antagonism. This strategy gives a possibility to experience the innovation and to get used to its exploitation. Highlighting the necessity in the product can tackle the challenge of customer dissatisfaction. Moreover, Uber intends to avoid all financial risks. Potential challenges may also include sponsoring and brand building. For example, Uber can raise impressive capital for the future service delivery and secure all financial questions. It deals with good investors who believe in the innovation and are ready to promote it at the market. As the next step, the cooperation with the best brands builds service association with trust and reliability. It will help to tackle the challenge of new brand building.

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Uber serves as a good example of the use of an effective innovation strategy. Moreover, the company is brave enough to go against the tendency. Every innovation causes mixed feelings about it, but Uber even adds curiosity and surprise through releasing it without much notification. The company proves to have strong and wise leadership that will bring the service to commercial success.