Developing A Digital And Sharing Economy, Platform Development Strategies And Pricing Schemes

1643 Words Dec 10th, 2014 7 Pages
INTRODUCTION
Technological advancements spurred the creation of a digital and sharing economy. It is easier than ever for two people from different locations to connect and do business with one another. With the evolvement of the sharing economy, a smartphone application by the name of Uber has been born and is a potential monopoly in the making. This essay aims to answer the following question: What growth strategies have Uber used in the market and what impact do these strategies have on the market? To answer this question the author will examine Uber role in the sharing economy, platform development strategies and pricing schemes used by Uber, and Uber’s impact on the car ownership industry. Many of these themes such as pricing strategies, monopolies and oligopolies, as well as the sharing economy has been studied in this course and will be applied to the case of Uber.

THE SHARING ECONOMY AND MULTI-SIDED PLATFORMS Uber operates in a sharing economy. A sharing economy is an economy where producers who have excess capacity of their product/service lend their product/service to a consumer who have a demand for it. In the case of Uber, drivers who own a car lend their service to consumers who want to get from point A to point B. Anyone can become a driver as long as they pass a few security checks, so people who have a car lying around in their house can drive for Uber a few hours a day if they wish. Uber thus acts as a platform connecting drivers with customers. Another…
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