Chapter 7, Problem 1OCQ

To determine

The ways Uber is using its network to improve its competitive advantage in the taxi market.

Answer to Problem 1OCQ

Solution:

Uber has increased the availability of cabs at different pickup locations and at any time. It uses latest technologies like GPS tracking and mobile phone apps to reach out the customers and thus gain the competitive advantage over other taxis.

Explanation of Solution

Value and demand for uber relies on the number of clients. Uber uses latest technologies such as GPS tracking, GIS and smart phone apps to reach out the riders and drivers and communicates through the technology, which makes it easier for the customers to book the cab and therefore the number of customer increases.

With increase in the number of customers the demand for uber will also increase. As the number of drivers and riders increased, it becomes easy for the clients to get the rides on time without waiting on odd hours and at different pickup locations.

Increased availability of uber cabs at different pickup locations and even on odd hours makes the Uber experience favorable for the clients and this favorable experience attracts more clients to the Uber.

This increased number of clients sustains the loop of positive feedbacks thus it gives Uber the competitive advantage. Therefore, it can be said that these network technologies help uber to gain the competitive advantages over other taxis.

Conclusion:

Thus, it can be concluded that by use of latest technology the availability of cars increased and it becomes easy to access Uber and thus Uber gets the competitive advantage.