The newest transportation app, Uber, is taking the world by storm. Now worth over 56 billion dollars, Uber continues to grow at an exponential rate. The company set a record recently, surpassing the highest valuation Facebook reached as a private company. Now becoming popular, Uber is nowhere close to turning an actual profit. According to financial information leaked to Gawker, in 2013, Uber lost $56 million on a mere $100 million in revenue. Those losses nearly tripled in half the amount of time, while revenue growth only doubled. In the first half of 2014, the company lost over $160 million on $100 million in revenue.
Uber is growing at an extreme pace and replacing taxi services with people in our own community. With this business model, Uber does not have many initial costs to starting up. Using their employee’s cars as taxis, they can grow very fast throughout the states and now through other countries.
As long as Uber’s financials are kept private, it will be viewed as a winner in the business world. The company’s business model has been praised as disruptive and pioneering. Uber’s model is so revolutionary that there will be many imitators. Startups that deliver on-demand services through an app are now starting to use Uber’s strategies. There will be an Uber for everything: Uber for groceries, Uber for house cleaning, Uber for moving and Uber for lawn mowing. This revolution will change the business model of many companies and give more part-time jobs in our community for time to come.