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Introduction and Overview Uber’s strategy has been to break these regulations, estab already has a 90 percent market share in Beijing, where the lishing its service first and then fighting attempts by regula company fields more than 1 million daily ride requests. tors to shut the service down. In pursuing this strategy, Uber has often used social networks to enlist the support of its Sources: Brad Stone, “The $99 Billion Ideas How Uber and Airbnb Fought City Hall, Won Over the People, Outlasted Rivals, and figured out the Shar riders, getting them to pressure local governments to change ing Economy.” Bloomberg Business Week, January 26, 2017; Adi Gaskell, their regulations and allow Uber to continue offering its ser Study Explores the impact of Uber on the Taxi Industry,” ordet, January 26, vice. In many cities, the strategy has worked, even in the face 2017, Alyson Shontel, Uber Is Generating a Steering Amount of Reve of protests from established taxi companies and their driv nue,”Binder November 15, 2014; Carmel De Amici, “Leaked Doc: ers. In London, for example, when taxi drivers went on strike Uber Nears $2 Billion in Revenue,”Recode, August 21, 2015, Kara Swisher, “Uber and Uber Man.” Wanity Fair, December 2014. Nitish Kulkarni, “Uber to pressure the government to restrict Uber, Uber reported a Hits Roadblock in India after Being Denied Permission to Operate in surge in downloads for its app and thousands of new riders. Delhi,”TechCrunch September 16, 2015: Brian Solomon, “Uber Seems to However, this confrontational strategy has not always Be Getting its Butt Kicked in China.” Forber, December 1, 2015 worked well. The government of Vancouver, Canada, re- acted to the unauthorized entry of Uber by banning it out- Case Discussion Questions right. So did the local authorities in Brussels in Belgium, 1. Companies like Uber, Lyft (one of Uber’s main com- Delhi in India, and a host of other cities around the globe. petitors), and Airbnb (an online marketplace that In Paris, the government has tried to limit Uber by impos- enables people to lease or rent short-term lodging) ing several restrictions that make it harder for Uber to do are innovating in fields that traditionally have been business there. To complicate matters, Uber drivers in very complex and regulated. Can Uber’s business Paris have unionized-something that they cannot do in model be applied in other industries globally? the United States due to their status as independent con- 2. Are cities around the world doing a disservice to tractors. They went on strike when Uber tried to lower their citizens or their visitors, or both, by banning fares. Similar protests by Uber drivers have occurred in other cities. Overall, there is a sense that Uber’s abrasive Uber outright from operating in their community? strategy has not always worked well, particularly outside 3. Uber’s strategy has been to break these regula- of the United States where locals see Uber as a brash tions, establishing its service first, and then fight- American startup that pays scant attention to local laws, ing attempts by regulators to shut the service customs, and culture. down. This goes along with the old saying that Uber is also witnessing the emergence of local rivals in “do first, ask questions later.” Is this business some countries, such as India and China, where startups approach viable globally in the long run? using a smartphone app and a business model similar to Uber are gaining traction. In China, local rival Didi Kuaidi Design Elements: Implications (idea) CARTQU/Getty Images has raised $4 billion in venture capital and claims that soon Problem (igsw) CALMAGAMI/Shutterstock. All Others it will be operating in more than 400 cities in China. Didi CMcGraw-Hill Education