Start Up Barriers Affecting UberCab
This paper analyzes the new fairly new company originally known as UberCab to most. This paper will analyze and examine the seven different barriers that UberCab experienced during the start up process. The seven areas researched are economies of scale, product differentiation, capital requirements, switching costs, government policy, access to distribution channels, and cost disadvantages independent of scale. This paper will also show how UberCab, a fairly new company started in 2008 changed many norms and how they overcame barriers to be recorded worth 17 billion dollars in the year 2016 (Damodaran, 2015).
Start Up Barriers Effecting UberCab
According to a post by Posen, “innovation and technology in fields virtually unknown or unrealized 50 years ago have shaped consumer culture today, and most consumers rely on the ease and accessibility of their smartphones to get what they need and even to go where they need to go” (p. 405). From this thought alone brought about a new and improved taxi experience. UberCab or as many refer to the company as Uber has taken the United States and many other countries by storm with its new age technology of simply finding a cab. The company is much different from your normal cab service that one must call in to find a cab or wait outside of a busy New York street with a thumb out to get to where your going. Ubercab allows customer to simply download a phone application and request whatever size car they desire and it show up to their exact location with an exact time frame. Another aspect of the Uber service is that the whole process is considered cash free, the rider knows exactly how much they are paying and the transaction of money is all