Uber Technologies (Uber)

This is the first of three reports on companies which are platforms or marketplaces. A platform is a location where buyers and sellers meet to buy or sell a particular service. The platform company provides the venue and takes a small cut from each transaction. Stock exchanges are an example of a platform. Others include eBay, Airbnb, Spotify and Uber. In this note, we look at the latter.

Uber, founded in 2009, is well-known company which needs no introduction. Famously it is the taxi company that owns no taxis. It is a technology platform that leverages a massive network, leading technology, operational excellence, and product expertise to facilitate movement from point A to point B. Operating as a digital aggregator, Uber connects riders seeking transportation with drivers willing to provide it. The company does not own any vehicles; instead, it charges a commission on each ride booked through its app. This asset-light model allows Uber to maintain a flexible and scalable operation without the overhead costs of owning a fleet of cars.

It offers offering ridesharing, food delivery through Uber Eats, and freight logistics via Uber Freight.

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