Strategic partnerships uber

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Strategic Partnerships for Sustaining Growth of Uber
The case was written by Professor V. K. Gupta. It is intended to be used as the basis for class
discussion rather than to illustrate either effective or ineffective handling of a management situation.

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Strategic Partnerships for Sustaining Growth for Uber
Dr V K Gupta
Prof IMT Ghaziabad
Former CEO India, JMAM, Japan
dr.vkgupta@gmail.com
Times Internet on the morning of March 24, 2015, made an announcement that it was going to make
a "strategic investment" in Uber as a joint effort for helping Uber build up a reputation in the
lucrative but treacherous Indian market 1
. The Times of India Group’s digital arm is called Times
Internet. The Times of India Group is the largest media conglomerate of India in the space of print,
radio, TV, magazines, digital, out of home, and more, that collectively are able to reach over 200
million Indians.
According to Economic Times2
, Uber stated that the Times Internet partnership is for supporting its
expansion in India. Uber is being faced with regulatory obstacles because licensing rules in many
Indian states are not designed for the service type the cab-hailing apps offer. The partnership which
was recently announced is an extension of strategy of Uber of partnering with local companies to
penetrate markets globally.
The company which is based in San Francisco has been running into problems as it expands on a
global level – in France it has been sued by taxi companies, in Spain and Germany temporarily
blocked , and even in Delhi banned temporarily, however in China seems to have escaped ban ( refer
to Exhibit I: Various Issues Uber is facing)
The second biggest and fastest growing market for Uber globally is India and massive resources are
being invested by Uber into the continued growth of this market. The company has a deep long-term
commitment to the market of India and a mission to make an entrepreneurial and innovative society
by introducing transformational technology to more citizens of India from all walks of life. The
Times Internet partnership is inline with the strategy of Uber of generating local collaborations in key
markets. Same type of international partnerships include AmericaMovil in LatAm , Baidu in China,
and US’s American Express. A deep understanding of local markets and consumer behavior is
brought on board by these partners who also help grow the marketing and distribution of services of
Uber3
. Right now Uber is operating in eleven cities in India – Bangalore ,Ahmedabad, Hyderabad,
Chandigarh, Chennai, New Delhi , Jaipur, Kochi, Pune, Kolkata, Mumbai.
1
http://timesofindia.indiatimes.com/business/india-business/Uber-signs-strategic-Rs-150-cr-deal-with-TIL-for-India-
expansion/articleshow/46658387.cms Accessed on March 24, 2015
2
http://economictimes.indiatimes.com/news/emerging-businesses/startups/uber-signs-strategic-deal-with-times-internet-for-
india-expansion/articleshow/46657703.cms Accesses on March 24, 2015
3
http://blog.timesinternet.in/ Accessed on June 12, 2015

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TAXI SERVICES MARKET IN INDIA
The taxi services market of India is dominated by the sector that is unorganized, however, the
organized market of radio taxi services has been seeing robust growth over the past five years. With
expanding middle class having changes in lifestyle, the country’s radio taxi market continues to
expand. Many radio taxis plying on roads of Indian have seen a tenfold increase from 2009 to 2013.
This large growth has been majorly seen in metro cities, with the penetration of organized sector
continuing to be very less in tier III and tier II cities as the population in these cities prefer other
alternatives that are more economical owing to a low per capita income.
As per “India Radio Taxi Services Market Forecast & Opportunities, 2019’’, the market revenues of
Indian radio taxi services are expected to grow at a CAGR of about 25% between 2014 and 2019.
There are a number of players in the organized sector of radio taxi services market that provide 24x7
services across the year. Radio taxi companies charge elevated fares compared to unorganized taxis
and public transport but the service level provided is much better than unorganized segment4
. In
India, the radio taxi services market has big opportunities that are still untapped. There are very less
players in the organized market of radio taxi services who have not been able to address the demand
of the market owing to unavailability of required number of cabs. The radio cab segment, today is
over 15,000 cabs in size with 3 big multi-city operators (Meru, Easy, Mega Cabs) accounting for
nearly 70% market share as well as many smaller operators coming up in different cities. – Total
revenue across all operators is estimated to be Rs. 500 Crores, though an improved industry size
reflection would be the total sales from customers, Rs. 1,100 Crores currently. It is expected that by
2017, India radio taxi services market will reach 30,000 taxis5
.
RADIO TAXI BUSINESS MODELS
The business of radio cabs functions on several distinct business models. The “Radio cab companies”
are business ventures. No system of central monitoring exists for all the radio taxi organisations and
even the GPS tracking is managed individually by all the organisations. These companies are
becoming more known and profitable by taking up “the franchise model”.
“Everyone’s private driver.” This is the tag line Uber used as its business model when it started five
years ago. It promised to riders, cessation of overpriced trips in filthy, run-down taxis; whereas in the
case of drivers it offered an alternative to life of working for a garage. In New York City, on the back
of buses. Uber advertises targeting cabbies, and just about any person with a driver’s license and a
little free time—“Drive With Uber: Get Your Own Car for Under $30/Day, No Credit Needed.”6
4
http://www.techsciresearch.com/2848 Accessed on march 29, 2015
5
Joshi Riddhish and Mehul Mehta (2015), “Radio Taxi Industry: Current Scenario, Industry Forces And Challenges In India”,
International Journal of Research in Management & Social Science, Volume 3, Issue 1( II ) : January - March , 2015, pp 95-100
6
http://www.businessweek.com/articles/2014-07-03/uber-the-company-city-regulators-unions-love-to-hate Accessed on
November 12, 2014

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TAXI REGULATION AND LEGAL ISSUES
Going by the history of taxi and limousine, country laws always regulate the industry pretty heavily,
and protect the taxi and limousine owners rights. Restrictions regarding taxis and limousines are
majorly accomplished on a global basis through use of harshly controlled policies for taxi medallion
that vary by region. In 1937 , the taxi medallion license was first introduced in New York City and
was supposed to govern the traffic of taxis entering the New York boroughs venturing to create
stability in the taxi fares economics. $107
was the original price of a NYC taxi medallion in 1937.
Since those days, the value of the NYC taxi medallion has continued to rise fast over the years
surpassing even the the cost of oil and the Dow Jones industrial average. Two medallions auctioned
in New York for more than $1 million as recently as December 2011, and economists forecast the
value will continue to grow as taxi demand would remain unchanged8
. The policy of taxi medallion
is not just a New York phenomenon, and currently is a very common of a practice in major US taxi
markets such as San Fracisco, Chicago and Washington D.C and globaly in London and Paris9
.
UBER : THE DISRUPTIVE MODEL
In several of the markets where it is operating, the modus operandi of Uber was to launch by ignoring
laws that existed, then put up with a finr or a ban, and eventually extract a new regulatory regime
from the local administration that favours it over country’s legacy taxi companies10
. For this, a lot of
criticism has come to Uber along at least six dimensions: First, that Uber is not being fair in its
competition with taxi drivers as it entering their market without following any regulations or fare
schedules; second, that it aims at becoming a monopoly in the business; third, that its drivers or cars
are underinsured or unsafe; fourth, that it has tendency to invade the privacy of customers; fifth, that
it can create situations of discrimination by drivers and passengers; and sixth, that it is undermining
all working standards for taxi drivers and the compensations its own drivers are poor11
. According to
industry figures, the taxi market in India is valued at $6-9 billion, out of which only six per cent is
organised. For example, in Delhi, almost 30 per cent of all calls are dropped by radio taxi companies
because vehicles are not available, according to the India Radio Taxi Services Market Forecast 2017,
which suggests a huge opportunity for organisations like Uber12
. ( Refer to Exhibit II: Uber’s
Business Model).
7
Michael M. Grynbaum, “2 Taxi Medallions Sell for $1 Million Each”, The New York Times, October 20, 2011,
http://cityroom.blogs.nytimes.com/2011/10/20/2-taxi-medallions-sell-for-1-million-each/ (accessed March 1, 2012).
8
Evann Gastaldo, “NYC Taxi Medallions Sell for Whopping $1M Each”, Newser, October 20, 2011,
http://www.newser.com/story/131488/nyc-taxi-medallions-sell-for-whopping-1m-each.html (accessed March 1, 2012).
9
http://www.kellogg.northwestern.edu/faculty/greenstein/ftp/Teaching/papers/Uber%20and%20strategy.docx Accessed on
March 15, 2015
10
http://www.livemint.com/Opinion/H2szy8ZUNmD3iCxC3PwrVK/If-you-dont-like-Uber-right-now-dont-worry-you-soon-
will.html Accessed on Jan 1, 2015
11
https://lawreview.uchicago.edu/sites/lawreview.../Rogers_Dialogue.pdf Accessed on March 29, 2015
12
http://www.business-standard.com/article/companies/silicon-valley-start-up-uber-may-find-india-ride-bumpy-
114071900876_1.html Accessed on March 1, 2015

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The gross revenue of Uber is estimated by 2015 to hit about $10 billion. As Uber retains 20% of
gross revenue, the company would end up keeping net revenue of about $2 billion13
. The company is
evolving as the world is moving. By connecting riders to drivers seamlessly through their apps, cities
are being made more accessible, opening up many new possibilities for riders and significant
business for drivers. Founder of Uber, Travis Kalanick believes in solutions for every problem. One
just has to be artistic enough to find it. He has guided the organisation from a niche San Francisco
market to its international presence today14
. Uber has revolutionized the way people travel from point
A to point B, and with a bit of thoughtfulness, may be on its way to improve the way merchants
deliver their goods to customers. The business model of Uber is actually quite simple: its
smartphone-based app connects drivers that offer rides and passengers that seek them, passengers
pay fees based on mileage using credit cards that are kept on file by the company, and Uber then
earns a percent share of each fare and gives the rest to drivers. Uber calls this “ride-sharing,” but that
is more of a misnome as in reality nothing is shared.
Uber is not a part of the taxi business, at least not in the conventional sense, since it does not own any
cab and has no employees that are cab drivers. Instead, it plays the matchmaker’s role, matching a
customer looking for a ride with a driver/car and taking a slice of the fare for providing the service.
Its value is derived from the screening of the drivers/cars (to ensure both safety and comfort) that
Uber takes care of, its pricing/payment system (where customers can choose the service level, that
could range from a car to a SUV and are quoted a travel fare and pay Uber) and the convenience
offered (where you can even track the taxi that is arriving to pick you up on the screen of your
phone)15
.
Uber keeps on rolling out new products, to create new business opportunities and to combat all
opposition. Till today, Uber is still locked in a bloody war with Paris, managing marauding protesters
of taxi, city regulations that require an Uber to undergo a waiting time of 15 minutes before being
able to pick up a passenger and raised bureaucracy at every turn. To combat the latest set of
hurdles, Uber just launched UberPOP, a less-cost, ride-as-a-service, that offers smaller cars and
cheaper rides compared to their other products or their competitors driving traditional taxis.
Uber Uses Applied Analytics For Competitive Advantage
Uber uses a combination of cloud infrastructure and mobile technology, location data, direct
customer feedback and other innovations to deliver a much better solution.
The use of data science by Uber is one of the most disruptive and awe-inspiring part of the way it
works. Major resources are being invested by Uber in using and implementing data science to
interpret and analyze the great amounts of data it collects. For instance, on October 2014, it had 15
positions open for data scientists and it still continuously hires in this area.
That investments output is an array of insights that enable Uber to be able to direct drivers to the
spots that are best to get customers, provide a forecast of the vehicles arrival time, and generate real-
time pricing, among other things. The company’s success hinges on its strength of driving efficiency
13
http://www.entrepreneur.com/article/242741 Accessed on June 10, 2015
14
https://www.uber.com/about Accessed on April 2, 2015
15
http://www.forbes.com/sites/aswathdamodaran/2014/06/10/a-disruptive-cab-ride-to-riches-the-uber-payoff/ Accessed on
Sept 1, 2014

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and creating user experiences that are very positive, both of which it is able to do using statistical
data analysis. The advantages of the insight-driven model of Uber are not only apparent in the
services’s utility, but also with respect to its overall performance16
.
Uber’s New Services
Retailers are allowed by Uber RUSH to leverage the service like a courier, being able to get packages
to their final destination with speed and safely. The merchants need not worry about cases of
products being damaged while being shipped, as they are not going to be crammed into packed
delivery trucks. Also, sellers are assured that their packages are going to be delivered to customers
the same day, and they can track the shipments also17
.
Uber delivers a flu shot (and a nurse) to your door in a partnership with Harvard Medical
School
The company launched a one-day pilot during which its drivers delivered "flu prevention packs"—
comprising of shots for customers aged four and older—straight to their homes or workplaces. The
service specifically drove a registered nurse to deliver the injection to a customer at any location
indoor18
.
Uber expansion globally
Uber has long been a problem for the taxi industry. Uber launched a black car service in 2010 and
expanded while offering various on-demand services, including taxis and UberX, the peer-to-peer
service that rivals Lyft. Uber is many times criticized for extreme price surging, in certain instances
charging hundreds of dollars for one ride and yet has managed to expand fast, reaching 200 cities
worldwide19
. Uber has been highly criticised over price surging and aggressive tactics for recruiting,
but that happens when you get too huge, says the leader of the company.
Uber’s tax-avoidance strategy costs government millions
Uber, a company leading the ride-sharing business, has attracted the anger of regulators and cab
drivers in many cities across North America and Europe by exploiting regulatory loopholes that
enable it to operate a large number of cabs mainly outside of transportation and safety rules that
exist.
But the strategy of Uber extends into the tax code as well. Uber as part of its fast new markets
expansion, has established over the past two years an international network of holding companies
16
https://georgianpartners.com/data-science-disruptors-uber-uses-applied-analytics-competitive-advantage/ Accessed on June
10, 2015
17
http://www.saleswarp.com/news/order-management/leveraging-uber-rush-to-expedite-package-delivery/ Accessed on
March 24, 2015
18
http://www.advisory.com/daily-briefing/2014/10/23/uber-delivers-a%20flu-shot-and-a-nurse-to-your-door Accessed on June
10, 2015
19
www.cnet.com/news/uber-ceo-says-oft-criticized-ride-sharing-service-is-just-misunderstood/d video Accessed on April 2,
2015

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and limited partnerships in what seems to be a strategy meant to radically minimize its taxes20
. More
than 30 different foreign subsidiaries have been incorporated since 2012 by Uber. Several
subsidiaries are actual operating companies, presenting Uber with access to markets in Russia,
Mexico and Singapore, for instance — but according to experts few of the subsidiaries are for the
purpose of sheltering profits and minimizing taxes. Uber seems to have a similar tax minimizing
structure as a lot of bigger public companies have established.
Uber Is Actually Killing the Value of a New York City Taxi Medallion
The license needed to operate a cab in New York is called a medallion. Corporate medallions (the
ones that are sold in pairs for use as part of a fleet of taxis) were last auctioned in April 2014 selling
for $2.6 million per pair. There were transfers of medallions in March 2015, for as less as $1.8
million for a pair. The introduction of new, for-hire vehicles which are free-market-based for the first
time in the history (spanning over seven decades) of the New York City taxi medallion system, is
shaking current medallion owners and threatening to make the old bullet-proof medallion a
superfluous tin piece21
. (Refer to Exhibit III : From June 2013 to March 2015 Taxi Meter Revenue
Decline in New York).
TAXI MARKET IN CHINA
The ride-sharing market in China is dominated by mainly two apps -- Kuaidi Dache and Didi Dache -
- which are having backing of Internet giants Alibaba and Tencent respectively. Kuaidi and Didi,
each has control of almost half of the market22
. Chinese ride-hailing apps have had a bumpy ride.
Authorities in Shanghai, last year had to impound many vehicles and detain drivers linked to another
famous taxi-hailing app, Didi Dache, which has backing of tech giant Tencent (TCEHY). In a few
cities, these apps are banned during rush hour23
. Uber is on the road now in nine mainland cities—
Beijing, Shanghai, Guangzhou, Tianjin, Shenzhen, Wuhan, Chengdu and Hangzhou —and offers
four levels of service, right from ultra cheap non profit "People’s Uber" to the ride-sharing luxury
Uber Black24
.
A play-time with cuddly kittens has been offered by Uber on National Cat Day. Apart from this there
is Christmas tree delivery in December, on July 4 helicopters to the Hamptons and partnering with a
condom company for Gay Pride Week – making sure that the other two companies can't even come
close to its unpredictable speciality in the marketing arena25
.
20
http://www.48hills.org/2014/07/10/ubers-tax-avoidance-strategy-costs-government-millions/ Accessed on June 10, 2015
21
http://www.thestreet.com/story/13153924/1/how-uber-is-actually-killing-the-value-of-a-new-york-city-taxi-medallion.html
Accessed on June 10, 2015
22
http://www.fool.com/investing/general/2014/12/16/will-baidu-help-uber-crush-chinas-taxi-industry.aspx Accessed on March
24, 2015
23
http://money.cnn.com/2015/01/09/technology/uber-china-app-government/ Accessed on March 24, 2015
24
http://www.fastcompany.com/3040097/app-economy/why-uber-needs-baidu Accessed on March 24, 2015
25
http://www.clickz.com/clickz/news/2355753/car-wars-uber-lyft-hailo-compete-for-a-spot-in-the-drivers-seat Accessed on
March 24, 2015

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UBER ENTERS LATIN AMERICA
App for Uber will get promotion on millions of Android phones that make use of telecoms company
America Movil AMXL.MX as their carrier, including 10 million in the city of Mexico. America
Movil, which is controlled by Carlos Slim family (Carlos slim being the second richest man of the
world), has about 241 million wireless subscribers in the Caribbean and Latin America 26
. A similar
deal was signed by Uber with U.S. carrier AT&T earlier this year.
PARTNERSHIPS IN OTHER COUNTRIES
The software platform of Uber has been opened to almost a dozen partner companies having mobile
apps, including Hyatt Hotels (H), United Airlines (UAL) and Starbucks (SBUX). When a table for
two is booked using OpenTable (PCLN), one can also reserve a car to take them to the restaurant;
even United’s app can be used to find an Uber to or from the airport. According to a spokeswoman of
OpenTable, Tiffany Fox, this is the link to Uber “a value-add for customers” commuting to and from
restaurants27
. About 10 percent of reservations at OpenTable are the result of marketing relationships
the company has with around 600 partners.
Driver Partner Survey
Benenson Strategy Group did a study according to which, Uber is considerably making the financial
situations of driver-partners better and they are hopeful about their financial future now that are being
driven on the Uber platform. (Refer to Exhibit IV : Number of Active Driver-Partners in United
States Each Month).
Finally, flexibility is valued by driver-partners in a job, and this is precisely what Uber offers them –
three quarters of them would rather have a job where they have the freedom to choose their own
schedule and be their own boss than a 9-to-5 job offering benefits and a salary28
. ( Refer to Table I:
Characteristics of Uber’s Driver Partners ).
The survey by Kantar's Benenson Strategy Group (BSG) was overseen by consultant Amy Levin,
who is amazed by the economic optimism shown by the drivers, in this age of stagnating wages when
maximum number of working American people are feeling stuck. As is noted by Levin in the
report, it is expected by 57% of drivers that their income would increase now that they use Uber –
which is very high comparing to just 38% who witnessed incomes rise in their previous jobs29
.
Philanthropic Activities
The reputation management of the company comprises of one-off efforts: adoptable puppies being
driven to customers’ door during the puppy bowl, No Kid Hungry partnership to allow passengers
to make donations through the app, and the Goodwill partnership to offer free pickup rides for
donations of Goodwill. This way Uber seems to have done more good than casusing harm by
26
http://ca.reuters.com/article/technologyNews/idCAKCN0JG1ZY20141202 Accessed on March 24, 2015
27
http://www.bloomberg.com/bw/articles/2014-08-21/uber-teams-up-with-starbucks-united-airlines-opentable Accessed on
April 2, 2015
28
http://www.bsgco.com/insights/uber-the-driver-roadmap Accessed on June 12, 2015
29
http://us.kantar.com/public-affairs/economy/2015/uber-introduces-the-new-workforce-model/ Accessed on June 10, 2015

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supporting them30
. But even so there are questions which need to answered regarding Uber operating
model.
Create one million jobs for Women Drivers
There are plans of the company to generate 1 million jobs for women by 2020.These jobs will
probably be offering little to nothing in the form of benefits and security as Uber drivers are all
independent contractors — the gig economy is not in reality one that protects the livelihoods of
women. Second, it has been observed that Uber only cares about safety and security post something
bad happening (e.g. the India rape scandal). Any kind of protection for these new drivers legions will
most probably be too little too late31
. About 14 percent of driver-partners of Uber is made up by
women, which exceeds the percentage of women taxi drivers and chauffeurs in those markets (eight
percent), but is less than the share of females in the total workforce.
Lobbying in US
Top lobbyists have been hired by Uber to fight cities and states that are forcing the company to
follow the same rules like taxis do. The company has been able to enlist some extreme political
firepower, hiring the former campaign manager of President Obama, David Plouffe, to be policy and
strategy, senior vice president. The Obama presidential election campaign was run by Plouffe in
2008 and also from 2011 to 2013 he was a White House senior adviser. He has to relinquish those
roles when he formally joins Uber. “I believe Uber has a chance to be a once-in-a-generation
company,” Plouffe stated32
.
Embrace bad PR as a marketing windfall. Bad press is still better than no press
Uber’s has had a strategy of confrontation. It gets into new markets with no regard to the local laws
and regulations. Thus, all the aggrieved parties start revolting and lodge protests raising hue and cry
with the respective concerned authorities, file cases against Uber. Bashing a 40 Billion dollar value
company like Uber makes a lot of breaking news33
. Thus, Uber is covered in across all the news
channels and debates giving it a wide publicity, which it could not have gotten even with a huge PR
budget. ( Refer to Exhibit V: Uber’s Legal Problems Worldwide).
Insurance Gap
For countering all the criticism, Uber states it will keep tabs on the drivers using the app, whether or
not they have got passengers aboard or are en route to pick one up. To fully address any ambiguity or
uncertainty related to insurance coverage for ridesharing services, Uber is on its way to become the
first and only company to have a policy that expands the ridesharing drivers insurance to cover any
30
http://www.triplepundit.com/2015/03/uber-cant-buy-love/ Accessed on June 12, 2015
31
http://www.triplepundit.com/2015/03/uber-cant-buy-love/ Accessed on June 12, 2015
32
http://www.bloomberg.com/bw/articles/2014-08-19/uber-hires-ex-obama-campaign-chief-david-plouffe-as-policy-director
Accessed on October 1, 2014
33
http://www.web-strategist.com/blog/2014/02/12/ubers-business-model/ Accessed on April 6, 2015

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potential “insurance gap” for accidents that might occur while drivers are not providing transportation
service for hire but are still logged onto the Uber network and are available for accepting rides34
.
STRATEGIC PARTNERSHIPS
Uber is famous for all of its strategic partnerships with similar minded startups such as business
travel management company Concur, pay-per-mile car insurance service Metromile and on-demand
music-streaming service Spotify . People using Uber are those who have highly active social lives
and love on-demand technologies, like Yumtable. The person who books a restaurant an hour of two
before heading out will be the same person who books an Uber cab 10 minutes before they have to
leave. Both brands are delivering a niche on-demand service. Not unlike all areas of business,
perception is key. It is essential to choose brands with a fantastic reputation but you also want to
work with businesses that are going to make good partners35
.
Uber is on its way to expand partnerships with transit authorities and mobile apps to target its
offerings where users require them. Nowadays one can find information for Uber and even order
rides from Uber through the mobile app of Google Maps, the public Transit app and Dallas area rapid
transit. Uber announced in February a partnership with Starwood Hotels, offering the opportunity to
members to earn Starpoints for Uber rides. Also in New York Uber implemented a partnership of
marketing with HBO and Game of Thrones to give New Yorkers the chance to order rides on a
replica of the series’ Iron Throne36
.
Tie up with Facebook
Facebook is planning to integrate Uber services in Messenger. This will enable Uber to reach out to a
wider customer base. Facebook Messenger has a user base of more than 200 million currently. Also,
in Uber-popular markets, the service is known for being used at least once a week or at times even
every day37
.
HBO and Uber Partner to Deliver Iron Thrones to App Users
HBO, HBO Now and Uber spent two days in April 2015 in New York City to deliver Iron Thrones
based on the one in the series "Game of Thrones" to users of Uber38
. This was a breakthrough
opportunity that presented fans with a one-of-a kind experience and aligned with the unmatched
programming available with HBO Now according to Mulderig.
34
http://www.forbes.com/sites/jeffbercovici/2014/03/14/uber-closes-insurance-gap-for-ride-sharing-drivers/ Accessed on
March 20, 2015
35
http://www.fastcompany.com/3046830/hit-the-ground-running/what-you-need-to-know-about-forming-strategic-partnerships
36
http://blog.powerlinx.com/unicorn-rapid-growth-partnerships/ Accessed on June 10, 2015
37
http://tech.firstpost.com/news-analysis/facebook-planning-to-integrate-uber-services-in-messenger-227974.html Accessed on
March 15, 2015
38
http://www.clickz.com/clickz/news/2404662/hbo-and-uber-partner-to-deliver-iron-thrones-to-app-users Accessed on June
10, 2015

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Country wide Car Care for Partner Drivers
The umbrella company for a slew of auto brands including Meineke and Maaco called Driven Brands
—made public a strategic partnership with Uber, allowing the drivers of the ride-sharing service with
access for getting exclusive benefits for preventative maintenance, paint and repair from both
Meineke and Maaco all across North America39
. T start with Uber as a driver, one has to go through
a certain vehicle inspection. So, Driven Brands partnered with them to offer the inspection at a
discount, along with other services offered at certain discounts depending on what the services are.
Uber to create 50,000 jobs and promises 'new partnership' with European cities
The founder of Uber wanted his company to develop new partnerships with cities to "ensure
innovation, harness powerful economic benefits and promote core city functions" while increasing
tax revenues. He claims the close partnerships of Uber with cities would make it possible it to take
400,000 cars off the road, expand the ride sharing service of UberPool, reduce emissions and create
50,000 new jobs40
.
Uber launches new services involving tuk tuks ( Auto rikshaws ) and breathalyzer tests
Uber launched two new services — one involving breathalyzers in Canada and the other in India
related to rickshaws. UberAuto (a new category in its repertoire of services) will be launched in
India, allowing passengers to call an auto rickshaw via the iPhone app. For now, this service can only
be paid in cash, instead of using the traditional credit card method of the company.
The Canadian branch of Uber is testing out a model to keep intoxicated drivers off the road. Called
Uber Safe, a prototype kiosk which is based in Toronto doles out straws to obtain the blood alcohol
readings of the drivers. If said person is over the legal limit, the kiosk presents the option to hail an
Uber41
.
Boston’s Official Corporate Housing Company Extends Relationship with App-based Private
Car Service throughout 2015
Uber will keep providing Northeast Suites clients with co-branded cards so that they can receive
twenty dollars off when at the time of signing up with the app-based private car service. Uber and
Northeast Suites started the partnership in 2013. Because of its success and high rate of retention of
39 http://www.ratchetandwrench.com/RatchetWrench/May-2015/Uber-Deal-Points-to-Meinekes-Company-Makeover/
40 http://www.marketingmagazine.co.uk/article/1329706/uber-create-50000-jobs-promises-new-partnership-european-
cities Accessed on June 10, 2015
41http://roadwarriorvoices.com/2015/04/10/uber-launches-new-services-involving-tuk-tuks-and-breathalyzer-tests/

12
Northeast Suites clients who had signed up for Uber, it was mutually decided that the partnership
would extend throughout 201542
.
Uber to collaborate with CMU on robocars
Uber also announced a strategic partnership with CMU, including a robocar lab in Pittsburg and it is
also expected that Uber could hire up to 50 CMU folks to staff43
.
Carnegie Mellon and Uber in February trumpeted a strategic partnership in which the school would
be working closely with Uber to develop driverless car technology. The company offered some
scientists bonuses of hundreds of thousands of dollars and even offered to double the salaries to staff
the company’s new tech center in Pittsburgh. Uber hired six principal investigators and 34
engineers44
.
Yellow Pages (YP) Partners With Uber to Bring Cars to Your Door
Uber and YP have entered into a new partnership allowing searchers to call a car straight from the
search directory's listings. Every month, more than 70 million people search listings of YP, the
maximum of which are local businesses, who can gain most from this partnership. YP has always
been a point of discovery for SMBs and the directory is specially popular with travellers. But the
convenience of the Uber button makes conversions that much simpler45
.
GrabOn Enters Into Exclusive Partnership With Uber
The partnership between Uber and GrabOn will help the later’s users who are looking to grab
discounts on booking of cabs and taxi rental services according to the core team of GrabOn. This is
the first time that Uber signed up a partnership deal with a third-party vendor offering free ride offers
in India. The company will be providing users of GrabOn with a free ride of Uber worth Rs. 40046
.
Uber Partners With Foursquare to Combine Local Search and Transportation
The partnership between Uber and Foursquare will help to combine local search with local
transportation. The app of Foursquare offers recommendation for reservations, restaurants and
nightlife based on preferences of users and crowd sourced reviews. Now, there will also be a ride
offered by the app.
When users of Foursquare choose a destination, they are offered the option to "Ride There With
Uber," which is a push button feature that is going to connect users to the their choice of car without
42
http://patch.com/massachusetts/backbay/northeast-suites-continues-its-strategic-partnership-uber-boston Accessed on June
10, 2015
43
http://robohub.org/uber-to-collaborate-with-cmu-on-robocars/ Accessed on June 10, 2015
44
http://www.marketwatch.com/story/is-uber-a-friend-or-foe-of-carnegie-mellon-in-robotics-2015-05-31-14103924 Accessed
on June 10, 2105
45
http://searchenginewatch.com/sew/news/2403241/yp-partners-with-uber-to-bring-cars-to-your-door Accessed on June 10,
2015
46
http://blog.grabon.in/grabon-enters-into-exclusive-partnership-with-uber/ Accessed on June 10, 2015

13
ever leaving the Foursquare app47
. Also, Uber unveiled a partnership with Microsoft to make use of
Cortana voice search for integrating Uber with Outlook, adding Uber to list of voice commands of
Cortana and ride notifications to Outlook calendars.
Uber Spends Heavily to Establish Itself in China
Uber stated in China, it had created more than 60,000 jobs over the past month, with its service
spreading and spurring protests from some taxi drivers. Money is being spent by Uber at a breakneck
rate to crack the China market — even paying its drivers greater than the fares they are able to
collect48
.
Zopa & Uber Hook Up to Help Drivers Purchase Cars
Zopa and Uber have created a new marketplace that is going to assist UBER drivers who are
wanting to move from renting an auto to buying a car. The new agreement is going to aid thousands
of UBER drivers decrease their costs each month49
. As Zopa is on its way to become a mainstream
service for consumers, it is expected that helping hard working people will fulfil their goals of
owning their vehicles and lead to keeping more of their income in the process.
Uber partners with Safetipin
The partnership is due to begin on Wednesday and is reported to be planned to run for just five
months, during which Safetipin’s auditors will be permitted by Uber to ride along in New Delhi to
get information about the neighbourhoods. The company is also going to mount smartphones on the
vehicle exteriors to take pictures of road and city conditions, whilst also being able to measure each
photo for selected criteria like visibility, lighting and the gender and diversity of people in the
picture50
.
Safetipin and Uber then send the information to governments and urban planners to advise
improvements – for instance adding street lights. Added on, neighbourhoods are also being rated in
the Safetipin app, which can also be used to determine the safety of areas by passengers where they
intend to travel. The partnership will be launched in New Delhi, but will soon reach Kenya, Bogotá,
Nairobi and Colombia.
Indian travellers to benefit from Uber, Foodpanda and ZO Rooms partnership
This partnership is going to give passengers a free taxi ride up to the sum of Rs.500, discount of 50%
on Foodpanda orders and options of cashback of 100% if they check in any of the properties that ZO
Rooms today owns in 13 cities. “We are extremely excited about this three way strategic
47
http://www.clickz.com/clickz/news/2411032/uber-partners-with-foursquare-combining-local-search-and-transportation
48
http://www.nytimes.com/2015/06/09/technology/uber-spends-heavily-to-establish-itself-in-china.html?_r=0 Accessed on
June 10, 2015
49
http://www.crowdfundinsider.com/2015/05/67362-uber-zopa-hook-up-to-help-drivers-purchase-cars/ Accessed on June 10,
2015
50
http://www.streetwisejournal.com/uber-improves-safety-india/7186/ Accessed on June 10, 2015

14
collaboration as it has all the ingredients to ensure that customers have a delightful time when they
travel,” said Abhishek Shivhare, director of strategic partnerships at ZO Rooms. “Technology is
ensuring that travellers can now stay, eat, and ride at the click of a button.”51
More public relations blunders could cause public opinion of Uber to shift.
Uber in its large markets — New York City, Washington, D.C., Los Angeles, Chicago and San
Francisco was able to log more than 100,000 trips per week as of last December.
There are now a different set of challenges in other countries for Uber, especially Germany: Services
of Uber aren't taking off there in part because the taxis of the country are Mercedes, and thus much
better than a typical American taxi. Germans don't seem attracted toy a service like Uber even if it's
way cheaper. Also, courts in Hamburg and Berlin had upheld a ban on the service in September,
stating that Uber was not complying with German laws.
France has banned the low-cost UberPop service. A Dutch court also made a ruling that in The
Netherlands, Uber cannot work with unlicensed drivers (However, drivers having licenses and
drivers who are not seeking payment can still legally operate).
Even though Uber operates in many Asian markets, including Tokyo, Beijing and Bangkok, Uber
has faced difficulties in Asia. South Korea has vowed to shut down the operations of Uber in the
country.
Uber in 2014, put its foot in its mouth several times. In November at a dinner for "influencers," Emil
Michael , an Uber executive even suggested the company could theoretically find personal
information on reporters who are criticizing the company52
.
Uber on global security drive with India-specific features
The company in India, had introduced an SOS button in the app and has started to provide driver
details to the closest family members of the passengers, among a list of security features53
.
India is seen as a key geography for taxi-calling app firms because of its estimated market size of $9-
billion. Since then it has grown its network to include more than 15,000 drivers (figures as
of November) in eleven cities including Mumbai, Calcutta, Delhi and Bangalore.
Capital One and Uber announced their new partnership
Cardholders of Capital One Quicksilver are going to receive 20% back as a statement credit on each
ride of Uber through April, 2016 if they are paying with their Quicksilver or Quicksilver One Card.
51
http://mybigplunge.com/top-post/indian-travellers-to-benefit-from-uber-foodpanda-and-zo-rooms-partnership/ Accessed on
June 10, 2015
52
http://www.entrepreneur.com/article/242741 Accessed on June 10, 2015
53
http://www.hindustantimes.com/business-news/uber-on-global-security-drive-with-india-specific-features/article1-
1341991.aspx Accessed on April 30, 2015

15
Also, any Capital One customers new to Uber are going to receive their first two Uber rides for free,
up to $30 per ride, if they make use of an eligible Capital One card. There will be no registration or
sign-up to make sure that the process is not complex, and is seamless and consistent with the
customer experience that Uber offers. The promotion will be a win-win for both companies. Uber is
going to expand its customer base securing more riders, while Capital One will become top-of-
mobile-wallet within the Uber app54
.
Between Capital One and Uber in total greater than 16 million emails were sent in order to promote
this partnership within 3 days since annoucement.
Uber and Spotify announce partnership for personalized in-taxi listening
Imagine one getting into a taxi and hearing his/her Spotify playlist, which he/she was just listening
to, coming out of the car stereo. That is the vision, and from this Friday the reality, of a partnership
announced between Uber and Spotify.
Uber CEO Travis Kalanick had led a conference call to announce that the Uber app was being linked
up with Spotify. Spotify Premium subscribers would have the option of being able to link any Spotify
playlist to the Uber car which is coming to the pickup location55
.
American Express Lets You Pay for Uber Rides With Rewards Points
American Express and Uber recently announced a new partnership that will enable card holders to
earn and use loyalty rewards points for using the ride-sharing service56
.
Uber announces Santa Cruz Launch with TechRaising Partnership
The ridesharing app teamed up with TechRaising — the local organization which is dedicated to
bringing innovation to the community of Santa Cruz — to give free rides to its attendees. When a
city is completely launched, on-demand rides are to be made available in less than 10 minutes. All
drivers are required pass background check, possess a clean driving record, an insurance policy and a
vehicle that can pass all specifications57
.
54
http://www.mintel.com/blog/capital-one-and-uber-double-up-on-email-marketing-to-promote-win-
win-partnership
55
http://rainnews.com/uber-spotify-announce-partnership-personalized-taxi-listening/ Accessed on
June 10, 2015
56
http://www.techpulseweekly.com/start-ups-funding/american-express-lets-you-pay-for-uber-rides-
with-rewards-points/ Accessed on June 10, 2015
57
http://www.santacruztechbeat.com/2014/04/09/uber-announces-santa-cruz-launch-techraising-
partnership/ Accessed on June 10, 2015

16
Uber enlists FleetCor for fuel cards
Drivers of Uber that are elligible will in the future be able to make fuel purchases that are going to be
automatically deducted from their weekly earnings. Partners will also be able to enjoy discounts at
every station and have additional discounts at participating Exxon Mobil locations58
. FeeltCor and
Uber have developed a unique offering for driver-partners enabling them to have instant savings at
gas stations across the nation.
Chinese Internet Giant Baidu Buys a Slice of Uber
Baidu Inc (ADR) gave confirmation on acquiring a stake in Uber but refused to divulge its size, nor
the invested amount. Previously, there had been speculation in the media of China that Baidu had
accounted half of the latest funding round of Uber, or $600 million, according to Fortune.
The importance of the market of China can be seen from the fact that Uber gave a go ahead to sync
its service to map of Baidu and its mobile-search features because China banned the app of Google
map that Uber normally uses across the world59
. This agreement’s goal is not for investment sake
alone, it is more for commercial cooperation and strategic cooperation. Uber is going to benefit from
its partnership with Baidu which could ease regulatory obstacles in China.
Dallas integrates Uber into its public transportation app
It has been decided by Dallas, Texas that it would take a different approach. The public
transportation agency of the city, Dallas Area Rapid Transit (DART), made an announcement that it
will be integrating Uber support into its own app to aid solving the “first mile-last mile” problem60
.
Uber’s new partnership means that users will have the option to use the ridesharing service from
within the GoPass app, thus seamlessly serving to connect the two services.
Google Mulls Ridesharing Move. Uber Can't Be Happy
It has been reported that Google is planning on launching its own service for ride-sharing, something
that is anticipated to be disastrous for Uber and Lyft. A major investor in Uber, Google even has one
of its executives on the Google board.61
At the same time, Uber shared plans for developing
autonomous vehicles via a formidable partnership.
58
http://www.bizjournals.com/orlando/morning_call/2015/06/uber-enlists-fleetcor-for-fuel-cards.html
59
http://www.venturecapnews.com/venture-cap-investing-news/chinese-internet-giant-baidu-buys-
slice-uber/ Accessed on June 10, 2015
60
http://siliconangle.com/blog/2015/04/15/dallas-integrates-uber-into-its-public-transportation-app/
61
http://www.techtimes.com/articles/30672/20150203/google-mulling-ridesharing-move-watch-out-
uber-lyft.htm Accessed on June 10, 2015

17
Carrier Wrap: AT&T partners with Uber, expands free NYC Wi-Fi; Verizon Wireless sees
traffic race
A partnership was announced by AT&T with Uber in order to embed the Uber application starting
this summer in new smartphones that are running an Android operating system. The partnership will
also include AT&T becoming a key provider of new wireless service to Uber drivers in the US.
The Uber application will allow passengers to call for a ride from an Uber driver. It was announced
by the two companies that the new arrangement builds on an ongoing partnership with AT&T of
managing device and data needs for partner drivers of Uber.62
Uber Hires Amit Jain as Its First India President
Amit Jain, an IIT Delhi and Stanford graduate has been hired by Uber. He was most recently
President of Rent.com (U.S. based), the once eBay-owned real estate listings site. Jain has previously
worked at TPG Capital and McKinsey and is charged with leading most business strategy,
operations, and growth in a region of global strategic importance for Uber63
. Uber reached India less
than two years, but rapidly scaled and currently covers 11 cities. This is much less than the market
leader Ola, which has presence in over 100 cities and targeting 200 by the end of the year.
Uber partners First Advantage for stringent driver background checks
Being heavily criticized over the safety of its passengers in India, US-based taxi booking firm Uber
has made the process for screening of its drivers stricter, including their criminal antecedents.
The arrangement of the company with First Advantage brings in more layers of screening over and
above the standard process of transport licensing including: address verification, a national criminal
database search and a local criminal court search. First Advantage is a major company in background
screening64
.
Uber tests cash payments for cabs in India
Cash payments in India are being tested by Uber as the online taxi-hailing firm tries to get a stronger
foothold in a nation where even less people have credit cards than internet connections.
Uber stated it was trying a pilot project of cash payments for taxis in Hyderabad, in a first for the
company across the world. Till recently, mobile application of Uber around the world has charged
customers using credit cards or other electronic payment methods. There are about 20 million credit
cards for a population of 1.3 billion in India. The government is trying to change this but even then
62
http://www.rcrwireless.com/20140529/carriers/carrier-wrap-verizon-wireless-sees-traffic-race
63
http://indianbizparty.com/tech/uber-hires-amit-jain-as-president Accessed on June 10, 2015
64
http://www.entrepreneurindia.com/news/Uber-partners-First-Advantage-for-stringent-driver-background-checks-5946/

18
most purchases are done using cash. Indian cab services including Ola accept cash for rides, while e-
commerce giant Amazon introduced an option of cash on delivery after launching in India65
.
A WHOLE NEW UBER? COMPANY SAYS IT WILL COMPLY WITH TAXI LAWS IN
GERMANY
In Europe, Uber os going to provide its drivers with commercial driver licenses and is going to
follow the proper steps for getting license itself as a taxi and chauffeur service.
Also, the company will pay the €150 to €200 that would cost its partners to get license from the
Chamber of Commerce as taxi companies, according to Fabien Nestmann, Uber’s chief in Germany.
Uber’s investors are putting pressure on the company to become compliant with local laws. Uber’s
investors don’t want their $40 billion company to become outlawed in important markets around the
world, and the lack of compliance of Uber is making it difficult to raise its next $40 billion.
While the company will finally lose face due to its disruptive nature, it’s expected throughout the
year that it will take steps to be compliant in the geographies where it operates across the globe. The
drivers of Uber — the little guys —are under the maximum pressure. They are the ones that have the
tickets for operating an taxi service that is unlawful. If Uber wants to retain its personnel and be able
to hire new ones it will have to ensure to work with authorities to become compliant66
.
UBER MOVES DELHI HIGH COURT
After not being able to implement a ban on running of the app based cab companies in Delhi. the
Department of Telecom issued a letter to Internet Service Providers to enable blocking of websites of
taxi operators Ola Cabs, Uber and TaxiForSure after a request put in by the Delhi government67
.
Encouraged by the order of Delhi High Court that declared rejecting of application of Ola Cabs and
Taxi for Sure invalid, Uber India Technology Pvt Ltd on June 13, 2015, moved the Delhi High Court
challenging an order of the Delhi government denying the extension of its licence to run radio cabs in
the national capital region. Uber, stated its case is similar to that of two other firms namely,
Serendipity Infolabs Pvt Ltd (Taxi for Sure) and Apra Cabs India Pvt Ltd, whose applications for
licence were also rejected on June 3 ,2015 by Delhi government68
.
65
http://timesofindia.indiatimes.com/tech/tech-news/Uber-tests-cash-payments-for-cabs-in-India/articleshow/47243770.cms
Accessed on May 14, 2015
66
http://www.vrworld.com/2015/03/30/a-whole-new-uber-company-says-it-will-comply-with-taxi-laws-in-
germany/ Accessed on June 10, 2015
67
http://ibnlive.in.com/news/block-websites-of-uber-ola-cabs-taxiforsure-in-delhi-dot-orders-isps/545615-11.html Accessed
on May 14, 2015
68
http://zeenews.india.com/news/delhi/uber-moves-delhi-hc-against-denial-of-extension-of-its-licence_1612437.html

19
UBER EYES $50B VALUATION WITH NEW FUNDING
Uber is in talks to get a new funding round ($1.5B-$2B) that might value the company at $50B
according to WSJ reports. At that level, Uber has possibility of becoming the most valuable venture-
backed start-up in history of the world. The new funds will not be used majorly for expansion
purposes, unlike previous financing rounds of Uber. Instead, the financing will be strategic, with a
focus on partnerships.69
Exhibit I: Various Issues Uber is facing
http://www.slideshare.net/funk97/ubers-business-model Accessed on June 2, 2015
69
http://binaryoptionevolution.com/2015/05/10/uber-eyes-50b-valuation-funding/ Accessed on June 10, 2015

20
Exhibit II: Uber Business Model
http://www.slideshare.net/funk97/ubers-business-model Accessed on June 2, 2015
Exhibit III :Taxi Meter Revenue Decline From June 2013 to March 2015 in New York
http://www.thestreet.com/story/13153924/1/how-uber-is-actually-killing-the-value-of-a-new-york-city-
taxi-medallion.html Accessed on June 10, 2015

21
Exhibit IV : Number of Active Driver-Partners in United States Each Month
Note: Figure based on U.S. UberBLACK and uberX driver-partners providing at least four rides in any
month (284,898 individuals).
Source: Uber administrative data. An active driver is defined as a driver-partner who completed at
least four trips in the month
http://dataspace.princeton.edu/jspui/handle/88435/dsp010z708z67d Accessed on June 12, 2015

22
http://dataspace.princeton.edu/jspui/handle/88435/dsp010z708z67d Accessed on June 12, 2015

23
Exhibit V: Uber’s Legal Problems Worldwide
http://www.taxi-deutschland.net/images/presse/Infografik_Uber-legal-issues_EN_v12_RGB_2015-
02-06_final.jpg Accessed on June 12, 2015

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