The origins of Uber trace back to 2008, when Travis Kalanick and Garrett Camp, both start-up entrepreneurs, were having trouble finding a taxi on a snowy winter day. The two were inspired to create a smart-phone app that would call a taxicab. Returning to San Francisco, Camp bought the domain name UberCab.com, and the company officially launched two years later. UberCab was initially a private luxury car service for San Francisco and Silicon Valley executives.

Interested customers first had to e-mail Kalanick for access to the application. After entering their payment information, customers were able to summon a private black car. Unlike traditional black car services, the UberCab app allowed passengers to track the arriving car’s location and also guided the driver to the rider’s destination.......

1. What were the key factors that contributed to Uber’s phenomenal market success?

2. What was Uber’s customer value proposition? What role did Uber’s pricing play in its ability to attract riders?

3. Is surge pricing fair? What alternative strategies could Uber use to balance supply and demand?