Questions1. What are the basic principles in the 'sharingeconomy'?2. Explain the competitive advantage of Uber.3. Why is it so important for Uber to get into so manycountries so fast?

Case Study 1.4 Uber Uber Technologies Inc. (www.uber.com) is an businesses can be built. As it arrives in a city. American international transportation network launches a vigorous recruiting programme for driv company headquartered in San Francisco, Califor. ers, offering them incentives to sign up. Its fares are nia. The company develops, markets and operates 'dynamic'-they undercut conventional taxis most of the Uber mobile app, which allows consumers with the time, but go up when it rains, or when there is smartphones to submit a trip request which is then some other reason why demand for rides is high routed to Uber drivers who use their own cars. Uber This encourages more of its drivers onto the road now operates in 600 cities in 65 countries, provid. when they are most needed. This in turn means ing more than 10 million rides each day. By the end that customers can always get a car quickly, even of 2018, Uber's market value was around US$72 bill. if it sometimes costs a bit more. This encourages lion, with expected revenues for 2018 around US$10 them to keep using Uber, in turn providing lots of billion. However, since it began operation in 2012, work for its drivers. In recent years Uber has moved Uber's net income has been negative. into new fields and diversified its core offering, by It is estimated that worldwide there are 75 million introducing peer-to.peer rides through UberPOP "loyal' Uber passengers, who are served by 3 million Uber drivers worldwide. 0.75 million in the US, and 2.25 million drivers in the rest of the world. Consumers appreciate Uber, and rival services like Lyft in the US, Didi Kualdi in China and GrabTaxi in South.East Asia, because they tend to be cheaper than conventional taxis, cleaner and more reliable Uber's freelance drivers typically pay Uber around 20 per cent of their fares. For many of Uber's freelance drivers, flexible working hours and being spared the Rese