Uber
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Uber, Inc. is a ride-hailing company that can be used on mobile devices. Founded in 2009, the company now offers ride to users in 58 different countries in over 300 different cities across the world. As of late 2015, Uber was valued at approximately $62.5 billion.
History
In 2008, Garrett Camp, the founder of StumbleUpon, wanted to solve the "taxi problem" in San Francisco, CA. He approached entrepreneur Travis Kalanick, and the two created the initial prototype UberCab in March 2009. The service was test-launched in New York City in January 2010 with 3 cars. In July 2010, UberCab went live in San Francisco. The company changed its formal name to Uber in October 2010. That November, Uber was added to Android phones.
In December 2010, Ryan Graves stepped down as Chief Executive Officer, and Travis Kalanick stepped in as CEO. Graves became Chief Operations Officer. By February 2011, the company had raised over $11 million in funds from different investors. Uber was launched in New York City in May 2011. By the end of that year, Uber had raised over an additional $35 million.
In July 2012, Uber launched UberX, a hybrid vehicle service that is cheaper. By April 2014, Uber's services were offered in over 100 cities.
Features
Requesting a Ride
Users must first create an Uber account linked to a phone number and credit card. When requesting a ride, Uber uses GPS tracking on iOS and Android devices in order to determine the location of the user. Uber then connects you with the nearest driver based on your location. The name of the driver, their rating, and their car will appear on your device, and Uber will text your phone when your driver has arrived. You can track your driver's status on the application's map.
Pricing
Uber will offer fare estimates in advance if you wish to know approximately how much your ride will cost. When your ride is complete, Uber will automatically charge it to your credit card. Users do not need to carry a card or any cash for the ride or for a tip. Different cities may have different base fares and prices depending on the speed at which the car drives. If the car drives above 11mph, the cost of the ride is based solely on distance traveled. If the driver is moving at a speed under 11mph, then the cost of the ride is dependent on the time of the ride.
When demand for Uber rides increases significantly, Uber uses an algorithm to implement surge pricing. Surge pricing will raise the base fare by a certain amount based on demand, and users will have to take an additional step when requesting an Uber to confirm that they agree to surge pricing. Just as base fares for Uber vary by city, so too do surge prices affect cities differently.
