Uber has started to show a better improvement in its revenues and made some notable profits but yet to get one-quarter of the year completed the company has shown a downfall either. Upsurges and downfalls at times are part and parcel in business deals and trading. When it comes to Uber, it is an online transportation deal and the rival or contenders of that concern cannot be determined by years. A tough competitor cannot be subjected on any basis because the world has moved so fast.
Nobody gives space and time for old traditions and sentiments. So for having another organization as their rival, they need no years to build to bring up their reputation. And as far as online marketing and business is concerned people don’t prefer the oldest or the most traditionally followed organization on anything. They just choose over the brand which comes up with lower price tags. All they look for is quality and a minimal of trust. This is not to categorize every buyer through online as one. But predominantly people are the way as discussed above. So there is nothing to wonder to find a company which turns a strong contender for Uber which has cropped out recently.
It doesn’t mean Uber has failed to satisfy the customer’s needs. It’s just that a few things along with time haven’t turned anything favorable to the organization. This is the fundamental reason why Uber has lost around eight-hundred in the mid quarter of the year 2016. It was quite a hard thing for the organization to digest but logically it goes right. They left the most popular and highly populated country (China). This has to pay back to its deeds. It’s not on purpose, but though it just happened. And more specifically this will not be the reason completely. They, in fact, exhibited a good improvement but later on, they had a fall. The downfall was more intense than their improvements.
Uber had a lot of misconceptions. They have been accused for about forty to fifty cases over plenty of countries. The reason is they have spread their wing over a large number of countries around the world. Being charged or accused of something will not bring them financially but their reputation will. The trust and rapport they had with the public might go down because of these issues. Some might not believe in these cases saying that they are just blaming them. Some might go with the federation. And another part would spare no time to verify on who went wrong or even what is going on, they blindly avoid the company which is been petitioned the court. However Uber could manage all these hindrances and still run its business, but now they are at a greater risk of money loss, where the revenues, investments never match with the outcomes and the profits. They lost hundreds and hundreds of money in one specific quarter frame of the year.
Let’s get in-depth to investigate how much the association has lost and what are the predominant reasons for this deprivation in their stocks statistics.
The monetary status of Uber estimated at the third quarter
As we know that Uber has lost exactly eight-hundred million dollars of money until the third quarter of the year 2016. Based on this an article called The Information has estimated the exact status of the organization and the report was presented by Amir Efrati. The report says that the online ride-hailing fame application Uber which had huge losses will also have to face about two billion dollars in the last Quarter of the year. The report says that if the company has the same strategies and runs as the way it runs these days then surely it will not take long for them to shut down from the market. But the company showed a performance which inflates in its every year performance. They also made a growth after leaving the largest country China, though. The losses were recorded as twenty-five percent in the third quarter and that went a little close to thirty-five percent the next quarter.
The one billion dollar loss doesn’t any way relate to the deals and operation pertaining to China, it just happened because of its rivals and contenders. The company had revenue of sixty-nine billion dollars at the end of the year but still, it continues loses money.
The online shopping giant turns a rival with its new approach to Uber
Amazon the online business magnet has planned to start up with truck services to benefit themselves with the shipping services. The new trucking services are more or less like Uber trucks. This sounds amazing to the organization and other companies who seek for an authenticated trucking service except for Uber. This is because Amazon new truck will surely be going to make a tough competition with Uber and hard to make money in their business. This is quite obvious! Because we all know that a new approach from a reputed company will always be a success. The reason why is people largely trust the company and that’s how they became reputed. So coming to the point of Uber truck, they had no strong opposition party until and unless Amazon was in the game. And now the real game starts!
Uber’s new ideas are fantabulous but have a clash with rules and regulations
Uber faced a lot of business loss this year, though they haven’t given up. Each time when they come up with a new idea, a bill from the court will be summoned to the company. Apart from being sarcastic thinking from the reality point of view, it is true. Half the time when the company puts an offer or a new schedule or scheme to increase their revenues there will be one country which says that the new scheme or approach is not legal at their federation.
Nobody can be blamed for this situation because a country basically has to think about the welfare of its people and allows only those associations which abide by their rules and regulations. Uber is an international online transportation company which amends its new approach into all of the countries they work for unmindful of the rules and regulation of each federation.
The most recent idea of self-driven cars made most of the masses to astonish at the company. The self-driven car is not a new approach, but for taxis, it’s probably the first time. The cars were really in a good condition and it’s absolutely an awesome feel to board cab which runs completely with high technology. The approach was not accepted by the California federation saying that automated taxis will not pay a better performance and such approaches legally not allowed inside their the city. The company was also accused that the automated cars ran into the city without a testing permission and the taxis which ran outside the city didn’t seem to abide the traffic regulations and few cars did not respond exactly to the directions. Thankfully there were no accidents occurred so far.
At the bottom
It pretty clear that Uber has faced a serious downfall recently. The organization still will not give up on their company. They still look for better ideas to reach the top position.
Author Bio :-
Anand Rajendran is CEO and Co-Founder of Zoplay, best PHP scripts development company located in India. Zoplay is a part of Casperon Technologies a leading social and mobile development company. I’m a Tech geek, Digital marketing expert, Entrepreneur, and Atheist who loves to write everything about PHP Scripts and mobile application development. Cabily Script is a clone of Uber, which developed by the tech gigs of his company.