For the purpose of this article, I would like to focus on the business tactics that Uber implemented during the expansion of the company. Uber used its rapid growth to gain over USD 4 billion in investments over the years (Dealroom, n.d.), which was used, as one would have expected to boost its expansion, growth, and value even faster. I do wonder if the way Uber invested this money was the correct way to do this. A report by Smith and McCormick (2017) highlights some interesting tactics that Uber supposedly used to gain an advantageous position over competitors, including the taxi business. Notably, Uber is said to have cut ride fares to prices smaller than what drivers get for the same trip, which would mean that Uber is giving the drivers extra money instead of taking its 20% commission off the price that the passenger pays. In addition, the report highlights aggressive tactics aimed at recruiting drivers from competitors and hindering the efficiency of other ridesharing companies such as Lyft (Smith & McCormick, 2017). These aggressive tactics are a result of the incredibly deep pockets of money gained from investments. Because Uber has so much money at its disposal, it can do whatever it wants for its own gain. Not only do I believe that this way of doing business is wrong and unfair, but it also often ends up backlashing when these stories hit the media. I also think that it will eventually end up failing, as awareness amongst customers about these issues will decrease customer satisfaction, which in turn will, as has happened in the past, lead to protests and government interference. 51
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