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Transportation Network Companies: What does the Future Hold?

Peer-to-peer shared mobility has gained momentum as part of the latest cluster of developments in transportation. A technical marvel known as a mobile phone application or “app” arranges a ride or introduces a rider with a driver “sharing” his or her private vehicle. This is conveniently ordered by tapping your cell phone and, within minutes or seconds, not only is the chore of setting up transportation achieved, but so is compensation for the trip. This paper explores why this is so significant, using Uber as an example.
Uber clutched the concept of peer-to-peer ride hailing and created a multi-billion dollar commercial enterprise. It subsequently underwent rapid growth within a very short amount of time. Since its establishment, other comparable companies have sprung from the same idea or something very close to it. At present, there are at least a dozen companies to rival Uber. However, even with all the competition, Uber is the largest in terms of the variety of services available, where it operates, and market valuation. Uber is available in 58 countries and over 400 cities, with a market valuation speculated as high as $70 billion. Uber’s story of success did not happen without controversy. Regardless, Uber is now on everyone’s radar—regulators, academia and those who need to get to their destination.
This paper, UBER Fad or Future by Matthew Kessler, aims to focus on Uber’s business model, and describe it relative to other types of transportation services. This paper addresses the business model’s fundamental advantages and disadvantages, the variety of controversies surrounding it, and offers some predictions and concluding remarks.

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