Uber Technologies Inc. is a tech startup that provides ride-sharing services by connecting independent contractors (drivers) and riders with the use of an app. Uber has expanded its operations to 674 cities in 83 countries around the world. It has become a key player in the sharing economy, a new economic model in which independent contractors rent out their underutilized resources such as vehicles or lodging to other consumers. The company has experienced resounding success and is looking toward expansion both internationally and within the United States.

Due to its technology, Uber does not have as many constraints as taxi cabs do. A major reason Uber is so popular is because its app allows users to contact any drivers in the near vicinity. The Uber business model takes advantage of the smartphone technology of consumers and links them with independent drivers as their cabs. These drivers act as their own entrepreneurs. They pay Uber a commission but are free to run their businesses as they see fit. This provides a more potentially efficient and less expensive way for consumers to purchase transportation.

Uber has adopted the motto "Available locally, expanding globally" to describe the opportunities it sees in global expansion. As it expands into different countries, Uber is engaging in strategic partnerships with local companies. These alliances with local firms are especially important as Uber expands internationally because it allows the company to utilize the resources and knowledge of domestic firms familiar with the country's culture. Uber has partnered with Times Internet in India, Baidu in China, and AmericaMovil in Latin America. International expansion is a major part of Uber's marketing strategy, and it believes that consumers from other countries will appreciate its low cost, convenience, and freedom.

Despite its international success, many countries have regulatory hurdles that have caused trouble for Uber. Perhaps the biggest is the failure to obtain licenses even though Uber drivers offer many of the same services as a taxi. Governments have responded by banning Uber or Uber services due to the lack of professional licenses for drivers. For instance, in Spain, Uber shut down its ride-sharing service after a judge ruled that Uber drivers are not legally authorized to transport passengers and that it unfairly competes against licensed taxi drivers. Because the taxi industry is important to many cities, governments like Spain's are not looking favorably at what they view as an unfair competitive advantage that could potentially bankrupt the industry. Uber has since returned to Spain with UberX, which uses licensed drivers and places it more on par with licensed taxi drivers.

Uber faced similar problems in France. In 2011, Paris became the first city outside of the United States where Uber set up operations. However, local authorities attempted to ban one of its services because drivers did not need to be licensed. French police even raided Uber's Paris office. A French law was passed mandating that operating a service that connects passengers to non-licensed drivers is punishable with fines of over \(\$ 300,000\) and up to two years in prison. Hundreds of Uber drivers in France were issued fines for operating illegally..,.,.,.,

Questions

1. What are some challenges Uber is facing as it expands globally?
2. Describe some of the barriers that Uber is encountering in different countries.
3. What type of management team is needed at Uber to address a very dynamic global environment?

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