Uber used a few innovative strategies to kickstart demand in new cities. Firstly, they would send an Uber City Launcher from their headquarters to the new city. This person would then flood local online platforms, such as Craigslist, with ads offering incentives to potential drivers, such as hundreds of dollars in bonuses. They would also offer free rides to customers to stimulate demand. This strategy was expensive, but it helped to rapidly grow their user base. Once demand was established, Uber would hire a local City Manager to oversee operations. Additionally, Uber was known for its aggressive approach to regulation, often choosing to operate in spite of local laws or regulations, which also contributed to their rapid expansion.

Question was asked on:

Kickstart demand for both sides of your marketplace to create rapid growth. Uber perfected a playbook to launch the service in any city worldwide at a rapid pace. An Uber City Launcher from headquarters would parachute into the city, flood craigslist with driver ads that offer hundreds of dollars in bonuses, and free rides to customers. This strategy to kickstart demand on the two-sided marketplace was expensive, but it turbocharged growth. Once demand picked up, Uber hired a local City Manager to manage operations in the city. While it's not a good idea for everyone, if you don't fear regulation, you can often beat it — at least for a little while. Uber's DNA was designed to evade the law and fight regulators who wanted to shut the service down. In every city, Uber's employees and drivers faced threats from law enforcement and local taxi unions. Uber urged drivers to stay on the road even if they got ticketed. The company would bear all costs. To Kalanick, fines and tickets were just...

Asked on the following book summary:

resource preview

Super Pumped: The Battle for Uber

Learn how Uber's growth was fuelled by obsessive product focus, broken rules, growth at all costs and minimal bureaucracy from the book that inspired...

Download and customize hundreds of business templates for free

book summary Preview

View all chevron_right