What happens when the expertise of a ride-hailing giant and a peer-to-peer car-sharing platform join forces for a common cause – reducing private car ownership while giving riders more flexibility and exciting vehicle choices? Well, we may start witnessing the beginning of this by early 2025, thanks to a strategic multi-year partnership between two industry legends – Uber and Turo.
On 5th Sep 2024, Turo gave an official statement saying this integration will enable Uber customers to rent cars from Turo directly from the Uber app.
Let’s dig into the Past, Present, and Future of this collaboration.
Table of Contents
The PAST: Uber – Solution to a common problem.
Uber’s beginning was straightforward – it was a simple solution to fix a common problem faced by friends Garrett Camp and Travis Kalanick, who were frustrated with the challenge of finding a taxi ride easily and affordably.
Back then, UberCab (as it was originally called) wasn’t about fancy black cars or Uber Eats deliveries; it was just about making life easier for people struggling to find a ride in big cities. Fast forward a decade, and this “small” idea has become a global phenomenon – a simple platform business connecting drivers with customers.
The Game Changer – How Uber Disrupted the Taxi Industry & its after-effects.
Uber provided its customers with everything the traditional taxi system was failing to offer – easy bookings through a mobile app, real-time ride tracking, cashless payments, and most importantly, transparency.
With this increased convenience, Uber’s business skyrocketed. By 2015, the company was operating in 400 cities across 65 countries!
But was it an all-smooth journey for Uber? NO! The major changes it brought to the industry sparked protests from traditional taxi drivers. Major protests arose, around the company’s classification of its drivers as independent contractors. Which means, they didn’t receive employee benefits like health insurance or paid time off. This led to global protests and legal challenges.
Despite the regulatory battles, Uber adapted and moved forward, becoming a symbol of convenience for millions of people worldwide.
Diversification – Uber Eats and More.
Uber decided to diversify their market by providing convenience to other areas too. By providing the convenience of getting food delivered to one’s doorstep, Uber Eats was born capturing the market strongly post-pandemic. Who knows people prefer convenience over the extra delivery charge?
Uber Freight, on the other hand, helps businesses connect with truck drivers for transportation.
Gone from a scrappy startup to a global giant, Uber – reshaping not only the way we move but also the way we eat, deliver goods, and maybe even fly in the future!
The PRESENT: Numbers – Uber’s Q2 FY2024 Highlights.
As for the second quarter of 2024, Uber has announced figures, that seem positive for investors and continue to stand as the top stock to buy for 2024.
With an increase in gross bookings by 19% YoY, Uber noticed a growth in revenue by 16% YoY.
It’s the split of this that makes it more interesting. The net increase in booking for mobility by 23% has resulted in a 25% increase in revenue. However, a 16% increase in Delivery has increased the revenue by only 8%. As for the Freight business, there hasn’t been much improvement.
As for stocks, it is optimistic currently selling at around 70USD. The share price peaked in Feb 2024 considering the buyback of shares.
The FUTURE: Uber’s ride with Car Rentals and the Turo partnership.
Uber’s journey into car rentals started back in 2018 with the launch of Uber Rent. However, After experimenting with Uber Carshare in Australia, the company realized that the future lies in more flexible, peer-to-peer rentals. This is where Turo enters the picture.
With Uber winding down its Uber Carshare service in Australia, it’s turning to Turo to fill that gap. Turo brings its innovative peer-to-peer model, allowing everyday car owners to list their vehicles for rental. This opens up a world of opportunities for Uber Rent users, giving them access to more diverse cars – whether it’s a sleek Tesla for the weekend or a family-friendly SUV for a road trip.
Conclusion:
Uber has been the market leader for a long time, even after facing problems and the removal of its CEO in 2017. Uber continues to demonstrate to its investors and the public that, despite multiple challenges, it consistently bounces back with solutions and strategic decisions that serve the best interests of the company and society as a whole.
With this partnership, Uber and Turo are working together toward a greener environment. In simple terms, instead of relying on large rental companies, they’re handing the keys over to regular people.
With more choices, fewer hassles, and an eco-friendly approach, Uber and Turo are shaping the next era of transportation in a single tap!
For more such updates on business and business case studies stick with us.