Uber president talks about how the company has succeeded in the global market

Today, Uber is the leader in the shipping market, but this has not always been the case. Initially, it was a rather modest startup in San Francisco, which was destined to grow and conquer other cities.

The company expanded methodically, which helped it to take different cities in various countries around the world. As a company, Uber is an interesting fusion of technology business and "physical business" (which is a service for moving people to different places). And therefore, Uber Business Vice President Emil Michael (Emil Michael) believes that partnership is very important for business creation.

Below you will read a short story by Uber President Emil Michael about how the company grew from an outsider to a market leader, how Uber captured the US and other markets such as China, and how successful partnerships and thoughtful deals helped him in this. Michael also talked about how Uber entered the Chinese market and how the Uberpool service for a joint car trip is one of the ways to combat traffic in growing cities.
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From outsider to market leader

Motley startups do not have all the complex structure that large companies have. Michael and Uber CEO Travis Kalanick (Travis Kalanick) told that the creation and cultivation of a large company like the construction of civilization. The communities of people who use Uber have a direct impact on the community itself within the company. It is important that Uber benefits the communities that use its services, providing low-cost travel to those passengers who cannot afford more expensive service, or serving areas that need additional transportation. Therefore, Michael believes that Uber is becoming one of the factors influencing the structure of the society of cities and countries, and therefore moral responsibility is placed on the service.

Uberpool and urban infrastructure development

The Uberpool service, which works by analogy with the BlaBlaCar project, which is actively developing in the domestic market, contributes to unloading traffic on the roads, while reducing the need for a more developed urban transport network. For example, in cities like San Francisco, where no one plans to build a subway, and buses are packed to capacity, service can be one of the solutions to infrastructure problems.

Search for a product that meets market expectations.

Nowadays, a person needs the possibility of free movement, so Uber was relevant in every city where the service appeared. Says Michael: “If you have a simple product that works, people from all over the world will want to use it. And when you understand this, then, damn, my height limits only one factor - the speed with which I can launch a product and integrate it into a particular society or city. ” Based on how Uber works in Saudi Arabia, Vietnam, Nigeria and Tokyo, Michael is confident of the huge potential of service in the global market.

How to make a good deal

The importance of partnership depends on exactly what kind of business you are in. Uber is equally an IT company and a firm that provides a completely tangible service, as cars are material objects that pick up people and transport them to their destinations. Michael said that during his time at the company, deals were made with large fleets of cars, car manufacturers, lenders and fuel suppliers: “If you are Facebook or Google, then you develop your product and rely less on partnership, and you can grow by increasing its server spaces. ” Uber President is confident that building strong relationships is important even for the IT business: “One day you will need partners to grow your business, develop new markets, mergers and acquisitions, or all of the above.”

Uber development plan

The service provided its services exclusively on the territory of San Francisco for a year, until it entered a new market, which was New York. Only nine months later, Uber continued its development in new markets. Thus, an action plan was created, which was designed to help recruit new employees and plan the next service implementation in new markets. After starting the service in ten cities in the United States, Uber began operations in one city on every continent to explore the local market and see if this business will take root there.

If we talk about business development in China, then, according to Michael in the Middle Kingdom, it is very important to have local people in your company - those who can interact with government bodies and understand all the subtleties of business culture. Uber's partner in the Chinese market is Baidu, one of three major Internet companies (it was overtaken by Tencent and Alibaba).

About the author : Mood Rowghani is a partner of venture capital firm Kleiner Perkins Caufield & Byers, his main area of ​​interest is investing in digital technology-related projects of companies, mainly working with Internet companies that are characterized by high growth and confident scaling.