Uber managed to gain a remarkable market share in the transport industry by implementing a simple but powerful idea. The company didn’t invest in a technology from scratch, but selected an industry with great demand and built an ecosystem with a broader supply chain. Uber realized that the difference of quality and cost expectation assurance to be competitive depending on the market dynamics.
Many believe that Uber’s surge-price algorithm which adjusts fare price according to demand is a brilliant example of supply and demand at work. It could possibly be the literal realization of every economist’s fantasy that is catalyzed by the mobile Internet. However, is “uberizing” possible for every single sector of the modern economy? While the concept seems attractive to many sectors as a promise for developing a more equitable supply-chain, whether “Uberization” will gain ground as a popular development model for startup enterprises remains a question.