User:Mariavelad/sandbox

Since its launch in 2010, Uber has become the primary mode of transportation for many commuters around the world. The relative low price per ride and the convenience of the system have made it an attractive choice for the consumer in the market for public transportation. But why did it develop when it did? Put simply, the social conditions and technological advancements made it so this business model could succeed.

Technological advancements
The ease with which riders and drivers can coordinate with each other to carry out their transactions has only been possible thanks to the advancements of smart-phone technology. The geolocation software installed in these devices and their ability to connect to the internet, allow the application to match people in need of a ride to available drivers on nearby areas. Geolocation also enables drivers to have directions of how to get to a rider’s location and destination by incorporating mapping software such as Google Maps. Smart-phones also simplify the monetary transaction between riders and drivers by allowing the costumer to pay electronically with a debit or credit card

Social conditions
In the recent years, the market for smart-phones has expanded exponentially. Many new brands have emerged and as a result the competition between suppliers has grown tremendously. In turn, this has forced the costs of these devices to become substantially lower. For this reason, more people have been able to afford smart-phones in current times than in previous years. The widespread use of these devices combined with an unsatisfied need of the market for an affordable and comfortable mode of transportation, are to be attributed with the popularity and success of Uber. )