Ride-hailing giant Uber has set its sights on a new potential growth market: the company hopes to make itself into a platform rather than an employer with the launch of its new app, Uber Lite. Introduced a few days ago in India, Uber launched a condensed yet similar version of the app in the growing country.
The app consists of a few simple functions made for the everyday user in India. According to Wired, Uber Lite is built with older Androids in mind, as most cellphone users in India carry Androids, and for places where an internet connection is fairly slow or non-existent. With its 300millisecond response time, even users with 2G would be able to hail an Uber within seconds with this app.
Uber’s main target market for this app is developing countries such as India, Latin America, the Middle East and Africa. According to Tech Crunch, Peter Deng, the head of rider experience, said “we know we’re not just a U.S. company, we’re a global company,” in regards to the launch being in India.
With Uber trying to pursue developing markets and outgrow the unprofitable ones, the question we should ask is whether this would be an enticing factor for investors if Uber stays on track for their IPO sometime in 2019.
Uber has been growing within the United States as well as globally. According to Forbes, Uber’s monthly active riders grew from 50 million in 2016 to 75 million in 2017. This can tell us that Uber is generating a positive response from its users, making investors more willing to invest in the company.
Uber also has support from Warren Buffet and Berkshire Hathaway , giving another reason for investors to make sure they are the first to get their hands on Uber’s IPO.
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