The Financial Impact GPS and Maps Technology has had on Uber

Uber Technologies is a global leader in the transport and food delivery industry (Morris). Uber develops maps for its diverse who use their own cars for the taxi business. This paper discusses the various financial impacts that the Maps and GPS technology used by drivers have on Uber.

Negative Financial Impacts

Uber utilizes a myriad of monetary resources in coming up with maps that could be used in all regions of the globe. The Maps also need to be unique when compared to the others offered by other companies. Therefore, Uber spend up to $500 million in distancing its technologies from those of other firms (Morris).

The negative financial impact in the implementation stage is that Uber has in the recent past faced intense competition with Google claiming that this firm copied its GPS and Maps technology (Glöss, McGregor, and Brown 6). Other car-service maps companies such as Lyft also pose major competition thereby forcing Uber to spend humongous sums of financial resources in advertising thereby draining their finances.

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Positive Financial Impacts

The positive impact is that the maps and GPS technology have made Uber a renowned business. Many drivers prefer Uber to other firms due to their up-to-date technologies (Glöss, McGregor, and Brown 5). Therefore, Uber’s maps and GPS technologies have attracted many clients leading to an increase in the financial gains. For instance, more than 50% of taxi cabs in most developing countries utilize Uber maps and GPS technologies.

The development stage of Uber’s Maps and GPS technologies is characterized by a long and intensive process. However, the company focusses on the number of persons utilizing their GPS services rather than a quick return on investment. Consequently, Uber’s dynamic pricing has resulted to the adoption of their technologies by many drivers across the globe resulting to high profit margins in the long run (Glöss, McGregor, and Brown 12).

 

Works Cited

Glöss, Mareike, Moira McGregor, and Barry Brown. “Designing for labour: uber and the on-demand mobile workforce.” Proceedings of the 2016 CHI Conference on Human Factors in Computing Systems. ACM, 2016. Print

Morris, David Z. “Uber Will Spend $500 Million On Mapping To Distance Itself From Google.” Fortune.Com, 2016, http://fortune.com/2016/07/31/uber-mapping-google-alternative/.