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Does your overall assessment of the industry suggest that industry rivals have sufficiently attractive opportunities for...

Does your overall assessment of the industry suggest that industry rivals have sufficiently attractive opportunities for growth and profitability? Explain. (UBER company)

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Answer #1

The single largest entry barrier is high cash required for acquiring customers and retaining them by offering deep discounts. Uber has already build the network and customer base. It is require a new player to provide highly attractive offerings for drivers and riders. Hence profitability is not attractive, since UBER has already discounted the market heavily to acquire the customers. Growth opportunity is there since people are preferring on-demand cabs over rentals and vehicle ownership. Hence adoption is expected to increase

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