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Uber’s Questionable Business Practices Prove Profitable

Amidst the growing number of concerns about extemporaneous business practices, Uber????????s actions have stirred retaliation from local and federal governments around the world. Currently Uber services have been banned or suspended in Nevada, Delhi India, Thailand, Colombia, Rio de Janeiro, Brussels, Berlin & Hamburg, and the Netherlands. They have also been sued by the city of Portland, Oregon to stop operating within city limits. They have been sued in Los Angeles and San Francisco over consumer protection issues.  Toronto asks courts to shut down Uber services due to safety concerns and According to an article titled Prosecutors in San Francisco and Los Angeles Sue Uber, Settle With Lyft by Katy Steinmetz of Time Magazine, ???????New Dehli and Portland are moving to block service like Uber from operating, due to concerns about oversight and safety???????. Below you can see a Bloomberg infographic from Alex Tribou which illustrates where Uber operates and where it????????s been shut down.Capture

 

 

Interestingly enough, while the courts are upset about the impetuous actions by Uber, consumers are supporting their behavior. In a statement on an OregonLive article Uber to Portland: ‘We will continue to operate’ despite lawsuit; company gets case moved to federal court, one consumer stands up for Uber,

 

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“I support Uber for one reason: They actually come when I call. And within 5-10 minutes. I don????????t support breaking the law, so I won????????t use it until it????????s been cleared up, but [Portland, Oregon] City Council REALLY dropped the ball with this. And the cab companies have been substandard for years. I use Uber every time I????????m in SF or Seattle and have had nothing but good experiences. They do a good job of filling a ???????need??????? at least in my experience”

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Further, the company stands to make record profits in the upcoming year and according to Morning Agenda: Uber Garners $40 Billion Valuation by Sydney Ember of The New York Times, ???????On Thursday, the start-up closed a new $1.2 billion round of financing, with investors valuing the company at a staggering $40 billion. This comes on top of the $1.5 billion that Uber had already raised.??????? So why does Uber continue to be profitable? They are able to better serve their consumer base at the cost of legality, and it????????s pissing everyone off (taxi companies in particular). It will be interesting to see how this plays out, whether or not laws get changed and lawsuits dropped. Uber released a statement in response to the ruling in Spain stating it was, ???????inconsistent with broad political acknowledgement in Spain and across the European Union on the benefits of sharing economy services.??????? It seems clear that companies worldwide will have to adapt to stay competitive because, regardless of the court troubles, consumers are still backing this powerhouse start-up company.

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