Uber Company’s Challenges in the United Arab Emirates

Uber may seem like an attractive business to invest in as its business model is simple, understandable, and beneficial for both riders and passengers. However, the reality is that since the company does not generate enough profit, investors are less eager to believe in its future. Uber has been on the market for more than ten years, and investors need “better visibility into the path to profitability.” Uber spent almost $4 billion due to its IPO in May and nearly $300 million on driver rewards connected to the same IPO. To sustain its popularity and image, I believe that Uber has to continue developing self-driving cars as driverless rides will eliminate the problem of underpaid drivers. As the most significant operating expense of the company was research and development, which accounts for over $2.5 billion, there is a chance that these expenses will generate beneficial ideas and strategies.

The last years have not been easy for Uber, and it especially struggles in the Middle East countries. In America and Europe, drivers are used to the availability of comprehensive data of cities and towns on maps, and Google Maps is the core provider. However, in such countries as the UAE, much of the data that drivers require lacks details needed for a transportation app. Uber drivers do not have a comprehensive map and often struggle to drive their passengers to the destination. Moreover, although Uber resumed operating in Abu Dhabi at the end of 2018, its drivers still face significant price competition because of relatively low taxi prices.