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- The market prior to Uber’s entry. Before Uber, taxis were the most popular mode of transport for hire rides. There was a lot of regulation in the taxi business, which meant that there was often a shortage of taxis. This is especially true for urban areas. Taxi hailing was not always easy and often took a long time to get a taxi.
- Uber exploited inefficiency by creating a better and faster alternative to traditional taxi services. Uber’s smartphone app allowed customers to request a ride, track their driver’s arrival and easily place a reservation. Uber makes it simple for drivers and passengers to sign up to Uber, increasing the number of drivers available.