Uber’s potential for international expansion is significant. The ride-hailing service has seen impressive growth, and its success in the United States indicates that it has considerable potential to expand into other markets around the world. Already, Uber operates in over 600 cities across 60 countries (Odio, 2019). It is well-positioned to continue this trend as people become more comfortable with using an app to order a ride and as cities become more accommodating of highly regulated businesses like Uber.
There are several factors that could potentially impede Uber’s international expansion. One of these is trade policy issues. Trade policies such as tariffs can make it difficult or expensive for companies like Uber to enter new markets due to increased costs on imported goods and services (Gouveia & Lourenço, 2017). In addition, many countries maintain strict regulations on foreign businesses entering their market which may make it difficult for Uber to operate overseas (Chang et al., 2015). These regulatory restrictions vary by country so navigating them can be a challenge when attempting to open new locations around the world.
Another issue that may hinder Uber’s international expansion is competition from local firms who already have established themselves in certain markets (Heilman et al., 2018). For example, China currently dominates the ride-hailing industry and local Chinese competitors like Didi Chuxing offer similar services at lower prices than what you would find with an American firm like Uber or Lyft (Lee, 2016). Furthermore, some countries may also have cultural preferences or perceptions about American companies that might impact their willingness to use Uber’s services.
Assess Uber’s potential for international expansion and potential trade policy issues.
In spite of these challenges associated with international expansion, there are still opportunities available for growth beyond domestic borders. One way that Uber has done this successfully is by partnering with existing local companies who may already have relationships established in certain markets – such as DiDi Chuxing in China – thus allowing them access without having to overcome all of the hurdles normally associated with entry into a foreign market (Pentland & Schafer 2016; Lee 2016). Additionally, because local laws vary widely between each country where they operate it allows them flexibility in terms of how they structure their operations which could help them better compete against competitors who must follow stricter guidelines imposed within those nations. Furthermore, they could take advantage of digital technologies such as artificial intelligence and machine learning which could help improve customer experience and allow them greater opportunities for growth internationally through increased efficiency gains compared those offered by traditional methods employed by competitors (Donovan et al., 2017; Khan et al., 2018).
Overall there are both challenges and opportunities when assessing Ubers potential for international expansion given the varying trade policies between different nations along with competition from local firms combined with technological advances made possible through modern digital solutions makes this task even more complex then first realized.. As long as they account for any legal barriers posed by governments while at same time identifying strategic partnerships available through existing relationships within those regions Ubers surely will find success going global!