Case Study of Uber

Topics: Credit card, Money, Automobile Pages: 3 (742 words) Published: August 12, 2011
How Uber works ?
The process is simple from the consumer’s point of view: You request a car by texting your address or by using Uber’s iPhone or Android app. Because Uber sends the nearest driver to your location to pick you up, your ride arrives within 5 to 10 minutes. Then you just hop into your car and get out at your destination, with no need of fumbling with money because Uber automatically charges your credit card. (You punch in your credit card information into the app before requesting a car.) The Algo:

• From the computer scientist’s point of view, the process is a noble attempt at solving the complicated traveling-salesman problem, in which you’re trying to determine the shortest path visiting each location only once. “Each car has its own traveling-salesman problem,” Kalanick told Wired. • Uber has created algorithms that try to connect car-hailers with the nearest car. And it tweaks this algorithm every day, when they analyze car demand and routes. Ensuring that everything works smoothly are a bunch of operation managers looking at a “God View” (pictured above) that shows where each Uber car is. Demand:

The way the company ensures there are enough cabs for demand is also complicated: They analyze weather forecasts, knowing that there will be more demand for rides when it rains, and also take sporting and other events into consideration, and increase fares depending on how high that demand is. So more cabs will be on the road when demand is high because the drivers will be getting paid more. (And from the other perspective, only people who are willing to pay the higher price will be riding, which also moderates demand.) Microsoft on Demand Analysis: MERU CABS::
Driver Audit of Meru Cabs:
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