How did Uber grow its user base?

Uber drivers were not employees but independent contractors, which allowed the company to avoid many of the costs associated with running a traditional taxi service. This, in turn, allowed Uber to offer lower prices than traditional taxi services and attract a larger customer base.



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From an initial operation that offered only three cars for hire, the company soon developed into a juggernaut, expanding to multiple overseas markets by 2012. Three years later Uber operated in 66 countries and more than 360 cities worldwide.

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In addition, they worked hard to find early customers by matching them “by hand” with early suppliers (e.g., Etsy scoured craft fairs to sign up artisans); acquiring them in bulk (Uber ran promotions during concerts and events); and doing whatever it took to make their offerings attractive, even if it wasn't scalable ( ...

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Uber customers typically get where they are going faster or cheaper than they would by taxis. Partygoers can rely on being able to find available Uber drivers through their apps late at night.

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As of early 2023, Uber's monthly users had grown to 130 million. Uber operates in 72 countries, with over 7.6 billion trips carried out. In 2022, the mobility services company generated nearly 32 billion U.S. dollars in net revenue.

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As of 2022, Uber has a 71% share of sales in the U.S. rideshare market, whereas Lyft only has 29%. However, both have seen significant sales increases since 2021. As of January 2022, Uber's sales are up 84%, and Lyft sales are up 62% year-over-year.

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So what could be a source of the competitive advantage for Uber? The first candidate are network effects, which are often a major source of competitive advantage for platform businesses. The network effects mean that the value of the platform for the user increases with the number of users on the platform.

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Let's take a look at some of the campaigns and tactics that have been integral to the growth of the company.
  • Early adopter advocacy. Word-of-mouth marketing has been essential for Uber. ...
  • Referrals. ...
  • Reviews. ...
  • Unique experiences & offers. ...
  • Partnerships. ...
  • A loyalty program. ...
  • An omnichannel approach.


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The US & Canada are still responsible for the majority of Uber's revenue, with $19.4 billion of the $31.8 billion made in 2022 coming from those two countries.

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