In April 2017, Uber announced a plan to launch UberAir, an on-demand air transportation service. Uber’s on-demand ride-sharing service had disrupted traditional taxi and delivery. The question, however, is whether Uber’s earlier success will translate into the new, ambitious busines they are just launching, given the many obstacles likely facing them. It does not help either that other companies (e.g., Volocopter, Lilium, Archer and Joby) have also entered the market, each with an ambitious plan to launch a commercial operation in the next several years.
With this backdrop, your job in this assignment is to address the discussion questions Q2-Q5 listed in the textbook (p.99). To reproduce them here:
What are the disadvantages of entering the air taxi market early?
What are the important complementary goods and enabling technologies for the air taxi market? Are they available in sufficient quality and economy?
Was Uber well positioned to be a dominant player in this market? What resources would it have needed to be successful?
Overall, would you say Uber’s entry into the air taxi market was too early, too late, or about right?
