Case
Teaching Notes
Supplementary Resources
Abstract
In view of a global trend of industry disruption by players in the new sharing economy, this case documents the path of Uber as one such disruptor in the emerging market context of South Africa (SA). It follows various stakeholders in Cape Town, SA, as they experience the opportunities and challenges presented by Uber’s transportation model from the time of the company’s launch in August 2013, up until a moment of public backlash in April 2016. Watching the actions and reactions of these stakeholders, readers are prompted to consider the meaning and implications of disruption for the different entities and institutions in play.
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2024 Sage Publications, Inc. All Rights Reserved
Resources
Exhibit 1: How Uber Works
Source: Uber, 29 January 2015, The beginner’s guide to Uber
Exhibit 2: The Uber Offering for Micro-Entrepreneurs
Source: Uber.com, 2017
Exhibit 3: In Developed Markets Uber Is Often a Secondary Income Stream
Source: Uber.com, 2017
Exhibit 4: An Unstoppable Force: Uber International Expansion
Source: Forbes, 2014
Exhibit 5: Uber Fundraising and Valuation
Announced | Funding round | Investors | Amount | Pre-money valuation |
11 Feb | Series A | Led by Benchmark Capital | US$11m | |
11 Dec | Series B | Goldman Sachs, Menlo Ventures, Bezo Expeditions | US$37m | |
13 Aug | Series C | Google Ventures and TPG Growth | US$258m | US$3.5bn |
14 Jun | Series D | BlackRock, Google Ventures, Kleiner Perkins Caufield & Byers, Menlo Ventures, SherpaVentures, Summit Partners, Wellington Management. | US$1.2bn | US$17bn |
14 Dec | Series E | Qatar Investment Authority, Valiant Capital Partners, Lone Pine Capital, New Enterprise Associates, SherpaVentures | US$1.2bn | US$40bn |
Series E (extension 1) | Baidu China | US$600m | ||
15 Jan | Debt Financing | Goldman Sachs | US$1.6bn | |
15 Feb | Series E (extension 2) | Times Internet, Foundation Capital, Accelerated IT Ventures | US$1bn | |
15 Jul | Series F | Microsoft, Bennett, Coleman, & Co, Ltd. | US$1bn | US$50bn |
15 Aug | Private Equity | Tata Opportunities Fund (India) | US$100m | |
15 Sep | Private Equity | Baidu (China) | US$1.2bn | |
15 Dec | New funding round announced | US$2.1bn | US$62.5bn |
Source: Wikipedia, Timeline of Uber, last modified 14 January 2017
Exhibit 6: Crime Statistics South Africa 2014–2015
Source: Shaun Uthum, SAPS, 2015
Exhibit 7: South Africa Has One of the Highest Gini Coefficients in the World
Source: Siddiqui, 3 July 2016
Exhibit 8: Smartphone Penetration as a Percentage of National Population
Source: Strategy Analytics, Wireless Device Strategies, 2012
Exhibit 9: Smartphone Literacy and Navigation Training
Source: Uber on-boarding session, Cape Town, 2015
Exhibit 10: Tension Brews Between Uber and Traditional Metered Taxi Drivers
Source: Rawlins, 27 May 27 2016
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2024 Sage Publications, Inc. All Rights Reserved