Question

Uber is partnering with toyota and together they are working on re-engineering cars to be driverless. what sort of advantage is uber creating with this partnership?

a. a brand name advantage
b. a marketing competitive advantage
c. a niche competitive advantage
d. a cost competitive advantage

Answer 1

Uber is creating a cost competitive advantage with its partnership with Toyota to develop driverless cars, potentially reducing operational costs and paving the way for a more competitive position in the ride-sharing industry.

Step-by-step explanation:

Uber's partnership with Toyota to develop driverless cars is anticipated to provide them with a cost competitive advantage. This form of competitive advantage comes from the potential to reduce major expenses associated with their business model, primarily those related to human drivers such as wages, training, and benefits. By transitioning to an autonomous fleet, Uber may be able to decrease operational costs in the long run, offer more competitive fares, and increase profit margins.

While there may be significant upfront costs in the development and implementation of autonomous technology, the long-term savings could be substantial. Additionally, this collaboration with Toyota could place Uber at the forefront of the ride-sharing industry, as they pioneer in integrating advanced driverless technology into their service offerings, likely leading to increased market share.