What are the core competencies that drove Uber to global expansion?

Hamel (1994) defines core competencies “as a bundle of constituent skills and technologies that uniquely put the organization ahead of it’s competitive rivals. In Uber’s case, they did not invent smartphone maps, GPS tracking systems, smartphone payment lodgment, or even rating and feedback programs (Alspach, 2014). What they actually did is putting all these technologies together in a well designed package that customers desired. Founders did so under the cloud computing system; an interface where many programs can operate together to serve a function (IBM, 2013). To derive Uber’s core competencies, we shall implement Hamel and Prahalad’s (1994) test of core competency.

First, a core competency “must provide access to a wide variety of markets”. Uber’s customer interface is universally functional; it can give access to high- and low-end reliable product for individuals and businesses. And the brain behind the operation is capable and competent. Second, it must make a “significant contribution to the perceived customer benefits of the end product.” What Uber is offering already exists; anyone can access these services. Yet the way these services are packaged, presented and ran is what makes Uber so special. Uber realises that convenience of customer is what sets them apart from taxis. Third, core competencies should be “difficult for competitors to imitate because it is a complex harmonisation of individual technologies and production skills”. Uber’s ability to preach it’s vision to all of it’s drivers in different countries gives it a superior standing.  

Given the fact that the cloud technology is fairly new, and under is a fairly young company, it would be difficult to pin down all of the core competencies thus far. By observing where it started and where it stands currently, we propose three core competencies: technology competency, creative thinking, and leadership.

Nawaf Almohaimeed