Founded in 2009 by Travis Kalanick and Garrett Camp, Uber is a venture-funded startup and transportation network company. Uber develops a mobile app that connects passengers with drivers of vehicles for hire and ridesharing services.
Uber’s pricing is similar to metered taxis, except that all hiring and payment is handled through the Uber app rather than with the driver. In addition, the fare is billed automatically to the customer’s credit card. Users can reserve cars by sending a text message or using a mobile app, which can also be used to track their reserved car’s location. In this way, it arranges pickups in dozens of cities around the world.
During times of high demand, Uber increases its prices to “surge price” levels to reach an economic equilibrium by attracting more drivers. In June 2014, Uber completed a round of funding valuing the company at $18.2 billion.