YC
Travis Kalanick at Startup School 2012
@ Y Combinator
10/25/13
Takeaways
TK
Travis Kalanick
10/25/13
@ Y Combinator
I'm Travis Kalanick, co-founder and CEO of Uber, and I do a lot of speaking because we're a technology company actively engaged in cities, with more than half of our employees located outside of San Francisco.
TK
Travis Kalanick
10/25/13
@ Y Combinator
Uber is an app on your iPhone that helps you get a car, with the motto 'everyone's private driver.' You can see nearby cars and get notified when your driver arrives.
TK
Travis Kalanick
10/25/13
@ Y Combinator
We launched Uber in June 2010, and we don't own cars or employ drivers; we have 120 employees, most of whom are not in San Francisco, and we're deployed in 17 cities.
TK
Travis Kalanick
10/25/13
@ Y Combinator
Currently, 50% of all people who have ever ridden with Uber have done so in the last 30 days, and the average person pays about $105 a month for rides.
TK
Travis Kalanick
10/25/13
@ Y Combinator
We're experiencing 26% month-over-month growth, which means in 12 months, we could be 16 times bigger than we are now, indicating rapid expansion.
TK
Travis Kalanick
10/25/13
@ Y Combinator
The original idea for Uber came from wanting to push a button and get a classy ride, inspired by the difficulty of hailing cabs in cities like Paris and San Francisco.
TK
Travis Kalanick
10/25/13
@ Y Combinator
In the beginning, Uber was a lifestyle service for a select group of friends, requiring a special code to access the app, which led to explosive viral growth as users shared it with others.
TK
Travis Kalanick
10/25/13
@ Y Combinator
We built a feature called 'God View' to track rides in real-time, which helped us manage demand and logistics effectively as we scaled our operations.
TK
Travis Kalanick
10/25/13
@ Y Combinator
As we succeed, not everyone is happy, especially when tackling older industries that are more protected. Uber is significantly improving drivers' lives by helping them earn more money and achieve their American dream.
TK
Travis Kalanick
10/25/13
@ Y Combinator
Riders are getting around town much more efficiently, benefiting from Uber's services.
TK
Travis Kalanick
10/25/13
@ Y Combinator
When we launched in new cities, we hosted big launch events to pay respects to the local community and engage influential people.
TK
Travis Kalanick
10/25/13
@ Y Combinator
Initially, many people thought Uber was a crazy idea, but it quickly gained traction and proved to be successful.
TK
Travis Kalanick
10/25/13
@ Y Combinator
As we expanded to other cities, we found that our operations became more efficient and the technology improved, leading to better service.
TK
Travis Kalanick
10/25/13
@ Y Combinator
As liquidity in the marketplace increases, both demand and supply rise, enhancing the overall quality of the Uber experience.
TK
Travis Kalanick
10/25/13
@ Y Combinator
In San Francisco, our average pickup times improved from 12 minutes to around 5 minutes as more people began using Uber.
TK
Travis Kalanick
10/25/13
@ Y Combinator
50% of users who have ever used Uber continue to use the service, indicating strong user retention.
TK
Travis Kalanick
10/25/13
@ Y Combinator
In San Francisco, there are now more cars dedicated to Uber than there were town cars before we launched, showing our growth in the market.
TK
Travis Kalanick
10/25/13
@ Y Combinator
We're expanding significantly in Europe, focusing on operational expertise to ensure successful launches in cities like Paris and London.
TK
Travis Kalanick
10/25/13
@ Y Combinator
Uber aims to provide quality and choice, positioning itself as a low-cost option while maintaining high standards. Offering a low-cost option increases user engagement because people appreciate having choices and don't always need to opt for the expensive service.
TK
Travis Kalanick
10/25/13
@ Y Combinator
When people have the option to choose a more affordable ride, they tend to use the service more frequently, starting with options like Uber X instead of premium services.
TK
Travis Kalanick
10/25/13
@ Y Combinator
In cities like Boston, Toronto, Chicago, and San Francisco, Uber has expanded its services, including the introduction of Uber X, which is about 30% cheaper than traditional options.
TK
Travis Kalanick
10/25/13
@ Y Combinator
The process of getting a car to a user in five minutes feels magical, but it involves complex mathematical operations to ensure low pickup times and high vehicle utilization.
TK
Travis Kalanick
10/25/13
@ Y Combinator
Uber employs a team of experts, including nuclear physicists and machine learning specialists, to handle demand prediction, congestion management, and dynamic pricing strategies.
TK
Travis Kalanick
10/25/13
@ Y Combinator
Dynamic pricing is crucial during peak demand times, such as Friday and Saturday nights, to ensure that enough cars are available to meet the surge in requests.
TK
Travis Kalanick
10/25/13
@ Y Combinator
To prevent drivers from clustering in one area based on demand predictions, Uber provides them with a heat map that shows underserved demand, allowing for better distribution of drivers.
TK
Travis Kalanick
10/25/13
@ Y Combinator
Uber's marketing strategies include creative promotions, such as distributing roses on Valentine's Day to enhance the rider experience and encourage positive word-of-mouth.
TK
Travis Kalanick
10/25/13
@ Y Combinator
During special events, Uber tailors its services to meet increased demand, such as providing themed rides like the 'Uber Cade' for President's Day in Washington, D.C.
TK
Travis Kalanick
10/25/13
@ Y Combinator
The concept of 'rider zero' involves giving the first passenger in a new city a unique experience, which has included celebrity riders like Edward Norton.
TK
Travis Kalanick
10/25/13
@ Y Combinator
A consistent revenue stream helps drivers transition from barely making ends meet to living comfortably and investing in their business.
TK
Travis Kalanick
10/25/13
@ Y Combinator
Some drivers have scaled their operations from one car to 15, each grossing over $100,000 a year, achieving their American dream.
TK
Travis Kalanick
10/25/13
@ Y Combinator
Riad, a top-performing Uber driver, makes 20 to 30% more per hour than other drivers and has five cars on the system.
TK
Travis Kalanick
10/25/13
@ Y Combinator
Steve Aziz started with one car and now operates 20 cars, supporting a growing family with six kids.
TK
Travis Kalanick
10/25/13
@ Y Combinator
In New York City, the number of taxi medallions has remained flat since 1946, with each medallion valued at about a million dollars, representing a $13 billion investment to keep Uber from succeeding.
TK
Travis Kalanick
10/25/13
@ Y Combinator
Uber faced legal challenges in Washington D.C. when the taxi commissioner claimed it was illegal to charge by time and distance, despite the law allowing it.
TK
Travis Kalanick
10/25/13
@ Y Combinator
To combat regulatory challenges, Uber mobilized 50,000 emails and 37,000 tweets in 18 hours, successfully influencing city council decisions.
TK
Travis Kalanick
10/25/13
@ Y Combinator
Technology is rapidly changing urban life, with companies like Uber and Airbnb transforming how people live, and cities that resist this change will fall behind.
TK
Travis Kalanick
10/25/13
@ Y Combinator
Cities need modern transportation alternatives that are accountable, convenient, stylish, and efficient to meet the demands of their residents.