It seems that Uber is going to seriously upscale its business, as it reportedly bought 100,000 Mercedes S-Class flagships.
Uber’s business is quite a straightforward one, as its drivers have to bring their own cars into the game, while the company sets basic standards. Uber has no fleets at this moment, but it seems this will radically change in the future in big style. According to a report from the German Manager Magazin citing sources at both companies, the world’s largest ride-sharing service placed a staggering long-term order for around 100,000 Mercedes-Benz S-Class sedans. There were no additional details regarding the price around the agreement or a delivery time frame, but such a bold move rises some questions, as 100,000 S-Classes is a volume that Daimler sells in a single year and, at around 100,000 price tag, it would make quite a hard to justify and costly deal. However, owning a high-end fleet of cars would allow Uber to expand its operations to an upper level. Furthermore, if the cars are to be self-driving ones, it would be then a game-changer for Uber, as it could ditch drivers to boost its profit.
Ride-sharing companies are already looking for ways to grow further. After investing 500 million dollars in Uber’s rival Lyft, GM announced last week it would start a new service with its partner, through which Lyft drivers can rent a Chevrolet Equinox crossover with insurance and maintenance included from 99 dollars per week.
Via Manager Magazin