Launching a startup is tough. There are all sorts of hurdles to overcome, and it can take a while to figure things out. Just like any other new company, Uber had its share of challenges in the early days. A recent post by a former Uber employee sheds light on how they tackled a classic startup obstacle: the chicken and egg problem.
On X, Scott Gorlick explained Uber's strategy. They didn't have a ton of ride requests right off the bat. But they wanted riders to always see available cars on the app, so they offered drivers $30 an hour to stay online, even during slow periods.
He also mentioned Uber strategically positioned cars near popular areas like bars and restaurants. This way, whenever a rider requested a ride, there would be drivers nearby ready to pick them up quickly.
Finally, Mr Gorlick revealed Uber's tactics for attracting riders and generating more ride requests.
The post generated a buzz, with many users thanking the former employee for providing insights into Uber's early growth strategy. This transparency helped users understand how Uber transformed into the successful company it is today.
"You've no idea how valuable this information is. Thank you so much for sharing. I'm a solo founder building a real estate marketplace for my country and like all young marketplaces, it's going through the chicken and the egg problem," a user wrote.
"This is how you solve the marketplace problem. You oversupply the supply side, so the demand side has a great experience," another user wrote.
The third user wrote, "Great way to take matters into your own hands. This is what entrepreneurship is all about - turning the unfeasible into reality!"
"This is a great reminder that to get the ball rolling, you have to roll it yourself. This is where VC support can really help. You have to subsidize one or both sides until things get going," the
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