If Google will acquire Uber then it might block off a potential confrontation between both the companies because both of them are pushing deep into development of same services. But there is no significant indication that Google is actually going to buy Uber that has a value of more than USD 40 billion. At the same time, it already has a major investment of at least USD 258 million into Uber and it can be a good reason to go for the acquisition. These companies might be better off together in delivery business because of the transportation experience of Uber and consumer data of Google.
Both are exercising good in this direction. Google offers same day Shopping Express service that utilizes cars for items delivery from selected retailers, despite the fact that these services are currently in only a few cities San Francisco, Chicago and Boston. Its Project Wing is initiating to look for using drones for items delivery from the sky just similar to the packages for disaster relief. In the meanwhile, Uber, in the last month, started testing cargo delivery services in Hong Kong. It also has experimented delivery of fast food in Los Angeles. UberRushCouries, the package delivery service of Uber is available in New York City.
Ever more, Google know pretty well the requirements of people like what they want and where to go while Uber has the knowledge of managing the things when they move around. James McQuivey is an industry analyst at Forrester who explores digital splitting among major consumer companies. He said that Google acquiring Uber makes a significant amount of sense since Google has a clear idea that it is not buying a ride sharing or a ride hailing service but it is actually acquiring a new transportation platform.
He also stated that Uber, in some ways, would never be the Uber which it is promising to be if it prohibits teaming up with a company that knows much more about the people requirements and better solutions permissions as Google does.
Another industry analyst termed the patch up of both the companies as having a significant impact on both the parties, which will ultimately benefit both the companies in greater sense. It will not only benefit the companies but it will also offer great advantages to the consumers in terms of better services and good solutions.