Final answer:
The strategy for Uber Pool should consider the significant economies of scale present in the taxicab industry in large cities. Requiring riders to walk to consolidated pickup locations can optimize the service, though Uber must also maintain customer satisfaction. Decisions should be data-driven and aimed at balancing efficiency with the overall company goals.
Step-by-step explanation:
When considering the strategy surrounding Uber Pool, a variety of factors should be considered. In large cities, the taxicab industry is likely subject to significant economies of scale because of the high demand and the operational efficiencies that can be achieved when scaling services. For Uber Pool, the product's existence can capitalize on this by offering a cost-effective, environmentally friendly, and efficient service that optimizes the number of passengers per trip and reduces costs associated with individual rides.
As part of the strategy, Uber could require riders to walk to better pickup locations. This can decrease detours, thus improving the efficiency and speed of the service. By consolidating pickup points, Uber not only improves ride times but also increases asset utilization (the vehicle), which is key in achieving economies of scale. However, increasing wait times could be detrimental if they lead to customer dissatisfaction, so Uber must balance efficiency with customer convenience.
Ultimately, the decision to exist and modify aspects of the service like pickup locations or wait times should be based on customer feedback, competitive pressures, cost-benefit analysis, and the company's goals for market saturation and profitability. The strategy should align with Uber's overall objectives while ensuring a high level of customer service and operational efficiency.