A Prickly Partnership between Uber and Google

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A Prickly Partnership between Uber and Google
Summary
Google and Uber formed a business partnership in 2013. The cooperation was so promising since Google has house-to-house maps of most of the places in the universe. The article points out that Google made a capital investment of more than $250 million into Uber to support the partnership. However, the more promising partnership between Google and Uber has become sour. According to the article, Uber is planning to establish self-driving cars which has been a longtime anticipated project at Google. It has also working out to add to add mapping technology experts in the project. Uber has also been trying to woe Facebook who is Google main competitors in advertising with an aim to establish a partnership. On the other hand, Google has been conducting a pilot test on a ride sharing app that works to that of Uber. The two companies seem to have taken another route of embracing the idea of investing in all logistics operations. The case of Uber and Google is similar to that of Google and Apple. The article notes that Microsoft once invested on Apple in a software deal. However, the partnership hit the rock after Google established Android software which was a direct competitor to the Apple’s phones and tablets software the IOS. However, despite the fierce competition between Google and Apple, the two company’s still works together as Apple still incorporate Microsoft apps such as Maps and Chrome. This should be the exact lesson to be learnt in the case of Uber and Google partnership that despite the competition, the two companies’ still needs each other.
Introduction
Forming a partnership is one of strategies in organization where firms align together to pursue a common goal. As a result, the firms are able to outsmart their competitors and increase their market share. The firms also benefits from a large pool of resources that is pooled together from the two collaborating business entities. Such resources include both monetary and human capital. However, majority of the established alliances do not last for long as the company end up pursuing different agendas. This paper will examine the collapse of the partnership between Google and Uber from investor point of view, the impacts on Uber’s financial statement and Uber’s ethical responsibility to the public.
How Information Should Be disclosed In the Uber’s Financial Statement
As the company plans to develop self-driving cars, it notable that such project will require immense investment by the company. Therefore, as a capital investment to the company, the cost should also reflect to company’s financial statement as additional of capital. In case Uber will require a loan to meet the cost of the investment, the figure should be indicated in the firm’s balance sheet as a liability. Any payment made and interest accrued or paid should also be taken to account. The article also points out that Uber will hire more engineers who are experts on mapping technology (Isaac 1). As a result, it is notable that there will be an increase on the expenses account of the company financial sta...