Running Head: Uber Case Study Recommendation Proposal
Executive summary 3
Purpose or review 5
Problem discussion 5
Americans with disabilities Act compliance 5
Local regulations 6
Airport policies 7
Current values provided by Uber 7
Methodology Analysis 8
Research method 8
Data collection 8
Primary data collection 8
Secondary data collection 9
Uberexistence in the market has raise criticisms from different people inthe world. However, there are those who depict that Uber is the bestsolution in the market when it comes to transportation. There are anumber of competing narratives at work as much as Uber enthusiastsare concerned. Mobilization is a key factor on how citizens can usesocial media to affect the government’s position a given decision.Since its inception Uber has grown tremendously in the past fouryears. This is a pointer to the kind of value propositions adopted bythe company in its marketing endeavors. However, Uber is an exampleof a company that is failing to consider a number of factors thatcould work to its advantage in the market. Over the years the companyhas been reluctant to acquire legal rights to spread its services.This is seen the company wallow in court over illegal activities.This paper offers a comprehensive analysis of Uber, its marketstrategies and capabilities, challenges in terms of illegalactivities and finally important recommendations that Uber ought toundertake in order to expand its market share index.
Ina recent article that depicted cities cracking the whip down on suchcompanies like AIRBNB a website created to offer house and apartmentrentals for a short duration of time. According to the New York Timesarticle, it argued that young citizens of startup nations tend tobelieve that living in a wed based society impacts them a membershipin an exalted class to which the out fashioned laws cannoteffectively play any role. The article goes further to point out thatthis sort of behavior in the society is inhibitive and unfortunate toa large extent. Recent examples have portrayed that citizens instartup nation can play a huge role in effecting change and thwartdecisions made by the government. Oldenburg (2014) depicts thatclashes between innovative startups and old fashioned folks in themarket have led to web savvy citizens to take to their virtualstreets, twitter and Facebook to lobby for what they feel is rightfor them despite the laws stipulated by the local authorities.
Onsome occasion the Massachusetts Division blocked Uber, due to itsunapproved service use in the country. Uber an on demand smartphoneand GPS based cab service had attracted a large number of users inthe country. Uber fans went on a rampage even on the social platformcriticizing the move as uncalled for and improper. The outcry wasvery intense that within 24 hours the ban was lifted. This storypresents a very crucial amalgamation of different approaches ofcommunity organizing and wed based advocacy. Additionally, itprovides an interesting twist of traditional values and modernvalues. It is important to note that in this case the citizens stoodfirm and fought on behalf of a corporation not against it. In anumber of ways the success of Uber is ingrained in triumph ofgrassroots democracy, this is because the citizens banded together tofight for the survival of a company which is mostly used by the elitein the society. Uber’s fans tactics ought to be replicated infuture local government activism. This case study depicts therecommendations meant to improve the company’s position in themarket.
Themain purpose of this recommendation proposal is to offer Uber acompetitive platform in the market amid political and legal pressurein the society. Modern technology has played a crucial role ininstituting mechanisms that allow development and growth of web basedcompanies in the society. However, this does not come without aprice both AIRBNB and Uber have faced tremendous challenges thattouch on the integrity in the market and their service delivery. Thepurpose of this recommendation proposal is to streamline relevantapproaches that will aid Uber to traverse the market in a morefriendly and consumer oriented manner. The paper goes further topinpoint some of the major handles the company faces in the market.It is significant to note that Uber stands a better chance in themarket, if it dedicates it’s time to talk to the middle classpeople in the society who encompass approximately 67% of the entirepopulation (Oldenburg, 2014, p.56).
CurrentlyUber faces a number of challenges that have curtailed its operationsacross the world. Uber, Lyft and Sidecar and among other ridesharingapplications have come forth with an important subsidiary to thetransport sector in the world. However, the biggest challenge is thatthese companies are cruising into legal trouble along the way as theyseek to expand their impacts across the world. The biggest four legalchallenges faced by the company in the US include:
Americanswith disabilities Act compliance
Anumber of disabled people in the US have sued Uber and Lyft becausethey point out that the cars these companies provide are not wheelchair friendly. Under ADA private taxis services is not supposed todiscriminate against the disabled in the society, these means thatthe cab industry must have vehicles that transport wheelchairs. Sincemost of the drivers using the application are just drivers with anintention to earn extra money, most of them do not follow ADArequirements. It is this aspect that the government feels that Uberought to implement in order to adhere to the regulations and policies(Silveira, Nachtigall & Monteiro, 2005, p. 100).
Uberis trying to grow its market base however traditional taxis are notto be left behind. This makes Uber a company that has created enemiesor competitors who stuck to the old from of transport. City councilsand local governments are paying a close attention to the company’sactivities at all times. For instance, in Seattle, Western WashingtonTaxi and Cab operators filed a lawsuit against deceptive and unfairbusiness practices in March at the same time the city councilcontemplated on local regulations. In Seattle taxi operators arerequired to have commercial driver license and undergo inspectionsregularly. This is contrary to Uber’s drivers who have to meet acertain required age, have a driver’s license and fully functionalcar. As opposed to Seattle, Uber’s pricing model is not fixed. InMay an almost similar law suit was made in Connecticut District Courtwhere Uber was blamed for being deceptive and unsafe for itscustomers (Oldenburg, 2014, p. 122).
Oneof the most crucial aspects that have been pointed out in alllawsuits is the issue of insurance requirements for the drivers.Uber’s website says that they offer approximately $1 millionliability insurance plans or their drivers. Insurance ambiguitydepends who is liable at any point in time (it can be the company ordriver). This raises the question what if an accident occurs who willbe liable. In the traditional approach there existed anemployee-employer relationship, if an employee is in the course ofhis duty and an accident occurs, then the employee is vicariouslyliable for the employees’ actions. However, on its part Uberdepicts that drivers are not yet employees hence serve as independentcontractors this means that as independent contractors the driver issolely responsible for any damages that may occur.
Mostairports in the country have pointed out that they will ban ridesharepickups and drop offs, this is because the authorities feel that thecompany is denying them revenue. San Francisco went even further toplace drivers under citizen’s arrest for trespassing at theairports.
DiscussionCurrentvalues provided by Uber
Ubera San Francisco based on demand car service which is mainly accessedthrough phone applications. As much as the company has been operatingin the market for the past four years, it has intensive itspopularity across the world. The service has been enrolled in almost125 cities across North America, South America, Central America,Europe, Middle East, Africa and Asia. It is just recently that Ubercompleted a financing round which values the company to be at $17billion pre-money (Amey, Attanucci & Mishalani, 2011, p. 143).
Uberon demand car service Options provided by Uber include:
UberX – Uber-provided transportation in a regular car
UberBLACK – Uber-provided transportation in a black car
UberSUV – Uber-provided transportation in an SUV
UberT – Use the Uber app to hail a regular taxi
UberRUSH– Summon a bicycle messenger on demand to transport goods (New YorkCity only at the moment).The company operates a cashless system which reduces a number ofrisks that would otherwise impair the position of the company in themarket.
Uber’svalue proposition include a consistent and professional experience,taking uncertainty of finding a ride and not sure on how long to waitfor a cab, the assurance of being able to pay without cash. Uber’spresence in numerous cities means that the company can offer the sametravelling experience to its customers.
Underqualitative approach of study a researcher can gain an upper hand inunderstanding the participating aspects and being phrased on theresearch position more emphatically. Qualitative research is aninductive technique that does not require an inclusion of hypothesisin order to commence a research. The qualitative approach is the besttechnique employed in this case study since the goal of this researchis to describe and analyze Uber. The end desire is to come with alist of recommendations to improve its capacity (Grosselin, 2012, p.90). The research does not involve any mathematical models inclarifying the position depicted in the research
Thereare two main types of data collection technique used in this casestudy. Primary data collection that mainly relies on the researcherin coming up with the data used in decision making and secondary datawhich is prior data is collected by other people and is re-used bythe researcher (Grosselin, 2012, p. 100).
Questionnairesand interviews were collected from a sample of 100 customers who hadexperienced Uber’s services. These methodologies were mainly usedbecause they offered a framework where the customers would give theiropinions on the current market structure of the company and itsexpected position in the next 10 years.
Anumber of secondary resources were used in this case study to analyzethe company since its inception and the kind of market environment itoperates in. a wider scope of secondary sources were mainly onlinearticles written by prominent personalities on what they think iscrucial for the company.
Accordingto the data collected in the field it is apparent that Uber is one ofthe most prominent applications in the US and across other countrieswhere the app has been legalized. For instance approximately 45% ofthe respondents depicted that Uber has brought up a platform thatought to be embraced by the traditional model of transportation. Someof the reasons given by the respondents for transition to suchplatforms like Uber include reliability, efficiency, convenience andtimeliness which are very crucial in business. 10% of the respondentshowever, felt that Uber is not a platform to go. The reasons thesegroup of respondents gave was that Uber is insecure and unreliable.
Itwas apparent that many people preferred the platform most of whichwere web savvy individuals in the society. The main reason so fargiven by 78% of the respondents for the success of the company wasthat, it is an online or web based solution that was able to utilizethe strength of the internet to enhance transportation. However, aspointed by 10 respondents, Uber still needs to consider a number offactors in the market this include policies and regulations,competition, service quality insurance schemes and overall safety ofits clients or customers in the market (Stapleton, 2003, p. 78).
Uber’sclosest competitors in the market include Lyft and Hailo, althoughthe two companies have a slightly different business model. Uberservices alternative include services like public transportation,biking and private car ownership. Uber has managed to come up withnumerous approaches of expansion and growth across territories,however, legal stipulations weigh down the company’s endeavors tocross into other nations. As described above Uber has over time spentits considerable time in court trying to defend its position in themarket. The 1.4 billion dollars capital injection the company hasreceived in 2014 should play a role in ensuring that there is rapidexpansion, acquiring of other smaller competitors, price its servicesbetter to force off competitors, recruit more drives and pass theflight regulatory hurdles.
Justlike any other company in the market Uber ought to consider andanalyze its services appropriately and ensure that it always remainswithin the jurisdictions of the law. The legal environment dictatesthe kind of business an organization indulges. This means that ifaccreditation is not warranted the business will be consideredillegal hence raising huge penalties that degrade the business(Stapleton, 2003, p. 113).
Thefirst recommendation is that Uber could be able to venture into otherbusiness platforms as compared to the present model. This is becauseby doing so the company will be able to increase its competitiveadvantage in the market. Though Uber in its current form operates asa service by connecting passengers to drivers, the company would dobetter in future if it considers becoming a logistic provider on thesame scale as FedEx and United Parcel Service. Uber is also able toaffects the operations of same delivery services provided by suchcompanies like EBay and Amazon. All these new platforms with anintegration of transportation will completely change with thesolutions that draw from Uber’s geographic reach and technologywith the advent of driverless cars developed by such companies likeGoogle, which is apparently responsible for a big portion of fundingcorrelated to Uber.
Thesecond recommendation connotes on the regulatory environment. So farUber has experienced numerous lawsuits from a wide spectrum ofindividuals in the market. Company sustenance is majorly establishedon the premises of support from the government and other stakeholdersin the society. To attain this, the company must ensure that itsservices adhere to all the laws and policies in the country. Thethird recommendation is that Uber ought to undertake servicedifferentiation. This will enable the non-elite afford its services.If the company does this it will be able to grow in terms of marketbase which is a very significant approach in company growth (`Towarda comprehensive understanding of rideshare promotion: The use ofevaluation research`, 2013, p. 100).
Thefourth recommendation stipulates that the company ought torestructure its revenue model. This means that the company must notrely on only one form of income generation. It is very crucial forcompanies to consider back up means that will enhance and sustaincompany growth in the market. Xerox in 2001 was at the verge ofcollapsing due to the economic recession that occurred during thatperiod. This depicts that it is very important if managementconsiders establishing a second revenue model for the company.
Thelast recommendation is that, Uber should consider engaging inpartnerships. This will enable the company escape lawsuits that haveeaten into its profits. If Uber partners with the taxi companies inthe US which use an old form of transport, the company stands in agood position to make profits without many hurdles. Hence it is veryimportant for management to consider opening up its avenue topartnerships and ventures.
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