Uber Case Study Analysis
Some of the investors of Uber are Google Ventures, and Summit among several others who have put investments amounting to more than $1. 5 billion. Just for a little commission, Uber connects its drivers with passengers on a cashless basis. The fare for the trip is calculated by the Uber app automatically and the payment is transferred to the driver. So far, Uber has provided to be successful compared to its competitors. • Its great focus on customer satisfaction • Uber has a great adaptive business model to the changing business conditions. • Uber’s “dynamic pricing strategy” which works based on the economic principle of demand-supply is a huge strength for the company. • The potentially unlimited fleets of vehicles are also a strength for Uber.
• Uber has a commission-based revenue model (Bhasin, 2018). weaknesses • The fact Uber is highly dependent on manpower is a weakness for the company • Its high dependence on the internet is also a weakness. Political discussions have also risen related to Uber’s minimum wage laws and if the company abides by such laws. Thus, Uber has to stand clear about their driver’s insurance, follow minimum wage laws and handle the bans in many of the countries. Economic factors. Uber’s services are easily accessible, offer affordable fare charges and also offer job opportunities despite the pay not being convincing. The company has exponentially grown since it was initially launched but due to its unfair competition against the regular taxis, it has been banned in several countries.
Uber is believed to increase traffic congestion and fuel usage as well (Frue, 2017). Internal and external challenges facing Uber i. One of the greatest challenges facing Uber is the controversies with the legal actions the company faces in the US over the allegations that Uber mistreats its drivers by failing to ensure they earn minimum wages or enjoy adequate holidays. ii. Race discrimination against most black drivers not being welcomed in the UK is also another challenge facing Uber. With the tighter regulations in many countries and the revamped taxi companies making all efforts to win back the market share, competition continues to become stiff. How Uber positions itself relative to its competitors. Unlike most of its competitors like Gett and Hailo, Uber targets a wide range of sections fundamentally concentrating on tech-savvy clients who have an incentive for their convenience and time.
Initially, Uber was just a luxury brand with the mission, “Everyone’s Private Driver. ” It, later on, changed its mission to “Transportation as reliable as running water, everywhere, for everyone. Uber could continue their growth in the UK with the aim of reaching out to new customers and ensure more and more people embrace their services. • Improving its customer experiences or the driver-passenger relationship. Uber can continue growing in the UK with the aim of enhancing the relationships of their drivers and the passengers to get rid of the allegations of mistreatments by its drivers. • To enhance culture development. By continuing to grow in the UK, Uber can create a great culture to benefit its drivers and create a better experience for its customers in a win-win strategy.
Some of Uber’s products include Uber X, Uber XI, Uber Pool, Uber Access, Uber auto, and Uber GO among others. Place. Uber is active in over 769 cities in 83 countries. The company is most active in countries like Brazil, US, Mexico, China, and India. Despite its popularity in so many cities, the company only has offices in few locations globally with its headquarters in San Francisco, California. Uber also relies on social media sites for its promotion (Pratap, 2017). Several recommendations can be made to improve the marketing mix of Uber. To begin with, Uber ought to ensure it opens up more offices in many of its locations to enhance its interaction with its drivers as these are their employees which they ought to manage carefully.
Uber has faced many controversies with time and if it opens up more offices, it will have the opportunity to reduce most of these controversies. Uber could also provide better working terms for its drivers such as following the minimum wage laws to ensure the drivers are completely satisfied with the wages they get and that they have something to hold on working for Uber. The Uber drivers are subjected to tough record verifications for the purpose of ensuring that they put the right people for the job. This has led to the good customer service at Uber within only a few cases of misbehavior on the driver’s part. Uber acknowledges that more customers will only travel if they have good experience with their drivers and thus they make all efforts to ensure they have the best people working for them.
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