Business Strategy: Uber's Business Model And Strategy

DoorDash, like Uber, is an example of yet another “Peer-to-Peer” business model; this one takes orders and delivers food via company drivers. In other words, DoorDash takes food from restaurants and delivers it to the consumer, thereby eliminating the relationships between restaurants and clients. To that end, DoorDash operates not only as a customer acquisition company, but also as a logistics company focused on food delivery. DoorDash is disrupting the old way that food is delivered to customers by interjecting an intermediary.

Uber Technologies Incorporated launched in 2009 by Travis Kalanick and Garrett Camp. Since then, the company has expanded into an estimated net worth of $6 billion. Today, Uber has become a recognized global household name. With its mobile application, any person who has a smartphone can join the ride-sharing services. Uber is currently servicing in over 60 counties and 404 cities worldwide. Everyone loves the convenience of on-demand hauling services with just a click on their smartphone. However, does this hype worth risking your safety?

The payment process is also more effective since the Uber app stores credit card information (this also reduces Uber’s transaction costs). Another quality factor that increases customer service is GPS tracking, thus the customer knows where the driver is and their estimated time of arrival. Most taxi companies and public transportation services do not have such feature available. Moreover, Uber lets users review drivers which can provide added security to a service that ultimately provides a ride from a stranger. Customers have the option to select a highly rated driver or possibly a driver that has already provided them transportation in past and that they enjoyed riding with. This also means that rideshare drivers have the incentive to provide great customer service to obtain more clients, higher revenue.

Uber’s value is its intangible resources. Uber’s team is a group of talented people. First of all, its cell phone application is clear and easy to use which is rely on its dependable technology supports. Moreover, Uber fund multiple billion dollars to support its fast past development all over the world. Uber cooperate with multiple large and international cooperation to expand its business which shows its abilities of negotiation skills. Uber’s international team pushes Uber enter oversea markets in 58 countries and districts which help Uber seize the markets and limited the competitors’ market share. Makes Uber dominant or obtain advantage market share. Besides, Uber’s professional image and well organized system earn a good reputation among customers through their good

Uber on the other hand has brought the public at ease with the new technological tap on the button ride. This button is used to summon a car by pressing a button on your smartphone, payment is handled through the application therefore no cash needs to change hands as your credit/ master card is registered on the application. By simply downloading the application on your smartphone you are able to catch a ride which will take you to your destination-your fee is pre calculated to give you the confidence of how much you will be paying. Uber has changed the old perception of accepting unworthy road transport-that perception is dead and buried. The honors’ lies with the individual who will wants to accept a good transport vs a scrappy one.

Employment received a hard hit by the recession, but this “gig economy” has been able to provide job openings that are in need. According to a recent study, jobs in the gig economy has grown from 9 to 14% from 2002 to 2014, compared to overall employment which only grew around 7%. Moreover, the gig economy has also had an impact in the current economy, specifically coming from the famous startups such as Uber and Lyft. The Uber and

Sharing economy is a new trend, which has happened with the global advent of Social Media and the peer-to-peer network. It is affecting different aspects of the Hospitality Industry. It allows people to share their belonging or services with strangers, in an online trust-rated way. “The Sharing Economy is a socio-economic ecosystem built around the sharing of human and physical resources. It includes the shared creation, production, distribution, trade and consumption of goods and services by different people and organizations” (Matofska, 2015). The two main examples of shared economy that brought huge debates to the world’s media nowadays are Uber and AirBnb. These shared economies, which allow peer-to-peer exchanges throughout technology,

Uber has widely known for its lower transaction costs which is resulted from efficiency in operation cost, or in other word low labor cost. Uber drivers is not the company’s employees but independent contractor. Therefore, Uber has been criticized for their treatment to the individuals who provide the service under their smartphone applications and take benefits from them (Dyal-Chand, 2015). Average hourly wages for drivers is around USD8 – 10, exclude their car depreciation (Weber and Silverman, 2015). Therefore, Uber transfers part of operation cost such as vehicle depreciation cost and employee benefits to the drivers as its independent contractor. In her note, Posen comprehensively describes and analyzes the lawsuits from taxi industry and states where it operate. Unfortunately, she only provide a glimpse about the lawsuits from Uber’s drivers without any solution to be

The thesis of this article explains that despite surge pricing achieving the goal that it’s supposed to, (bring more drivers online and present available services to consumers who need them the most) most believe Uber is taking advantage of customers by using extreme multiplier prices. While the author states that this issue between price and product/service is giving Uber a relative degree of bad press, he also gives solutions as to how to fix this problem.

There has been a lot of controversy over the Uber and Taxi debate. There have been state and country headlines on how Uber is taking away Taxi drives’ customers; that Uber is not as safe and reliant as Taxi drivers. In some instances, there are areas that have banned Uber altogether. This technology company claims that they are only putting individuals in touch with a business, like the yellow pages, and should not be held to the same liabilities and standards as the Taxi cab drivers. There are many things that make them similar and there are many things that differentiate them.

The use of ride-sharing applications has become a popular choice to travel from one destination to another. In the past, cities were dominated by the use of taxis as a means of ride choice. As technology and society has evolved, ride-share applications such as Lyft have become a dominating choice for travel. After completing a PEST and SWOT analysis, Lyft can analyze how to proceed going forward to continue its growth and success.

As a shopper, they would similar interest as potential customers, tourist, or pedestrians. Where Uber could provide them a more convenient way for them to travel to their next destination. Presenting the confirmation bias, if the shoppers shopped a lot, it would be irritating to use public transportation where they need to watch out from crowds or carry the merchants around. With Uber, shoppers can be driven to their destination without any difficulties.

Since operating 7 years ago, Uber has seen a great business as alternative for taxi. In 2016, Uber service is accessible in 66 countries and more than 507 cities internationally. The rise of Uber become people favorite choice especially the one living in the urban center. Besides, the low rate charge for Uber also become one of the main reasons why people prefer to use its service rather than the traditional taxis. In some cases, taxi charges are quite high even though the distance is short but due to traffic jam, the duration waiting in a taxi to arrive may feel longer. Even so, some taxi drivers also have the tendency forgotten to switch on the distance meter on their taxi thus charged the passenger for an unreasonable price. Moreover, it

“It’s a simple experience and a much more pleasant way to get a ride than stepping onto a busy street and waving at oncoming traffic” (Stone, 2014, p. 53). It is convenient for both the employee and customer to arrange a ride, which makes Uber preferable. Additionally, the employees of Uber are given more benefits than the employees of taxi companies. For example, Uber issues an iPhone with the Uber software, free gear to secure it to their windshield and an hour of orientation (Stone, 2014, p. 52). It is this simplicity that appeals to people seeking employment. They are also using a platform that is accessible to many of their customers, because, as of 2015, “64% of American adults now own a smartphone of some kind” (Smith, 2015). Since their focus is on luxury, innovation, and results, they have transformed the public transportation system in their favor.

Uber is an innovative company that operates as a transportation company and a food delivery service around the globe. In addition, Uber is a company that was invented five years ago. Furthermore, during Uber’s early stages of development, the servicing company was referred to as “UberCAb”. Then an individual in San Francisco had decided to try out their service. From the individual’s first experience, the individual was very impressed. In addition, from that point, the company referred to as “UberCab” became commonly known as Uber. Also, Uber operates their service business in fifty eight different countries and have allocated over $60 billion in revenue. Uber faces many issues in their human resources operations implementation regarding drivers and internal employees.