Background Ford is experimenting with ride-sharing services that are similar to Uber and Lyft in order to obtain growing acceptance and to determine new ways to expand its business. Uber has become a phenomenon that has transformed the market and is the go-to form of transportation for younger individuals. Uber is an app-based service that is easy to use and convenient for consumers living in urban areas. Uber is changing the market and car makers, such as Ford, fear that younger consumers will choose the convenience of ride-sharing services as opposed to purchasing a vehicle. The major advantage for younger drivers is that “individuals gain the benefits of private vehicle use without the costs and responsibilities of ownership,” which …show more content…
Promoting a car-specific ride-sharing service that is both national and international contributes to Ford’s long term growth and its expanding business. Problem Statement Consumers are changing their preferences on personal transportation by switching from purchasing vehicles to ride-sharing services such as Uber and Lyft. The changing market is having an increasingly negative impact on passenger vehicle sales. Alternative Solutions Developing and experimenting with competitive solutions for ride-sharing services in response to Uber and Lyft is the best strategy for automotive companies such as Ford. Services such as “GoDrive” and similar programs have been launched by Ford in London and Germany and received positive feedback “after a successful 100-driver pilot, where the company has opened the program to 1900 more drivers” (Feinburg, 2015). Due to the success of Ford’s “GoDrive” services, Ford currently remodels its ride-sharing services after each trial run to sustain its long term growth. An alternative solution that Ford must consider is to provide consumers, particularly younger individuals, with incentives to use its ride-sharing services such as “GoDrive” as opposed to Uber and Lyft. In order to create demand for Ford’s new services, the incentives must be advertised, so consumers are aware of the new “Uber-like” service. Once Ford’s ride-sharing service is widespread and accepted by
“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.
I watched this TedTalk on 6/16/2016, and the name of that TedTalk is Uber’s plan to get more people into fewer cars. The video was filmed on February 2016, and the speaker is Travis Kalanick, the co-founder of the peer-to-peer file sharing company Red Swoosh and the transportation network company Uber. The purpose of this memo is to understand the goal that Uber is trying to achieve.
Automakers are using car-sharing programs to simply offer a stress free alternative to car ownership. They enable drivers to use a car without the financial burdens. They also provide flexibility to the customer based the client’s need at the time. For those who cannot afford an automobile, Car-sharing service can offer flexibility of usage and also allows opportunities for customers to avoid late return fees by extending reservations, as when the driver might be stuck in a traffic jam and not be able to get the vehicle back on time. Unlike carpooling, car sharing gives me the independence to drive wherever and whenever I want, at a tiny fraction of the cost of owning a car. However like any other program car-sharing have disadvantages. The program is an affordable and reliable service, but that is part of the reason why it has many disadvantages such as the dealership running out of stock and competition from other companies who have initiated the program. The lower cost of the service could cause people to stop using their own vehicles and use car sharing instead. The car share companies are not growing fast enough to accommodate the sudden interest in the service could also prove to be a disadvantage. This options also allow clients to reserve vehicles unfortunately some people reserve them knowing they may not need it. This means that vehicles remain locked to people who genuinely need the services.
I've been using Uber since it's inception and have utilized the ride-hailing service in several major cities. Uber is celebrating its fifth anniversary and is valued around $50 billion by investors.
As of lately, the latest and greatest transportation craze has been ride sharing. Whether this is through ZipCar, Uber, or a similar ride sharing service, there is no denying that these services have been exceptionally successful. The underlying reason these programs have worked is almost too obvious: they are unbelievably simple. This cut and dry approach to transport has been the ultimate key to success. Through these programs, transportation is quick, accessible, and relatively cheap.
Now that the most common claims and rumors about the sharing economy were discussed in a bit more detail, and some advantages and disadvantages were already identified, the following chapter takes again a closer look at them. The purpose of this chapter is primarily directed towards the possibility to predict the future, since depending on which side outweighs the other, the future prognosis will correspondingly modify. In the following, by and large, a distinction between the different types of the sharing economy will not be made, it is intended to serve as an overall overview. Above all, Uber and Airbnb, as the probably most well-known platform providers, are often used for illustrative purposes.
———. “Driven: Uber’s Campaign to Run Over Competitors and Win the World.” Mashable. Accessed May 11, 2016.
Uber is a new way of being able to acquire money more easily; In addition, it represents a great advance for society as it helps to increase security in cities, optimizes the mobilization of means of transport and allows improving the economy, since it provides people with an easy way to work. This application allows you to unite different individuals around the world that require some means to transport themselves efficiently and
I know you have been eagerly anticipating the announcement regarding the legislation of Uber in our City. I have received a lot of information from the citizens of Winnipeg both in the public and private sector, so it is evident that this topic is on everyone's mind.1 Uber will bring great success to Winnipeg through its convenience, its low costs, and also supply our community with an endless amount of jobs. With this information, I know we can establish a clear path going forward; however, it is imperative that we cooperate together as a city to ensure that Uber is successful. Montreal, Toronto, and Ottawa have all seen great success from this company, therefore we have decided that this trend will succeed in our city as well.2 As this service is legal in multiple major cities throughout Canada, it will cause no harm here in our comunity.3
Uber is a technology platform company founded in 2009, and it provides a network of transportation service on demand. It connects its driver-partners with passengers who need and request a ride via its smartphone app. Uber is providing its service in more than 80 countries and 540 cities worldwide. Transportation services, such as taxi and limousine, have been greatly affected since Uber entered the market. As Uber’s role is being a market creator between the drivers and passengers, the company receives revenue for every trip a driver provides with the driver keeping the rest. This part incentivizes drivers to become Uber’s driver-partners since they can earn extra income. Customers switch from taxi services to Uber because
Boasting 500,000 members, double-digit growth rates, and the largest selection of vehicles, Zipcar has firmly established itself as the leader in car-sharing programs. And while profitability for the business has yet to emerge, the demand is certainly there. Car ownership in many of the largest cities throughout the world has recently been flat or in decline, as major urban centers become increasingly crowded, with cities like Tokyo, New York, and London expected to see declines of car owners per capita over the next 15 years. Of New York residents, only 44 percent own cars. Analysts and researchers estimate 10 million drivers in the United States alone are open to
There were opportunities in India and in China to diversify the market and raise revenue for Ford Motor Company by introducing new vehicles that was suitable for their population and needs
Car-Sharing is the term used throughout most of the world to refer to mobility services. It is a group of people that use one car in every single day to terminate their business daily. Car-Sharing refers to automobile rental services intended to substitute for private vehicle ownership, with vehicles located in neighborhoods, are rented by the hour, and easy to check in and out. Carsharing ranges from small informal cooperatives to sophisticated businesses with many vehicles. The current transportation market offers consumers many options for purchasing an automobile, but fewer practical options for using a vehicle occasionally. This contributes to several problems:
Uber human resources utilize many tactics to control all drivers and passengers. In addition, Uber is widely known for allowing all drivers to be their own independent contractor. However, the issue that occur is that Uber does not compensate drivers for gas usage or provide incentives to keep up maintenance with driver vehicles. Beside, that Uber has many human resources tactics that has lead Uber to be a company that acquire and retain drivers. Due to the fact that Uber offers driver with many incentives and benefits. Furthermore, the primary human resource tactic that is strongly implemented is during the initial request between driver and passenger. During
Ford has two unique ways to protect its market share. Ford has a renting car system which you can rent a car rather than buying a care. According to Penn Schoen Berland, an independent research company, one third of millennial has interest to rent a car rather than buy a car. In renting system, Ford adopts one way journey system which you “pay as you go” and “you pay how much miles you go.” Another unique system is Ford Credit which Ford offer credit card to customers. Ford Credit helps Youngers to rent a car or lease a car from Ford.