Swot Analysis : Uber Is A Transportation Network Company

“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.

The impact of corporate customers and the automotive industry in the analysis environment of the five forces in this regard. Customers Tesla is a direct factor that determines the company 's revenue.

Threat of new entry is low because the barriers to entry are high. Newcomers to the industry would require an enormous amount of up front capital to set up the distribution networks and infrastructure, such as establishing hubs, and acquiring aircraft and a large amount of ground transportation vehicles (vans, trucks, ect). Economies of scale are significant and would deter new firms from entering because initial sales volumes would be low do to the fact that existing brands already have strong brand identification, and there are no cost advantages to entering, like government

The five forces examines the dynamics within an industry. Understanding the competitive forces, and their underlying causes, reveals the roots of an industry’s current profitability while providing a framework for anticipating and influencing competition and profitability over time. Understanding the structure of its industry is also essential to effective strategic positioning.

As things stand most Millenials and some Baby Boomers along with the Gen-X crowd understands the value of the latest trend in share rides knowingly both Lyft and Uber. We have all seen the news stories about those idiots that have done the unthinkable and of have gone to jail. Moreover, regardless of the “bad eggs” in the business people still want to use the share ride services we are becoming accustomed to.

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

Uber. To many, it is the preferred mode of transportation for a sporting event or concert when traffic is mayhem. To others, it’s a convenient and fast way to step up in da club and get your jiggy on. I have used Uber a couple of time in the states and for the most part, the rides were smooth, comfortable, and direct. As I was embarking on my study abroad journey in Puebla, Mexico, my group was advised to use Uber as it is securer than taxis in Mexico. The first week using Uber was lit. Short time waits and swift pick-ups, no confusion with locations, drivers with good music taste and complimentary water and candy. Drivers would even open the car doors for us, classy af [or you can put “such high class

Uber has found a way to capitalize on this by offering rates that are cheaper than a standard taxi's. This provides a benefit for the consumer in the form of money saved, but also guarantees Uber a strong position in the transit market. By offering riders at rates which are less than they would pay using a standard taxi, Uber receives income from those customers that would otherwise be going to the cab companies. This type of relationship between company and customer is indicative of American consumer preferences- a growing percentage of the population prefer the uncertainty associated with Uber compared to the added cost for a taxi service. The success of companies like Uber, and their competitors is not the only way to gauge this change in the industry. In most major American cities, taxi services are regulated by the issuance of "medallions", which serve as a seal of approval from the city (via the taxi authority). By examining the rates companies are paying for these medallions, a larger picture of the industry becomes apparent. In cities like Boston, Chicago, and New York, medallion prices are down anywhere from seventeen to twenty percent.(Turmoil) This sudden decrease in medallion values shows that Uber's success is coming at the expense of traditional cab

This industry has already started expanding their business more than just ride sharing application they have gone into electric driving. One of the CEOs Travis Kalanick of this business said it will be intense, but it is only for expanding the company on making more profit (Felton). In Ryan Felton article he stresses Uber overall problem is will their money last enough to have a trucking and a driverless car. I believe that if Uber budgets their money right and avoid lawsuits they can expand one part of the company at a time.

In this modern age, everything has changed. From all sectors which are lifestyles, transportation, business and economic. The main factor of all this changing is the electronic devices – mobile device and internet. people are all using internet whether with smartphone, tablet, etc. The impact of the internet and mobile device has amended so rapidly and the improvement itself has going so massively. It also impacts all the sector of businesses and economics include also the transportation business.

Nowadays, the new generation of young adults are using the taxi service called, “Uber” or, “Lyft.” Uber and Lyft are much convenient compared to a regular yellow tax company because, at a click of a button using your smart phone, your location gets sent to the driver, and they pick you up using your location services. Uber and Lyft gets used more often because it can be cheaper and it is efficient. Uber also offers a service where you can get picked up in a black Cadillac, also known as VIP service. Also with Airbnb, the young generations coming up is more creative and want to try new things. This effects the supply and demand in the markets for shared rides is where supply is low and demand is high. Uber and Lyft are now taking over to a point,

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.

From the model it is conclusive that stiff competition exists among the major firms which are backed by the rich capital of their respective parent companies. Such superfluity acts as a barrier to entry for new firms. Recently, several e-commerce platforms have stepped up to offer essential commodities with zero cost home delivery facilities. In the long run, as they gain traction, strong competitors might arise from them.

To formulate a strategy that will help Southwest Airlines maintain its competitive edge in the US airline industry.

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.