The specific environment, which is the set of forces and conditions that operate beyond an organization’s boundaries but affect its ability to acquire and use resources to create value, of a company is impacted by their customers, distributors, unions, competitors, suppliers, and the government. All forces impact Uber and how the organization reacts to its general and specific environment. The target customer segment that Uber is trying to attract to its company are people who do not own a car, don’t want to drive themselves to a party, want to travel in style, or want a cost efficient cab waiting for them at their door. Specifically, according to Vugo, a rideshare advertising firm, the majority of Uber customers are between the ages of 25 and 35. In addition, the typical rider is male (60%), has at least a bachelor’s degree (80% of riders), and are considered to be affluent (56% of all rideshare passengers reported a household income of at least $71,000).
If the demand from these customers’ change, then Uber will be forced to evolve to retain the customer segment, while adapting to the new segment. According to Anne Freier, in her article “Uber usage statistics and revenue” on Business of Apps, Uber currently offers their service to sixty countries, have eight million users, and give over one million rides daily.1 By offering more specialized rides Uber is trying to gain a larger market share and customize the experience to their customers. They are continuing to expand
The target demographic for Southwest is very broad. The fact the airline has a brand that appeals to price-conscious travelers who do not mind the airline’s no-frills philosophy means it attracts lots of small business owners, young adults, middle-class families, and those who are traveling a short distance. Southwest operates a simplified airline to keep costs down. It only operates one type of aircraft, and its no-frills plan includes no assigned seats or class seating, no meals, and no onboard movies. The company has a strong emphasis on customer service and a differentiation strategy to keep customers happy and loyal. When hiring for customer service positions within the organization, Southwest focuses on attitudes rather than skills and encourages peer hiring. This strategy helps the company identify those who fit the organizational culture and who are most likely to further the company’s philosophy of
In business, it is important to create a relationship with the customer. Stating that Cuddles Are Us with be watching the customers “babies”, it is important that they feel comfortable with the company. For the first month of operation, our business will distribute coupons into mailboxes for a free stay at Cuddles Are Us, all expenses paid. All it takes is one time in order for the customer to spread the word about their experience and hopefully return. Cuddles Are Us will also advertise on social media. An Instagram account will be created in order to take pictures of the animals and of the experience. This could also be a place where customers can get in contact with the staff. Furthermore, the staff will
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
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.
In modern society’s day and age, we still have many types of transportations that helps us complete some of our daily needs. You can drive, grab a bus, take a train or even get a quick workout and walk. However, as society progressed and wages increased, people start spending money on other ways to get around instead of driving themselves such as Uber: an app that allows other people to drive you places for a small fee depending on its location. Uber may be cheaper than having your own car but it isn’t always very reliable or convenient. Having your own car provides a reliable source of transportation. Although insurance and maintenance can be pricey; Uber is a relatively cheap and easy system of transportation, although it can be unreliable.
The opening words to this company’s own about us page is “Uber is evolving the way the world moves.” For most organizations, this would be considered hyperbolic gloating- but in just six short years of existence, Uber truly has begun a revolution. What began as a fast way to get a ride has revolutionized the transportation industry, influenced new companies in the housing market, and sparked a debate that has seen the creation of new laws and regulations. The company may be evolving the way the world moves, but the nature of change means that certain risks are inherent. Thus, the "evolution" has been met with legitimate criticism from politicians and competing cab services. Uber has become a billion dollar company, and to begin understanding
In every city Uber cabs have flooded, there have been numerous occasions where this ride sharing mogul has been taken to court. Whether by its own ‘independent contracted’ drivers or by disgruntled customers, to say the least Uber’s penetration into new cities is never easy. Taking the landmark California court case as an example of legal expenses endured by Uber, the firm was challenged in court which later ruled that Uber drivers were indeed employees of the company ("California Says Uber Driver Is Employee, Not a Contractor"). This momentous court case is just one example of legal fees Uber has had to pay, which resulted in the deterioration of the firm’s available
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
Employee and global social scale: Customers and potential recruits have many more choices than they had in the past, and are more aware of the ethical stances of Uber. Some base their ride choices and career decisions on these things. Uber need to shape up when it comes to how it treats its drivers. It must relook at how it categorizes its drivers, instead of treating them as “just part-time“ workers
For years, many cab companies operated without issues. But, due to the boom in population in recent years, this has made getting a cab allot more time consuming and, sometimes costing more. Uber became the company to fix that problem, and it worked. With the ability for anyone owning a car to work for Uber, they became the most profitable cab company and effectively shoving the other cabs
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.
Industry Competitors. Competitors can become a major threat to a business’ success. What differentiates Uber from its competitors is its global presence and the variety of services. Even though Uber is seen as a transport service, the effortless service has attracted a market segment that appreciates a digital customer experience. Uber’s primary competitors are Lyft and Ola Cabs, as well as the public transportation. With companies adapting to a technological society many have alternated to mobile applications, which may cause intense competition for Uber. Competition with
Most of the users are adopting Uber services just because of the high degree of safety provided by them. Women users prefer Uber more because they should feel the sense of safety. They should be informed about the application easiness, price advantages and also usefulness about the Uber services. More videos should be released expressing the app easiness, price discounts, offers etc. so that more customers will start using Uber services as their means of transportation. Especially women who are divorced or widow will be having a feeling of insecurity should feel the sense of high safety to adopt this service. The advantages should be made aware of the women who don’t know driving or who doesn’t own a driving license, etc.