UBER Technologies Inc. was established in the year of 2009 on March 8th and it has its headquarters is located in the San Francisco, California, United States. This company operates in almost 633 cities. It is a global taxi technology that is associated with providing of travelling solutions by the process of matching the passengers with the drivers. The drivers associated with this company own their own cars or they rent a car so as to drive with UBER (Alley 2016). The drivers need to have a smartphone for the purpose of using the UBER application along with the customers also requires a smartphone or access to mobile website. The primary goal of UBER is “Trasportation as reliable as running water, everywhere, for anyone”. According to the statement of UBER, their main contribution is on providing a reliable along with a prompt accessible benefit to all the customers of UBER. It is likely to be expanding its business all around the country associated with the conveying of its business administration to different urban areas. This would be helping the riders and drivers utilize their service at a maximum level (Bilton 2012). Due to the presence of various driving factors the popularity of UBER is developing at a higher rate and this might include the administration which is more advantageous than any of the customary taxicab organisation which is regarding the ability to serve the riders (Wallsten 2015). For instance, it also provides an option to the shoppers which is not available in the conventional corporate management model which is provided by any of the other organisation. This report mainly consists of the analysis of the industry UBER along with analysis of the competitive market of UBER. The report also discusses about the various barriers along with discussing about the various strategies that can be adopted by UBER for the purpose of overcoming all these barriers.
There is an essential need of undertaking a competitive analysis so as to identify the problems of the customer along with the business model’s and the strategies adopted by UBER for the purpose of dealing with the problems of the customers (Rogers 2015). With increase in the use of smartphones by the young generation along with the improved technologies and the increased value of perception of time has helped in establishing the increased value that UBER has experiences so far. There are several environmental factors and this mainly includes the unfavourable weather condition, which effects the demand and initially leads to the increase in price of the journey.
The recruiting of the driver takes place in UBER only after the screening of the vehicles are completed. This is done so s to make sure that the vehicles are worthy for the road. This is also one so as to make sure that the customers are comfortable and safe when they are using the vehicle. The drivers are sometimes also provided with an iPhone once they are endorsed by the members (Christensen Raynor and McDonald 2015). This is done so as to make sure that the drivers have access to the organisation’s application conveniently and in a more effective way. The drivers of UBER are provided with an extra facility of not paying tax licenses and other type taxes that are payed by the black cab drivers. This ultimately helps the UBER drivers in earning more than any other cab drivers.
The tracking and accessing of the cars can be easily done by the customers once they have the application of UBER is installed in their smartphones. The customers are also able to get other information’s as well and this might include the details of the license plane of the car or the name of the driver and more. Along with this there is also presence of viewing the previous reviews about the driver or ratings given to the driver. Besides all this the photo of the driver is also provided to the customers (Cramer and Krueger 2016). The price for booking a car depends on various factors and this factors mainly includes the distance to be travelled, demand of the cars and the type of car that is being booked. In cases of bad weather conditions, the price might be high and the customer might need to pay a higher fee. The mode of payment might be cash or card. The card generally means the credit card that the customer uses for the purpose of signing in. It is considered that this online payment system is much more secure and safe (Alley 2016). Once the payment is done by the customer UBER splits the receipt with the driver. The original margin for transaction used to be around 20% between the driver and UBER but this was later decreased to 25% due to huge competition in the market.
Porter’s five force analysis mainly refers to the tool that is used for the purpose of analysing the competition present in a business. Three forces are incorporated by Porter’s five forces from the horizontal competition and this mainly includes “the danger of substitute products or services”, “the risks due to the rivals existing in the market”, and “the threats of new entrants” (Nistal and Regidor 2016). The two forces from vertical competition includes “the bargaining energy of the suppliers” and “haggling energy of the customers”.
There is a lack of reassurance from any of the new ride-sharing firms which can charge less unreasonably for the same distance covered. During its establishment UBER, the prime supporters got separated with a sizeable measure of capital. The agreement of Uber includes the offering of their application software for nothing in return to the customers who are having the will it is possible to switch the service at zero cost (Bond 2014). Due to the fact that cost needed for the offset is evitable so UBER is not insusceptible to any type of rates that are rising subsequently which is followed by the making the process of infiltration of the industry by different industry much easier.
The fleet of UBER has no vehicle as such. The business model of this organisation is mainly subjected to the drivers and the partners who are responsible for holding their rides. So it ca be stated that an outsourcing strategy is adopted by UBER for the purpose of doing its work and assets to the person who are able to meet the terms and conditions so as to use the lady web application (Westerbeek et al. 2016). The substitution of the specific driver is also very much difficult. UBER also provides the vehicle owners with an option of choosing between the association and the rivals which would be initially leading to the consultation for a superior regard in regards to the expenses of the organisation. This proves that the suppliers are having a higher ground so as to affect the executions of UBER.
The services provided by UBER might not be required by the Customer all the time. The services are only required at particular instances and these might situations when an individual is late for work or some other situation when a convenient and affordable mean of transport is not available (Cohen et al. 2016). So it becomes for the customers to choose from any of the taxi services. The switching required by the customers is also low as the customers doesn’t have to pay type of registration free while using the application.
There are also several companies which are associated with the providing of same type of services as well as it is having the same business models and operations. Besides the demand of corporations by the present day business for the purpose of focusing on the customer base which is present inside a given geological location so as to cut the cost required for various operation (Posen 2015). A business system has been established by UBER along with a massive capital investment.
The typical constraints in a focused business environment is known as a substitute. For example, the closest opponent and a potential substitute for the UBER are the taxi services (Salnikov et al. 2015). It can be stated that with sight increase in the fare of UBER can result in grasping of the customers by other competitors.
The resultant of a firm’s value is the competitive advantage, and this initially leads to the creation of an advantage for the customers which generally exceeds the cost required by the firm while creating it. There are two ways of increasing the utility and service of UBER. The first way mainly involves the enhancement of the service delivery which can be done by reducing the time in reaching out to the customer when the service of UBER is needed (Enoch 2015). There is a need of being reliable by the cab as well as the driver so as to make sure that the customers are satisfied with the service that is being provided. Another way by which the competence of the personnel can be improved is by ensuring that the services are provided by the professional divers so the need of training the driver increases so as to ensure that the drivers provide a personalized customer service.
There are certain circumstances that has been utilised by UBER for the purpose of developing a good way and this circumstances have been alluded by Kalanick as “Accelerants”. These accelerants are generally associated with the demonstration of real as well as transitory requirement for the administration of UBER (Rauch and Schleicher 2015). This mainly includes the following restaurants and nightlife, holidays and occasions, weather and sports.
There are several special events which provides with a chance of grandstand for the UBER’s model and the organisation is able to convey a very good service which would be creating new buzz for the administration (Wirtz and Tang 2016). Various occasions create new unusual request and weight so as to get new clients who would be taking their first ride, along with driving the spikes in the new riders associated with aggregating of the rides.
There is a regular need of making a game plan regularly followed by backpedal to homes after any kind of gathering. So UBER has rushed for comprehending all this and has offered its administration at meaningful nightlife focus in the city (Sun and Edara 2015). Individuals who are associated with the profits of the administration has turned to be very much enthusiast for the company and has done informal publicizing so as to spread the word.
UBER is having an outpouring estimated innovation which has ultimately resulted in rolling out of a vast majority for the improvements in the climate. At times when it is raining heavily and someone is struck then he might need a taxi. This situation gives rises to the need of UBER which is the best and the main accessible decision for that individual at that point of time. This procedure was likely to be a prompted feedback for the UBER which amid the tropical storm named Sandy when the cost was expanded (Geradin 2015). In any type of case when all things are considered along with the concept of business will be business and the trust regarding the matter is that UBER is having an incomplete obvious regarding the value surge innovation.
Head path in overseeing the transportation has been provided by UBER. An application was developed by UBER for the purpose of providing the drivers with a provision along with this the application also helps the clients in decreasing their anxiety required for the purpose of discovering the great and reliable drivers who does not need to fuss about any kind of stockpiling receipts so as to recover the income (Bashir Yousaf and Verma 2016). In a deliberate way all the clients are checked by making use of the driving records and any kind criminal records. Besides all this the drivers are also tried by making use of many strides before they are acknowledged with the joining in UBER.
UBER mainly utilizes a technique of item advancement at the corporate level. UBER has used the ebb tide and flow advertisement for the purpose of upgrading the nature of its administration and this is done by enhancement of the application stage which initially leads to the encouragement of the association amongst various stipulations and drivers. By the expanded abilities of the application, the divers would be acquiring the business along with which the shoppers would be provided with a more option and accommodation (Hall and Krueger 2015). There is presence of low level expansion with more than 95% of the income generally originated from one special unit which is mainly associating the riders to drivers.
After the establishment of the company in California it advanced to Europe which was then followed by expanding through Australia. The strategy adopted by UBER is slow but is sure for the advancement in the new international market. After the success of the investments made previously UBER proceeds towards venturing in the other localities (Brazil and Kirk 2016). One of the example of slow but sure strategy is the expansion to Europe and then to Canada after the success in California is an illustration of the strategy used by the management.
The main aim of every business that exists is for the purpose of serving the requirements of the clients. Most of the business makes use of the similar restricted arrangement of plans for actions which are once in a while is enough for the purpose of tackling all kinds of distinctive difficulties for the purpose of comforting the clients. Organisations lie UBER which provide an exceptional administration and provides better offers are likely to develop at a greater rate.
Being a participant in the market is one of the vital issue. UBER being the first ride-sharing organisation has enables the cutting of a huge share in the market. Various rivals of UBER like Lyft and SideCar were confronted but still UBER is much more grounded brand as it is the first business to showcase in the riding market.
When an organisation starts up it unavoidably confronts higher cost during the process of development. When all the things are considered then it can be seen that there are numerous ways in which the business can limit their expenses and this can be done by diminishing the foundation set up. The main reason that lies behind the development of UBER at a rapid rate is due to the fact that it does not have the same overhead cost like that of the customary taxi services.
Conclusion:
The report helps in concluding that UBER is one of the largest cab or taxi providing service in the whole world. UBER has an application that greatly helps the customers as well as the drivers. The company is aimed at providing a service which is fully efficient and helps a customer’s a lot in daily transport. The report firstly analyse the macro-environment that UBER is having. This section of the report includes the organisational environment of UBER and the business model of UBER. Then the competitive structure of UBER has also been discussed in brief. By making use of the Porter five-point analysis the competitive market of UBER as well as the major threats have also been discussed in this report. The final report discusses about the strategy that has been adopted by UBER for the purpose of growth. The report consists of a brief discussion about the various barriers faced by UBER along with the various strategies to overcome those barriers. So it becomes increasing important to make the security measures readily available so as escape the various problems.
References:
Alley, J.K., 2016. The Impact of Uber Technologies on the New York City Transportation Industry.
Bashir, M., Yousaf, A. and Verma, R., 2016. Disruptive business model innovation: How a tech firm is changing the traditional taxi service industry. Indian Journal of Marketing, 46(4), pp.49-59.
Bilton, N., 2012. Disruptions: Taxi supply and demand, priced by the mile. The New York Times, Jan, 8.
Bond, A.T., 2014. An app for that: Local governments and the rise of the sharing economy. Notre Dame L. Rev. Online, 90, p.77.
Brazil, N. and Kirk, D.S., 2016. Uber and metropolitan traffic fatalities in the United States. American journal of epidemiology, 184(3), pp.192-198.
Christensen, C.M., Raynor, M.E. and McDonald, R., 2015. What is disruptive innovation. Harvard Business Review, 93(12), pp.44-53.
Cohen, P., Hahn, R., Hall, J., Levitt, S. and Metcalfe, R., 2016. Using big data to estimate consumer surplus: The case of uber (No. w22627). National Bureau of Economic Research.
Cramer, J. and Krueger, A.B., 2016. Disruptive change in the taxi business: The case of Uber. American Economic Review, 106(5), pp.177-82.
Enoch, M.P., 2015. How a rapid modal convergence into a universal automated taxi service could be the future for local passenger transport. Technology Analysis & Strategic Management, 27(8), pp.910-924.
Geradin, D., 2015. Should Uber be allowed to compete in Europe? And if so how?.
Hall, J.V. and Krueger, A.B., 2015. An analysis of the labor market for Uber’s driver-partners in the United States. ILR Review, p.0019793917717222.
Nistal, P.D. and Regidor, J.R.F., 2016, August. Comparative study of Uber and regular taxi service characteristics. In Proceedings of the 23rd Annual Conference of the Transportation Science Society of the Philippines, Quezon City, Philippines, August (Vol. 8).
Posen, H.A., 2015. Ridesharing in the Sharing Economy: Should Regulators Impose Uber Regulations on Uber. Iowa L. Rev., 101, p.405.
Rauch, D.E. and Schleicher, D., 2015. Like uber, but for local government law: The future of local regulation of the sharing economy. Ohio St. LJ, 76, p.901.
Rogers, B., 2015. The social costs of Uber. U. Chi. L. Rev. Dialogue, 82, p.85.
Salnikov, V., Lambiotte, R., Noulas, A. and Mascolo, C., 2015. OpenStreetCab: exploiting taxi mobility patterns in New York City to reduce commuter costs. arXiv preprint arXiv:1503.03021.
Sun, C. and Edara, P., 2015. Is getting an Uber-Lyft from a sidecar different from hailing a taxi? Current dynamic ridesharing controversy. Transportation Research Record: Journal of the Transportation Research Board, (2536), pp.60-66.
Wallsten, S., 2015. The competitive effects of the sharing economy: how is Uber changing taxis. Technology Policy Institute, 22.
WESTERBEEK, J., UBACHT, J., VOORT, H.V.D. and HEUVELHOF, E.T., 2016, August. Studying the Effects of Peer-to-Peer Sharing Economy Platforms on Society. In Electronic Government and Electronic Participation: Joint Proceedings of Ongoing Research, PhD Papers, Posters and Workshops of IFIP EGOV and EPart 2016 (Vol. 23, p. 222). IOS Press.
Wirtz, J. and Tang, C., 2016. Uber: Competing as market leader in the US versus being a distant second in China. SERVICES MARKETING: People Technology Strategy, pp.626-632.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download