UBER in the American Market

Discuss about the Uber Plans To Get More People Into Fewer Cars.

The UBER TECHNOLOGY INC Company is a privately-owned organization that provides peer to peer ridesharing, taxi cab, food delivery, and transportation. It was founded by Travis Kalanick in the year 2009, its head office is located in San Francisco, California in the United States (Ng, 2016). The company is known to offer high-quality services since the time of implementation. The company works under low rates and therefore it is affordable to the clients. UBER taxis are confidential and therefore many like them and prefer to travel by them Feng, 2017). The large market and profit margin compelled the management team to come up with more services since the company is well known the market would come automatically. The company has a horizontal management structure that is led by a CEO who works with a board of directors to ensure there is effectiveness. The management of the company clearly shows that there is a sophisticated way of management since they have a perfect decision and develop wonderful ideas. it creates room for innovation since there are specialization and division of labor (Means and Seiner,2015). The company has a word success record in making wisest decisions and therefore is the success of the business. The company has more than 2.4 million workers and it is employing more due to the extension of the idea to bring more people in the company. The assets of the company total almost up to a revenue of 15.7 billion dollars

The company took the better part of the market since the year two thousand and nine and therefore it has been a profit-making organization providing services to clients that are friendly and even private. This has been largely characterized by the brand awareness and dominating its home market USA. The environment has enhancing factors like the political stability of the states. The American states are known for their supremacy in power that covers very many departments. The states are politically stable since its residents are elite and therefore they don’t find the need to have political differences. As the name suggests the states are united and therefore the unity gives them a winning environment and the agility to achieve their goals with ease (Todd, 2018). The states are also known by their wealth. The state’s wealth contributes and creates the business environment that favors all enterprises that, the potential investors find it easy to establish the new businesses. The cultural factors of the state favor business growth since they don’t have cultural differences due to diversities and common way of life to all members of the state. The common way of living has been brought about by the unity with the residents. Generally, the environment in California and the other locations of the UBER INC subsidiaries favor the UBER activities and therefore the company fare on very well.

Business Strategies and Global Expansion

The organization has utilized an in excess of one business strategies that upgrades its exercises relying upon the area of the business. In any case, the organization is wanting to take part in the multi-national system. In the worldwide system, organizations are working in a homogeneous market which has utilized economies of scale. These way organizations have the chance to support their income since there is a union between customer needs and more prominent market Incentives (Grant, 2016). Also, the methodology offers uniform worldwide picture for organizations in this manner giving them a focused edge in the market being controlled by worldwide organizations. Because of the substantial market opportunity, the UBER taxis are relied upon to extend enhanced revenue. The organization requires that since the worldwide technique applies in the multi-national condition there is a desire for that the market will be overwhelmed to meet the UBER autos are few contrasting with the pulled in advertise along these lines using a couple of assets to accomplish more noteworthy benefits. Moreover, due to changes in the environment the company seeks to adopt a swift flexibility so as to meet the customers demand as the change demands. These changes come as a result of cultural dynamism and even socio-economic dynamism depending on the time(Jankowicz, 2018). They may also be brought about by seasons and climate change and therefore the operating system is termed to producing the best and giving a favor and a consideration to changes that arise to its customers and clients.

Legal issues-Uber is currently facing a law suit by in investor google in the claim that the former employees of the firm who currently work at Uber stole the tech giant technology where that allowed self-driving car to map the environment around them which is currently a stumbling block to uber as it is reinventing itself towards self-driving car taxi services

Competition-There is an increase in rivalry form emerging companies such as lyft who have a similar business model as uber. However, uber’s non-aggressive response to such an upcoming rivalry is paving way for lyft o catch up with the firm.

Government policies-uber,s aggressive penetration to the market has  not  gone well with various governments such a Italy that has seen the ban of the black uber servces in the country which has motivated other countries to follow suit

Self-driving uber-Another challenging factor is getting the self-driving uber to work. The eliminations of the driver would come with the huge benefits but the technology is into yet satisfactory. there have been many cases of the technology failing and the derailment form the google law suits

Legal Issues, Competition, Government Policies and Other Challenges

Bad publicity-There has been several cases of bad publicity that has rocked the company in the past years going from sexual harassment to bug rally and even uber drivers who are rude and in appropriate to the consumers. This led to the rise of “delete uber movement” early this year as a move to punish the company

Employee payment-There has always been a truffle when it comes to Uber and ite employee concerning its payment and remuneration, they have always been bad and has seen the constant updates and changes made to payment methods and amount due the constant strikes of uber drivers in various regions protesting payments

Poor management/leadership-Uber has seen changes to top leadership in the past ten years with more than 7 top executives resigning due to scandals or negative pressure from their managements which is not healthy for a big firm. Its current ceo is under pressure form the law suit from google of technology theft.

Strength

Brand awareness- since the establishment of Uber, it has become a well-known brand in the past ten years in America and internationally as well. This is due to its innovative measures in dominating the Taxi business which has contributed immensely to the growth and development of the firm

Increased levels of customer brand loyalty- Uber has successfully been able to acquire and maintain customer loyalty through the year’s thanks to reinventing their business model and targeting consumers at metropolitans or busy towns. Through offering affordable prices and quality prices, Uber has been able to sustain loyalty among its existing and new consumers

Uber app is user-friendly and convenient to use- Uber uses a web-based App that has a user-friendly interface which makes it easier for Uber clients and it employees to use. It has also additional features such as location tracking which is useful for direct communications. clients are able to book tai services easily. The continuous advancements of the Uber App is increasingly creating a strong footing for the company on the consumers

High-quality service- Uber has kept up high-quality service measures whether as far as rides or regarding client benefit. The drivers are prepared to be neighborly and gracious and the rides incorporate new and proficient vehicles. It pays the lion’s offer to the cabbies and keeps just 5 to 20% cut for itself.

Affordable pricing for Uber, uber pricing strategy is attractive and plays a crucial role in the growth and development and dominating the markets beating the traditional taxi systems. This is made possible through the use of a meter pay system that charge according to the distance traveled by the client which further shows the transparency in the delivery of the taxi services (Ma,2017).

Strengths of UBER Technology Inc

Customer trust and partnership-The firm have also introduced a monitoring and rating system where consumers and employees are able to rate each other depending on the service acquired which is helpful to the firm since it would identify underperforming employees and negative clients and take appropriates actions. This ensures a conducive working environment for the employees and consistent quality service to the clients

Cars belong to drivers-Ubers strong suit is that that uber employee have to own their cars so as to qualify, this eliminates the maintenance fee as the employees cater for the services and expense related to the car, unlike the old traditional taxi services where the parent companies maintained all expenses related t their cabs

Weaknesses

Bad publicity-There has been several cases of bad publicity that has rocked the company in the past years going from sexual harassment to bug rally and even uber drivers who are rude and in appropriate to the consumers. This led to the rise of “delete uber movement” early this year as a move to punish the company

Technology-oriented consumer segment- Uber is based on technology that relies heavily on smartphones and internet connectivity to fully function. This means that if many of these fails it will be difficult for the firm to function fully. Moreover it requires consumers who  only have access to the two requirements and have a technical know-how of using the system(Perera et al,2015)

Extremely dependent on the internet-the entire business model of uber relies on internet connectivity since it functions as an app carry out 90% of their business activities and services. A disruption of connectivity could be fatal for the firm. Moreover, it curbs and limits its potential to develop to emerging markets that are still minimal in internet connectivity penetration

Competition- While Uber has made aggressive weight on the customary taxi organizations, they have additionally increased the standard of administrations and lessened costs to react. This is prompting focused weight in a few zones

Rely on manpower: Uber is heavily reliant on their manpower that is the uber drivers who are required to provide their own cars as well as service and maintain them.80% of the uber business in reliant on the drivers which in some cases is unreliable and unpredictable

Trump campaign-There has been recent news that the Uber Inc. played a major role in funding the trump campaign who is the most hated president so far, this has not gone well with non-trump supporters who have switched sides to lyft which was neutral during the campaigns.

Weaknesses UBER Technology Inc

Privacy risk-The uber App is able to transmit and share locations of the consumers so as to track the and provide cab services. This poses as a risk of exploitations in the wrong hands such as hackers who can use the uber app to track and acquire confidential information from their clients

Opportunities:

Self-driving cars- there poses as a great opportunity for self-driving cars which could be very profitable if the firm is successful in being among the fist to deploy a successful program. moreover, it would eliminate the manpower that it heavily relied upon

Increased internet penetration in emerging markets-many firms have been targeting emerging markets due to the numerous opportunities fostering increased investments of technology firms such as Google Inc. which has impacted the growth and development of the internet which is a core dependency for the growth and expansion of Uber (Perera et al,2015)

The growth of middle-class income-The developing income of the middle-class consumers all around has likewise demonstrated beneficial for Uber. It is essentially the white-collar class customers and the vacationers that make utilization of Uber’s administrations. Since their discretionary cash flow has expanded, they can spend increasingly and this has made open doors for brands like Uber. As opposed to taking the other less expensive methods of transport, these clients are going for the more helpful administrations from Uber(Perera et al,2015).

Partnership with hospitality brands – Uber can band together with neighborliness and lodging brands to serve a huge number of travelers who consistently require taxi administrations while remaining at an inn. This will profit both Uber and the cooperating brands and also the visitors who require transport administrations.

alternative transport choices – In the Asian urban communities, the elective transport administrations are not of as extraordinary quality as Uber’s. It is the reason individuals are settling on Uber than utilizing the conventional transport framework. This implies higher benefits and income for the taxi mark.

Technology innovation – Innovations has enabled the company to employ more powerful production techniques such as the introduction of electric cars among others. It’s an opportunity for the company since the use of mobile phones has enhanced increased internet users that have been accessing the company advertisements and platform services (Poushter, 2016).

Car pooling -This means uber clients are able to share one uber cab for a reduced cost if they are heading in the same direction. This would increase transport price affordability and increase growth and development of the firm

Threats

Legal and political negative pressure – The legitimate and political weights upon Uber is developing. Nearby specialists internationally are squeezing it for consistency with specific laws which were at first not considered appropriate on account of Uber. It confronted issues identified with permitting in South Africa where government began appropriating Uber autos for the drivers did not hold taxi licenses. There are different regions like HR where legitimate weight has expanded on Uber. Californian specialists had before decided that it should regard its drivers as representatives.

Growing protests from traditional taxi services – Uber’s ascent has prompted serious misfortunes for the conventional taxi organizations and that has brought about dissents from them. In a few phases, this dissents even procured political hues meaning a danger to Uber’s business (Barro, 2014)

Self-driving cars-If another competitor firm or a startup that would deploy cab selfe driving cars successfully before uber, it could be the downfall of the firm if it does not counter respond to the changes

Taxes- the constant introduction of bills that would showcase uber as a non-technology fir would simply indicate the tubers revenue collections would have to be tax accordingly and it would incur huge losses and different regions would have different tax caps

Low overall revenues – Uber takes a little offer of the installment which for the most part extends in the vicinity of 5 and 20%. In this way, except if it continues offering its administrations at an extensive scale, the benefits can reduce (Salnikov, et al ,2015).

Rivalry from Lyft: While Uber has been appreciating prevalent development through mechanical advancement which came at the cost of conventional taxi organizations’ business, things appear to have begun changing with the rise of Lyft. Lyft has given in excess of 236 million rides in the vicinity of 2012 and 2016. Both the brands have their in addition to focuses and various drivers serve both (Cramer and Krueger, 2016). This is the means by which things work in the sharing economy. Be that as it may, the two brands are a risk to every others’ business

Driver fraud-Some drivers would find a way of not paying fully the charges collected by tampering with the meter systems which would charge consumers higher than expected, this would lead to bad image for the  firm

Political

Trump campaign-There has been recent news that the Uber Inc. played a major role in funding the trump campaign who is the most hated president so far, this has not gone well with non-trump supporters who have switched sides to lyft which was neutral during the campaigns.

Taxes-the constant introduction of bills that would showcase uber as a non-technology fir would simply indicate the tubers revenue collections would have to be tax accordingly and it would incur huge losses and different regions would have different tax caps

Licenses- traditional government allowed taxi cab drivers to operate as long as they had legal required license, however uber only required individuals to just own a car which as not gone well with several governments such as south Africa.

Government ban the constant unsatisfactory rate  of which the governments have on uber has seen an attempted ban in countries such as Thailand and a successful ban in Spain which affected its penetrations and growth in the market. (Poushter, 2016).

Background checks-Ubers is under threat by the federal govern concerning the constant increase in theft and sexual harassment in relation to uber drivers where uber was subjected to poor employee background checks and is under investigations

Political stability-in regions of political stability such as Canada and Australia and in several African nations has seen the growth and development of the firm in the region

Economic

Share economy-Uber has introduced a share economy where individuals share resources for a similar purpose which is cheaper and much more efficient in utilizing those resources. This has been achieved through the Uber X

Market disruption-Uber business model and approach has seen the dominance of the cab and taxi industry through the us of technology and precision that has been able to allow affordable prices and transparency at much higher levels (Gupta,2017).

pricing uber pricing strategy is attractive and plays a crucial role in the growth and development and dominating the markets beating the traditional taxi systems. This is made possible through the use of a meter pay system that charge according to the distance traveled by the client which further shows the transparency in the delivery of the taxi services (Ma,2017).

Increased loss record-Ubers has been constantly recording huge losses in the recent years in relation to the various problems that ist facing such as lawsuits and loss in government confidence

Employment opportunities-Uber has created employment opportunities internationally at a fast rate in comparison with the traditional taxi services

Market potential- uber has constantly shown growth and development in the market in the recent years and it venture in the emerging markets will definitely have a similar effect

Utilization of resources-Uber ensures the maximum utilizations of resources through its new product Uber X that has grown popular in the recent years since its effect and cheap in the long run

Social

Employee racial diversity. Ubers is one of the few companies that has a diverse racial employment without any discriminations, each employee is viewed equally

Gender equality-female uber drivers have constantly been on the rise which is a good thing for the firm as it adhered with the international required standards, moreover there is no gender pay gap

Standard of living-Increased employment opportunities especially in the emerging markers has exponentially seen the rise of standard of living of uber employees

Cultural assimilation-Uber is well known for its aggressive penetrations of the international markets and successfully dominate the taxi cab services. Part and parcel of this is due the respecting different cultures and assimilating them in the long run  (Stewart, Schat, and Khare, 2017).

Pricing- uber pricing strategy is attractive and plays a crucial role in the growth and development and dominating the markets beating the traditional taxi systems. This is made possible through the use of a meter pay system that charge according to the distance traveled by the client which further shows the transparency in the delivery of the taxi services (Ma,2017).

Technology

Internet penetration-uber business model is heavily reliant on internet connectivity that has constantly been increasing in it penetration especially in the emerging markets.

Self-driving cars-research and innovations towards the development of self-driving cars would be a major boost for the firms if it abel to successfully deploy the first uber self drive vehicle in the market

Electric cars-Uber has constantly been motivating its employees to acquires electric cars for the purpose of environment conservations and the efficient use of resources (Poushter, 2016).

Smartphone penetration-emergence of smartphone companies that offer quality smartphones has seen the rise of smartphone penetration which as has led to the increase of Uber services

Uber App user interface Uber uses a web-based App that has a user-friendly interface which makes it easier for Uber clients and it employees to use. It has also additional features such as location tracking which is useful for direct communications. clients are able to book tai services easily (Chan ,et al, 2016). The continuous advancements of the Uber App is increasingly creating a strong footing for the company on the consumers

Environment

Electric cars-Uber has constantly been motivating its employees to acquires electric cars for the purpose of environment conservations and the efficient use of resources

Utilization of resources-Uber ensures the maximum utilizations of resources through its new product Uber X that has grown popular in the recent years since its effect and cheap in the long run and is also eco friendly

Environmental policies-Uber has adhered the various interactions environmental governing policies that has also been translated to the employees ie. Uber drivers towards environmental conservation (Bauer et al,2018)

Legal

Taxes-the constant introduction of bills that would showcase uber as a non-technology fir would simply indicate the tubers revenue collections would have to be tax accordingly and it would incur huge losses and different regions would have different tax caps (Salnikov, et al ,2015).

Licenses- traditional government allowed taxi cab drivers to operate as long as they had legal required license, however uber only required individuals to just own a car which as not gone well with several governments such as south Africa (Salnikov, et al ,2015).

policies-uber’s aggressive penetration to the market has not gone well with various governments such a Italy that has seen the ban of the black uber services in the country which has motivated other countries to follow suit(Dube, 2015)

legal problems – The legitimate weights upon Uber is developing. Nearby specialists internationally are squeezing it for consistency with specific laws which were at first not considered appropriate on account of Uber. It confronted issues identified with permitting in South Africa where government began appropriating Uber autos for the drivers did not hold taxi licenses. There are different regions like HR where legitimate weight has expanded on Uber. Californian specialists had before decided that it should regard its drivers as representatives.

Government ban the constant unsatisfactory rate of which the governments have on uber has seen an attempted ban in countries such as Thailand and a successful ban in Spain which affected its penetrations and growth in the market.

Background checks-Ubers is under threat by the federal govern concerning the constant increase in theft and sexual harassment in relation to uber drivers where uber was subjected to poor employee background checks and is under investigations.

Waymo law suit -Uber is currently facing a law suit by in investor google in the claim that the former employees of the firm who currently work at Uber stole the tech giant technology where that allowed self-driving car to map the environment around them which is currently a stumbling block to uber as it is reinventing itself towards self-driving car taxi services

The company’s management committee has proposed to explain the market challenges acknowledged by presenting strategies for doing its exercises. In any case, the organization has intended to enhance its innovation by completing a propelled explore on a one of a kind method for doing its exercises like the generation of super speed and ground-breaking vehicles to utilize and offer. For her working capital, that is, the working autos are to be painted and bear UBER innovation log for identification. The uniqueness of the working autos will clear the questions of customers that they might be of criminals (Newlands,Lutz,and Fieseler,2018). The demonstration will tackle a major test that has been a mental issue for the customers. Crafted by setting up the thought will take three and half months. Having the effect will make another working framework that all vehicles will be followed both outside and inside perspective of the vehicle (Fitt ,et al 2018). The procedure is gone for checking negative behavior patterns of drivers who may debilitate the organization’s name by having a twofold destination in the business, for instance, a few ruffians may pay off some UBER taxi administrators to utilize their chance and get the general population to hijack. The issue of acquiring low revenue from the cuts should be addressed by increasing revenue through advertisements and marketing from other firms annually (Barro, 2014).

The organization’s administration group has emphatically attempted to demonstrate their unmistakable quality. The designated systems are probably going to work effortlessly without raising other dangerous issues the organization’s technique is a great worldwide procedure that has center multi-benefits in the market (Shtal, et al,2018). Illustration grants, motivating forces are some appreciated advantages by both uber Inc organization and its item customers. The organization has a refined working s will prompt achievement. The uber innovation Inc organization has is portraying a class of work that has scarcely been found in the vast majority of the generation organizations on the planet. The organization has broken even with treatment to its workers and accordingly a reasonable diversion is played in the operational field. The amusement requests that each laborer has control over his or her office through the requests from the above are very regarded the organization. The organization is, in this manner, ready to keep up its capacity and work on the accessible assignments since it is centered around progress. The arrangement of the business is dictated by the power the business has and how gifted is its workforce. The organization all around concentrated to chip away at the arranged work and in this way, time is very much used and the administration group us continually demonstrating the environment that supports the accomplishment of the business. The organization is in a situation to outmaneuver alternate’s business because of its readiness that has been fortified by the legislature of America. The situation of the organization likewise makes it a ground-breaking association that is lord in the market in spite of the cutting-edge innovation(Dube, 2015).

Conclusion

In conclusion, Uber  is a privately-owned organization that provides peer to peer ridesharing, taxi cab, food delivery, and transportation. It was founded by Travis Kalanick in the year 2009, the organization has delineated a well and most refined method for activity and along these lines, it is an organization that is establishing a business framework for different speculators to copy because of their decency and large amounts of equity showed in its wards. The organization has set down and balanced on its shortcomings and risky issues recognized, in this manner through the conduction of a Swot and pestle analysis, it will be the best as it works for since the administration group works under the rule that it isn’t sufficient to be great when ready to be ideal. The rule remains that the organization is capable and, in this way, it accomplishes the objective of carrying more individuals into a couple of autos of UBER INC Technology Company. Finally, recommendations of the various challenges and weakness identified have been issued while giving a career plan in the end

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