Uber analysis Report Essay Example
Historical information about uber
Uber was founded in 2009 by Travis Kalanick and Garret Camp (Radhakrishnan et. al 2013). Their main aim was to minimize the problem of transportation faced by the travellers in over 500 cities and 10 nations. In May 2010, the founders of Uber launched uber services and mobile app to their customers as one of the ways to ease transportation across the counties and as a source of communication between the drivers and the riders. In 2011, the company changed its name from ubercab to uber and a service known as UberX was introduced in the company for the customers who needs privacy. After the invention of UberX, uber launch another services called UberPOOL which its purpose was to match the riders travelling in the same direction (Schaller, 2007).
Circumstances led to undertake Research and how the issue was discovered
There are various circumstances which have led to undertake the research on Uber Company. They are as follows; Level playing field (Litman & Burwell, 2006). This has been a major issue affecting the traditional taxi industry since the invention of online taxi services. Online taxi services has attracted majority of the customers due to its convenience, luxury and qualified drivers compare to other taxi cabs. It has also better matching technology which everybody can download in their phones via Google play store or any other means which make it to suit all individuals.
This is checking and confirming the drivers’ criminal record for the success and good reputation of the company. Fingerprinting drivers as become an issue to almost all the online transportation network since there are aiming at maintaining relationship with their customers. Fingerprinting of drivers was discovered when there was threatening to withdraw some of the cities in the united states due to criminal records. They were to use lives can machine to address fingerprinting services and assure to maintain accuracy and standard value to their customers (Litman & Burwell, 2006).
Apart from fingerprinting drivers, wheelchair accessibility has become a major issue in transportation network. Majority of uber drivers are using their personal cars , getting accessible to riders in wheelchairs has become hectic to them, since the riders requires a lot of attention due to their condition. This issue was discovered when majority of the consumers were complaining of the increase of percentage of the fleet in the cities, in which they were requesting for the invention of wheelchair riders to those people with disabilities (Litman & Burwell, 2006).
The impact and its magnitude to the company’s operation
Benefit for customers. Since the introduction of Uber Company in the United States, the mode of transport has become cheaper and easy to access to those individuals who need cabs services at an affordable price (Schaller, B., 2007). The company has invented a mobile app as source of communication between the drivers and their consumers creating a unique feature from other taxi companies thus creating customer attraction. The company also benefits their customers by allowing all modes of payments.
Uber Company has become a source of employment to all the 500 cities. The company has created jobs to drivers and other professionalism in the field (Schaller, 2007). The rate of employment decreases, since customers were allowed to connect with qualified drivers of their choice who can ride them to their specific geographical station safely. The industry has also disrupted old transportation industries by the ease method of communication they are using between the drivers and the riders. They have make less need to own a car among individuals due convenience they are assuring to their customers thus increasing the growth of success to their industry (Jones, 2006).
Price surging is another factor that has enhanced the growth of the uber industry. When the number of travelers increases, the company services also increases at an affordable rate to their consumers (Jones, 2006). Most customers prefer the uber services regardless of the price due to the convenience and luxury it offers. The company always releases an advert early enough to their riders whenever they want to increase the services, for them to create a strong relationship between the consumers and the company.
Business problem and how the company intends to make
The following are the major business problem facing uber industries and actions it tends to make using the output of research investigation.
Labor has become major threat to the uber company, getting the right drivers who have free-criminal record and qualified for the position has been a great challenge to the company. Risks such as kidnapping riders and rape cases have been a major concern of the company caused by the uber drivers hindering the success of the company (Schaller, 2007). Due to labor problem, uber has introduced fingerprinting services that would help in accessing the criminal records of the uber drivers for smoothing the field for its competitors and also to maintain strong relationship with their customers.
Apart from labor being a problem hindering the growth of the uber industry, riders have also been a mojor threat in that, they develop a non-market relationship with the uber drivers due to long access of one driver for an example riders end up not paying the transportation fee due to their relationship with the drivers (Santi et. al 2014). The strong non-market relationship between the rider and the driver has also caused a great risk to the drivers, making drivers to ride to unsafe places and being hijacked. Since, the drivers are using their own car in transportation, the company is fighting on how to label their drivers as employees of uber in order for them to protect the safety of the drivers, and also to ensure there is no non-market relationship builds between the riders and the drivers for them to achieve their success (Jones, 2006).
The following are the list of research questions that can assist in addressing the Business Problem and how the problem can be resolved.
How uber can become an advocate and also supporting the access of transportation in marketing-driven option. The second research question is how uber can allow the local ride-sharing companies with finance-driven approach and lastly is the methods uber companies can used to facilitate the driver supports and ways on how they can acquire insurance means. On supporting the access of transportation in marketing-driven option, uber should ensure they maintain a fair price with their customers even when the demand has rose up. When comes to finance-driven approach, they are supposed to comply with the lawsuits from the government and also to ensure the measures taken to compete with their competitors are of standards and can suit both the drivers and the riders. On acquiring insurance means, uber industry should ensure every driver has been insured with the company as way to prevent their competitors from taking advantage and also as a way on how to facilitate their drivers.
The main research objectives are to determine ways uber industry can overcome the problem of labor, how they can increase safety in uber operations for example in how they can achieve lasting success from their consumers and lastly ways to retain a larger market share due to intense competition from their competitors.
Uber’s ability to operate under Australian transportation industry has not been an easy task. The invention of ridesharing service uber in Australia has made the mode of transportation to be fair and cheap to all passengers (Jones, 2006). However, the uber industry is facing challenges on the traditional taxi companies and governmental sector on importance of public safety, vehicle inspection, and insurance requirements for drivers.
Regardless of the challenges they faced under the Australian government, the ridesharing service uber was able to withstand and comply with the entire Act regulating the transportation sector (Santi et. al 2014). The industry has also increase safety issues of uber operations, training of employees, the safety of customers and vehicle conditions.
Jones, G., 2006. The End of Nationality? Global Firms and «Borderless Worlds». Zeitschrift für Unternehmensgeschichte, 51(2), pp.149-165.
Litman, T. and Burwell, D., 2006. Issues in sustainable transportation. International Journal of Global Environmental Issues, 6(4), pp.331-347.
Radhakrishnan, M., Camp, G., Salazar, O. and Kalanick, T.C., Uber Technologies, Inc., 2013. Providing user feedback for transport services through use of mobile devices. U.S. Patent Application 13/837,592.
Santi, P., Resta, G., Szell, M., Sobolevsky, S., Strogatz, S.H. and Ratti, C., 2014. Quantifying the benefits of vehicle pooling with shareability networks. Proceedings of the National Academy of Sciences, 111(37), pp.13290-13294.
Schaller, B., 2007. Entry controls in taxi regulation: Implications of US and Canadian experience for taxi regulation and deregulation. Transport Policy, 14(6), pp.490-506.
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