Monitoring and Researching Service Success and Failure
Since its establishment in 2009, Uber has turned out to be one of the highest venture-backed firms in terms of its value. The company has received positive feedback from its customers (Yamamoto 2013); one of the major reasons that has catalysed its rapid growth in the cab transportation business. The success of the company in delivering services to customers emanates from its easier to use, less expensive and convenient ways of transporting customers from one point to another. According to the statement of Travis Kalanick, the CEO of Uber, the transportation company focuses on offering seamless services in ground transportation by providing customer-centric services. The services enable customers to grab taxis regardless of their locations; an advantage that the company enjoys over traditional cab firms.
Uber’s mobile app also enables customers to interact with their drivers in advance besides knowing the fare prices for the services offered. The success of Uber’s services also originates from the ability of the customers to track their routes and make cashless payments using their credit cards. The uniqueness of the customer-centric approach emanates from the fact that customers can access the services using the Uber app rather than having to do it physically. The other success factor in Uber’s service delivery is its ability to address the dissatisfaction problem among its consumers, as is the case with the traditional cab operators (CayenneApps 2016). As opposed to the long waiting time and high prices offered by traditional cab operators, Uber has reduced the waiting time and lowered the prices of its services.
Despite the success in delivering its transportation services, Uber also presents failures from the perspective of the drivers and governments. The firm has gained negative reputation from governments by skirting regulations that it considers unwarranted. The shared services offered by Uber have the potential of impacting negatively on the endeavours of the firm to expand its operations in other governments (Barry & Canon 2015). As a result, the firm has incurred fines resulting from its conflicts with several governments such as United Kingdom, Thailand, Indonesia, Netherlands, France and Germany. In essence, the bad publicity of the company is an indicator of its vulnerability to new legislations that do not support its principles of operation.
The ethical relationship between the firm and its drivers is also questionable. Uber’s drivers complain about low earnings amidst the high costs of being a driver (Rogers 2015). The fact that the application does not encourage tipping implies that drivers would prefer working for traditional cab firms as opposed to Uber. Since other firms can copy the idea of associating low prices with convenience to gain competitive advantage over other firms, it is proper to state that the firm faces the challenge of increasing competition from emerging competition. The absence of a bond between Uber and its customers also indicates that it is easy for the firm to lose its customers.
It is imperative that Uber should develop an aggressive strategy that allows it to maintain its good reputation with customers as well as create a positive image with its drivers and governments. The multiple strengths enjoyed by the company imply that the firm can capitalise on the strengths as opportunities for further growth in foreign markets. Apparently, the scalable and unique model of business employed by the company guarantees its ability of the company to utilise its resources. The increasing dissatisfaction exhibited by customers towards regular taxi services in exploitable and new markets provides a window of opportunity for Uber (Gloss et al. 2016). The firm can capitalise on the existing levels of dissatisfaction to offer its services to the customers thereby increasing its global presence and profitability.
It is also important to deal with the company’s internal weaknesses since they have a limiting effect on the opportunities of the company as well as impacting negatively on the external environment. Inasmuch as the firm’s strengths enable it to make use of the existing and emerging opportunities, the weaknesses also have the effect of intensifying the threats of the company. The weak connection between the strengths and threats of the company is a disturbing fact that requires immediate addressing by the company (CayenneApps 2016). In the event of real threats such as the emergence of real-time competitors that use similar strategies, there is a high likelihood that Uber will lose big sectors of the market.
Keeping in mind the strong connection between strengths and weaknesses and the weak connection between strengths and threats implies that the firm should address its main threats of drivers’ low earnings and legal regulations (CayenneApps 2016). Dealing with the regulations will enable the firm to expand its operations in new and promising markets consisting of customers that exhibit dissatisfaction with the regular taxi services. Increasing the earnings of drivers would also have a positive impact on the morale of the drivers thereby reducing the rate of employee turnover that has an effect on the demand for services in the service industry.
Barry, J.M and Caron, P.L 2015, ‘Tax Regulation, Transportation Innovation, and the Sharing Economy’, U. Chi. L. Rev. Dialogue, Vol. 82, pp.69.
CayenneApps 2016, ‘Uber-SWOT Analysis’, <http://blog.cayenneapps.com/2015/02/09/the-swot-analysis-for-uber/>
Glöss, M, McGregor, M and Brown, B 2016, ‘Designing for Labour: Uber and the On-Demand Mobile Workforce’, In Proceedings of the 2016 CHI Conference on Human Factors in Computing Systems (pp. 1632-1643), ACM.
Rogers, B 2015, ‘The social costs of Uber,’ University of Chicago Law Review Dialogue, Forthcoming.
Yamamoto, A 2013, ‘Car Sharing is Caring: Uber and Lyft Prove Value to Consumers’, <http://www.crimsonhexagon.com/PDFs/car-sharing-industry-report.pdf>