Macro-environment Analysis of UBER

Introduction:

Macro-environment Analysis of UBER:

Organizational Environment:
There exists an essential need for conducting the competitive analysis for the purpose of identifying
the various problems which are faced by the customers and in addition to this the business model along
with the strategies adopted by UBER also needs to be conducted for the purpose of dealing with the
different kind of customers which are faced by the customers (Angrist, Caldwell and Hall 2017). The
increased usage of the smartphones in today’s world assisted by the improved technologies and the
increased value of perception related to the time has been associated with helping in the establishment of
the increased value which has been experienced by UBER so far. Besides this there also exists various
environmental factors as well which is mainly associated with including the different kind of weather
conditions which are in turn responsible for having a huge impact upon the demand and is initially
responsible for the increased price of the entire journey of the customers.

Business Model of UBER:
Once the screening of the vehicles is completed, UBER moves forward towards the recruiting of the drivers who
would be serving them. The reason behind following this recruitment process is for making sure that the car which would be
serving the organization is at all worthy for serving the roads or not (McKenzie and Baéz 2016). Another reason lying
behind the screening of the vehicle before recruiting the driver is that, UBER wants to provide the customers a comfortable
as well as safe ride to the customers while they are riding the cars provided by UBER. UBER is often associated with
providing a smartphone to the drivers once they have been endorsed as a member. This is mainly done for the purpose of
making sure that the drivers are having an access to the applications of the organization in a convenient way as well as in a
more effective way. Besides all this the drivers working for UBER is also provided with an extra facility related to non-
payment of the tax licenses and any other type of taxes which are seen to be paid by the other drivers working for similar
type of service providing organizations such as the Black Cabs (Wyman 2017). All this in turn are associated with helping
the UBER drivers in earning much more than the other cab drivers serving other organizations.
The customers are provided with the facility of tracking and accessing the cars once they have successfully booked a
car by making use of the UBER application from their smart phones. Besides this the application of UBER is also associated
with providing other information to the customers as well such as the approx. fare, the license plate of the car, information
about the driver and many more (Glöss, McGregor and Brown 2016). In addition to all this the customers are also provided
with the facility of viewing the previous reviews about the driver as well along with the ratings which is provided to the
driver and a photo of the driver is also provided after a customer books an UBER successfully. There exists numerous factors
which are responsible for determination of the price for booking and the factors include the distance which is to be covered,
the demand for cars, and the type of car which is being selected for booking and many more. In many cases the price of
booking might vary in accordance to the weather condition. The payments can be made by means of net banking, cash or
cards (Jiang et al. 2018). The online method of payment is considered to be much more secure and once an online payment is
made UBER is then associated with splitting of the receipt with the driver.

Porters Five Force analysis:
This is the tool which is used for the purpose of analyzing the completion which
is faced by a particular business. Amongst these five forces three of the forces are
incorporated by the horizontal competition whereas the other two are incorporated as
the vertical competition. The horizontal competition is associated with including the
“The danger from Substitution by new products or services”, “risks posed because of
the rivals already existing in the market” and “the threats faced by the new entrants.”
The vertical competition is associated with including the “bargaining power of the
supplier” and the “bargaining power of the buyers”.