Business Plans of Uber Eats and Alibaba: A Comparative Analysis

Verified

Added on  2023/06/08

|24
|6072
|78
AI Summary
This report compares the business plans of Uber Eats and Alibaba, outlining their revenue streams, sales channels, strengths, and weaknesses. It evaluates the three strongest and weakest components of each plan and provides strategic recommendations for improving customer service potential. The revenue plan of Uber Eats and the C2C business model of Alibaba are highlighted. The report also discusses the major strengths of Uber Eats, such as their market acquisition strategy, and the negative word of mouth publicity from franchise restaurant partners. The vibrant market occupancy rate of Alibaba is also highlighted, along with the hurdles of legal regulations. The report concludes with an in-depth recommendation guide for both companies.
tabler-icon-diamond-filled.svg

Contribute Materials

Your contribution can guide someone’s learning journey. Share your documents today.
Document Page
Running head: ENGINEERING MANAGEMENT
ENGINEERING MANAGEMENT
Student’s Name
University Name
Author’s Name
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
2ENGINEERING MANAGEMENT
Executive Summary
In the following report, the business plans of Uber Eats and Alibaba are focused upon. The
financial unit revenue plan of Uber Eats have been outlined here. Again, the multiple sales
channels strategy of Alibaba have also been highlighted. The revenue plan of Uber Eats
shows that the company has sources of earning from the customers as well as the partner
restaurants. The ways in which this revenue plan generates value towards the company is
identified in this business report. In case of Alibaba, the C2C business model have been the
major source of the company’s profit. The major channels that the company have pertained
to, have been highlighted in this report. Besides, this report also focuses upon the major
strengths of Uber Eats like their market acquisition strategy. The ways in which the multi-
survey strategy have worked for the company have been highlighted in this report. Similarly,
the company have also received negative word of mouth publicity from various franchise
restaurant partners who have shared a long term business collaboration with Uber Eats.
Similarly the business domain and the vibrant market occupancy rate of Alibaba have also
been highlighted. Drawing a market comparison with other market competitors, how Alibaba
have generated value to its revenue stream have been reflected. Nevertheless, the company
have also faced hurdles of legal regulations as it is Chinese company and China have
stringency regarding the overseas operations of their native companies. In the end an in depth
recommendation guide have also been provided in order to highlight how these two
companies can improve their revenue stream and flourish in future.
Document Page
3ENGINEERING MANAGEMENT
Table of Contents
1. Introduction............................................................................................................................3
2. Brief description of the business plans...................................................................................3
2.1 Business Plan of Uber Eats...............................................................................................3
2.2 Business Plan of Alibaba..................................................................................................5
The 5Ps of Marketing Mix of Alibaba...................................................................................9
Price....................................................................................................................................9
Place....................................................................................................................................9
Product................................................................................................................................9
Promotion..........................................................................................................................10
3. Evaluation of three strongest components of each of the plans...........................................11
3.1 Uber Eats........................................................................................................................11
3.1.1 Development of meaningful partnerships................................................................11
3.1.2 Mapping customer satisfaction................................................................................12
3.1.3 Devouring market competition to become market exponent...................................13
3.2 Alibaba...........................................................................................................................14
3.2.1 Value proposition towards the Chinese customers..................................................14
3.2 2 Innovative launch of Alipay....................................................................................15
3.2.3 Channels...................................................................................................................16
4. Evaluation of the three weakest components of each plan..................................................16
4.1 Uber Eats........................................................................................................................16
Document Page
4ENGINEERING MANAGEMENT
4.1.1 Unfair contract terms...............................................................................................16
4.1.2 The unwillingness to accept liabilities.....................................................................17
4.1.3 No control over processes........................................................................................17
4.2 Alibaba...........................................................................................................................17
4.2.1 Owners are for namesake only.................................................................................17
4.2.2 Government Interference.........................................................................................18
4.2.3 Bad reputation.................................................................................................................18
5.1 Recommendations for Case 1.........................................................................................18
5.2 recommendations for Case 2..........................................................................................19
6. Conclusion............................................................................................................................19
Reference List..........................................................................................................................20
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
5ENGINEERING MANAGEMENT
1. Introduction
In this report, the basic postulates of the business plan of the two companies, Uber
Eats and Alibaba.com have been focused upon. The brief outline of the two companies
including the major revenue streams, sales channels and other descriptions have been
discussed. In the following part, the three major advantages as well as disadvantages of both
the business plans have been discussed. Besides, strategic recommendations have also been
provided in order to highlight the major approaches that the organisations can pertain to, in
order to develop customer service potential.
2. Brief description of the business plans
2.1 Business Plan of Uber Eats
The business plan of Uber Eats can be discussed against 3 reference frames. There are
three components to measure the viability of their business model. These are:
Convenience of the customers/ Delivery charges
Fees incurred by the Courier Partners
Revenue sharing with the partner restaurants and amortization of the marketing fees
The courier partners of Uber Eats can be exclusive drivers of Uber registered cars
(Car/bicycles and motor cycles). These partners voluntarily register for being a part of the
delivery partner network. Depending on the location of the customer and the proximity of the
delivery pick up point, the order is allocated (Stonehem, 2016). The company have three
principle revenue sources. The first channel of revenue is delivery charges collected from the
customers. Another potential channel is revenue sharing with the restaurant partners. Another
avenue of collecting is the money collected from the partner restaurants for advertising their
brand name before a large customer base.
Document Page
6ENGINEERING MANAGEMENT
Whenever the customer order something from the mobile app of Uber Eats, they have
to undergo a payment of a minimum flat fees to the company. This payment ranges from $1
to $50 by American standards. However, surge pricing are applicable for Uber Eats also, just
as the Uber taxi app charges from the customers (Roberts, Kigotho & Stagg, 2018). The surge
pricing are generally applicable during the peak lunch and dinner hours.
Another important channel for revenue sharing against the orders that are being
fulfilled by Uber Eats. This charge lies between 15% and 40% depending on the age, size and
maturity of the business market. In the USA, Canada and other developed countries, this rate
is 40% and in the underdeveloped countries where the business market is lacking ample
purchasing power and parity, the rate is ranging from 15 to 20% (DeMasi, 2016).
A unit economic example can be taken in order to explain the microeconomic revenue model.
Assuming that Mr X gives an order for food from a restaurant owned by Mrs Z through Uber
Eats application and the cost of the order is $50. Again a convenience fee of $5 is also
charged from Mr X. Moreover, the order delivery is accomplished by service partner Mr A.
The dynamics of revenue against this order would seem like:
Total value paid by Mr X: $50 + $5 = $55.
Total amount that is received by Mr Z: $50 * 0.7 (equivalent to 30% commission) =
$35
Delivery against income for Mr A: the revenue for pick up + delivery charge revenue
+ Per kilometres/ per miles charge = $4 + $2 + $2 * 3 miles = $4 + $2 + $6 = $12
[This pattern is followed because multiple orders can be accepted from the same
restaurant and hence Uber Eats would not give the delivery agent more than once for
delivering orders from the restaurant of Mr Z at a single time.
Therefore, net income accomplished by Uber Eats: $55 - $35 -$12 = $8.
Document Page
7ENGINEERING MANAGEMENT
The follow up of this business plan is very optimistic for Uber Eats because the company
makes money out of this revenue model on per unit basis (Morais Carvalho, 2015). However
this is the not the neat gain ratio for Uber as the company also loses out money by dolling
out special discounts, even they are losing out money on deliveries and even signing up
with big restaurant brands without pay (for endorsement purpose).
2.2 Business Plan of Alibaba
Alibaba, staring their business operations in 1999, have currently surpassed Walmart
to become the largest retailing corporation in the world having business operations in almost
200 countries. In the course of this report, the business plan that Alibaba follows in its
various operations have been outlined. Alibaba endorses itself as a platform for bulk selling
and thereby acting as a medium for trading between businesses to business. The suppliers get
an opportunity selling their products to small and/or medium sized business firms all over the
world. In turn, the purchasing parties sell the purchased products in their own domestic
markets. However other sales channels are also operated through the online portal of Alibaba
(Lampert & Thomas, 2016). An example can be cited. Taobao portal is for the trading
purpose of consumers who are interested in bulk trade whereas the portal of Tmall is mainly
for the middle class retail customers in China for retail purchase of branded clothes. Other
than these three portals the company also operates 6 subsidiaries including AliExpress,
Alibaba Cloud, Cainiao Network, and Ant Financial and so on.
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
8ENGINEERING MANAGEMENT
Figure 1: The business sub-brands of Alibaba
(Source: Masciarelli & Di Lascio, 2018)
Alibaba.com is however the greatest portal for business operations that the company
operates. This portal enables exporters in South Asian countries including China to
communicate with B2B clients all over the world. The buyers over this Alibaba portal are
mainly trade agencies, whole selling agencies, SMEs as well as manufacturers. Other Exim
supply chain related services that are offered by the company are
o Custom Clearance
o Value Added Tax refund
o Trade financing and
o Logistics facilities
This corporation acts as a virtual marketplace acting as a meeting point between buyers
and sellers. Being an intermediary, the company charges commissions from sellers
pertaining to China, Taiwan, and other countries. The customer attraction policy of the
company is also appealing. They allow the companies to endorse 50 listings at least for
Document Page
9ENGINEERING MANAGEMENT
free. After that when the client have created a basic clients base they are charged by the
company for any further operations.
The Tmall unlike the above portal endorses about 3700 categories of products and
caters to about 500 million active customers (Foos et al. 2017). In any way the company
have been vending high cash flow towards the shareholders and expanding market share
in the core market.
Table 1: Alibaba revenue margin in the past three years
(Source: Gan et al. 2018)
Here it is visible that Alibaba have been running at a consolidated margin of operations of
34%. On the contrary, the margin of other global ventures like Amazon is 3%.
Alibaba applies a hands-off policy in the case of business operations, allowing the retailers
service providers and the retailers to take charge of activities like marketing, warehousing
and delivery, payment processing as well as providing customer service. In order to
financially demonstrate the business plan of the organisation, the demonstration of how the
sales of a $100 worth item would flow through their revenue channels can be exhibited.
Document Page
10ENGINEERING MANAGEMENT
Table 2: Flow of a $100 item through the revenue structure of Alibaba: Financial Notes
(Source: Lin, Calovic & Shin, 2018)
The business model canvas of the company defines the primary entities and elements
of their business plan also including customer relationship, market segmentation, main
resources, and structure of cost and revenue stream for Alibaba’s through global business
entrepreneurship.
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
11ENGINEERING MANAGEMENT
Table 3: Business Model Canvas of Alibaba
(Source: Perani, 2018)
The 5Ps of Marketing Mix of Alibaba
Price
The company follows a policy of permissive pricing and hence the remuneration
generated is quite less in order to provide to the entrepreneurs to get their own personal
business done. Alibaba have been able to get penetrative fees owing to reduced prices of the
China based products.
Place
At present, “Alibaba.com” is being the single website that deals internationally and
the other portals of this business group basically concentrate on the domestic Chinese market.
Product
The various products of Alibaba are Taobao, AliExpress, Tmall and AutoNavi and so
on. However the primary market product is Alibaba.com. This main portal mainly covers the
Document Page
12ENGINEERING MANAGEMENT
Business 2 Business market. Other products of this company operates in different
Ecommerce markets (Márquez-Ramos & Mourelle, 2018).
Process
The market processing of Alibaba is very simple as the company operates mainly in
the online space. The transaction in any platform of Alibaba are mainly done through Alipay
and sometimes Western Union and other portals similar to this. The C2C pattern of business
makes it easier for the organisation to handle the operations easily.
Promotion
The internet based promotion al strategy is adapted by Alibaba since the online
platforms are cost effective and according to Tan, Pan & Liu, (2016), Internet is considered to
be the fastest promotional tool in the context of the Exim market. The presence of the
company in the upper quarters of the popular search engines like Yahoo, Bing and so on,
have helped in creating a brand awareness among the potential customers of Alibaba. The
availability of active internet banners makes the customers directly revert to the parent site
and directly avail the services of Alibaba from any of their advertisement portal. Media
advertising and combination of catchy taglines like “Find it/ Make it/ Sell it” helps the
company to easily promote their products and/or services (Tan et al. 2015). New market
entrants are enticed by such taglines and majority of the customers of Alibaba are active
internet and social media user and that is why the media promotions are the most feasible
media of promotions for the company. Event sponsoring have also been a popular
promotional pattern for the company. Sponsoring of events like Australia-China business
week have provided a big exposure to the brand across two continents. This business event
being the first sponsoring of any event of Australia, helped a lot in gaining market entry to
the Oceania based countries.
Document Page
13ENGINEERING MANAGEMENT
3. Evaluation of three strongest components of each of the plans
3.1 Uber Eats
3.1.1 Development of meaningful partnerships
The way Uber Eats have established a diligent and significant relationship with the
restaurant partners they have been working with, have helped the brand to differentiate them
from other food delivery brands operating in the market. Prior to the launch of the official
Uber Eats app, the company conducted a survey of the operational and marketing ventures in
each cities of the locations where they launched their service. The restaurant made it a top
priority to interact with the core management of the most popular food joints of every cities
after an elaborate customer survey. The list included the most popular café joints, food trucks
(or street side stalls) as well as the best eateries in the city. They have collected demographic
information subtly, in order to identify the selective dishes from chosen restaurants that the
major population of the city can associate with. Hence, after the launch of their service they
could project the same dishes so that they could generate value to the customers. At first the
customers got an innovative way to reach out to their favourite restaurants and the selection
of their favourite dishes from most popular eateries on the Uber eats menu made them feel
that the company have a subtle knowledge of the culture and heritage of the city and this
automatically placed them in favourable position of competitive advantage. This is how the
company prioritised relationship-building as its primary strategic objective even before its
launch in the potential market. After their launch, they gradually started boarding the new and
emerging food joints and gradually shifted to the policy of competitive pricing.
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
14ENGINEERING MANAGEMENT
The company, however, do not grows potential relationships with the customers, they
are mindful of the restaurant partners also. The instant delivery options and cross promotional
facilities made the brand an automatic choice for many restaurants also. Again, the delivery
strategy is also a part of the favourable partnership building of Uber Eats. The advisors from
the restaurants work with the executives of Uber Eats in order to make the food deliveries
from those restaurants more delivery friendly. Besides, the company only operates on the
selected delivery range from the restaurant’s end and that is why the products listed on the
menu of Uber Eats are always available and reaches the customers fastest (Powell et al.
2013). Besides, the company also have a Food grade and quality expert and the restaurants
under contract have to abide by the advisories of the Quality control experts of Uber Eats.
The best part of the operational plan of Uber Eats is that they are creating subsidiary
economies in the restaurant and hospitality industry. The family owned restaurants are in
vogue nowadays for their homely food and cosy ambience. However, such restaurants lack
the marketing skills and budget required to reach out to the potential customers. The exposure
by the Uber Eats app provides them with a unique opportunity to introduce their cuisines
before the potential market and acquire same market size as the biggest restaurants’ chains in
the city.
3.1.2 Mapping customer satisfaction
The company highly prioritises the customer’s feedback. In potential countries like
USA, Canada, UK and so on, private cab service partner Uber had adapted to the strategy of
valuing customer feedback and capitalising major changes based on customer feeds (Guo et
al. 2006). The same policy is also adapted by food delivery sub-brand Uber Eats to gain
market control. Customers do not rate the delivery and the food based on star rating, rather
there are only two options: “Good” or “Bad”. According to the words of the CRM of Uber,
Document Page
15ENGINEERING MANAGEMENT
either the food was delivered in time and the taste was good or it was not. There cannot be
other alternatives.
Figure 2: The customer rating option of the Uber Eats app
(Source: Huo et al. 2011)
Another competitive part of their business plan is that they know how to acknowledge
mistakes. An instance can be provided. In case if the delivery executive is 15 to 20 minutes
delayed in reaching out to a customer, the themselves takes the initiative to critique their
service through an email and also sends discount vouchers worth $5 to $7 to be available for
the next order. By this strategy they ensure two things. The first is that they successfully
prevent negative publicity from the unsatisfied customer and secondly the customer have to
come back again in order to encash the free voucher, thus ensuring successful customer
retention.
3.1.3 Devouring market competition to become market exponent
According to the findings of Ter Chian Felix Tan & Pan, (2016), Uber Eats’ strategy
to launch 500 cities together after developing the framework of service for 1 and ½ years in
all major cities, have helped the company to achieve revenue generation rate of 230.1% in
2018, as compared to the consumer market of the company y in 2016. The two innovative
strategies of revenue sharing and brand endorsement and publicity have led the company on
the verge of becoming market leaders in USA and Asia. The other few famous food delivery
companies like Doordash, Seamless and Postmates have been able to achieve an approximate
Document Page
16ENGINEERING MANAGEMENT
revenue turnover rate of 106.3%. The continued valuation of consumer feedbacks have
placed the company in such comprehensive positions that in USA and Europe, that of the new
users of food delivery services, more than 30% are adapting to Uber Eats and this is the major
reason for revenue increment of Uber Eats.
Doordash Grubhub Postmates Seamless Uber Eats Total
0.00%
50.00%
100.00%
150.00%
200.00%
250.00%
300.00%
350.00%
106.44%
24.27% 41.03% 12.11%
230.10%
60.71%
118.91%
25.30% 39.46%
5.72%
112.21%
55.11%
New users are driving revenue growth for
Uber Eats
Revenue Buyer
Food Delivery apps
Revenue and User Growth (Year after year)
Graph1: New users are generating maximum revenue growth for Uber Eats
(Source: Bhaskaran, 2006)
The company designates the persons who have used Uber Eats in the latest 12 months
as “Uber Eats buyers” and the survey conducted by the company shows that the 77.7% of the
new customers have reused the Uber Eats application in the same 12 months after their first
usage.
3.2 Alibaba
3.2.1 Value proposition towards the Chinese customers
Alibaba helps the Chinese sub-brands operating under them (Tmall) to understand the
demographic trends and capture the increasingly diverse base of customers. It is forecasted
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
17ENGINEERING MANAGEMENT
that within 2021, the consumption valuation of China would rise from USD $1.89 Trillion up
to USD $6.1 Trillion (Nabhani & Shokri, 2009). The company also generates value towards
their customers through high tech analytical tools. Technological adaptations such as big
data, augmented as well as virtual reality so that the small sub-brands can endorse their
products to the customers s in a better way. The VR Buy+ channel was introduced by the
company in order to help the companies to specify their products to their customers. Alibaba
franchises like Tmall allows customers to communicate directly with the organisations by
leveraging the media assets of Alibaba (Bhaskaran, 2006). Alibaba is the only brand in the
genre that hosts customer appraisal festivals like Singles’ Days, Super Brand celebration Day
for the happy Tmall customers and offers lucrative discounts on those days including hosting
of many mini games and giving away of awards.
3.2 2 Innovative launch of Alipay
The launch of AliTrip have placed the customers at the receiving end of various
benefits. The travel choices of Alibaba are numerous and diverse. One major innovation of
the business model of AliTrip is that the customers can pertain to mix and match in order to
determine a service platform that suits their personal needs. The portal allows the customers
to avail hotel bookings and paperwork confirmation through mobile phones only. The
payment processes are also simplified through portals of online payments that are accepted
by the hospitality agencies through the use of Alipay which enables the payment of charges
and their acceptance without incurring tariff. In case if the customers cancels a confirmed
order, the company offers the refund within one hour. The customers are also able to choose
their flight seats by means of AliTrip (Hsu, Hung & Li, 2007). The choice of the travellers
including their destination choices and even flight seats choice s are analysed by their
software and recorded. This system leaves the chance of automatic recommendation
whenever the company accepts subsequent booking from any potential customer. However
Document Page
18ENGINEERING MANAGEMENT
the most enticing factor of the business plan of AliTrip is that by using various service
portals of Alibaba this sub brand enables the customers to make last minute payments
through Yu’e Bao account in case if they are running short of cash at the moment. They can
also take small e-loans through the “Just Spend” portals of Alibaba and book flight tickets.
However the loans do not incur interest if they are paid back within 1 week. In this case,
Ubereats.com (2018), opines that the Theory of Scarcity and Interest applies. About 68% of
the customers who book flights through these media, lacks sufficient cash and hence assume
they are not eligible for a flight booking at that moment. However in that moment of despair
when they receive the n opportunity of booking the flight for free they seems to grab the
opportunity without much pondering over the future consequences. Among such customers
34% are unable to pay the whole money at once within the determined period and as an
impact the company earns extra revenue from the payback of the ticket prices at 125% extra
price.
3.2.3 Channels
Alibaba is the biggest e-commerce organisation in the context of the global gross
volume of merchandise output that comprises of about 80% of the market. The channels like
AliTrip and Tmall automatically attracts small and medium enterprises who gets a chance to
project t their goods through these native sub brands of Alibaba only. One unique feature of
the business plan of Alibaba is that they have been able to provide their customers the
facility to execute all transactions through mobiles and this saves a lot of IT cost of the
services users of Alibaba.
4. Evaluation of the three weakest components of each plan
4.1 Uber Eats
4.1.1 Unfair contract terms
Document Page
19ENGINEERING MANAGEMENT
Uber Eats have allegedly biased between companies in order to favour some potential
organisations. The business strategy of Uber Eats consuming 35% of the revenue generated
over online orders and on the other hand making the restaurant endure 50% of the refund
amounts. This is one dominant part of their revenue generation. Due to the lack of expertise
and infrastructural set up, the company is not able to offer the premium services to the
restaurants with which they have set up contractual terms (Alibabagroup.com, 2018). In
countries like Australia, Japan, Taiwan, Singapore and so on where restaurant industry is
flourishing, there are many small enterprises who wants market exposure and hence signs up
with Uber Eats. Howebver if they endure issues, they can cause rapid word of mouth negative
publicity which might impact the local business of Uber Eats.
4.1.2 The unwillingness to accept liabilities
Uber Eats accepts minimum liabilities in the case of failures to supply orders and puts
blame on the restaurant. In case if a restaurant gets an order of $50 from Uber Eats customer,
this already implies that the restaurant have to bear a value of $17.5 for publicity and
delivery. Again, if the order fails, the restaurant have to pay extra 50% that is an additional
$25. As an impact, the restaurant bears more than the SP of the food item. Nevertheless, the
entire liability of the order failure rest on the restaurant. This in turn affects the customer base
of restaurants which in the long run would affect the delivery partner Uber Eats itself as the
their own restaurant partners would lose business and as an impact their revenue share would
depreciate also.
4.1.3 No control over processes
In spite of the quality control experts supervising food quality, during the rush hours,
it is impossible to check quality as no permanent restaurant executives are employed by Uber
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
20ENGINEERING MANAGEMENT
Eats. As an impact, the food qualities often fluctuate and this directly impacts the business
growth of the company.
4.2 Alibaba
4.2.1 Owners are for namesake only
Investors cannot have direct investment shares into Alibaba owing the Chinese laws
that forbids foreigners to own internet companies of China. Rather the agencies invest in a
holding of Cayman Islands with same name, and with rights to share profits with this Chines
organisations. The unnecessary taxes and hassles demotivates many organisation ns and
potential investors from investing with Alibaba
4.2.2 Government Interference
Accounting oversight might prove to be difficult for the company. The US entity
entitled to oversee the operations of public companies in America cannot make inspection
without the Chinese government’s intervention. As an outcome, the US government puts
many restrictions over the operations of Alibaba.
4.2.3 Bad reputation
The peer US reputation of the company would affect the US operations. Hence the
upper management should have an alternative expansion plan which seems lacking at the
moment. The F rating that AliExpress and Alibaba have received would impact the revenue
shares and the company’s shares in the Index 500 and Index 1500 would be affected as an
impact.
5. Recommendations
5.1 Recommendations for Case 1
Document Page
21ENGINEERING MANAGEMENT
Uber Eats should introduce an optimised customer’s online query submission process
whereby they would be able to provide immediate solutions to the customers.
The company should reduce the revenue share process in the cities of developing
countries where food is still a micro industry. As an impact, the company’s business
relations would not be affected for service faults
The company have to m operate under a delivery timeframe where the delivery under
a certain time limit, that is say 30 minutes or so should only be entertained. Again,
items should be distributed over online menu based on popularity and availability,
5.2 recommendations for Case 2
Alibaba should optimise business channels through subsidiary firms where foreign
agencies would have larger shares. This would help them to operate over larger and
more dominant markets without paying excess taxes.
The company should move towards Strong Buy stock holding policy. This would help
them to make up for the stock values that they lose out due to the Chinese regulations.
6. Conclusion
In the light of the undertaken research, it can be opined that the revenue channels of
both the companies are highly prospective. Nevertheless, Alibaba is in a better position as the
operational activities of the company are more pronounced. The capital investments and the
infrastructure of Alibaba are more developed. Uber Eats is a recent innovation and have
started business operations over a large market. However this innovative business model of
the company would have to emerge in many potential markets to justify its credibility.
Document Page
22ENGINEERING MANAGEMENT
Reference List
Alibabagroup.com, (2018). About the Company. Retrieved on 17 August 2018. Retrieved
from https://www.alibabagroup.com/en/global/home
Bhaskaran, S. (2006). Incremental innovation and business performance: small and medium
size food enterprises in a concentrated industry environment. Journal of Small
Business Management, 44(1), 64-80.
DeMasi, A. A. (2016). Uber: Europe's Backseat Driver for the Sharing Economy. Creighton
Int'l & Comp. LJ, 7, 73.
Foos, A., Archer, A., Chicas, J., Egelston, C., & Wildung, B. (2017). Uber Technologies in El
Salvador, 12(2), 1-16.
Gan, M., Yang, S., Li, D., Wang, M., Chen, S., Xie, R., & Liu, J. (2018). A Novel Intensive
Distribution Logistics Network Design and Profit Allocation Problem considering
Sharing Economy. Complexity, 2018.
Guo, J., Lam, I. H., Lei, I., Guan, X., Iong, P. H., & Ieong, M. C. (2006, October). Alibaba
international: building a global electronic marketplace. In null (pp. 554-548). IEEE.
Hsu, C. I., Hung, S. F., & Li, H. C. (2007). Vehicle routing problem with time-windows for
perishable food delivery. Journal of food engineering, 80(2), 465-475.
Huo, Z., Zhou, Y., Liu, Q., He, X., Liang, Y., & Xu, M. (2011). Sensitive simultaneous
determination of catechol and hydroquinone using a gold electrode modified with
carbon nanofibers and gold nanoparticles. Microchimica Acta, 173(1-2), 119-125.
Lampert, E., & Thomas, K. (2016). Student shares personal immigration testimony.
LAMPERT, E., & THOMAS, K. (2016). Student shares personal immigration
testimony. 14(2), 1-15
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
23ENGINEERING MANAGEMENT
Márquez-Ramos, L., & Mourelle, E. (2018). On the relationship between society and higher
education: what path should we take?. Distance Education, 39(1), 19-36.
Masciarelli, F., & Di Lascio, V. Food and Anything Delivery Startups in a Changing World,
11(9), 1-11.
Morais Carvalho, J. (2015). Uber in Portugal, 19(3), 1-19.
Nabhani, F., & Shokri, A. (2009). Reducing the delivery lead time in a food distribution SME
through the implementation of six sigma methodology. Journal of manufacturing
technology Management, 20(7), 957-974.
Perani, G. (2018). Measuring the platform economy in Italy. Methodological challenges and
open issues, 14(2), 1-17.
Powell, D. M., Winkler, M. T., Goodrich, A., & Buonassisi, T. (2013). Modeling the cost and
minimum sustainable price of crystalline silicon photovoltaic manufacturing in the
United States. IEEE Journal of Photovoltaics, 3(2), 662-668.
Roberts, J., Kigotho, M., & Stagg, A. (2018). Expanding Horizons in Open and Distance
Learning.
Stonehem, B. (2016). UberEats Food Delivery: Learning the Basics (Vol. 1). First Rank
Publishing.
Tan, B., Pan, S. L., Lu, X., & Huang, L. (2015). The role of IS capabilities in the
development of multi-sided platforms: the digital ecosystem strategy of Alibaba.
com. Journal of the Association for Information Systems, 16(4), 248.
Tan, F. T. C., Pan, S. L., & Liu, J. Y. (2016). Towards a Self-Organizing Digital Business
Ecosystem: Examining IT-Enabled Boundary Spanning Practice of China’s Alibaba,
16(2), 1-12.
Document Page
24ENGINEERING MANAGEMENT
Ter Chian Felix Tan, Tan, B., & Pan, S. L. (2016). Developing a Leading Digital Multi-sided
Platform: Examining IT Affordances and Competitive Actions in Alibaba.
com. CAIS, 38, 36.
Ubereats.com (2018). Discover restaurants that deliver near you. Retrieved on 17 August
2018.
Wright, P. (2018). News from the net: Gig economy workers. Advocate: Journal of the
National Tertiary Education Union, 25(1), 44.
chevron_up_icon
1 out of 24
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]

Your All-in-One AI-Powered Toolkit for Academic Success.

Available 24*7 on WhatsApp / Email

[object Object]