Ethical Challenges Faced by Uber in Using App-based Peer-to-sharing Technology

Running Head: Comparative Business Ethics & Social Responsibility
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Running Head: Comparative Business Ethics & Social Responsibility
“Uber Hits a Bump in the Road”
SystemJP
5/28/2019
The report is prepared so that ethical decision taken by the company
Uber can be explained. In the working organization of Uber there
were many implications and the legal issues which were addressed
such as the drivers are not licensed, they were not putting major
focus on the safety measures of the customers, they were also
charging higher prices when the demand is high and the supply is
lower. So these were some ethical issues which were solved by
adopting the rules and regulation governs by the government. These
issues can be overcome when the company will comply with the

Running head: Comparative Business Ethics & Social Responsibility
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statutory requirements and follow the rules and principles which are
govern by the government.

Running head: Comparative Business Ethics & Social Responsibility
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Contents
Introduction.............................................................................3
What are the ethical challenges that Uber faces in using
app-based peer-to-sharing technology?................................4
Since Uber is using a disruptive business model and
marketing strategy, what are the risks that the company will
have to overcome to be successful?.....................................6
Because Uber is so popular and the business model is being
expanded to other industries, should there be regulation to
develop compliance with standards to protect competitors
and consumers?.....................................................................9
Conclusion...........................................................................11
References...........................................................................12

Running head: Comparative Business Ethics & Social Responsibility
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Introduction
Uber Technologies Inc. is the transportation company which
offers the services of the peer to peer ride sharing. The
company was founded in the 2009 March, 10 years ago. The
founder of the company was the Garrett Camp Travis
Kalanick. The company was operating its services in the 785
metropolitan areas. The company has the headquartered in
San Francisco, California. The company has more than 110
million worldwide users. The pricing system for the riding
with Uber is dynamic as it was based on the supply and
demand of the ride. The drivers of the Uber use their own
car and some drivers also taken the rent, lease so that to
offer the services (Fleetwood, 2017).
In a very short period of time, the Uber becomes very
famous and the demand of the customers for booking the
ride is increasing. But later on, the company continues to
thrive. Uber hits the few bumps in the road by charging
higher prices than the expected rate. As the other taxi were
charging higher than the Uber earlier so many customers
has grabbed with the Uber (Sampson and Makela, 2014).
But when the success has created in a very short period of
time then many challenges have to be faced by the
company. They were doing the unethical things and were not
following the rules and regulation formulated by the
government of the country. There were many lawsuits also
which has been faced by the Uber. One of the major issues
faced by the Uber was that their drivers are not licensed so
the legal action is taken against the company. Not only
license but also they were not concentrating on any safety of
the customers and the drivers so these issues lead to the
major problem for the Uber. In this report, these issues were
stated and the marketing strategy to overcome with this is
also stated (Bales and Woo, 2016).