Ethical Challenges Faced by Uber in Using App-Based Peer-to-Sharing Technology

This study focuses on the ethical challenges faced by Uber in using app-based peer-to-sharing technology and discusses the efforts made by the company to overcome these challenges. It also explores the risks that Uber needs to overcome to be successful and the need for regulations to protect competitors and consumers.

COMPARITIVE BUSINESS ETHICS AND SOCIAL
RESPONSIBILITY
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Executive summary
The prime focus of the study is to highlight the incident of “Uber Hits a Bump in the Road”. It
has been incorporated about the ethical challenges and issues that are encountered by Uber in
response of using peer-sharing information technology. Additionally, with assistance of business
model and certain marketing strategies, it has also been stated about the efforts of the company
in overcoming the challenges that has been faced due to several incidents.
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Table of Contents
Introduction......................................................................................................................................3
1. What are the ethical challenges that Uber faces in using app-based peer-to-sharing
technology?......................................................................................................................................4
2. Since Uber is using disruptive business model and marketing strategy, what are the risks that
the company will have to overcome to be successful?....................................................................6
3. 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?......................................................................................................................................8
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
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Introduction
Uber, apart from its rivals, has been found to be fairly mysterious company in several ways that
includes a huge growth of the company through transportation network expanding in over 311
cities across 58 countries. It has been evidenced that Uber has risen to a billion dollars in
funding aspects in July; this brought a total funding for about $5 billion. In this study, a case of
hitting bump in the road has been taken into consideration and certain facts about Uber have
been put forth. Ethical challenges faced by Uber in usage of app-based peer-sharing technology
have also been explained in brief. Disruptive business model and marketing strategy has also
been taken into consideration and assistance to Uber through this has been explained. Along with
this, Uber being a popular company faces certain issues in complying with the standards of the
services that are to be catered.
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1. What are the ethical challenges that Uber faces in using app-based peer-to-sharing
technology?
Uber is a tech company that provides ride facilities to the customers with the services that
connects the uber drivers with the riders with help of an app. It was founded by Garrett Camp
and Travis Kalanick, they facilitated and enhanced the connection of the uber drivers with the
riders through an application that provides ride-sharing services. The service costs of Uber as
compared to traditional rides are less and this has helped the company to set their footprints in
the market. Uber has been successful in achieving massive success through its effective services.
There are 30 million users of Uber, valued around $70 billion dollars. The tech-savvy company
is also looking towards expanding its business towards US and other international platforms.
However, in this procedure, the company also faces certain ethical challenges that act as a bump
in the success process of the company (Uber.com, 2019). Below are accentuated certain ethical
challenges encountered by Uber:
Multitasking drivers
The prime focus of the company is to connect the riders with the drivers who are nearby and
notify the passengers about their currently booked ride. This facility can be considered as a major
drawback for the drivers, as here, the question arises that how it is possible for the Uber driver to
understand the need of the passenger in the first place. As analysed by Harb et al., (2018), this is
done through the device that is attached to car, this makes other available driver rush towards
their passenger and this can increase the rate of accident. In accordance to research conducted by
the American Automobile Association’s Foundation for Traffic Safety and Virginia Tech
Transportation Institute, moving eye from the roadside increases rate of accident and
additionally, the hands-free devices also causes distraction for the drivers. It has also been
evidenced that voice-activated technology are seriously unsafe and also causes distraction
(Yurich, 2017). Due to several complications of such technologies, it has been evidenced that
often drivers overlook the sign boards and are not focused on their driving. This can cause a
safety hazard for the drivers and the passengers as well (Nytimes.com, 2019).
Privacy
Violation of customer’s privacy can also be a huge issue identified. On Privacy, Technology and
Law like “God-view tool”, lets the drivers track the location of the customers who are riding in
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the car. Due to this mentioned reason, there are customers who are bothered with privacy
invasion, and hence, they do not seek for ride and there are other customers who also do not
bother for such issue (Hallgren et al., 2017). With such concerns, it has been claimed that “Uber
is the most ethically challenged company in Silicon Valley”. However, it is important to not the
huge difference between the god-view tool and other law enforcement is that most of the
customers are able to understand the force’s policy towards maintaining the public security. The
tracking devices used by Uber are merely focused towards enhancing the business interest and
making the services more precise and satisfactory (Lee et al., 2018).
Passenger safety
Several uber drivers have been accused of sexual harassment of a passenger and there have been
various cases for sexual assaultment. This can be a major reason for the female customers to not
choose uber rides. This can be considered as a great obstacle in the success process of Uber. As
per statistical tools, it was observed that background checking of the uber drivers was not done in
Florida. This can be a great issue as without proper knowledge of the uber driver, it might not be
safe to provide him employment (Omaki et al., 2017). Lack in passenger safety and security can
lead towards loss of traffic of customers and trust relationship of the customers with the
company might no continue. This can also damage the reputation of the company in the market
and loss of competitive advantage over its rivals.
Leadership
There were several mistakes made by the concerned company, the CEO and other leaders did not
bother to be apologetic about their deeds. Additionally, Michael Jackson also digs dirt over the
journalists that criticized the company for its wrong deeds. CEO, Kalanick responded for
suggested lax leadership (highly supportive and eligible, although working in low standards). It
was also stated that mistakes can be made and urge for apology by President Richard Nixon on
weak grounds and without concrete consequences can be meaningless (Furtner and Baldegger,
2016). This has created a negative impact on the people who are associated with Uber for their
service for ride. However, there was a comment by Melvin Meads that he had to board her flight
and was in intense hurry; she booked for a car ride. This made her astonished that after booking,
in no time a car appeared to whom she summoned a ride. The services seemed to be very easy to
use and no hassles while money transfer. Thus, after this comment by one of the passenger, the
above concerns would not be mitigated.
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Social media
Social media has transformed the way of conducting business on a successful note and this has
also benefited Uber in introducing for their peer-to-peer sharing application and website that can
help people acquire ample information regarding the company. Through social media platforms,
it can be observed that Uber has ignited the global ride-sharing industry (Laurell and Sandström,
2018). This has also helped the people across rural areas to seek services through the
convenience of mobile application of Uber, through which booking ride is just a click away.
However, these days Uber is found to be going through its toughest time and facing aggressive
impulses before its win-at-all-cost culture begins (Pournarakis et al., 2017). This has seriously
turned off the relationship of Uber with its investors, skilful and potential employees and loyal
customer base. Ethical challenges regarding peer-to-peer sharing technology involves financial
misconduct, privacy and safety issues (Socialmedialawbulletin.com, 2019).
2. Since Uber is using disruptive business model and marketing strategy, what are the risks
that the company will have to overcome to be successful?
Several issues associated to Uber regarding false advertising, safety concerns, privacy issues and
surge pricing has been found. Uber is effectively inclined towards segmenting target market with
help of disruptive business model and certain marketing strategies. It has been found that Uber is
less concerned towards maintaining law, rules and regulations and violation of ethics has also
been a major issue for the company. Uber has to mitigate the mentioned issues in order to be a
strong contender in the market of ride-sharing. Under mentioned are certain key areas that are
required to be focused in an intense manner:
● Fair Compensation and Training Programs
The CEO of Uber has been found to adopt certain aggressive strategies for maintaining the
corporate culture and also implementing new and advanced strategies for expansion and
development of the company on further basis. In current time, there are other issues also that are
faced by the Uber drivers that include they must have a look towards their profit maximisation or
profit share deduction (Desplaces and Congden, 2017). Increment in profit share or deduction is
under the control of the uber drivers. It has also been observed that the drivers who are new to
this sector require training session so that they are able to develop themselves as per the
procedure of the sector. This can also be helpful for the uber drivers to be accountable.
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● Safety and Rate Improvements
It is necessary for the uber drivers to maintain the ethics and culture of their work. They must be
loyal towards maintaining the security and safety of the passengers. Gaining loyal customer base
and stimulating their satisfaction is the major responsibility of the uber drivers. As mentioned
above, many female passengers are sexually harassed by the uber drivers (Harris and Krueger,
2016). This can be the most crucial factor that the CEO has to look after. Facilitating safety and
rate improvisations, it is necessary to know the background of the uber drivers and after proper
documentation only, the driver must be employed (MacEachen et al., 2018).
● Better Business Bureau Complaints
Collecting feedback from the customers after they are done with their ride must be the most
crucial concern for the company (Ferrell et al. 2005). This can be beneficial for the company to
know about the experience of the company with the ride as well as the driver. In case of any
negative feedback like late coming of the driver, cancellations without reason or not able to
understand the navigation of pickup location can also be overcome through collection of the
feedback. This can also be useful for standing still in the market among other rivals (Matherne
and O’Toole, 2017).
● Upgraded Security and App Updates
Next comes the safety and security of the passengers, Uber has introduced Freight Privacy
Policy, that specifically applies to drivers, riders, delivery recipients and delivery partners. This
policy is also application to those who collect and disseminate information through the
application and other partners like UberEats restaurant partners (Mirsadikov et al., 2016). This
policy strictly states that it is necessary to implement appropriate law and regulations for
maintaining the confidentiality of the passengers (Privacy.uber.com, 2019).
● Regulation, Compliance and Standards
Services by the uber drivers must comply with the standard expected by the passengers.
Regulations are implemented in United States and Canada that helps the passengers to feel safe
and secure while they travel in uber (Bond et al., 2017). Supportive and safeguarding
environment is maintained. The guidelines from this policy are helpful for: Treating everyone
with respect, Helping one another to be safe and secure, Following and implementing the law
and legislation and Feedback of the passenger’s matters (Posen, 2015). However, it is necessary
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to follow these guidelines in all countries where passengers can avail the services (Uber.com,
2018).
● Standardized pricing
Uber has a surge pricing strategy that states about the increase in the demand during certain non-
negotiable circumstances like bad weather, special events or other situations. In these cases
enough cars are not available to help the customers. This leads to increase in price if a passenger
gets a ride fortunately. Whenever, there is a rise in the price, the application lets the customers
know about the rise in the price and willing customers go for the ride and less needy people wait
for the prices to get lowered (Rauch and Schleicher, 2015). This is easy to identify as when there
is increase in demand in the specific area, the colour of the neighbourhood changes. Surge can
change quickly and are different in different areas. Along with this different advancements like
“Extensive background checks with fingerprinting” and “Complying with rules set forth by
courts” can also be used for further development of the respective organisation. The above stated
methods can be useful for the overcoming the risks that are encountered by the concerned
organisation (Uber.com, 2019).
3. 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?
Uber being a so popular organisation is taking initiatives to set its footprints over global market
of different countries. It is necessary for them to comply with the standards and regulations that
are set by the policy guidelines of the company. It has been observed that proper licensing is not
done by the management of the company. This can a huge issue in the smooth performance of
the drivers and can also lead to loss of loyal customer base and improper following of the rules
and regulations. It has also been evidenced that the uber drivers lack proper knowledge of
complying with the standards of the organisation in terms of safety and security. It is necessary
to perform an extensive background checking of the drivers before they are given employment.
Until the backgrounds of the drivers are clear, it might not be safe to employ them as drivers.
This can directly impact the safety and security of the passengers (Uber.com, 2019). This can
lower down the reputation of the company, degradation in competitive advantage and get
substituted.
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Proper licensing
As opined by Marique et al., (2018), it is necessary for the management to check the license of
the individuals before they are employed. Doing the KYC of the drivers is of great necessity and
also to see that they do not belong with any sex offender list. This can be useful for
understanding the behaviour of the drivers and take legal actions against them. This can ensure
the safety and security of the customers against any hazard. Proper licensing can be useful that
the time of incident that can occur at any moment (Blevins, 2017).
Standard system of pricing
It is necessary for the company to ensure about providing cost effective services to the
customers. There might be an increment in the price of the rides; however, it is necessary for the
company to also ensure about providing proper services so that the customers will to seek for the
services more. This can also be useful for the company to gain loyal customer base and thus, this
can be effective for maximising profit and gaining compliance as compared to other rivals of the
company (Kleinrock et al., 2017). Gaining customer can also be useful for the expansion of the
company on global platform. It is necessary for Uber to ensure about maintaining a standard
pricing system as compared to other transportation services. This can make the company gain
traffic of customers and also develop the organisational culture (Nytimes.com, 2019).
Seat belts
Wearing seat belts at the time of driving ensures about safe driving and this also lessens the rate
of causing fatal accidents. Wearing seat belts are also a part of following safety regulation and
this also showcases the etiquette and corporate responsibility of the driver. It ensures the
customers about their safety and security.
Use of camera and other video-audio recording devices
Uber drivers might use camera, audio-video devices or dash cams, it is the core responsibility of
the driver to make the customers aware and take their consent that they are under surveillance of
camera or are being recorded. It is necessary for the drivers to take consent of the passengers and
as per the local law regulatory bodies, it is necessary to ensure the legal prospects of the systems.
Broadcasting the images and the videos of the passengers are strictly prohibited from the end of
the drivers.
Sexual assault and misconduct
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Behaviour and proper etiquette matters a lot as passing unfavourable comments for the
passengers might feel uncomfortable. This can be against proper behavioural aspects of the
drivers. Uncertain conversations might make the passengers feel giddy and irritated (Argetsinger,
2018). Offensive languages must be avoided by the driver. As, performing in uncertain manner
can be harmful for the drivers as they might get negative feedback from the passengers and thus
can get low ratings. If such conditions are showcased, the reputation of the company might get
down and loss of customer base can be a huge loss for the company. It has been found that Uber
has no-sex rule, it means that sexual contact is strictly restricted while using uber app. This
requires a serious consent of the opponent (Privacy.uber.com, 2019).
Developmental programs
There are different developmental programs for betterment of the organisation; the programs
include referral programs, reward programs, safety and security of the passengers who are
booking the ride. These developmental programs focus properly on establishing the pillars of the
company for further success. Treating everyone with respect and fostering a proper work
environment can also be useful for further enhancement of the company. It has also been
deciphered that the drivers who are new to this sector require training session so that they are
able to develop themselves as per the procedure of the sector.
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Conclusion
As per the findings of the above study, it has been observed that Uber has faced certain ethical
challenges in using app-based peer-to-peer sharing technology. It is necessary for the company to
take up strategies that are necessary for overcoming the above stated issues. It is necessary for
Uber to implement appropriate systems, regulations, standards and compliances as these can be
useful for further expansion of the company. This can benefit both, the uber drivers and the
customers as well. Challenges regarding competitors, riders and embracement of technology and
negative aspects of the technology on the proceedings of the company. Law and legislation must
also be complied by Uber in order to maintain the sustainability factor and successful expansion
of the company in global market. This can also let the company gain a strong competitive edge
among its competitors. Rules, regulations and policies for passenger safety and security must
also be the most predominant factor for the success of the company.
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