Uber Business Analysis

This assignment examines the business of Uber, exploring its strategies for success. It delves into how favorable political environments and technological advancements have contributed to Uber's growth. Conversely, it also acknowledges potential drawbacks like customer dissatisfaction due to a lack of self-driving or luxury car options. The analysis considers these factors within the context of both developed and developing countries.

Running head: ENTREPRENEURSHIP IN CONTEXT
Entrepreneurship in Context
Name of the Student:
Name of the University:
Author’s Note:

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Executive Summary
Entrepreneurship is the capability of developing and managing a business venture along with its
risk towards gaining high level of business profit through innovation and creativity. This study
has evaluated entrepreneurship in the business context of of Uber Technologies Inc. The study
has described the history of Uber through describing its establishment, growth and development.
The study has discussed the two entrepreneurial schools of thought in terms of Strategic Planning
School of Thought and Displacement School of Thought, which are related to growth of Uber.
Apart from that, the study has also discussed three emerging trends in terms of consumer trends,
political trends and technological trends, which can major influence on the business growth of
Uber’s Industry. Furthermore, based on the identified trends, the study has proposed market
expansion strategy, product expansion strategy and diversification strategy towards increasing
the marker share of Uber.

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Table of Contents
1.0 Introduction................................................................................................................................3
2.0 Definition of Entrepreneurship..................................................................................................3
3.0 History of Uber..........................................................................................................................3
4.0 Entrepreneurial Schools of Thought..........................................................................................5
4.1 Strategic Planning School of Thought...................................................................................5
4.2 Displacement School of Thought..........................................................................................6
5.0 Emerging Trends.......................................................................................................................7
5.1 Consumer Trends...................................................................................................................7
5.2 Political Trends......................................................................................................................7
5.3 Technological Trends............................................................................................................8
6.0 Growth Strategies......................................................................................................................8
6.1 Market Expansion..................................................................................................................8
6.2 Product Expansion.................................................................................................................9
6.3 Diversification.......................................................................................................................9
7.0 Conclusion.................................................................................................................................9
Reference List................................................................................................................................11

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1.0 Introduction
Entrepreneurship defines development of new business along with its risks towards
gaining high level of business profit (Carraher and Paridon 2015). The study will describe
entrepreneurship in the business context of Uber Technologies Inc. The study will discuss a brief
history over Ober. The study will also discuss two entrepreneurial schools of thought, which is
related to the establishment and growth of Uber. Apart from that, the study will also discuss the
three emerging trends, which can have major impact on the industry of Uber in future.
Furthermore, based on the identified trends, the study will also propose three new growth
strategies, which Uber can opt for gaining increasing market share in future.
2.0 Definition of Entrepreneurship
Entrepreneurship defines a complex term, which simply defines running own business.
According to Carland, Carland and Carland III (2015), entrepreneurship is the capacity of
developing, organizing and managing a business venture along with its risks towards making
business profit. The practice of entrepreneurship is always inclined towards perceiving new
business opportunities and exhibit positive biases in the perception. On the other hand, Bruton et
al. (2015) opined that the pro-risk taking attitude of entrepreneurs makes them more likely to
exploit new business opportunities and innovation. The entrepreneurial spirit is actually related
to risk taking and innovation, which is highly important a business towards getting success in
ever-changing and increasingly global marketplace.

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3.0 History of Uber
Uber Technologies Inc. is an American private hire company providing car hire services
to the customers. The head quarter of the organization is established in California, United State.
Uber was established in the year 2009 (Uberestimator.com 2017). The organization develops
markets and operates Uber car transportation. The levels of car services include UberGo,
UberAuto, UberPool, UberTaxi, UberRush, UberBoat, UberHire and many more. It also has food
delivery mobile apps. The organization has got its success within very short span of time. Apart
from providing services in United State, Uber also provides services to more than 633 cities
worldwide. The Uber drivers can use their own cars as well as rent cars for driving with Uber.
The ride-hailing company Uber has already raised its revenue nearly $8 billion
(Uberestimator.com 2017). The organization is not limited to one aspect of system; rather they
have tackled whole experience from mobile hailing, better cars, seamless payment, no tips,
driver rating and many more.
The CEO Dara Khosrowshahi always demonstrates entrepreneurial spirit towards
providing an excellent car hiring experience to the customers through incorporating innovative
service ideas. Moreover, Uber is the pioneer in the car sharing economy within its industry
through Uber Pool service. The organization claims 87% market share within US car rental
service industry (Price 2017). Moreover, the market share of Uber is gradually increasing in
global market as compared to other car services.

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Figure 1: Global Market Share of Uber
(Source: Huq et al. 2017)
The most significant challenge, which Uber is facing recently, is declining numbers of
talented drivers. Apart from that, the organization has lack of improved driver app, which often
creates problems to the customers in booking their cars (Fayolle and Gailly 2015). Furthermore,
the changing trend of the customer preference is also being tough challenge for the organization.
4.0 Entrepreneurial Schools of Thought
4.1 Strategic Planning School of Thought
As per strategic planning school of thought of Micro View of Entrepreneurship, strategic
planning is inextricably interwoven into whole fabric of management. However, it is not
something distinct from process management. Frederick, O'Connor and Kuratko (2013) opined

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that the view of strategic formulation depends on leveraging unique elements towards successful
venture development. Moreover, unique people, unique market, unique element, unique
resources and unique products are constructed towards effective formulation of venture
development. While considering Uber, the organization has targeted unique market for providing
car rental services. Moreover, the organization has targeted the people, who do not have their
own cars, but have needs for hiring cars for their serving their temporary travelling needs.
Furthermore, the organization has also hired unique drivers having excellent driving experience,
which provides safe and comfortable driving experience to the customers. Apart from that,
varieties of cars having different sizes meet different types of travelling needs of the customers.
All these unique elements have formed the growth and development of the organization.
4.2 Displacement School of Thought
Displacement school of thoughts demonstrates certain external factors, which highly
influence the establishment and growth of an organization. There are three major types of
displacement of this school of thought are political displacement, cultural displacement and
economic displacement. As per political displacement, supportive Government policies and
regulations form the establishment and growth of an organization. On the other hand, Frederick,
O'Connor and Kuratko (2013) opined that cultural development of people for contributes to the
success level of an organization. Furthermore, increasing economic development of the countries
is also an integral part of organizational development.
While considering Uber, it can be found that the organization gets huge Government
support from both the developed as well as developing countries for its contribution to their
economic development. Moreover, favorable policies and regulations of the Government have
made the foundation of the business success of Uber. Apart from that, the cultural development

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of the people around the globe has increased their inclination towards having sophisticated
travelling through hiring cars. Apart from that, economic development of the developed and
developing countries has increased the spending power of the people. It has increased the
capability of the customers towards frequently hiring sophisticated cars for their temporary
travelling purpose. It has actually increased the profit volume of the organization.
5.0 Emerging Trends
5.1 Consumer Trends
With increasing sophistication in life, customers are now more inclined to have luxurious
cars even for rent car towards serving their temporary travelling needs. However, the Uber has
lack of adequate luxurious cars to provide car rental services to the customers. Therefore, the car
rental service industry is being failed to meet the luxurious rental car needs of the customers. On
the other hand, Suddaby, Bruton and Si (2015) opined that there is an increasing demand of self-
driving cars among the people around the globe even if they rent a car. In such situation, the car
rental service industry has lack of self-driving cars towards serving the self-driving car rental
needs of the customers. Therefore, the industry is being failed towards changing customer
demands. In this way, changing consumer trends can become huge threats to the organizations in
its near future.
5.2 Political Trends
Uber gets huge support of global political environment, due to its contribution in the
global economy. Moreover, the favorable rules and regulations of the government in all around
the world have increased the potentiality of the business success of Uber. Therefore, such

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favorable policies and regulations of Government seems to be an opportunities for potential
growth of car rental service industry (Sarasvathy et al. 2014).
5.3 Technological Trends
The development of social media and digital media seems to be an opportunity for the
promotion Uber services around the world. However, Zahra, Wright and Abdelgawad (2014)
opined that technology is changing day after day, which an organization should align with
towards maintaining competitive advantage even in technologically advanced business
environment. In such situation, the mobile app of car rental service industry is not that much
technologically advanced. There lack of advanced features towards tracking the traffic and
weather condition, which often creates issues for the customers. Therefore, lack of technically
advanced hybrid cars is actually increasing contribution level to environmental pollution. It can
actually seem to be threat for car rental service industry, which can prevent its future business
success.
6.0 Growth Strategies
6.1 Market Expansion
Uber can expand its business profitability through expanding into global market.
Moreover, Uber can get huge support of Government both from developed and developing
countries towards developing their business (Chatterji, Glaeser and Kerr 2014). It seems to be an
opportunity for the organization towards enhancing its business growth. In such situation, Uber
can expand its markets through providing its existing car rental services to more numbers of
global countries. Moreover, the government of those countries would help the organization

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towards establishing its business there. It will enhance the user subscription rate of the
organization in global market, which will add to its increasing business revenue.
6.2 Product Expansion
From the identification of trends, it can be understood that Uber is lagging behind the
competitors due to its lack of capability towards aligning with technological changes. It can
hamper its business in its domestic market. Therefore, Uber should modify some features of their
services for gaining competitive advantage even in technically advanced business environment.
Moreover, the organization should modify its mobile app for booking the cars towards providing
flexible services to the customers. It will enhance the business development and increased
business revenue of the organization.
6.3 Diversification
From the trend analysis, it has been found that changing consumer trends can severely
impact of the business growth of Uber. Moreover, there is an increasing consumer trend of
customers towards hiring self-driving car from the car rental service companies. In such
situation, Uber has lack of self-driving cars, which is hampering its global business. Therefore,
the organization should immediately incorporate diversification in their car rental services.
Moreover, the organization should incorporate self-driving cars, luxurious cars and hybrid cars in
its car rental services. It will meet the changing consumer trends of the customers, which will
add to the growth of business and increasing market share of Uber.
7.0 Conclusion
While concluding the study, it can be said that entrepreneurship is the capacity of
developing, organizing and managing business venture along with its risks towards getting

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business growth. Such entrepreneurial spirit is clearly highlighted in the business development of
Uber. Being established in 2009, the organization has gained quick success in its business and
expanded over 633 countries. Changing consumer trends, favorable political condition and
changing technological environment have impact on the success level of the organization. Lack
of self-driving and luxurious cars of Uber can disappoint the customers. However, favorable
political condition of both developed and developing countries can assist the organization
towards more market expansion.

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Reference List
Bruton, G., Khavul, S., Siegel, D. and Wright, M., 2015. New financial alternatives in seeding
entrepreneurship: Microfinance, crowdfunding, and peer‐to‐peer innovations. Entrepreneurship
Theory and Practice, 39(1), pp.9-26.
Carland Jr, J.W., Carland, J.A.C. and Carland III, J.W.T., 2015. Self-actualization: The zenith of
entrepreneurship. Journal of Small Business Strategy, 6(1), pp.53-66.
Carraher, S.M. and Paridon, T.J., 2015. Entrepreneurship journal rankings across the
discipline. Journal of Small Business Strategy, 19(2), pp.89-98.
Chatterji, A., Glaeser, E. and Kerr, W., 2014. Clusters of entrepreneurship and
innovation. Innovation Policy and the Economy, 14(1), pp.129-166.
Fayolle, A. and Gailly, B., 2015. The impact of entrepreneurship education on entrepreneurial
attitudes and intention: Hysteresis and persistence. Journal of Small Business
Management, 53(1), pp.75-93.
Frederick, H., O'Connor, A. and Kuratko, D. 2013. Entrepreneurship. 3rd ed. p.13.
Huq, A., Huq, A., Gilbert, D. and Gilbert, D., 2017. All the world’sa stage: transforming
entrepreneurship education through design thinking. Education+ Training, 59(2), pp.155-170.
Price, C. 2017. Digital technology drives Uber to global success. [online] Telegraph.co.uk.
Available at: http://www.telegraph.co.uk/sponsored/technology/4g-mobile/engaging-customers/
11366554/digital-technology-uber.html [Accessed 10 Oct. 2017].

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Sarasvathy, S., Kumar, K., York, J.G. and Bhagavatula, S., 2014. An effectual approach to
international entrepreneurship: Overlaps, challenges, and provocative
possibilities. Entrepreneurship Theory and Practice, 38(1), pp.71-93.
Suddaby, R., Bruton, G.D. and Si, S.X., 2015. Entrepreneurship through a qualitative lens:
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Uberestimator.com. 2017. Uber United States → 248 Uber cities. [online] Available at:
https://uberestimator.com/country/united-states [Accessed 10 Oct. 2017].
Zahra, S.A., Wright, M. and Abdelgawad, S.G., 2014. Contextualization and the advancement of
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