UBER: An Analysis of the Global Taxi Service

This report provides an analysis of UBER, a global taxi service, including its business model, competitive market, and strategies for success. It discusses the macro-environment analysis of UBER, its organizational environment, and its business model. The report also explores the competitive market and barriers faced by UBER, as well as strategies for overcoming these barriers.

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Introduction:
UBER is one of the top listed riding services which was established on 8th March in the
year of 2009 which is having its headquarters situated in San Francisco, California, United states.
The corporation is having its branches distributed in all around 633 cities. UBER is considered to
be global taxi service which is seen to be associated with providing of solutions for travelling
and this solution is mainly provided by means of matching the drivers with the appropriate
passengers. Along with this the drivers are having their own cars or are associated with renting
the cars from the owners so as to serve the organization (Cramer and Krueger 2016). One of the
essential requirement for working as a driver in UBER is that the drivers should necessarily have
a smartphone so as to use the UBER application and the same is applicable for the customer as
well so as to book a car by accessing the mobile application or the mobile website of UBER. The
prime goal of UBER can be stated as “Transportation acts as a reliable source of water,
everywhere and for anyone.” In Accordance to UBERs statement, their main aim is to provide a
reliable as well as prompt benefits which are accessible by all the customers.
UBER is having a vision of expanding the business across different parts of the world
along with conveying of the business administration to different urban areas (Salnikov et al.
2015). This services if provided in different parts of the world would not only be associated with
benefitting the customers but also the organization as well. Existence of the different driving
factors is responsible for an increased popularity of the UBER at a high rate and might also be
associated with including the administration which is seen to be much more advantageous than
any other organization who are associated with providing similar services as that of UBER, in
terms of the capability of serving the riders (Borowiak 2019). For example, UBER is associated

with providing an additional option for the shoppers as well and this type of offers are not seen in
the conventional corporate model of the other organization.
The entire report would be associated with analyzing the organization UBER and the
market in which it operates. Besides this the report would also be discussing about the
competitive market along with the different kind of barriers put in front of the organization, the
strategies for achieving success is also presented in this report which are needed for overcoming
the barriers as well.
Discussion:
Macro-environment Analysis of UBER:
Organizational Environment:
There exists an 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 so as to
deal 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 new and
innovative technologies along with the increased value of insight 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 of the
fact 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 an extra facility is provided to the drivers
working for UBER which is mainly 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).
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 looking into the previous reviews which has been received
by the driver as well along with the ratings which is provided to the driver. Besides all this an
identity proof 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.

References:
Jiang, S., Chen, L., Mislove, A. and Wilson, C., 2018, April. On Ridesharing Competition and
Accessibility: Evidence from Uber, Lyft, and Taxi. In Proceedings of the 2018 World Wide Web
Conference on World Wide Web (pp. 863-872). International World Wide Web Conferences
Steering Committee.
Glöss, M., McGregor, M. and Brown, B., 2016, May. Designing for labour: uber and the on-
demand mobile workforce. In Proceedings of the 2016 CHI conference on human factors in
computing systems (pp. 1632-1643). ACM.
Wyman, K.M., 2017. Taxi regulation in the age of Uber. NYUJ Legis. & Pub. Pol'y, 20, p.1.
McKenzie, G. and Baéz, C., 2016. Uber vs. taxis: event detection and differentiation in New
York City. In International Conference on GIScience Short Paper Proceedings (Vol. 1, No. 1).
Angrist, J.D., Caldwell, S. and Hall, J.V., 2017. Uber vs. taxi: A driver’s eye view (No. w23891).
National Bureau of Economic Research.
Borowiak, C., 2019. Poverty in Transit: Uber, Taxi Coops, and the Struggle over Philadelphia's
Transportation Economy. Antipode.
Salnikov, V., Lambiotte, R., Noulas, A. and Mascolo, C., 2015. Openstreetcab: Exploiting taxi
mobility patterns in new york city to reduce commuter costs. arXiv preprint arXiv:1503.03021.
Cramer, J. and Krueger, A.B., 2016. Disruptive change in the taxi business: The case of
Uber. American Economic Review, 106(5), pp.177-82.