Uber SWOT and PESTLE Analysis Report

The report is based on the provided text and it seems that it is about analyzing Uber as a company. The author has discussed various aspects of Uber such as its focus areas, responsibilities, compliance with legal and technical factors, research and development to stay competent, and striving for best results to expand their market. The report also mentions team conflict and how it can be overcome with respect and team building exercises.

PESTLE ANALYSIS UBER

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
PESTLE ANALYSIS ON UBER...........................................................................................1
BENEFITS AND CHALLENGES OF WORKING AS A TEAM .......................................2
REFERENCES................................................................................................................................4

INTRODUCTION
Uber is one of the premium cab services across the world providing services in more than
60 countries. It operates through a mobile application which is available on Android as well on
IOS operating system. It was started as an idea when its Co-owner Garreth Camp hired 800$
driver during New Year's Eve to reach their destination, and was thinking about how they could
reduce the cost of transportation. In this report, PESTLE Analysis is conducted on Uber to know
major challenges and opportunities that are available to it in current scenario.
PESTLE ANALYSIS ON UBER
PESTLE Analysis can be defined as the framework of macro-economical factors which
help in analysing the environment. This analysis helps in understanding market growth and
decline in the growth as well as potential of business, its challenges that could be facing in future
and the ways it will be handling its operations.
 Political Factors are the factors affecting business when any government change or
interventions happen, it leads to disruption of many factors such as taxation policies,
environment and labour laws etc. (Shtal and et.al., 2018). This leads to disturbances in
the working of a company. In context of Uber, political factors have influenced it in great
deal as Brexit happened that caused major revenue losses.
 Economic Factors are the factors which directly impact the functioning of a business.
These include interest rate, exchange rate, and inflation rate (Ng, 2016). Fluctuation in
any of these factors might result in losses to company. Uber had to take into account the
inflation that caused during Brexit and revised its prices accordingly.
With the hike in prices, people were also shifting to other means of transport but Uber
pulled back its customer's once the economy was back on track.
 Social Factors are age group, population growth, and culture and health aspect of a
country. These factors are necessary to be taken into account in order to know the
possibilities of expanding a business. Uber is able to enjoy growth in Britain because
major population here falls under the bracket of 40-65 age groups; most of which require
cab services on a daily basis in order to go about their routine life (Chu, 2015). The cab
culture here has risen in recent time as it is a much-preferred means of transport in terms
of safety and efficacy.
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 Technological Factors refers to research and developments as well as innovation in
technology affecting a company in positive or negative way. Uber has been a pioneer in
cab service technology. With its inception in 2007, it has been bringing amazing
technologies on its mobile application. Launching of Uber X in 2012 and UberPool in
2014 are such examples of innovation and R&D by Uber. This has resulted in simplifying
the life of their consumers. The people travelling from this service can take an economy
cab in UberX which is cheaper than other cabs or go for UberPool where they can share
cab and fare with another person on same way. This technology has helped people in
saving money and time while travelling with Uber.
 Environmental Factors can be defined as weather, climate and their changes affecting
several industries in a positive or negative way. Uber has experienced that people have
boarded cabs in high number during winters and rains, which covers 8 months of
calendar. Thus, environmental factors have positively affected Uber and it has not seen
any harsh time besides the flood situation of 2014/15/18 which caused disruption of
services for a short duration.
 Legal Factors include abiding by all laws relevant to company and affecting its
processes. Uber makes sure of the safety of passengers travelling in its cabs (Chen and
Reyes, 2017). Moreover, it has effective cash back and refund policy in order to please
and satisfy its customers. It has not yet been found guilty of tax frauds as well making it
honest service provider. It has ensured that it takes care of the legal implications and
technicalities and has worked accordingly.
BENEFITS AND CHALLENGES OF WORKING AS A TEAM
 Promoting Unity: - Uber has always strived towards promoting unity amongst its
employees, if one person is not able to take calls, then he/she refers the other person to
drive that particular person to his destination ensuring that people always opt for Uber.
 Diversity: - It doesn't matter which culture, race or ethnicity you belong to, one can do
this work with pride (Azhar, 2011). It is unity in diversity that makes this profession
much more interesting and people working together ensures that services provided are
satisfactory.
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 Efficiency: - Uber believes that if five people are working together, it will bring much
more efficiency than working separately (Dickinson, Zuckerberg and Bonter, 2010). If in
one area the need for more cab arises, drivers communicate with each other to reach
there. This improves efficiency in operation. Efficiency is not only subjected to reaching
at a location on time but dropping the customer at his destination in the mentioned time
frame and making sure that customer is feeling satisfied at the end of his journey and not
feeling any ill-effects of fast driving or any glitches along the way.
 Team Conflict: - When people from several viewpoints are trying to work in
organization it sometimes leads to conflicts. In order to overcome these conflicts
employees must respect each other’s point of view which would ultimately help in strong
bonding amongst the team. These conflicts can also be overcome with the help of several
team building exercises allowing people to come together and work in unison.
CONCLUSION
With the help of this report, it is found that Uber is catering to a vast working and non-
working society and has to make sure about the responsibilities attached to it. Major focus areas
should be customer satisfaction and providing services at economy prices. It makes sure that it
complies with all the legal and technical factors, make constant and research and development in
order to stay competent and relevant to the market and strive for achieving best results, which
would ultimately expand their market.
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REFERENCES
Books & Journals
Azhar, S., 2011. Building information modeling (BIM): Trends, benefits, risks, and challenges
for the AEC industry. Leadership and management in engineering, 11(3), pp.241-252.
Chen, C.K. and Reyes, L., 2017. A quality management approach to guide the executive
management team through the product/service innovation process. Total Quality
Management & Business Excellence, 28(9-10), pp.1003-1022.
Chu, Y., 2015. Is ride-sharing really as novel as it claims-Understanding Uber and its supply-side
impacts in New Zealand.
Dickinson, J.L., Zuckerberg, B. and Bonter, D.N., 2010. Citizen science as an ecological
research tool: challenges and benefits. Annual review of ecology, evolution, and
systematics, 41, pp.149-172.
Ng, S., 2016. Uber Technologies Inc. as a Disruptive Innovation.
Shtal, T.V. and et.al., 2018. Methods of analysis of the external environment of business
activities. Revista ESPACIOS, 39(12).
Online
Uber Technology SWOT and PESTLE Analysis. 2018. [Online]. Available through:
<https://www.swotandpestle.com/uber-technologies/>.
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