Challenges and Strategies of Uber: Government Policies, Globalization, and Market Strategy

This report analyzes the challenges and strategies of Uber, a transportation network company that connects people to drivers. The challenges include government policies and globalization, while the market strategy includes discount offers and feedback. Recommendations include adopting a track system and setting prices according to the market.

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Introduction
The company faces many issues to achieve the objective; these issues affect the growth of the
company. The company applies the strategies to reduce the issues and gain the high market
share. Strategies help the company to look forward and make a plan to attain the competitive
advantage (West, Ford, and Ibrahim, 2015). The main focus of the market strategy is to
achieve the objective of the company. In this report, Uber has been taken to analyses the
challenges and strategies of the company. Uber is a transportation network company which
connects the people to the driver to move from one place to another. It operates in 785 areas
in the world and serves the services of food delivery, taxi cab and ridesharing (Uber, 2018).
At the first phase of the report, issues of the company will be discussed. After that, strategies
applied by the company to reduce these issues will also be discussed. At the end of the report,
the recommendation will be discussed.
Issues face by Uber
Government Policies
The company faces many challenges but government policies are the main challenge which is
faced by the company. In many cities and countries; Uber cabs are banned due to
government policies such as America. In America, the government banned Uber cabs and
declared the car-shipping is illegal. Airport authorities charge the extra fees to Uber drivers to
drop off or pick up the people. The extra fees by Uber driver increase the fare rate of riding
thus, the competition is also a risk factor for the company (Halland Krueger, 2018)
Globalization
Uber face many issues at the time of expanding the business at the international level. It is
observed that Asia has large taxes because of its large population as compared to America.
Due to higher taxes, the fare prices of rides are also increases but the company face
competitive challenges with the traditional taxies which have brand value as compare to the
online transportation companies (Salento, 2018).
Market strategy
Discount strategy

UBER 2
The company launches the new offers to attract the customer towards the services. It provides
services to the customer from kitchen to offices. The company offers many attractive offers
to best users or for the permanent customer such as it offers the rides with celebrities. These
surprises and benefits attract the customer towards the services which help the company to
reduce the issues of competition with traditional taxies (Marketing, 2018).
Feedback
Uber provides the rating system to customers so that the customer can easily give the
feedback of their experience. This strategy helps the company to build the strong trust with
riders. It also has an advantage for drivers because good feedback motivated them and the
good drivers are awarded by the company. So that it can be said that this strategy is beneficial
for the company as well as for the drivers. Feedback helps the company to improve the
services and understand the demand of the customers.
Recommendation
Track system
From the above discussion, it has been recommended that the company has to adopt the track
system to maintain the employee’s record. From the tracking system, the company connects
with customers so the complaints of consumers can easily track and it is immediately
improved by the company. It is observed that this strategy helps to improve the productivity
of the employees. Improving productivity increases the demand and due to increases demand
the fare prices decreases and the competitive challenges is also reduces. Consumer preference
is not banned by the government; it also reduces the risk of government policies.
Cost strategy
The company has to set their prices according to government tax rate and the market value.
So that the company cannot face the competition challenges such as Asia tax rate are higher
than the company has to higher their value but less than traditional taxies. To set the prices;
the company has to evaluate the prices regularly. The company has to attract the customer by
providing the offers because due to increasing demand the company can easily cover the tax
rate and earned high revenue. This strategy helps the company to expand the business at the
international level (Carkhuff, 2017)

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Conclusion
From the above discussion, it has been concluded that the company provides the
transportation services through online. It faces many challenges at the time of achieving the
objective such as international expenses, government challenges, and others. To reduce the
challenges; the company implements the market strategies such as feedback, offers which
attracts the customer and increases the demand. Although the company has good strategies
which reduce the challenges the company has to track the employees and maintain the record.
It also has to fix the prices according to the market. It has been concluded that the company
will expand the business at the international level in the near future.

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References
Carkhuff, R. (2017) Toward effective counseling and psychotherapy: Training and practice.
Routledge.
Hall, J.V. and Krueger, A.B. (2018) An analysis of the labor market for Uber’s driver-
partners in the United States. ILR Review, 71(3), pp.705-732.
Marketing. (2018) Marketing Strategy of Uber – Uber Marketing Strategy. [online] Available
from: https://www.marketing91.com/marketing-strategy-uber/ [Accessed 2/10/18].
Salento, A., (2018) Digitalisation and the regulation of work: theoretical issues and normative
challenges. Ai & society, 33(3), pp. 369-378.
Uber. (2018) About Us. [online] Available from: https://www.uber.com/en-IN/about/
[Accessed 5/10/18].
West, D.C., Ford, J. and Ibrahim, E., (2015) Strategic marketing: creating a competitive
advantage. Oxford University Press, USA.