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

UBER

UBER 1
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