Uber's Operation and Service Management: Analysis and Evaluation

This report analyzes Uber's operation and service management practices, including communication coordination, cost and quality maintenance, supply chain management, and the role of technology. It also explores the supporting functions, such as marketing, and their impact on the success of the organization.

BM563 Operation and
Service Management

EXECUTIVE SUMMARY
The report is being commissioned to include identification of management practice in
an organisation and analysis of this operation practice impacts the organisation in regards to
efficiency. Furthermore, it will also be going to throw some light on the manners of
evaluating the technology and how it could be embedded in this process or how this has
already been achieved. Lastly it will also include linking the supporting functions with
operation management practice and the way they assist with ensuring organisational success.
The company chosen for the current research work is Uber which is one of the leading
American mobility service providers. The report has clearly identified the manner in which
uber maintain quality, costs and supply chain and has originated that marketing department
mainly supports the operation management practices for attaining the desired goals.

CONTENTS
INTRODUCTION......................................................................................................................1
TASK – 1...................................................................................................................................1
Operation management...........................................................................................................1
Operation management practice used by Uber.......................................................................1
TASK – 2...................................................................................................................................3
TASK – 3...................................................................................................................................4
The manner in which technology can be embedded in this process or how this has already
been achieved.........................................................................................................................4
TASK – 4...................................................................................................................................6
Supporting function linked to operation management practice and the manner in which it
can help in making sure success of the organization..............................................................6
CONCLUSION..........................................................................................................................7
REFERENCES...........................................................................................................................8

TABLE OF FIGURES
Figure 1: Six Sigma....................................................................................................................4

INTRODUCTION
Operation and service management is important in an organisation for managing and
delivering services to the customers by the company with various operation practice to reduce
the cost of production and achieving the objectives efficiently. Operation management is
responsible for the department of labour and raw materials and converting into goods and
services efficiently. Operation and service management is all about planning organising and
supervising the production or manufacturing process for successful operation of converting
inputs into outputs. Uber Technologies is a United Kingdom company providing its services
worldwide with operations approx. in 72 countries. This report will include identification of
management practice in an organisation and analysis of this operation practice impacts the
organisation in regards to efficiency. Furthermore, evaluating the technology could be
embedded in this process or how this has already been achieved. Lastly it will include linking
the supporting functions with operation management practice and the way they assist with
ensuring organisational success.
TASK – 1
Operation management
Operation management is managing or administrating of various business practice like
supply chain management, revenue collection, updating equipments, coordinating
communication and maintaining good quality and cost so that the profits are achieved
efficiently (Walters, 2019). The operation manager is responsible for the growth of the
company by controlling and managing various activities like manufacturing, packaging,
shipping, finance for controlling cost, managing human resources like labour quality so that
the manager can control all the cost and using best of the available resources to achieve the
objectives efficiently and effectively. The Uber technology is a service provider and one of
the operations practice this company is using is discussed.
Operation management practice used by Uber
Operation management practice is the efforts used by the manager to increase the
productivity of the work reduce the cost. This company controlling cost and maintain its
quality so that the customers are satisfied with its products or services (Bushman, 2021). The
manager of this company is controlling all the types of cost like using the easiest
communication channels for reducing the cost, training its labour all the techniques and
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giving them knowledge of the things so they work without any wastages, buying in bulk etc.
With use of skilled labour and new technologies they are maintaining their quality of work.
Communication coordination
Improved communication improves the coordination of activities within the different
departments and maintain complete harmony among the employees. It also increases the
productivity of the working and understanding the information quickly by each department
increase the efficiency in work due to speed or clarity in work. The Uber Technologies is
using various type of communication channels so that it can provide all the services to all the
customers on time and every employee or manager in an organisation can understand his/her
task easily. This communication helps in supply chain management raw material are
transformed in final products which required a lot of coordinating activities like arrangements
or planning of resources and communication with various suppliers for selecting the best
source with less cost and good quality (Zhang, 2019). Manufacturing and purchasing of raw
materials become easier with the help of communication practice because it leads to less cost
with good quality of products and more purchasing by the customers. Manufacturing of
goods and converting it into final products requires various steps and each step requires
complete information and coordination. Delivery process becomes easier with the help of this
communication channels because it creates good trust in the consumers mind due to timely
delivery of services by Uber and after sales services also provided for handling the customers
complaints about any services offered.
Role of communication coordination in operation and service management is
 Maintaining and building relationship between the employees and with the
customers helps in achieving the goals easily and involving labours into decision
making motivates them to work more hard with full efforts (Ozdemir-Gungor, 2018).
 Less conflicts and handling complaints by the company due to proper
communication channels are followed. The conflict in the employees will be less due
to positive environment and the customers feedbacks are communicated carefully for
building trust in their mind.
 Timely delivery of services with improvements are only achieved with
communication and coordination among the employees with full individual efforts
and using new technologies for improvements.
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 Developing collective mind and improving performances with proper
communication about the individual roles and responsibility each employee will use
his/her style for of doing the task with efficiency which leads to overall improvement
in the performances by all the employees.
 Proper coordination leads to widespread growth because all the departments are
doing its work with full coordination results in widespread growth of the company.
TASK – 2
Comprehension in relation with the manner in which the company coordinates
communication, maintains costs and quality and supply chain is very crucial. Further, the
comprehension also needs technical knowledge within the dominions of operations
management. with the main aim of keeping communication effective and expenditure low,
there can never come a point when the management finds the middle ground on quality.
Additionally, the decision also requires to be such that the supply chain management does not
get hindered at any cost (Wirtz and Tang, 2016). Talking in relation with the supply chain
management for Uber, it is connected effectively as well as efficiently in meeting the demand
and supply of the clients. there can never be a point when the client has requested a cab and a
rider has not reached to that particular individual although with a higher fare however
meeting the demand nevertheless. The very first means through which the company can keep
their expenses low is through offering discounts. The company offers uncountable discounts
to the clients that supports them in keeping the fare low and attracting many more clients in
return.
The reality that the clients are without any difficulty being easily swayed by the
discounts in any manner, travel costs being further decreased and trips being made
inexpensively is a perk everyone longs for. Such types of discounts are also paired with
eateries in some nations. Many restaurants’ partners with the company to offer discounts as
well as percentages off on different types of products and services. All these factors are being
regarded as decrease in expenditure for the part of the clients. the company also aspires to
keep their expenditure low for their riders (Ahluwalia, 2017). When it is related with the
riders of the company, they make it a point that they come up with ways that motivates them
to continue working with uber. This not only supports the firm in retaining the riders however
also makes sure that there is smooth flow of operations when it is about effective supply
chain.
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Moving further, quality management is also important for the firm as it is related with
overseeing the processes of the business along with the activities for maintaining the
anticipated amount of excellence. Further, the level to which the products and services of the
company contends the desires and requirements of stakeholders is also considered in quality
management. Uber makes use of six sigma approach for controlling the quality of the
products and services. Seeking help through this technology and system, Uber has been in a
position to decrease the chances of errors in the process of manufacturing.
Figure 1: Six Sigma
(Back to Basics: Six Sigma, 2018).
This theory also revolves across defining, calculating, evaluating and controlling the
process. six sigma is being utilized by the company for reducing as well as eliminating errors
in their operations and they are effectively making sure that the quality services are being
offered to the clients that matches the needs of the clients (Cannon and Summers, 2014).
TASK – 3
The manner in which technology can be embedded in this process or how this has already
been achieved
Speaking in relation with Uber, as it is mentioned previously in this research report
that the firm is very much relied on the technology. Without utilization of technology, the
main aim or the business idea of the company will become null and void. According to David
(2022), technology is the factor that gives the advantage to Uber related to assassin
performance basically as each section of the application has so been developed so carefully
and selected to give the desired degree of response. Because of the advancement of
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technology, there has been appearance of a new generation of market centres through
electronic commerce and mobile commerce (Moon, 2015). This has led to the development
of supply management a critical zone of emphasis for most of the businesses. In this whole
web of technology as well as system, the company makes sures that each and every section of
the technology performs independently so that in a situation where there might be a bug or
any other issues, the overall application does not stop working and does not collapse. In
addition to this, the company does not make use of HTML or any other hybrid solutions
when it is talked about the functionality of the mobile application.
Moreover, the company also ensures that there is an undisrupted stream of
communication which supports them in collecting all the beneficial along with essential
information for creating a database that hosts all the data being required for referring time
and again for developing and having faster functionality of versions of the application. Other
than this, it has also been asserted by Bashir, Yousaf and Verma (2016) that for the purpose
of managing the operations, the company make use of demand and supply system effectively.
This supports them in generating information that helps in maintaining some degree of
efficiency being desired in their business through ensuring the riders are busy and are
catering to as many clients as possible. The utilization of technology at the end of the Uber
appears to be quite simple, it is heavily embedded within the system as a whole that helps the
functionality superior and produces the desires output. Additionally, behind this scene of this
smooth running of the function, there is a presence of infrastructure which contains a web of
technology that does not falter for a single second. Similar to many other applications, Uber
also initiated with small basic software architecture and a database that would just not only
offer information rather with its expansion as well as development of technology, the
company has enhanced its design of application that supports its larger objectives of
operations management (Walley, 2017).
Likewise, there not a single method of undoing technology from the application of
Uber. Each and every icon and step being clicked by the user, be it might be the client or the
rider, it is founded on and is being operated by technology. In addition to this, at the backend
there has a heavy system in place that is continuously updating as well as accumulating
information and developing a database that becomes an important medium for making
decisions on the manners of making improvements in the total interface along with the
functionality of the application (Narendra, 2018). It is crucial to note that these efforts are
made only for improving the complete or inclusive operations of the applications.
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TASK – 4
Supporting function linked to operation management practice and the manner in which it can
help in making sure success of the organization
One of the supreme and important supporting functions connected to the operation
management practice in Uber is marketing. Different marketing efforts being made across the
years makes sure that the operations and other activities of the company continue to perform
effectively. Efforts related to marketing such as, partnership with other firms for an event can
without any difficult add to the demand and supply side of the operation management. again,
referring to the discounts and promotions which are provided by Uber are directly connected
and related to the operations management practices being highlighted. Marketing efforts can
also be bounced to offer sponsorships to events (Wallsten, 2015). Adding the logo of the firm
plus the name to an event can help in boosting the mileage when it comes to augmenting the
facets of supply chain management. Each and every department of the firm performs
determinedly for meeting out the objectives and goals being determined by the heads of the
firm. Therefore, to say that it is sole accountability of the operations department is totally not
correct.
All the other functions of the company work in harmony with each other to
accomplish their individual set goals which are aligned to the overall goal of the firm. For an
illustration, although the operation management department is functioning in regards with
making improvement in the quality of design and services and establishing smooth supply
chain management system, the marketing department is also functioning towards boosting the
mileage plus outreaching of the firm. In the same manner, the finance function is also
stroking their money to ensure that the growth is being attained and goals are being
encountered. When all these departments perform together with notions, the capabilities and
proficiencies of each department is being highlighted and is utilized for finding avenues by
which the success and growth of the firm is being attained (Dudley, Banister and Schwanen,
2017). Other than this, the human resource department also act as a support function for the
operation management practices being highlighted through hiring and training individuals
who capabilities and knowledge can be aligned with those of the firm.
It is domineering to search out for the correct fit and people to bring the amount of
productivity to the firm that is required for succeeding in the market. Those workers who are
not productive and efficient are being regarded as the huge expense to the firm as they are not
in a position to fulfil the needs of what it takes to make firm prosper. Moreover, it is also
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crucial that the working environment should be such that it fosters freedom, innovation,
growth and creativity among people. The business of Uber is also founded on innovation and
creativity which takes such kind of ideas ahead in the future. Even the clients who are
eventually ending up through utilizing the end products are extremely crucial for the firm.
Thus, it is also important on the part of the customer service department to take decisions
considering the customer base in intellect (Centobelli, Cerchione and Esposito, 2017). For
illustration, when the company has launched their manners of chatting and calling the driver,
this was nothing but to play around the concept of reliability as well as safety. Through thus,
Uber desire to instil confidence in their clients so that the gaps of communication can be
bridged.
CONCLUSION
Therefore, from the analysis it can be concluded that operations management and
practices play a very crucial role in the ways the whole organizational functions. The level of
effectiveness along with efficiency is also being measured through operation management.
because of the rising level of globalization, there has been intensification of competition level
among the companies. To cope up with this competition, it is significant on the part of the
firms to turn to technology and apply the same in their operations. the utilization of
technology bases system in the operation of the firm result in augmented level of productivity
as well as manufacturing of quality products and services.
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REFERENCES
Books and journals
Ahluwalia, R., 2017. Critical appraisal of uber business model under “gig economy”.
International journal of management and social sciences (IJMSS). 6(2). pp.62-65.
Bashir, M., Yousaf, A. and Verma, R., 2016. Disruptive business model innovation: How a
tech firm is changing the traditional taxi service industry. Indian Journal of
Marketing. 46(4). pp.49-59.
Bushman, R., 2021. Cash-based bonus plans as a strategic communication, coordination and
commitment mechanism. Journal of Accounting and Economics, 72(2-3), p.101447.
Cannon, S. and Summers, L.H., 2014. How Uber and the sharing economy can win over
regulators. Harvard business review. 13(10). pp.24-28.
Centobelli, P., Cerchione, R. and Esposito, E., 2017. Environmental sustainability in the
service industry of transportation and logistics service providers: Systematic
literature review and research directions. Transportation Research Part D: Transport
and Environment. 53. pp.454-470.
Dudley, G., Banister, D. and Schwanen, T., 2017. The Rise of Uber and Regulating the
Disruptive Innovator. The Political Quarterly.
Moon, Y., 2015. Uber: Changing the way the world moves. Harvard Business School.
Ozdemir-Gungor, D., Kıdak, L.B. and Ercan, Y., 2018. Formal communication channels in a
state hospital: a qualitative study. iioab journal, 9(6), pp.48-55.
Walley, P., 2017. Introduction to operations management’, in The Open University (2017)
B207 Readings Block 1: Big ideas in Organisations, Milton Keynes, The Open
University.
Wallsten, S., 2015. The competitive effects of the sharing economy: how is Uber
changing taxis? Technology Policy Institute. 22.
Walters, and et.al., 2019, October. Seeing the forest for the trees: A systems approach for
rural water and sanitation service management and operation. In 2019 IEEE Global
Humanitarian Technology Conference (GHTC) (pp. 1-4). IEEE.
Wirtz, J. and Tang, C., 2016. Uber: Competing as market leader in the us versus being a
distant second in China. In SERVICES MARKETING: People Technology Strategy.
Zhang, and et.al., 2019. Integrated design and operation management for enterprise
systems. Enterprise Information Systems, 13(4), pp.424-429.
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Online references
Back to Basics: Six Sigma. 2018. [Online]. Available through:
https://www.qualitymag.com/articles/94429-back-to-basics-six-sigma>. [Accessed
on 17th May 2022].
David, M., 2022. How Uber Used Mobile Performance Engineering to Pull Ahead. Available
from: [Online]. Available through: <https://techbeacon.com/enterprise-it/how-
uber-used-mobile-performanceengineering-pull-ahead>. [Accessed on 17th May
2022].
Narendra, L., 2018. Uber System Design. [Online]. Available through:
<https://medium.com/@narengowda/uber-system-design-8b2bc95e2cfe>.
[Accessed on 17th May 2022].
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