Integrated Capstone Project: UBER's Business Model and Market Analysis

This integrated capstone project provides a comprehensive analysis of UBER, a leading ride-sharing service. The project begins with an introduction to UBER, outlining its services, global presence, and primary goals. It then delves into a macro-environment analysis, examining the organizational environment and the impact of smartphones and technology. A detailed discussion of UBER's business model follows, including driver recruitment, vehicle screening, and customer interactions via the mobile application. Porter's Five Forces analysis is used to assess the competitive landscape, including threats from new entrants, supplier bargaining power, buyer bargaining power, and rivalry with competitors. The project also explores UBER's competitive structure, identifying ways to improve service delivery and driver competence. Finally, it considers the threats of substitutes and the overall competitive advantage of UBER in the market.

Running head: INTEGRATED CAPSTONE PROJECT
Integrated Capstone Project
[Name of the Student]
[Name of the University]
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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

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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.

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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

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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.
Porters Five Force analysis:
This is the tool which is used for the purpose of analyzing the completion which is faced
by a particular business. Amongst these five forces three of the forces are incorporated by the
horizontal competition whereas the other two are incorporated as the vertical competition. The
horizontal competition is associated with including the “The danger from Substitution by new
products or services”, “risks posed because of the rivals already existing in the market” and “the
threats faced by the new entrants.” The vertical competition is associated with including the
“bargaining power of the supplier” and the “bargaining power of the buyers”.
Threats due to new entrants:
The reassurance which is proved by the new ride-sharing firms is seen to be lacking and
they might be associated with charging more without any kind of reason for the same amount of
distance covered. At the time of establishment UBER got separated from its prime supporters
which took away a sizeable measure of capital (Sun et al. 2018). The agreement which UBER is
having is associated with including the offerings of software applications without expecting any
kind of things in return from the customers. The reason behind this is that the customers are
having the capability of switching to some other service at zero cost. Because of the reason that

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the cost which is needed for the offset is non-avoidable, UBER is entirely susceptible to any type
of rates which are seen to be raising in a subsequent manner.
Bargaining power of the Suppliers:
There exists no such own vehicle in the fleet of UBER. The business model which UBER
is having mainly subjected to the drivers as well as to the partners associated with the holding of
the rides. For this reason it is possible to state that the strategy related to outsourcing has been
adopted by the organization so as to do the work and assets to the persons who are seen to be
capable of meeting the terms and conditions of the organization is order to utilize the web based
application (Henama and Sifolo 2017). Additionally the driver substitution is also seen to be very
much difficult. UBER is associated with providing the owners of the vehicle with a specific
option related to choosing of the association or the rivals and this in turn is responsible for the
consultation so as to have a superior regards in terms of the expenses made by the organization.
Bargaining power of the buyers:
The services which UBER provides might seem not to be required every time by the
customers. The services which are provided by the organization is seen to be needed only at
specific situations or instances and this situations mainly includes those when a user is in hurry
such as when the user is late for office or in situation when a there is an unavailability of a
convenient mean of transport (Zhao et al. 2016). For this reason the customers are associated
with choosing amongst the taxi and the reason behind this is that the customers need not to pay
any kind fee as the registration is entirely free so as to use the application.

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Rivalry with other competitors:
There exists many organizations which are seen to be responsible for the providing of
similar services as that of UBER and along with this it is also observed that they are having the
same business model as well as operations. Additionally the demands related to the corporation
which is existing in the business world of present day so as to focus upon the customer base in a
particular geographical location in order to cut the cost is seen to be requiring different kind of
operations (Chen and Sheldon 2016). UBER has been capable of establishing a business system
along with a massive investments.
The threats of Substitutes:
Substitute mainly refers to the typical constraints which are focused upon the business
environment such as the opponent who is closest or the potential substitutes of the organization.
From this it is clearly understandable that any kind of slight increase in UBER fare might be
resulting in the attracting the customers by the other ride sharing organizations.
Competitive Structure of UBER:
Competitive advantage generally refers to the results which are obtained from the firm’s
value which is initially seen to be responsible for leading to the creation of the advantages which
are gained by the customers and are seen to be exceeding the costs which the firms require while
it is being created. There exists two ways by which the utility can be increased along with the
services which are provided by UBER. The first way is associated with involving the
enhancements in the process of service delivery and this mainly seen to be done by means of
reduction in the time needed for reaching out to the customers whenever there is an need of
services which are provided by UBER (Mutai 2017). Besides this there also exists the need of
being reliable by the cab and the driver as well in order to make sure of the fact that the

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customers are getting happy with the services which are provided by UBER. There also exists
another way of improving the competence of the personnel and this is associated with including
the ensuring of the fact that the services which the professional drivers are providing are
satisfactory for the customers and this is to be done by means of providing training to the drivers.
In addition to this training is also to be provided to the drivers.
Growth strategy adopted by UBER:
There always exists certain conditions which are seen to be utilized by the organization
UBER so as to get developed in a decent way. In addition to this the circumstances have been
referred to as the Accelerants (Correa, Xie and Ozbay 2017). This type of accelerants are
generally seen to be responsible for demonstrating the real along with the transitory requirements
that the UBER administration is having. Some of the accelerants have been discussed below:
Holidays and Occasions:
There exists numerous events which are associated with providing the organization with a
great opportunity for taking the stand by the business model of UBER and this would be
associated with making the organization capable of conveying a very good service which in turn
would be responsible for the creation of the new buzz for the administration (Chang 2017).
Different type of occasions are associated with the creation of the new as well as unusual
requests along with the weights for the purpose of getting new clients who would be associated
with taking their first ride. In addition to this it would be responsible for driving the spike in the
new riders who are responsible for the aggregation of the rides.

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Restaurants and Nightlife:
This type of service is seen to be regular and for that reason there exists a regular need for
making a game plan which is to be followed for the purpose of helping the customers in
backpedaling to their home after completion of any kind of gathering. For this reason UBER
have been associated with rushing for the comprehension of all this and is seen to be associated
with offering its administration for having a meaningful nightlife focus in the cities (Dubal
2017). Beside this the individuals who are seen to be associated with gaining the profits because
of the administration has initially been turning out to be very much enthusiastic towards the
organization UBER and has been seen to be doing informal publicizing for the purpose of
spreading the words.
Weather:
This is one of the condition when the services provided by UBER is seen to be very
much beneficial. However the organization is seen to be having an outpouring estimated
innovation and for that reason it has been seen that there exists a rolling out of vast majority so
as to have improvements in the climate. During heavy when someone is stuck then they might eb
requiring the services of UBER. The service provided by UBER is the best at this time which is
also the main accessible decision that can be taken at that point of time (Rajesh and Chincholkar
2018). This procedure is likely to be associated with prompting a feedback for the services
provided by the organization which is seen to amid the tropical storms which was named sandy
when there was an expanding in the cost.

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Strategies for Overcoming the Barriers and for Growth:
Strategy at the business level:
UBER has been associated with providing a head path so as to oversee the transportation
and the application has been developed for providing of provision to the drivers. The application
helps in decreasing of anxiety amongst the clients while looking out for great as well as reliable
drivers where no fussing would be included related to the stockpiling of the receipts so as to
recover the income (Tzur 2017). So the clients are checked deliberately by UBER in order to
check for any kind of criminal records. In addition to this the drivers working for UBER are also
tried by usage of the numerous steps before they are acknowledged.
The corporate level strategy:
At the corporate level UBER is associated with the usage of the techniques related to
item advancement. The ebb tide along with the advertisement has been used for updating the
nature of administration, which has been done by means of enhancements in the application
stage. This in turn has been associated with encouraging the association that exists between the
different stipulations and the drivers (Harding, S. Kandlikar and Gulati 2016). The expanded
abilities are associated with making the drivers capable of acquiring the entire business along
with which numerous options and accommodations would be provided to the shoppers as well.
Recommendations:
Providing of genuine solutions of the real world problems:
Every business is having the aim of existing so as to serve the requirements of the clients
and this it is seen that most of the business is associated with the usage of the similar as well as
restricted arrangements for the plans related to the actions which were once seen to be enough

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for tackling of the different kind of distinctive difficulties so as to provide the clients with an
comfort. Organizations similar to UBER is associated with providing administration which is
exceptional and is responsible for providing of better offers.
Being an early adopter:
Being a market participant is considered to be a vital issue and being a ride-sharing
organization UBER is associated with enabling of the cutting of the huge shares from the market.
There are numerous rivals who have been associated with confronting themselves however
UBER is still a grounded branch and is considered to be the first business which has been
associated with showcasing the riding market.
Limitations of the infrastructural requirements:
Whenever an organization is starting up it faces higher costs at the time of development.
And while considering all the things, it is seen that there exists different ways by which it is
possible for the business to limit the expenses and one of the way of doing this is by diminishing
the foundation set up. The reason which lies behind the development of UBER is the lack of any
overhead costs which the customary taxi services are having.
Conclusion:
The above report has been associated with helping in concluding to the fact that being
one of the large cab service UBER has been associated with serving its customers to a large
scale, the application which UBER is having is associated with helping the customers and the
drivers as well. The aim of this organization is providing service which would be fully efficient
along with being helpful for the customers. The macro-environment analysis along with the
organizational environment helps in understanding the competitive market of UBER. The report

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also highlights the various strategies which can be adopted by UBER so as to overcome the
barriers as well as for the organizational growth. The report has been associated with
highlighting the barriers faced by UBER as well. So it is very important to make sure that UBER
is associated with moving forward by usage of the readily available conditions so as to avoid any
kind of problems.

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