Integrated Capstone Project: Analyzing Uber's Business Environment

This case study examines Uber Technologies Inc., a peer-to-peer ridesharing, taxi cab, food delivery, and transportation company founded in 2009. The analysis covers Uber's background, business strategies, and the challenges it faces, including legal issues, competition, government policies, self-driving technology, bad publicity, employee payment disputes, and leadership changes. The study uses SWOT and PESTLE analyses to evaluate Uber's business environment, highlighting its strengths like brand awareness and customer loyalty, weaknesses such as bad publicity and internet dependency, opportunities for expansion, and threats from competition and regulations. Recommendations for addressing these challenges and a career plan are also included. Desklib provides access to this and many other solved assignments for students.

UBER PLANS TO GET MORE PEOPLE INTO FEWER CARS.
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SECTION 1: EXECUTIVE SUMMARY
The UBER TECHNOLOGY INC is a privately-owned organization that provides peer to peer
ridesharing, taxi cab, food delivery, and transportation. It was founded by Travis Kalanick in the
year 2009, its head office is located in San Francisco, California in the United States (Ng, 2016).
The company is known to offer high-quality services since the time of implementation. The
company works under low rates and therefore it is affordable to the clients. UBER taxis are
confidential and therefore many like them and prefer to travel by them Feng, 2017). The large
market and profit margin compelled the management team to come up with more services since
the company is well known the market would come automatically. The company has a horizontal
management structure that is led by a CEO who works with a board of directors to ensure there is
effectiveness. The company took the better part of the market since the year two thousand and
nine and therefore it has been a profit-making organization providing services to clients that are
friendly and even private. This research paper will analysis the business environment of the firm
and identify its business strategies that is has been using since 2009.Moorever an in-depth
analysis of the challenges facing the firm will be conducted. However, this will be efficiently
done through SWOT and PESTLE analysis of the firm’s business environment. Having done this
it be effective to give the various recommendations s in this paper while conducting a career plan
in the end

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Table of Contents
SECTION 2: UBER PLANS TO GET MORE PEOPLE INTO FEWER CARS...........................4
BACKGROUND.............................................................................................................................4
Business strategies.......................................................................................................................5
SECTION 3: Challenges facing uber..........................................................................................6
SWOT analysis............................................................................................................................7
SECTION 4: ANALYSIS..........................................................................................................13
PESTLE analysis.......................................................................................................................13
SECTION5: Recommendation..................................................................................................18
SECTION 6: Career planning....................................................................................................19
Conclusion.....................................................................................................................................20
Reference.......................................................................................................................................20

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SECTION 2: UBER PLANS TO GET MORE PEOPLE INTO FEWER CARS.
BACKGROUND
The UBER TECHNOLOGY INC Company is a privately-owned organization that provides peer
to peer ridesharing, taxi cab, food delivery, and transportation. It was founded by Travis
Kalanick in the year 2009, its head office is located in San Francisco, California in the United
States (Ng, 2016). The company is known to offer high-quality services since the time of
implementation. The company works under low rates and therefore it is affordable to the clients.
UBER taxis are confidential and therefore many like them and prefer to travel by them Feng,
2017). The large market and profit margin compelled the management team to come up with
more services since the company is well known the market would come automatically. The
company has a horizontal management structure that is led by a CEO who works with a board of
directors to ensure there is effectiveness. The management of the company clearly shows that
there is a sophisticated way of management since they have a perfect decision and develop
wonderful ideas. it creates room for innovation since there are specialization and division of
labor (Means and Seiner,2015). The company has a word success record in making wisest
decisions and therefore is the success of the business. The company has more than 2.4 million
workers and it is employing more due to the extension of the idea to bring more people in the
company. The assets of the company total almost up to a revenue of 15.7 billion dollars
The company took the better part of the market since the year two thousand and nine and
therefore it has been a profit-making organization providing services to clients that are friendly
and even private. This has been largely characterized by the brand awareness and dominating its
home market USA. The environment has enhancing factors like the political stability of the
states. The American states are known for their supremacy in power that covers very many

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departments. The states are politically stable since its residents are elite and therefore they don't
find the need to have political differences. As the name suggests the states are united and
therefore the unity gives them a winning environment and the agility to achieve their goals with
ease (Todd, 2018). The states are also known by their wealth. The state's wealth contributes and
creates the business environment that favors all enterprises that, the potential investors find it
easy to establish the new businesses. The cultural factors of the state favor business growth since
they don’t have cultural differences due to diversities and common way of life to all members of
the state. The common way of living has been brought about by the unity with the residents.
Generally, the environment in California and the other locations of the UBER INC subsidiaries
favor the UBER activities and therefore the company fare on very well.
Business strategies
The organization has utilized an in excess of one business strategies that upgrades its exercises
relying upon the area of the business. In any case, the organization is wanting to take part in the
multi-national system. In the worldwide system, organizations are working in a homogeneous
market which has utilized economies of scale. These way organizations have the chance to
support their income since there is a union between customer needs and more prominent market
Incentives (Grant, 2016). Also, the methodology offers uniform worldwide picture for
organizations in this manner giving them a focused edge in the market being controlled by
worldwide organizations. Because of the substantial market opportunity, the UBER taxis are
relied upon to extend enhanced revenue. The organization requires that since the worldwide
technique applies in the multi-national condition there is a desire for that the market will be
overwhelmed to meet the UBER autos are few contrasting with the pulled in advertise along
these lines using a couple of assets to accomplish more noteworthy benefits. Moreover, due to

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changes in the environment the company seeks to adopt a swift flexibility so as to meet the
customers demand as the change demands. These changes come as a result of cultural dynamism
and even socio-economic dynamism depending on the time(Jankowicz, 2018). They may also be
brought about by seasons and climate change and therefore the operating system is termed to
producing the best and giving a favor and a consideration to changes that arise to its customers
and clients.
SECTION 3: Challenges facing uber
Legal issues-Uber is currently facing a law suit by in investor google in the claim that the former
employees of the firm who currently work at Uber stole the tech giant technology where that
allowed self-driving car to map the environment around them which is currently a stumbling
block to uber as it is reinventing itself towards self-driving car taxi services
Competition-There is an increase in rivalry form emerging companies such as lyft who have a
similar business model as uber. However, uber’s non-aggressive response to such an upcoming
rivalry is paving way for lyft o catch up with the firm.
Government policies-uber,s aggressive penetration to the market has not gone well with
various governments such a Italy that has seen the ban of the black uber servces in the country
which has motivated other countries to follow suit
Self-driving uber-Another challenging factor is getting the self-driving uber to work. The
eliminations of the driver would come with the huge benefits but the technology is into yet
satisfactory. there have been many cases of the technology failing and the derailment form the
google law suits
Bad publicity-There has been several cases of bad publicity that has rocked the company in the
past years going from sexual harassment to bug rally and even uber drivers who are rude and in

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appropriate to the consumers. This led to the rise of “delete uber movement” early this year as a
move to punish the company
Employee payment-There has always been a truffle when it comes to Uber and ite employee
concerning its payment and remuneration, they have always been bad and has seen the constant
updates and changes made to payment methods and amount due the constant strikes of uber
drivers in various regions protesting payments
Poor management/leadership-Uber has seen changes to top leadership in the past ten years
with more than 7 top executives resigning due to scandals or negative pressure from their
managements which is not healthy for a big firm. Its current ceo is under pressure form the law
suit from google of technology theft.
SWOT analysis
Strength
Brand awareness- since the establishment of Uber, it has become a well-known brand in the past
ten years in America and internationally as well. This is due to its innovative measures in
dominating the Taxi business which has contributed immensely to the growth and development
of the firm
Increased levels of customer brand loyalty- Uber has successfully been able to acquire and
maintain customer loyalty through the year's thanks to reinventing their business model and
targeting consumers at metropolitans or busy towns. Through offering affordable prices and
quality prices, Uber has been able to sustain loyalty among its existing and new consumers
(Armstrong,et al 2015).
Uber app is user-friendly and convenient to use- Uber uses a web-based App that has a user-
friendly interface which makes it easier for Uber clients and it employees to use. It has also

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additional features such as location tracking which is useful for direct communications. clients
are able to book tai services easily. The continuous advancements of the Uber App is
increasingly creating a strong footing for the company on the consumers
High-quality service- Uber has kept up high-quality service measures whether as far as rides or
regarding client benefit. The drivers are prepared to be neighborly and gracious and the rides
incorporate new and proficient vehicles. It pays the lion's offer to the cabbies and keeps just 5 to
20% cut for itself.
Affordable pricing for Uber, uber pricing strategy is attractive and plays a crucial role in the
growth and development and dominating the markets beating the traditional taxi systems. This is
made possible through the use of a meter pay system that charge according to the distance
traveled by the client which further shows the transparency in the delivery of the taxi services
(Ma,2017).
Customer trust and partnership-The firm have also introduced a monitoring and rating system
where consumers and employees are able to rate each other depending on the service acquired
which is helpful to the firm since it would identify underperforming employees and negative
clients and take appropriates actions. This ensures a conducive working environment for the
employees and consistent quality service to the clients
Cars belong to drivers-Ubers strong suit is that that uber employee have to own their cars so as
to qualify, this eliminates the maintenance fee as the employees cater for the services and
expense related to the car, unlike the old traditional taxi services where the parent companies
maintained all expenses related t their cabs

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Weaknesses
Bad publicity-There has been several cases of bad publicity that has rocked the company in the
past years going from sexual harassment to bug rally and even uber drivers who are rude and in
appropriate to the consumers. This led to the rise of “delete uber movement” early this year as a
move to punish the company
Technology-oriented consumer segment- Uber is based on technology that relies heavily on
smartphones and internet connectivity to fully function. This means that if many of these fails it
will be difficult for the firm to function fully. Moreover it requires consumers who only have
access to the two requirements and have a technical know-how of using the system(Perera et
al,2015)
Extremely dependent on the internet-the entire business model of uber relies on internet
connectivity since it functions as an app carry out 90% of their business activities and services. A
disruption of connectivity could be fatal for the firm. Moreover, it curbs and limits its potential to
develop to emerging markets that are still minimal in internet connectivity penetration
Competition- While Uber has made aggressive weight on the customary taxi organizations, they
have additionally increased the standard of administrations and lessened costs to react. This is
prompting focused weight in a few zones

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Rely on manpower: Uber is heavily reliant on their manpower that is the uber drivers who are
required to provide their own cars as well as service and maintain them.80% of the uber business
in reliant on the drivers which in some cases is unreliable and unpredictable
Trump campaign-There has been recent news that the Uber Inc. played a major role in funding
the trump campaign who is the most hated president so far, this has not gone well with non-
trump supporters who have switched sides to lyft which was neutral during the campaigns.
Privacy risk-The uber App is able to transmit and share locations of the consumers so as to track
the and provide cab services. This poses as a risk of exploitations in the wrong hands such as
hackers who can use the uber app to track and acquire confidential information from their clients
Opportunities:
Self-driving cars- there poses as a great opportunity for self-driving cars which could be very
profitable if the firm is successful in being among the fist to deploy a successful program.
moreover, it would eliminate the manpower that it heavily relied upon
Increased internet penetration in emerging markets-many firms have been targeting emerging
markets due to the numerous opportunities fostering increased investments of technology firms
such as Google Inc. which has impacted the growth and development of the internet which is a
core dependency for the growth and expansion of Uber (Perera et al,2015)
The growth of middle-class income-The developing income of the middle-class consumers all
around has likewise demonstrated beneficial for Uber. It is essentially the white-collar class
customers and the vacationers that make utilization of Uber's administrations. Since their
discretionary cash flow has expanded, they can spend increasingly and this has made open doors

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for brands like Uber. As opposed to taking the other less expensive methods of transport, these
clients are going for the more helpful administrations from Uber(Perera et al,2015).
Partnership with hospitality brands – Uber can band together with neighborliness and lodging
brands to serve a huge number of travelers who consistently require taxi administrations while
remaining at an inn. This will profit both Uber and the cooperating brands and also the visitors
who require transport administrations.
alternative transport choices – In the Asian urban communities, the elective transport
administrations are not of as extraordinary quality as Uber's. It is the reason individuals are
settling on Uber than utilizing the conventional transport framework. This implies higher
benefits and income for the taxi mark.
Technology innovation - Innovations has enabled the company to employ more powerful
production techniques such as the introduction of electric cars among others. It's an opportunity
for the company since the use of mobile phones has enhanced increased internet users that have
been accessing the company advertisements and platform services (Poushter, 2016).
Car pooling -This means uber clients are able to share one uber cab for a reduced cost if they are
heading in the same direction. This would increase transport price affordability and increase
growth and development of the firm
Threats
Legal and political negative pressure – The legitimate and political weights upon Uber is
developing. Nearby specialists internationally are squeezing it for consistency with specific laws
which were at first not considered appropriate on account of Uber. It confronted issues identified
with permitting in South Africa where government began appropriating Uber autos for the

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drivers did not hold taxi licenses. There are different regions like HR where legitimate weight
has expanded on Uber. Californian specialists had before decided that it should regard its drivers
as representatives.
Growing protests from traditional taxi services – Uber's ascent has prompted serious
misfortunes for the conventional taxi organizations and that has brought about dissents from
them. In a few phases, this dissents even procured political hues meaning a danger to Uber's
business (Barro, 2014)
Self-driving cars-If another competitor firm or a startup that would deploy cab selfe driving cars
successfully before uber, it could be the downfall of the firm if it does not counter respond to the
changes
Taxes- the constant introduction of bills that would showcase uber as a non-technology fir would
simply indicate the tubers revenue collections would have to be tax accordingly and it would
incur huge losses and different regions would have different tax caps
Low overall revenues – Uber takes a little offer of the installment which for the most part
extends in the vicinity of 5 and 20%. In this way, except if it continues offering its
administrations at an extensive scale, the benefits can reduce (Salnikov, et al ,2015).
Rivalry from Lyft: While Uber has been appreciating prevalent development through mechanical
advancement which came at the cost of conventional taxi organizations' business, things appear
to have begun changing with the rise of Lyft. Lyft has given in excess of 236 million rides in the
vicinity of 2012 and 2016. Both the brands have their in addition to focuses and various drivers
serve both (Cramer and Krueger, 2016). This is the means by which things work in the sharing
economy. Be that as it may, the two brands are a risk to every others' business