Uber Case Study: Developing a Business Model for Competitive Advantage

This presentation provides an overview of Uber's business, including its origins, services, and the key issues it faces, such as regulatory challenges, tax liabilities, and operational risks. It identifies challenges like the need for a level playing field, concerns about sexual harassment, and driver classification issues, alongside opportunities such as market expansion and reduced customer waiting times. The presentation also examines Uber's business model, highlighting key partners, revenue streams, cost structure, customer segments, and value propositions for both customers and drivers. Recommendations for addressing Uber's challenges include fingerprinting drivers, addressing driver classification, and ensuring wheelchair accessibility. The presentation concludes that despite these challenges, Uber's strengths, including its brand reputation, minimal competition, and high service standards, position it as a leader in the transportation industry. Desklib provides access to similar past papers and solved assignments for students.

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INTRODUCTION
-Uber business was founded in 2009 as Ubercap.
-Founders of Uber company are Garrett Camp and Travis
Kalanick.
-Uber is a private company. Attaran, (2017 p.11) it is a
service delivery and a transport network company.
-Access to products and services offered by Uber is done
through; mobile application ,websites.
Services provided by Uber
I. Access to individual or group ride
II. Food delivery services
III. Flexible shipping
IV. Simplifying employee’s travel
V. Urban air transportation

Key issues facing Uber
 California ruling against Uber
 Tax liabilities on employees
 Risk when operating in states that Uber has
been banned, Teece, (2018 p. 46)
 Increased operational risk
 Threat of new new entries
 Low profit margin
Challenges of Uber business
-Even playing ground, Attaran, (2017 p. 18)
-Sexual harassment and crime activities
-Uber drivers classification
-Inaccessibility of wheelchair

Opportunities of Uber business
-Acquisition of new big market in countries where
taxis are expensive and inconvenience, Norman,
(2017 p.26)
-Reduction in customer’s waiting periods due to
increase in uber drivers.
-Transportation of patients to hospital and children to
school.
Competitive advantage of Uber business
-Good effective and strong network
-Uber brand and name has good reputation to the
society at large, (Foss, and Saebi, 2018p.14)
-Regulations avoidance hence reducing costly
expenses
-Excellence operation of the business hence making
transport industry less competitive.

BUSINESS MODEL AND BUSINESS PROPOSITION OF UBER
KEY PARTNERS
Includes:
Drivers together with
their cars
Processors of payments
Map APL or location
providers
The investors
STREAMS OF REVENUE
 Overflow pricing
 Rideshare by uber,
 Uber taxi
 Car rides
 Uber cargo
STRUCTURE COST
 Payment of salaries to
permanent employees
 Start new events and new
market expenditure
 Tech infrastructure
CUSTOMER
SEGMENTS:
USERS
•Those who want a cab
with low cost
•None car owners
•Those who want to be
driven to parties and
functions
•Those who like to be
treated as VIPs
KEY BUSINESS
ACTIVITIES;
Hiring of drivers
Customers’ support
Development and
management of products
Management of drivers’
payout
 Acquisition of customers
and market
CUSTOMER
RELATIONSHIP:
•Support from customers
•Social media
•Reviewing, rating of the
service and feedback system
BUSINESS VALUE
PROPOSITION
Customers
 Reduction of waiting time
 No hiding of cash
 Reduced transport cost from
the normal taxis
CUSTOMER
SEGMENT:
DRIVERS
•Those who have their
own cars and want to
earn money
•Those who love
driving
•Those people who
wish to be called
partners rather than
drivers
KEY RESOURCES:
Skilled employee/ drivers
Technological platform
BUSINESS CHANNELS
•Mobile application
•Websites
BUSINESS VALUE PROPOSITION
Driver


Recommendation to challenges facing Uber business
I. Even playing ground, Srnicek, (2017 p.258)
II. Drivers to be finger printed
III.Drivers’ classification
IV.Accessibility to wheelchairs
Conclusion
Even though Uber business has some
challenges, its strengths such as its
reputation and brand, Schoemaker et al.
(2018 p. 81) very minimal competition, low
operation cost and a high standard of
service make it the best industry in
transportation.

References.
-Amankwah-Amoah, J., Osabutey, E.L. and
Egbetokun, A., 2018. Contemporary challenges
and opportunities of doing business in Africa: The
emerging roles and effects of technologies.
Technological Forecasting and Social Change,
131, pp.171-174.
-Attaran, M., 2017. The internet of things:
Limitless Opportunities for business and society.
Journal of Strategic Innovation and Sustainability
Vol, 12(1), p.11.
-David, C. and West, R., 2017. NDIS Self‐
Management Approaches: Opportunities for
choice and control or an Uber‐style wild west?
Australian Journal of Social Issues, 52(4), pp.331-
346.

Norman, D., 2017. Design, business models, and
human-technology teamwork: As automation and
artificial intelligence technologies develop, we
need to think less about human-machine
interfaces and more about human-machine
teamwork. Research-Technology Management,
60(1), pp.26-30.
Schoemaker, P.J., Heaton, S. and Teece, D., 2018.
Innovation, Dynamic Capabilities, and
Leadership. California Management Review,
p.0008125618790246.
Srnicek, N., 2017. The challenges of platform
capitalism: Understanding the logic of a new
business model. Juncture, 23(4), pp.254-257.
Teece, D.J., 2018. Business models and dynamic