Eng113: Uber Proposal for Improved Transportation in Prince George

This report proposes the introduction of Uber as a new transit service in Prince George, BC, addressing the city's slow and inconvenient transportation system. It provides a detailed overview of Uber, including its business model, driver requirements, and factors that make it a suitable solution for the city. The report highlights the benefits of Uber, such as time-saving, cashless transactions, improved communication, and safety features. It also addresses the surge pricing problem and suggests solutions for price stability. A business model canvas is included, outlining key partners, activities, resources, value propositions, customer relationships, channels, cost elements, and revenue streams. The conclusion emphasizes the potential of Uber to improve transportation, create employment opportunities, and benefit the residents of Prince George. The report is well-researched and includes references to support its claims.

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Uber in Prince George
Vishal
134061
College of New Caledonia
Eng113
Debra Moffatt
March 13, 2020

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Table of Contents
Introduction................................................................................................................................2
Background................................................................................................................................2
Uber Overview...........................................................................................................................2
Uber Driver Requirement...........................................................................................................3
Factors to use Uber.....................................................................................................................3
Uber offers Employment............................................................................................................4
Uber major Surge Pricing Problem and its solutions.................................................................4
Uber Business Model Canvas....................................................................................................5
Conclusion..................................................................................................................................7
References..................................................................................................................................8

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Introduction
In this paper, I want to propose a request for new transportation named Uber in Prince
George, BC. Transits in Prince George is slow and less convenient. People prefer to drive
their own vehicle to reach out their destination. Therefore, Prince George transits didn’t show
any change or development from the past few years. The transit can ensure people reach their
destinations such as school, colleges and workplace. If new transit should establish in the
city, it will help people to save their time as well as money.
Background
Prince George’s transit frequency is low as they run hourly and people must wait for a
long time for next bus. On the other hand, Taxi prices are also are high because it cost lots of
money in travelling from one destination to another. People prefer to drive their own vehicle
to reach out their destination. Hence, I want to introduce a new transit service called
“UBER”, also known as ridesharing, which helps in improving the transportation system of
the city. It provides economic and social opportunities as well as benefit people to reach out
their destination in a most effective way. Some other key benefits to consumers include
convenience, cost savings, likelihood for extra income, and new social interactions. Uber is
easily accessed and is way cheaper than other transit services together with its well-
maintained cars for offering services (Bliss, 2019). The drivers are self-employed and directly
paid by Uber.
Uber Overview
Uber which was incorporated in 2009 by Travis Kalanick and Garrett Camp. They
both developed an internet-based application to link the drivers with individuals who want
peer-to-peer rides in their cities and named it as Uber Cab Inc. On a global level, Uber has
expanded its operations to 69 countries and 900 cities around the world (statista.com, 2020).
In addition, the company have a market value of 72 billion U.S. dollars as of 2018
(Mazareanu, 2019). With such big network and market presence, it is possible that this mode
of transportation will be successful in Prince George, BC presenting convenient and
accessible services to the people of city.

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Uber Driver Requirement
The company hires drivers with a valid Class 4 license, vehicle insurance and they
must be above 21 years old. They are hiring drivers as independent contractors as it allows
them to improve their financial status by offering them minimum wage as a part of the
agreement. It is necessary for Uber to check upon the background history of a driver before
their first trip because some drivers have been accused before for killing, rape, sexual attack
and other ugly crimes. So, it is necessary to offer greater safety to the customer from the
beginning.
Factors to use Uber
There are many reasons and factors where Uber will be best suited for Prince George, BC
and these are outlined below -
1. Time saving: - Time saving is the main asset as vehicle should be at your place so
quick and you can trace through application rather than waiting for a bus. (Kessler &
Zhang, 2016)
2. Cashless/ Paperless transaction: - Drivers or Riders does not need to concern about
carrying change in terms of currency. People can pay online in their application by
using their credit/debit cards, gift cards, pay pal or other electronic form and get their
payment slips or receipt through email. (Kessler & Zhang, 2016)
3. Communication: - Rider can follow the location of the driver until boarding occurs.
(Kessler & Zhang, 2016)
4. Safety: - Driver are undergone for their background investigation and their vehicles
are passed through inspection before their first trip. They also guarantee about the
privacy of each person. Riders are provided with picture of the driver and his/her car
after booking of the order and this offers a great level of protection to people seeks to
choose this transportation mode (Kessler & Zhang, 2016)
5. Insurance coverage: - Uber ensure to have insurance of driver and rider from initial
to the terminal point in case if they met between with an accident. (Kessler & Zhang,
2016)

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6. Fare sharing: - If two or more people are riding together then the fares can be
divided into their accounts or one can pay the full amount who order the ride.
(Kessler & Zhang, 2016)
Uber offers Employment
Prince George is the BC north largest city and it is developing rapidly. Therefore, it is
great opportunities for people to get employed to Uber and earn good money. Uber provides a
safer ride to the customers to reach out their places like to the airport, late night dinner
restaurants, or to their homes. It is contractor job and paid by weekly. A driver can set his/her
schedule online means they can work when they want to start or end their work, who they
want to pick. Uber’s driver rating is also a good option and shows good behavior as the driver
and rider can give rating to each other (Bolluyt, 2018). Every time an Uber driver sign for a
new customer then they will get recruitment bonus. Moreover, Uber also provides a business
card with referral code to the driver which they can give next to the people, who will sign up
can get discount on their first trip. Driver can hand out those business cards to the people who
want ride this will lead them to earn more money instead working long hours (Bolluyt, 2018).
Hence, this shows that there will be many benefits for the Prince George and its people
considering employment and also while being associated to the company name.
Uber major Surge Pricing Problem and its solutions
Uber increases their prices when the demand of transportation is high in the cities. By
raising their rates. Uber gives incentives to the driver to move to certain zones with high
demand of rides and make sure their customers greater access to its vehicles and this proved
as beneficial for both Uber and driver in terms of making money (Sullivan, 2014). Hence,
surge pricing may upset the people so regular price should be beneficial and can be fixed by:
1. The company can cap the surge multiplier at a rational number and communicate the
cap evidently. Uber should choose a reasonable cap, say 5X (beyond which there is
evidence that customers start becoming distressed), and openly communicate that the
surge price will go no upper. It will help the company not receive any sort of
consumer or media criticism.
2. There must also be focus on reducing the instability of price fluctuations. Uber
requires diminishing price changes frequency. Fewer and more foreseeable price

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changes, like higher prices in rush hour or on weekend nights and normal prices in
late mornings and early afternoons, will make the understanding further foreseeable
and comforting for passengers.
3. Surge-pricing concept can be rebranded and should also promote the useful
significances of surge pricing to rider such as greater convenience and accessibility
(Dholakia, 2015).
Uber Business Model Canvas
Key partners: Uber drivers are the key partners and the company platform
relies upon mapping data and GPS network to effectively
connect these drivers with the passengers.
Key activities: It concerns with removing friction from all interactions and negative
behavior on both sides. The company also ensure to develop and
market their mobile app to ensure superior experience for both drivers
and passengers.
Key Resources: One of the great resources of Uber is its platform that helps the
company to connect passenger to driver based on location
distance. In addition, algorithms are also considered as Uber key
resources.
Value proposition: For the riders, company value proposition is rooted in their
ability to offer anyone with a safe and secure vehicle in
comparison to other transit services. Cashless payment system is
also another significant value proposition for its riders allowing
a customer to pay online through wallet or cards.
For the drivers, it offers value proposition in terms of a side
source of income, self-employed, flexible work schedule and
insurance coverage from the company.
Customer relationship: In case of Uber, customer relationships are highly automated
allow customer to rate drivers and vice-versa. The company
application also presents extensive guidelines to both customers
and drivers as well as other facilities such as tracking, web chat,

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customer service and others.
Channels: The services of Uber is used through only one channel i.e. smart-
phone apps. The company further use social media to make
customer aware about the new offers.
Uber costs elements: The company incurred huge amount on making its application
run effectively and efficiently while recruiting top engineers in
the world. Paying driver-partner is another big area of their main
expenditure including with other rewards and benefits.
Revenue streams: It is very simple in Uber as the application installed in passenger
smartphone presents bill based on the mills travelled including
any surcharge, waiting charge or previous bill due.

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Conclusion
This paper provided a proposal for introducing a new transit in Prince George. The
Prince George transit is not developed from the past few years. By introducing new transit
named Uber may sort out so many problems of people because it is cheap convenient, safe
and easily accessible. Uber is rapidly showing growth over the globe and share the economy.
Uber ensures that it doesn’t show any conflicts between clients and customers. People in
Prince George can also earn well and get self- employed effectively.

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References
Bliss, L. (2019). ‘Uber Was Supposed To Be Our Public Transit’. Retrieved from
https://www.citylab.com/transportation/2019/04/innisfil-transit-ride-hailing-bus-
public-transportation-uber/588154/
Bolluyt, J. (2018, August 31). Uber Driver Secrets: 7 Things to Know Before Working for
Uber. Retrieved from showbiz cheatsheet:
https://www.cheatsheet.com/gear-style/uber-driver-secrets-7-things-to-know-
bedefinefore-working-for-uber.html/
Case 11- Uber - MANDATORY CASE STUDY. - BUS 403 - UFV. (2018). Retrieved March
13, 2020, from https://www.studocu.com/en-ca/document/university-of-the-fraser-
valley/strategic-management/mandatory-assignments/case-11-uber-mandatory-case-
study/4020632/view
Dholakia, U. M. (2015). Everyone Hates Uber’s Surge Pricing - Here’s How to Fix It.
Harvard Business Review Digital Articles, 2–4.
Kessler, M. L., & Zhang, Y. (2016). Uber fade or future. Transportation Network Companies:
What does the Future Hold?, 37.
Mazareanu, E. (2019). Uber Technologies- Statistics & Facts. Retrieved from
https://www.statista.com/topics/4826/uber-technologies/
statista.com. (2020). Global net revenue of Uber from 2013 to 2019. Retrieved from
https://www.statista.com/statistics/550635/uber-global-net-revenue/
Sullivan, T. (2014). What Economists Don’t Get About Uber’s Surge Pricing. Harvard
Business Review Digital Articles, 2–5.
Uenlue, D. M. (2018, January 13). Business Model Canvas Uber. Retrieved from
INNOVATION TACTICS: https://www.innovationtactics.com/business-model-
canvas-uber/