Holmes Institute HC2121 Uber Case Study Report & Presentation

This case study report analyzes the ethical challenges faced by Uber, focusing on the use of app-based peer-to-sharing technology. It examines issues such as surge pricing, driver treatment, passenger safety, and the company's approach to regulations. The report identifies risks that Uber must overcome to succeed, including managing surge pricing, improving driver relations, and addressing fare structures. It also analyzes the importance of technological innovation and customer satisfaction. The analysis includes an examination of Uber's ethical misconduct, including unethical recruitment practices and the company's approach to regulations. The report concludes by emphasizing the need for Uber to prioritize ethical behavior and customer and driver satisfaction to maintain a competitive position in the market. The report also provides an overview of Uber's business model, marketing strategy, and its competitive landscape including key competitor Lyft.

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Management
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Executive Summary
The assignment has helped in the overall analysis of the different ethical challenges which
have impacted Uber in a negative manner. A proper look in to the different ethical issues
have been done that helped in suggesting few techniques which would be beneficial in
understanding the risks which are required to be altered as it will enhance the overall
efficiency of the company in a positive manner. The different ethical challenges such as
drivers, safety of the passengers along with the different guidelines related to the driving and
technological advancements have been identified that affected the growth of the company. In
comparison, the different aspects such as proper advancement in technology is required to be
done which will be beneficial for improving the scenario appropriately.

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Table of Contents
Introduction................................................................................................................................3
Answer to Question 1.................................................................................................................3
Ethical Challenges Faced by Uber in Using App-Based Peer-to-Sharing Technology.........3
Answer to Question 2.................................................................................................................6
Analysis and Identification of Risks Required to be Overcome by Uber to Become
Successful...............................................................................................................................6
Answer to Question 3.................................................................................................................8
Analysis of Regulations to Develop Compliance with Standards to Protect Consumers and
Competitors............................................................................................................................8
Conclusion................................................................................................................................11
References................................................................................................................................13

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Introduction
Uber Inc is one of the rides sharing services which assists in connecting the
independent contractors with the customers or riders through the usage of the application.
Furthermore, the company operates in more than 72 countries in the entire world. There are
different services which are being offered by Uber to their customers such as Uber X,
UberPOOL, UberSUV and UberBlack. Uber was incorporated by Travis Kalanick and
Garrett Camp that facilitates connection of the riders and drivers using an application
providing the ride sharing services. In addition, the company has been able to achieve success
and they are looking forward to conquer to further conquer the United States and other
international market, however the rapid type of success of Uber and it has created ethical
challenges in legal, regulatory and technical aspects.
The main aim of the report is to analyse the different kinds of ethical challenges
which can be faced by Uber in utilizing the app-based peer-to-sharing technology in the
market. Proper identification of the risks is required to be identified which are required to be
overcome by Uber in becoming successful. In addition, there are different kinds of
regulations and policies which should be followed by Uber as to improve the situation and
gain competitive position in the market as well. Lastly, proper analysis of the different
regulations is identified which will be helpful in developing compliance with standards to
protect the consumers and the competitors.
Answer to Question 1
Ethical Challenges Faced by Uber in Using App-Based Peer-to-Sharing Technology
Uber is one of the most famous rides sharing applications which has become highly
successful in a short span of time. In the present scenario, the individuals prefer to utilize the

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different applications along with other digital applications which will be helpful for them in
connecting with one another, for booking hotels, table in restaurants or ordering meals. The
customers prefer to get the different things done within a click and there is other inclusion of
the other new development such as networking which includes Airbnb which showcases the
new ways of performing the different activities, however there are different ethical challenges
which are being faced by the company as well. The different ethical challenges which can be
faced by Uber includes the following:
Firstly, Uber is trying to make the different rules, policies along with regulations as
per their own and they do not take into consideration the government related rules in various
countries wherein they have their presence. It is treated as unfair and unethical practice
related to business (Wood et al. 2015). Moreover, the other problems include financial
misconduct, fairness, puffery, safety as well as privacy related issues that affects the ethical
morality of the company.
Furthermore, the drivers of the company Uber are the independent contractors as they
utilize the different resources such as cars for the activities related to ride-sharing. However,
the requirements of Uber of their drivers lean towards status of the employees rather than the
different contactors (Werhane, Freeman and Dmytriyev 2017). It causes different issues as
the drivers must spend personal money on the upkeeping as well as insurance of the vehicles,
however it is limited to requirements of Uber which is inclusive of type of the car, solicitation
of the guidelines along with how to guarantee the hourly earnings.
In addition, the other ethical issue which has been faced by Uber is increasing the
amount of fares for example when there is over demand of the vehicles in the peak hours
such as office timings (Wallace and Sheldon 2015). The same has been done in different
natural disasters scenario which was unethical from the part of the company to take such

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undue advantage and charge higher fares from individuals in the different emergency related
situations which affected the profitability of the company for a short span of time in contrast
of the other competitors present in the market.
Furthermore, there are different kinds of risks to which Uber exposes their customers
to which includes the risks related to personal safety along with accidents which is the
unethical aspect for a company to perform and it affects the trust of the individuals on the
company negatively (Vandekerckhove 2015). Uber has been involved in the different kinds
of unethical practices such as the company do not provide any kind of insurance, training to
the different drivers who are employed in the organizations and the main reason for the same
is to gain huge profitability in the market in comparison to the other companies which are
competitors.
For instance- A passenger in Chicago complained related to sexually assaulting her
and it had affected the trust among customers from Uber. However, the company tried to file
case on the driver and the license got dismissed. In addition, Uber Company tries to take
away the business from the different professional drivers who are well-experienced and
trained and who pay timely taxes and it is affecting the ethics and morality of the company in
a negative manner.
The other ethical misconduct which has been taken place at Uber is related to the
unethical conduct of employees and recruitment. Uber has been accused of following the
different unethical recruitment along with unethical behaviour of the different employees
(Trevino and Nelson 2016). In Uber, the different employees are encouraged to book
competitor related services as well as cancel the order once there is confirmation for the ride.
It is the most unethical aspect of behaviour that has been caused due to the unethical
leadership present at Uber.

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Therefore, from the analysis of the ethical challenges which can be faced by Uber, it
can be identified that the company Uber faces different challenges in utilizing the app-based
peer-to-peer sharing technology as the main motive of the company is to gain profitability in
the competitive market, however it is affecting the trust of the individuals from Uber as they
feel that the company takes advantage of the emergency situations and charge high prices
(Tran 2019). Uber needs to maintain the different kinds of security related aspects of drivers
and passengers to improve the scenario and gain competitiveness in the market in comparison
o Lyft or other competitors’ companies.
Answer to Question 2
Analysis and Identification of Risks Required to be Overcome by Uber to Become
Successful
The company Uber tries to understand and analyze the target market and therefore the
company has a disruptive business model along with marketing related strategy. In order to
take over the ride sharing space in the market, the less regards are provided to regulations,
rules along with ethics. However, in order to maintain the strong contender position in the
marketplace, it is essential for the company to assess some of the risks to become more
successful in comparison to the other competitors such as Lyft. The five major areas which
are required to be focused by Uber to become more successful in the market includes the
follows:
Surge Pricing- The surge pricing aspect should be controlled by the company Uber in
order to maintain the competitive position in the market. The surge pricing is one of the
techniques which is used by Uber in tripling, quadruples on the pricing on the specific days
such as on holidays (Swanson and Frederick 2016). Due to the same, it has helped the
company in generating huge revenues of the company and its drivers, however there is no

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appreciation from the customers and they are moving their focus on the other competitors
present in the market. If Uber Company uses the surging related tool, it will be affecting their
trust and the company can lose the customers (Rhodes 2016).
Drivers- It is one of the main aspects which should be improved and taken care by
Uber as the number of drivers is increasing at Uber Company which is require to be
controlled. Taking in the consideration, that the number of drivers who are presently working
with Uber, they require to properly look and analyse whether they can take a second chance
at whether or not they should increase the deductions of profit share (Spence 2016). The
number of drivers should be noticed as it will be helpful in making the company understand
as it will be helpful in maintaining independent contractor status and they can provide the
employees with reimbursement as well as healthcare related coverage.
In addition, the company can implement the different training programs for the
employees to make them aware about the rules and regulations which will be learnt by them.
Uber should always make sure that the drivers are happy and they are performing well as it
means that it is not taking bigger cut from the drivers (Quarshie, Salmi and Leuschner 2016).
When Uber will be drawing more amount from drivers, it will increase the net revenue of the
company, however it will not increase the motivation of employees which will be affecting
the morale of the employees and the anger can impact the overall profitability of the company
negatively as well (Schrempf-Stirling, Palazzo and Phillips 2016). At last, the main aim of
Uber is to keep the drivers happy as they are the main assets of the company along with the
customers who will be helping them in increasing their revenues appropriately.
Fares- It is the other aspect wherein the company Uber needs to analyse the prices of
the different rides which are taken by the different customers. The biggest and most
significant aspect of selling point of Uber is having the lower fare than the taxi. If the

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company raise the prices of the different rides, it can affect the overall profitability of the
company in a positive manner as they will be generating huge revenues for the growth of the
company (Saeidi et al. 2015). However, it will affect the desires of the customers as they may
not feel to take rides in Uber in such a high price. The fares should be kept stable as per the
requirements of the customers as it will improve the brand image of the company. In
addition, Uber needs to offer rates which will be of advantage for the customers and the
drivers.
Competitors- There are different availability of competitors present in the market
which should be managed by Uber in order to improve their technique to attract more
customers and it will be enhancing the reputation in the market. Lyft is the major competitor
of Uber and their focus should be on implementing strategies which will be attract more
customers. The competitors such as Lyft tries to offer the rides to customers at a lower price
than Uber which is reducing customer base in the market (Pearson 2017).
Technological Innovation and satisfaction- The company Uber needs to address the
different concerns related to security wherein Uber can improve the database related security
system which will be beneficial in reducing the risks of being hacked. In addition, the
company can improve along with update the app for the ease of attracting more individuals of
the technical abilities which will be increasing their presence in the market more effectively
(Pai et al. 2015).

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Answer to Question 3
Analysis of Regulations to Develop Compliance with Standards to Protect Consumers
and Competitors
From the analysis of the case study, it can be identified that Uber is the company
which follows the new business model which has not be offered before. In the different
countries, wherein there is presence of Uber, the company has been facing various lawsuits as
there is no such rules and regulations which have been made for such business types and it is
known as the sharing economy (Medeiros et al. 2017). The biggest challenge for the countries
is to how to deal with such issues. In order to succeed in the different countries, there should
be introduction of different policies and laws which can be applied by the company and it
will be helpful for them in improving the business operations successfully.
The government needs to develop different regulations that can be applied as it will be
enhancing the overall efficiency of the company in comparison to the other competitors
which are present in the market such as Lyft (Kolk 2016). There are different programs which
can be applied by Uber to develop proper compliance as it will be helpful in protecting the
consumers and competitors present in the market. Firstly, there should be fair compensation
along with training programs which will be making the drivers more efficient in performing
the activities.
As Uber deals with different drivers as well as customers, it should be seen that the
company needs to train them regarding the behavior which should be presented by them
while dealing with passengers as customers are the asset of the company and the safety of the
customers is the first and foremost priority (Frynas and Yamahaki 2016). In addition, the
safety and rate improvements of the customers play a vital role in improving the business
operations. In the previous scenario, there have been different incidents of the sexual

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harassment of the customers that has led to the negative brand image of the company, in
order to improve the respective scenario, the training is the mandatory aspect which should
be implemented by the company as to gain customer trust and it will be beneficial for the
company to become more powerful in the future.
Moreover, Uber needs to remain competitive in the approach to deal with the
customers in contrast to other competitors which are present in the market such as Lyft as it
will assist them in expanding the business in different parts of the countries and improve their
sales percentage (Francis et al. 2018). As Uber is one of the popular companies with the
extraordinary business model, the respective model can be expanded to the different
industries. Moreover, the regulations are required to be implemented which will be assisting
in developing proper compliance with standards as it will protect the consumers and
competitors in the market.
Due to the licensing aspects, the company have faced various issues in different
countries as the company did not have proper licensing, in such scenario, the company Uber
needs to develop standard regulations as it will be helpful for receiving less pushback. For
receiving and generating licensing in the different countries, it is essential and important for
them to thoroughly check the backgrounds of the drivers which includes the checking from
fingerprinting to check of licensing, extensive and thorough checking whether the individuals
are in the offender list or not. In pursuing such activities, it will be help Uber to be in the fair
competition zone and it assists them to be in the same playing field as well in terms of the
other competitors such as Lyft (Ferrell and Fraedrich 2015).
In such scenario, Uber will be able to provide the customers with peace of mind and
they can be travelling safely in the vehicles of Uber as well. As the customers will be
knowing that the drivers are licensed ones and they required strict background checks as well.

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IN addition, Uber needs to develop the standard system of pricing which is similar in nature
to the other transportation instead of taking advantage of the different customers in need
(Davies 2016). The culture of Uber needs to change in such a sense which will be complying
with the different rules and regulations as it will be improving the business-related operations
successfully.
Therefore, from the analysis of the regulations which are required to be introduced by
Uber in order to protect the competitors and customers, it can be identified that the
standardized pricing of travelling and the training and development of the drivers who are
associated with Uber needs to maintain proper teamwork and they should know how to deal
and behave with the customers who travels in Uber (Crane and Matten 2016). The
regulations, ethics and standards are required to be maintained as it will be enhancing the
overall efficiency of the company (Chell et al. 2016). The application is required to be
upgraded for the security reasons that will enhance the process of working against the other
competitors that will assist them in expanding the operations related to business
appropriately.
Conclusion
Therefore, from the analysis of the case study on Uber, it can be identified and
analyzed that the respective company faces various kinds of ethical related challenges along
the way of massive as well as rapid success. The respective company needs to overcome the
different risks to maintain the success and it will be helping them in increasing their sales in
the market as well. Uber is one of the famous brands which is operating in the competitive
business environment. However, while expanding the business operations in the global
market, the company needs to comply with rules and regulations which will be enhancing the

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appropriateness of the company and it will be able to maintain standards appropriately as
well.
The different kinds of regulations, standards as well as compliance are required to be
implemented which will be helping Uber in protecting the competitors along with customers
once the expansion process goes in the other industries. In conclusion, the company Uber has
faced several issues and ethical challenges in the way of the rapid success, wherein there has
been different risks which have been involved. The different risks include drivers,
competitors, riders and the application related technology of the company.
Uber needs to comply with law as to avoid pushback and if the company follows the
different rules and regulations which are presented to them, it will be easier for Uber to
sustain the business in a successful manner to successfully continue the expansion in the
global market which includes the other industries as well. Besides, to sustain in the
competitive business environment in the global market, it is essential for the company to
maintain the different standards and regulations as it will be enhancing the way of the
company towards rapid success and growth and it is enough for them to successfully continue
the expansion thoroughly in the market.

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