Change Management: A Case Study on Uber's Driver Management Problems

This case study examines Uber's driver management challenges, highlighting issues such as the treatment of drivers as contractors, decreasing fares, and strained relations between management and drivers. The study emphasizes the need for a change management process to address the human resource crisis within Uber. It proposes that Uber should view drivers as partners and launch a driver improvement campaign to regain their trust and improve commitment. The research suggests conducting surveys, structured interviews, and focus groups to identify factors linked to driver satisfaction and establish best practices for driver management. Additionally, it recommends leadership training for managers to empower them to practice the original vision of Uber, which values drivers as partners, ultimately enhancing the ride experience for customers. Desklib provides access to this case study along with a wide range of study tools and solved assignments.

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Uber’s Driver management Problem
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4/15/2018
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Contents
Impact of Government policies on Public Services in the UK......................................................................2
References...................................................................................................................................................3

Uber’s Driver Management Problem
Though Uber has an excellent customer management process, payment system and ride
management procedure, but the driver management issues are a challenge to the company
(Mohajeri, Nybreg and Nelson 2017). There has been criticism regarding the treatments received
by the drivers form Uber management system. Drivers are not employees of Uber, but are
contractors (Rubin 2017); even then Uber puts pressure on the drivers by tracking their vehicles
even when a driver is not serving an Uber customer. Second, the fares offered by Uber to the
customers have decreased and it has trickling effect on the payment to the drivers too. Because
of the maltreatment by the Uber, Drivers are organizing themselves and planning to run a parallel
ride system to counter the threat from Uber. A recent incidence that happened between the CEO
and a driver has embarrassed the company, as the complete incidence was recorded on a
Smartphone and uploaded in a Youtube channel (Gibbs, Guttentag, Gretzel, Yao, and Morton,
2017). Also, several mangers within Uber have been putting pressure on the past CEO to allow
the drives to receive tips from the riders. Under the circumstance, unless Uber initiates a change
management process in the way drivers are managed, the company is likely to have serious
human resource crisis. As a first step towards the change, management programs a survey
research that would discover the real issues of the drivers need to be carried out.
The Management Decision
First, the company must realize that driver appreciation and improvement program is not a moral
obligation, but a pressing business problem. Drivers are the key resources of the company
without which it cannot serve its customers. Hence, it is essential for the company to regain their
trust and retain it for a longer future of the company. In order to win the lost trust of the drivers
and to improve their commitment, the Uber Company must launch a driver improvement
campaign, and reestablish its vision of viewing their most important resource - the drivers as
partners to the company.
Apart from improving the system to ensure sufficient ride fee to the drivers, the company must
develop ways to earn other revenue streams and share it with drivers so that they can be happy

about the pay (Gibbs et al 2017). Happy drivers treat the Uber customers well and the company
can price the rides better with their cordial service.
Another program that can be planned by Uber is the driver retention programs. The company
should design such programs for the customers which can make the drivers stick with Uber for a
longer time. Thus, these programs will make the drivers inclined to serve Uber customers first
(Mohajeri, Nybreg and Nelson 2017).
The research questions
It is obvious from the media reports and the gestures of Uber drivers that the company is
depriving them of respect, dignity and opportunity to earn better (Hanrahan, Ma & Yuan 2018).
In order to establish a deeper and profitable relationship with the drivers the company needs to
find answers to the following questions.
 How can the company make the driver’s experience easier and dignified?
 What are the critical issues and complaints the majority of the drivers are having?
 How can the company create opportunity for the drivers to earn better revenues?
(Geitung 2017)
 Why drivers are feeling the Uber system is not fair?
 Does the Uber management also require leadership training and Driver administration
workshop? (Mohajeri, Nybreg and Nelson 2017).
Objectives of the research
In order to improve the relationship with the drivers and improve their services to the customers,
a research project to understand the issues mentioned above is proposed. Overall primary
objective is to execute a driver retention and motivational strategy (Geitung 2017). The
individual objectives of the research may be as follows.
1. Using a survey research, structured interview and a focus group with the drivers, the
factors that are linked to the driver satisfaction must be discovered
2. Based on the data collected about the driver’s dissatisfaction and common grievances, a
best practice for driver management must be established.

3. Research the managerial inclination of the managers in Uber using interviews and
develop a program to prepare them for change and empower them to practice the original
vision of Uber i.e. drivers as partners approach (Mohajeri, Nybreg and Nelson 2017).
4. Based on the information gathered from the managers and the drivers of Uber, develop
programs to enhance driver’s participation in providing excellent ride experiences to the
customers (Hanrahan, Ma & Yuan 2018).
References
Geitung, I., 2017. Uber drivers in Cape Town: Working conditions and worker agency in the
sharing economy (Master's thesis).
Gibbs, C., Guttentag, D., Gretzel, U., Yao, L. and Morton, J., 2017. Use of dynamic pricing
strategies by Airbnb hosts. International Journal of Contemporary Hospitality Management,
pp.00-00.
Hanrahan, B.V., Ma, N.F. and Yuan, C.W., 2018. The Roots of Bias on Uber. arXiv preprint
arXiv:1803.08579.
Mohajeri, B., Nybreg, R. and Nelson, M., 2017. Collaborative Service Networks, Case Study of
Uber and Airbnb.
Rubin, E., 2017. Independent Contractors or Employees: Why Mediation Should Be Utilized by
Uber and Its Drivers to Solve the Mystery of How to Define Working Individuals in a Sharing
Economy Model. Cardozo J. Conflict Resol., 19, p.163.
Scheiber, N., 2017. How Uber uses psychological tricks to push its drivers' buttons. The New
York Times, 2.