Uber's Ethical Challenges and Risks: A Business Ethics Perspective

This report provides a detailed case study of Uber, examining the ethical challenges it faces in its app-based peer-to-peer ride-sharing technology. It explores issues such as multi-tasking drivers, passenger safety, and leadership within the company. The report also identifies and assesses the risks Uber must overcome to be successful, including driver-related risks, competitor challenges, and financial uncertainties. Furthermore, it delves into the regulatory landscape, analyzing the need for compliance with standards to protect both competitors and consumers. The report offers strategies for ethical decision-making and suggests approaches to mitigate the identified risks, ultimately providing a comprehensive analysis of Uber's business ethics and social responsibility.

Business ethics and
social responsibility

Table of Contents
INTRODUCTION...........................................................................................................................3
Case Study of the Uber:..............................................................................................................3
MAIN BODY...................................................................................................................................4
1) Ethical challenges that Uber faces in using app-based peer-to-sharing technology...............4
2) What are risks that the company will have to overcome to be successful..............................6
3) What are the regulation to develop compliance with standards to protect competitors and
consumers....................................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Ethics is a necessary consideration to bring harmony in culture or working of any firm at
an optimised context or working. Ethics is mainly comprises of business, corporate along with
social ethics which are important to maintain an effective in business culture of any organisation
(Park and et. al., 2014). In current period of time, social responsibility is important to maintain a
kind of performance in an effective working of organisation. Social responsibility is helpful to
led social development by offering a product with social welfare and fulfilling people needs.
This report will be cover on Uber which is an American multinational cab aggregates and
transportation company which provides provides & services such as peer to peer ride-sharing,
food delivery etc. Entire report will focus on case study of the Uber. Apart from this, report will
carries out discussion on ethical challenges that Uber is facing in their technology. Along with
this, report will also consists of risk assessment and what strategies can be taken to overcome
this risk or challenges and also critical analysis will also be undertaken.
Case Study of the Uber:
This case is on Uber, which is the leading cab aggregates with services are expanded in
different part of the world. Uber provides ride sharing services by facilitating a kind of
connection between independent contractors and rider's with the usage of an apps. This was
realised that Uber and similar taxi services has upended the taxi industry. However, Uber rapid
success is creating a challenges in form of a legal, regulatory, social and technical obstacles.
Other taxi firm has in arguing that Uber has gained an unfair the advantage, because it doesn't
face same licensing requirements which others are facing (Cheng and et. al., 2014). Due to
underpinning success, Uber has been banned from some cities of the Australia such as Darwin,
Adelaide etc. Also, others have claimed that with support of lawmaker suit, Uber has made a
platform, even without any kind of an approval. This was claimed some of cab service holder's
such as Meego ride in Australia or any other transportation system firm. Due to this heavy
success, Uber is facing legal issues such as legal action, because of driver's were not licensed,
rider or driver safety and protection or security to customer. This was realised that, Uber have
not realised these things in advance and now facing issues in this same context. Marketing
strategies of the Uber is now facing challenges from other cab services such as Ola, Meego cab

etc. Uber is still suffering with an issue of ineffective manpower regulation which is a severe
issues, on which instant strategical solution is necessary.
Sources: Uber legal issues worldwide, 2018
MAIN BODY
1) Ethical challenges that Uber faces in using app-based peer-to-sharing technology
Uber is a world largest transportation network chain which provides cab riding services
to customer in return of a price as per an industry standards. Uber is well-known for its service
distribution network and an effective satisfaction to their customer at prices that has been decides
as according to an industry norms or regulation (Slack and et. al., 2015). Basically, this is a
transportation industry, whose focus is on providing customer's with a sense of comfort &
satisfaction with premium offering. After the foundation of this cab aggregates, company
management has decided to go for bulk targeting on social media such as Facebook, Twitter etc.
The main game changer was Uber apps on which customer can their own ride and led peer to
peer rise sharing to generate business lead or revenues. There are some ethical issues such as
default sharing of rides and over-usage of a ride sharing. While booking rides on peer to sharing
Illustration 1: Uber legal issues worldwide

technology apps, Uber has been forced to faces several ethical challenges or issues are as
follows:
Multi-taking drivers: With getting advancement in Uber apps, this has driver to deals
situation and their working as role of a multitasker. With level of an advancement in app, driver
are now trying to make contacts to customer either in large or on continuous basis to track their
location. This has created a safety issues for peoples who prefers to use Uber as their mode of
transportation (Alonso‐Almeida and et. al., 2015). In this case, customer's needs to be relies on
own safety measures to protect interest of their prospective customer's at a greater side. In some
cases, this was realised that, Uber driver's were contact customer randomly and messaging them
on apps platform, which is really a matter of concern. On this response, Uber has taken steps
such as removed chatting option on their apps and limits the calling of a driver's in given point of
time. Here, moral info is need to be given to driver for not to act in an informal way.
Passenger safety: Several Uber drivers have been accused in assaulting passenger as per
the New york times report. Time by time, Uber drivers have been increased in numbers and
created issues for company to handle their working & regulation, on this Uber needs to be focus
managing them on one single point of time. Also, managing or controlling all driver's is not an
ease concern to make services more perfect. As, Uber has faced loss of their brand image and
impacts on their prestige at a defined point of time (Amponsah-Tawiah, 2015). This is an ethical
challenge for Uber to maintain their a formal and trusted working in order to make business
functioning at a productive level. This ethical challenges needs to overcome with support of
making a perfect strategies on how business will be regulated or maintain customer interest at
one point of time.
Leadership: In Uber, leadership among the manpower is a major issue in which lack of
communication is their driver or people of firm to led an effective functioning in given time
period. This was realised, due to price competition, driver have severe among competition to
maintain their income or revenue on a regular basis. This kind of competition has broken down
strategic partnership & goal oriented among their driver to operates into a field. Also, app of the
Uber is bit complicated in accordance to contacting to another driver in an effective manner of
working. If leadership will not be their, it would be tough for Uber to maintain their business in
an ethical manner. Thus, it is important to make Uber platform so connective that a common
relationship business personnel will be maintain.

Uber is required to have a correct form of decision making to make functioning more
relevant and also led business processes to be performed with a kind of consideration of an
ethical dilemma. In context of the Uber, approaches which can be taken to avoid these challenges
in given point of time. Steps or approaches to an ethical decision making are as follows:
Step 1: State an ethical dilemma: In this identification of components of a situation is
need to be undertaken to represents a kind of an ethical dilemma (Simmons, 2014). Here, the
manager of the Uber needs to think about an effective communication channel to led an effective
decision making to overcome ethical dilemma. This is need to be done while keeping major
stakeholders of the Uber in mind to take an accurate decision making to expand business
operations.
Step 2: Connect an ethical theories to the dilemma: An ethical theory of ethical
decision making is comprises of four principles: Autonomy, non-maleficence, beneficence and
justice. Autonomy ensures a patient, client or professional has capacity and self-determination to
engage in an individual decision making, non-maleficence is an intent to non inflict harm.
Beneficence is encompasses taking a positive steps to benefit others which includes risk, cost
and other benefits and justice supports of fair, equitable and appropriate consideration of a
business entities.
Step 3: Develop strategies to successfully implements a resolution: In this, Uber have
scope to implements strategies such as right or adequate research in order to led an effective
kind of an regulation to led business development or growth in an effective manner.
2) What are risks that the company will have to overcome to be successful
Uber which is a leading transportation chain, in which there are large number of people 7
entities working with a common purpose to facilitates people to make comfortable while doing
long travelling. In context of operation, Uber is facing issues in a field and handling customer at
one time, as they are huge and now Uber business is resulting into shorter to fulfil their customer
actual needs and wants in given point or duration (Mason, 2017). Uber is mainly spread across
72 countries and covering hundreds of the cities in today time. Hence, business is under problem
of risks based uncertainties and issues to led an effective solution of the pre-determined risk or
uncertainties. In context of this leading transportation chain, various risks such as driver losses
(which means that if business will take any wrong decision, they would have to lost customer's.
This will be of rise in price competition or cost transits. In response, Uber have to address the

defined risk in an effective manner to take certain step or measures to generates business
outcomes to sustain in an environment where business growth is prolonged and also responsive
to business outcomes.
The risk can be comprises of risk related to the driver's, loss of the customer base, loss of
the profits etc. This risk have been ascertained after an analysis of condition, environment,
situation or location, in which Uber model is operating along with situation, in which business is
under ruling market. Hence, these risk needs to be overcome by taking correct measures on long
run basis of a business performances (Pearson, 2017). To operates into multiple location, it is
necessary for Uber identify these risk, also understand threats of it, measures impact of it and
take risk assessment & overcoming measures. Long term sustainability of the Uber majorly
depends on managing future risk in five key areas:
Driver: This is one most severe risk to Uber, if in case this entity would increases its
profit share deduction. Driver is loosing its driver trust, because of an ineffective share of profit
to them and security & health coverage to them. Also, lack of an adequate skills is major cause
that driver's of the Uber are not performing as per desired requirements. An option of training
program can be good option to bring skills or competencies of a car driver to reduce risk of
negligent of them and will reduces liability of driver's insurance or protection (Zheng and et. al.,
2014). This was realised that strong competition in this industry has forced Uber to makes
alteration in wages or salaries payment system, on which driver demand or wants has been
increased on a major level.
Competitors: Uber business model has been found as similar to rides for hire services
such as Lyft and Indian rise sharing as Ola. This rides for hires is majorly a new concept which
was founded by this India's Ola. In this, switching cost for the customer is low and also ride
sharing companies do not have own fleet, in comparison, cost operating are much lesser if
related to any other industries in an effective or productive manner. Risk of the competitors
would be overcome, if Uber would become successful to make their customer's loyal. In USA,
Lyft is the major competitor's of the Uber with 20 percent market share and in India, Ola is a
market leader with almost 51 percent of their total customer's portion.
Customer base: Increasing demand for rides for services will be future challenges for the
Uber to take urgent safety measures to impact of these on business performance on bigger level.
Unpredictable demand is a future risk that could be met with a product diversification. In current

time, Uber offers technology oriented products and it will be continues in an industry for longer
period of time.
In order to overcomes these risk, this is important to structures certain policies such as an
effective training & development of a driver, make aware on correct vision and mission of a
Uber, marketing strategies must be their to make customer's loyal to overcome risk of competitor
to generates lead to the business process (Vitell, 2015). In Uber, where risk uncertainty is high,
then in that case, making of a cost structure is necessary to make profit to driver to bear their
expenses in given point of time. This will be necessary for Uber to make consideration of an
ethical measures to deal with business operations in an effective or productive manner. The
above strategies to overcomes these risk are as follows:
Business sustainability: In this, Uber have an option to utilises technologies and
resources in such a manner that, infrastructure of the Uber wouldn't be results into pollution
along with resulting into sustainable for an organisation at an optimised platform or time. Also,
this will be necessary to make business decision accurate to gather business leads or profit
raising in a defined period of time.
Cost structure: Uber needs to implements strategies such as penetration pricing to retain
their customer's or maintain their loyalty, price skimming to attracts new customer's and strategy
to led customer's awareness on a productive knowledge of Uber process works and tutorial on
how their application work (Logsdon, 2017). This will assist Uber to structure definition of a
cost divided in the cab aggregates market which involves:
Cost of the driver (fuel, power, energy etc.) 45 percent
Vehicles maintenance 20 percent
Commission to Uber 15 percent
Payment to the dealer 10 percent
Earning provision 10 percent
This structure will assist Uber to take decision on deciding price per km. Hence, it will b
important for Uber to manage or also structure price of each and every ride to gather business
effectiveness or statutory position on a global platform.

Legal policies: Uber is required to implement legal policies or regulation, which is based
on product delivery, environmental certificates on protection of greenery Dept. To overcomes
risks, this will be necessary for Uber that their each and every driver;s must have appropriate
licensing system and also a certification of approval to operates in a defined period of time.
3) What are the regulation to develop compliance with standards to protect competitors and
consumers
In the transportation industry, Uber is a new model with a service that no one else has
suffered before. In many countries, Uber has been faced a law suits since there was too much
strict regulation in operating this can aggregator operation in an area of the Australia. Its very
challenging for those location who deals with it (Wood, 2017). In this industry, where consumer
and kind of the compliance is need to maintain business regulation works in an effective manner
or time. There are different kind of a compliance such as technologies, role of the manpower and
resource management is so higher that an effective planning is required in this context to
maintain an effective functioning into a given point of time. These can b re-called as
standardised needs to maintain Uber transportation chain to maintain its performances or
business operation at an optimised chain of a business development. While using these standards
for consumer and also competitor, these will be prominent for Uber to check out the required to
maintain the validity and reliability of the strict compliance to operates business in given location
of the Australia.
In Australia, standards are made to protect interest of the competitors and consumer;s to
continue business functioning or regulation in an effective manner.
In this transportation network chain, where competitor's are minor, because structure of
the business is huge and also it would not be ease to formulates can operation in an ease period
of time (Quarshie and et. al., 2016). In Australian jurisdiction, law such as strict regulation act
and business regulation forum has been regulated to develop standards to led an effective
building of compliance to control the business. In order to protect interest of the consumer's and
reach of the competitor's, various regulations such as information or data protection,
technological empowerment or logistics maintenance etc., are required to protect both customer's
and competitor at a same point of time.
Data protection: In Uber where customer's info base is too strong large, thus its
important to maintain customer info protective and secure, so as to maintain their interest in

single point of time. Also, this will help Uber to maintain strategic relationship with their
competitor's in case of urgent needs of the resources to continues business operation for a longer
period of time. This would be help to protect interest of a people who uses Uber services and
helps to maintain competitive position in the transportation sector.
Maintenance and development: This is an important regulation in case of Uber to
maintain proper keep know how of the resources to carry out the services in an effective or
productive manner (Kolk, 2016). Its an advisory for Uber to ensure the maintenance of their
vehicles to keep continue operations or functioning in an effective or regulative manner to bring
a sense of an effective working into business profitability of the Uber. Also, this will assist Uber
to make certain strategic changes or alteration in logistical management of the Uber.
Technological regulation: In this current period of time, where technological roles has
been increased, in that situation technological empowerment is highly required to brings profit
into the server. Uber is operating their business consistency and customer's use to book rides on
their apps, in this continual adaptation in technological is need to brings booking of a vehicles in
an effective manner. In this, cost ascertainment is important to overcome any kind of a negative
impacts on a business performance.
Brief summary: This is necessary for Uber to bring a kind of effective planning to make
certain changes or adaptation in booking of a transportation via the transportation support in the
given period of time or duration. Also, resource allocation will be suitable option to plan how
and through which measures Uber can brings growth into their business structure at unique point
of a business.

CONCLUSION
From an above report, it is concluded that ethical consideration will be used to maintain
formal working in any organisation with a matter of business success. The ethical issues has led
business entities to suffer with an issues such as regulative lack of decision making or taking
power, ineffective resources allocation etc. Th role of social responsibilities in the business
functioning has been proved important to make services more reliable and conditioned to led
business performance at an optimised period of time. Risk assessment has proved important in
every business firms to take steps those are in favour of a business firm. Lastly, this is necessary
to make strategies or implementation of a plan which assist any industries or market structure to
overcome risks in a defined manner.

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