Uber Case Study: Ethical and Legal Challenges Analysis Report

This case study examines the ethical and legal challenges faced by Uber, a global transportation innovation company. The report analyzes various ethical issues, including surge pricing, driver treatment, and regulatory compliance, which hinder the company's success. It explores risks associated with Uber's business model, such as driver-related concerns, fare policies, and competition, and suggests strategies to mitigate them. The study also highlights the importance of regulations to protect consumers and competitors, addressing issues like safety standards, fair pricing, and compliance with local laws. The report provides a comprehensive overview of Uber's journey, its challenges, and the need for ethical and sustainable business practices to ensure long-term growth. The analysis covers the company's operational aspects, from driver management to customer satisfaction, and underscores the importance of adapting to changing market conditions and ethical considerations.

RUNNING HEAD: UBER CASE ANALYSIS 0
Case Study: Uber Hits A Bump in the Road

UBER CASE ANALYSIS 1
Executive Summary
Uber Innovations Inc. is a worldwide transportation innovation organization. Its headquarter
is in San Francisco, California, in the United States of America. The organization was set up
as Uber Cab in 2008. After that, its promoter Travis Kalanick and Garret Camp went to
LeWEB in Paris. This thought was introduced by Garret who takes and expressed the
possibility of Ubercab. There were numerous problems in the running of the organization
which we will be going to be viewed in this report. The various ethical issues will be seen in
the report which is not enabling the company to achieve success. This paper will also reflect
about the rules and regulation which should be framed by the government in the countries
and the risk attached frame with the strategies of the company.

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Table of Contents
Introduction................................................................................................................................3
Uber Hits a Bump in the Road...................................................................................................4
Ethical issues facing the company.........................................................................................4
Risks to overcome..................................................................................................................7
Regulation to protect the consumers and competitors.........................................................10
Conclusion................................................................................................................................12
Reference List..........................................................................................................................13

UBER CASE ANALYSIS 3
Introduction
This report will be going to reflect on the cast study “Uber Hits a bump in the Road”. This
will help in comparing and contrasting the approaches related to the ethical issues, the legal
pressure on the UBER. This report will also give the theoretical knowledge about the skills in
solving and managing the ethical dilemmas in the organization.
In 2009, two individuals named Travis Kalanick and Garrett Camp launched a phone
application with an aim to link the drivers for hire with individuals needing rides to reach an
endpoint of ride in their city. This innovation app was firstly named as UberCab Inc., a
privately held organization. The named was changed in 2010 from UberCab Inc. to Uber
Technologies, Inc. The Co-founder Kalanick and Champ frame the app to help the consumers
to get an idea of ride amount and estimated period to reach to the destination, as well as this
app assist the drivers to reach to the destination through the GPS service (Kinicki, 2011).
Uber Company operates in 425 cities with 72 countries. This is regarded as the globe most
valuable startup business. With the help of the increased demand in the rides for the hire
industry, Uber makes about $4 million in revenue. The Uber has become so popular that
people are using it as a word like Google (Glöss, 2016).
Uber has become a major key partner in the economy. It has given a new economic model in
which independent contractors gives their vehicles to the consumers. Uber has maintained a
huge presence in big cities of the U.S including San Francisco, Los Angeles, Chicago, and
Boston. These cities have the most driver partner as compared to other cities. Various types
of facilities are offered by the Uber Company such as:
Uber-X - low budget
Uber Select – more luxurious but lower price

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Uber Black – owns private driver high-end sedan
Uber SUV – provider more passenger capacity
Uber Pool – people have to share rides with other Uber users.
Uber Moto – bike facilities to the Uber users (Rogers, 2015).
However, Uber success is creating challenges for various other Companies in the
arrangement of legitimate & regulatory, and technical problems. There are various issues also
which the Uber Company in this competitive market faces.
This paper will emphasis on ethical tasks that Uber looks in using app-based peer-to-sharing
skill, steps to mitigate the various risk which are connected with marketing strategy, and
ruling to develop compliance with principles to protect challengers and costumers.
Uber Hits a Bump in the Road
Ethical issues facing the company
Nowadays, people prefer to use apps while booking and other digital services for requesting
for the services. Uber has become popular in a very short period. Uber app is based on the
peer-to-sharing technology which has a serious ethical effect on the drivers. This app forced
the drivers to complete their work by even using their resources to give the best result. This
type of job description is not fit for many peoples as there is no balance between the life/work
(Royakkers, 2018).
Uber does not give a friendly environment to the employees or with any commitment in life.
Uber shows a new way of doing things which is not bad but at the same time there are some
serious ethical issues such as:

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• Uber makes its own rule and policies according to their benefit. Uber does not care about
the rules and regulation of the government in the country, which result in very unethical
behavior and practices in the economy. For example, in the India, it is very important to
obtain a license while driving vehicles. Uber disregarded this rule and were disqualified from
India but Uber still route in afoul of Indian authorize, which is very immoral on many stages
(Cannon, 2013).
• Uber increases the fair rides when there is a huge demand in an area. Many consumers have
filled the case regarding their step of surge price, which is normally 6 to 8 times the standard
price. On major events, festivals, function, they increased their rates which amount to be very
unethical for the company as they are taking the advantage of the people by charging high
rates in case of emergency (Sainato, 2019).
• Uber has also handled various lawsuits, comprising of lawsuits filed by its liberated
contractors. Uber existence in the marketplace has forced the legislators to draft the new
regulation to oversee their driving system (Sanders, 2016).
• Uber business exposures consumers to various risks like personal safety, accidents, etc.
which is unethical for an Uber to do.
• Uber does not deliver the facility of insurance, training, etc. to their drivers due to which
they do not able to achieve the goal of the company and earn the profits.
• Uber has also been taken the aggressive stance actions regulation that results in putting the
limitation against its services. For instance, in the year 2012, when Washington D.C attempt
to order the Uber to receive a floor price to operate in the nation.
• Another allegation levied on the Uber is that it does not follow the proper safety morals.
Uber drivers were tangled in 3 rape case in Delhi, India; Chicago; and Boston.

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• As Uber becomes famous, it has become more lawful & controlling necessities common to
other industries. For example, Americans with disabilities have become a problem for Uber.
Since the Uber facility is regularly functioned within a driver’s own vehicle, many of the cars
are not wheelchair approachable
Uber driver is independent contractors rather than their employees. The drivers are accepted
to meet the demand before entering into the contracts. The training component is based on the
opinion that as “as my partner; this is what is expected from you.”
Uber’s app-based technology has resulted in poor relations with the stakeholders. Uber still
has a fight with the goggle industry for allegedly thieving Google’s idea of driverless cars. It
is also seen that Uber has generated an app called “Hell” that controls the Lyft operations.
Besides, this Uber worker has to work overnight at the time of the weekends and even on
holidays (Elliott, 2015).
Even though the Uber Company has been popular in many nations but it has various
controlling hurdles in other countries that have resulted in the problem to the Uber Company
to operate in those areas and achieve success in those countries. Perhaps the main failure is of
not having licenses. There are varrious countries where,
Uber is driving with zero restriction;
Uber experiences legal problems, is in a legal dispute, or threatened by a ban; and,
Uber banned.
As analyse, most restrictions are outer the United States. It overall gives an indication that
Uber app which is based on Peer-to-sharing technology was resulting in very unethical
behavior in the economy. Uber should care about its marketing plan to cope up with both

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local issues within the United States as well as to the rule which are prevailing in different
countries.
Risks to overcome
Long-term growth and sustainability of the Uber totally depend upon managing the future
risk in various key areas:
1. Drivers: The profits of the Uber driver will get out of control if the number of drivers
keeps on increasing. Uber increasing the number of drivers is one of the vital steps which
should be taken care of by the Uber. Various laws have been framed for the drivers, so if the
company increase the number of drivers unnecessary then they have to fulfill such regulation
also. For instance, recent rules mandating healthcare assurance, drivers must need healthcare
assurance. An excess number of drivers will lead to a reduction in the number of consumers
each specific driver finds. Inevitably, this will also result in less money for the drivers and
will be going to cause frustration in the drivers. In other words, Uber should find an adequate
number of drivers in the streets (Isaac, 2014).
2. Surge pricing: The other risk which has to be mitigated by the Uber Company is its
“Surge Pricing”. Sometimes Uber triples, even quadruple, their fare pricing on some special
day which is not at good from the purchaser's point of view. Although this helps the company
to earn good revenue as well as it will be beneficial for the drivers too. However, due to this
policy Uber can losses their customers. Customers will not be going to appreciate such
Upsurge pricing tool. The approx. price is shown by the Uber app to the customer for their
ride sometimes changes into multiples of three. This is very unethical which can result in loss
of trust of the customers and customers will not going to believe in such company. And this
will overall be going to affect the growth of the business (Hall, 2015).

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3. Fares: Uber has to take care of their fare as well. The reason for the Uber success is that it
is having lower fare than a taxi. The company will raise the price too much, and then this will
result in growth restriction of the company.
4. Competitors: Uber business model can be establish in similar rides-for-hires services,
such as Sidecar, Lyft, and Curb. This can limit profits to the company. So the company
should take care of their business model and should use innovative ways. So that the
company can compete from these company effectively.
5. Technology: There is various risk connected with these apps. Customers hesitate to
download apps, as some online business has been hacked because of the Credit Card
information. Uber should advancement its data based security method to mitigate the risk
connected with financial and individual factors. By upgrading its data based service, the
company can able to gain the trust of the customers which will positively result in the
company.
6. Customer Base: Increasing the interest for rides-for-administrations is a nonstop or
upcoming test that needs consideration basically to wellbeing advancements and rates that
have a cost/advantage to together passengers and drivers. Unpredictable demand is an
upcoming hazard that could be met with item improvement. At present, Uber deals
innovation situated items, and it essential to keep on being focused in a business where there
is a severe challenge for rates.
7. Customer’s satisfaction: Some customers experience is very bad by using the Uber
facilities. Customers have to knowledge long waits, inexperienced cab drivers, and even
sexual harassment is also one of the problems. Uber first priority should be taking care of the
customers. Better Business Bureau objections comprise of rating and service problem. Uber
should frame rules and regulation while appointing the cab drivers. Various safety standard

UBER CASE ANALYSIS 9
should be kept in mind while employing the drivers in the company. Uber can use the internet
to check consumer complaints and should address them effectively to gain the trust of the
customer’s and improve the customer’s satisfaction.
8. Financial risk: Nevertheless, the best noteworthy dangers for drivers are money related.
Meanwhile they are not authoritatively agents, Uber drivers are not accessible laborer’s pay
to protect medical clinic bills for bodily mischief brought about at work. Also, most vehicle
safeguard strategies do not cover drivers when they are satisfying in as a driver for a transport
sharing organization, for example, Uber or Lyft.
At first, Uber drivers revealed that charges were once worthwhile and could offset the
dangers and prices. Be that as it may, from that point forward, costs fell, and the amount
taken by Uber design to 20%.
As indicated by Uber, drivers make generally $25 every hour. In any case, after subtract gas,
support, vehicle mileage, protection, and covered expenses, drivers report their hourly rates
as nearer to $10 60 minutes. What's more, this does exclude the esteem lost by putting such a
large number of miles on their vehicles (Franzetti, 2015).
9. Drivers Happily: Drivers are also one of the important components that contribute to the
success of the organization. Uber should always make sure that their drivers are happy from
their facilities. Taking more revenue from the drivers can increase the net revenue of the
company but it will also anger the drivers highly. This means that the company should not
take a bigger cut from its drivers.
These are some of the risks which have to be taken care of by the Uber Company to enhance
its success.

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Regulation to protect the consumers and competitors
Uber faces various numbers of marketing problems which comprises of regulatory and
legitimate issues both internally and externally in the United States. Laws that safeguard
customers specially target taxi facilities, while Uber describes its facilities as “ridesharing” &
Uber as an “agent” of their “specific contractors.” However, various magistrates do not
display its facilities in the similar way and are obliging Uber to fulfill licensing regulations or
else stop industry in specific zones (Bowcott, 2017).
Despite many challenges, Uber has become very popular among the consumer and has also
given a tough competition to the competitors. Supporter’s entitlement that Uber is
transforming the transportation service industry. Investors and the competitors in the industry
clearly believe that Uber will be going to the strong company in the industry and will going
to hold a strong position in the market for long-run (Pratley, 2019).
Uber has a positive future and it has various growth facilities. It is very much vital for the
Uber to safeguard the safety of their drivers and consumers. Government of the countries
must frame various rules and regulation concerning the business model of Uber. They must
also controls the methods to safeguard that their independent servicers are obeying relevant
country laws (Edelman, 2015).
Uber has a new service model with a facility that no one else has accessible before. In many
countries. Uber Company is facing lawsuits for not fulfilling the rules and regulation in many
countries while Uber is also facing lawsuits in the company which does not have the rules
and regulation regarding this kind of business. It is also known as the sharing economy. How
to deal with this is a big challenge for the company.
The 'sharing economy' matches persons who need to share incomes on the web. As
contrasting to purchasing a control drill that they obligation for 15 minutes, for example, they

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can simply occupancy one from another person who is not employing. Such productivity
upsurges may come at the expense of the conventional nation. Makers of intensity drills may
see welfares recoil since the drop required after and may equally be driven out of the
marketplace. Be that as it may, the expenditures and advantages connected to sharing
economy phases rely upon the strategies of action set up (Wallsten, 2015).
Courts had forbidden or controlled Uber’s facilities for dealing in the unfair struggle with
steady cabs. While other ridesharing accessible stages like Lyft and Sidecar, use same
organization simulations. Uber is at the main of the discussion due to its scope and fast
development globally.
In December, Uber was appreciated at $68 billion, taking just 6 years to exceed the estimate
of 100-year-old businesses like General Motors and Ford, as well as “traditional”
transference establishments like Hertz and Avis (Manhattan, 2019).
This is the big challenge for nations, how to deal with it. There should be the rules and
regulations regarding such business model. If there will be the regulation then it will overall
be going to help the same business model industries. So, there is a much need that the
government must develop such regulations and laws which can be applied. The same
business is the Airbnb platform where a person can book a room. A private person owns this
room. This can also cause difficulties for the customer and also hotel holders have been
struggling against it. Maybe there will be other such products in the upcoming (Kavadias,
2016).
Uber has several issues in the countries for not having the license, so this is something they
require moving forward as standard regulation. In order to get the licensing, they should have
to go through widespread background checks that contain everything from fingerprinting to
checking that they are not had done offense. This result fair for their struggle to be on the

UBER CASE ANALYSIS 12
same field as them, as well as, it gives the customers peace of mind to know that they are
with a licensed driver. Uber must develop a customary system of pricing same to other
conveyance instead of the captivating advantage of their customers in an emergency. Last but
not least, Uber’s culture should be a change in the way that it necessities to comply with
regulations set forth by courts against them instead of working as of now (Di Amato, 2016).
Conclusion
Uber ought to convey a good example of an image to the clients and gives a tough
competition to the competitors. Many businesses aim to provide the facilities as of the Uber.
There are various ethical issues in the organization which is affecting the growth of their
business. Various types of risk are associated in the Uber which are hindering the success of
the industry.
Uber faces the various problems comprising of the legitimate and regulatory issues internally
and externally the United State. Laws that safeguard customers specially target cab facilities,
whereas Uber describes its facilities as “ridesharing” & Uber as an “agent” of their “specific
contractors’. Uber was not fulfilling the various laws and regulation of the country due to
which government restricts the Uber in their country. However many courts do not view,
their facilities in the similar way and forced to cope up with licensing law and restrict the
business. Uber is so famous and its business model is being extended to other industries.
Government has to grow compliances and standard to defend Uber customers. Uber has been
extremely praised for letting the opportunities to the liberated contractors but Uber’s ‘Surge
pricing’ method has been assessed for charging higher faces in high times.

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Reference List
Bowcott, O 2017, 'Uber to face stricter EU regulation after ECJ rules it is transport firm'. The
Guardian, 20 December .
Cannon, S. a. S. L. 2013, 'How Uber and the sharing economy can win over regulators',
Harvard business review, vol. 13, no.2, pp. 24-28.
Di Amato, A 2016, Uber and the sharing economy.. 2nd edn, Italian LJ.
Edelman, B. a. G. D 2015, 'Efficiencies and regulatory shortcuts: How should we regulate
companies like Airbnb and Uber', Stan. Tech. L. Rev, vol. 19, pp. 293.
Elliott, R 2015, 'Sharing App or Regulation Hackney: Defining Uber Technologies', Inc. J.
Corp. L., vol 41, pp. 727.
Franzetti, A 2015, 'Risks of the sharing economy', Risk Management, vol 62, no. 3, pp. 10-12.
Glöss, M. M. M. a. B. B 2016, 'Designing for labour: uber and the on-demand mobile
workforce', New York.
Hall, J. K. C. a. N. C 2015, The Effects of Uber’s Surge Pricing: A Case Study, viewed 25
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review, vol 94, no.10, pp. 91-98.

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Kinicki, A. W. B. S.-L. B. a. P. M 2011, 'Management: A practical introduction. New York',
United States: McGraw-Hill Irwin.
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Guardian, 8 May.
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and Information Technology, vol 20, no. 2, pp. 127-142.
Sainato, M 2019, 'Uber and Lyft drivers say apps are short-changing wages while raising
fares', The Guardian, 18 April.
Sanders, D. a. P. P 2016, 'Worker characterization in a gig economy viewed through an Uber
centric lens', Southern Law Journal, vol 26, no. 2, pp. 297.
Wallsten, S 2015, 'The competitive effects of the sharing economy: how is Uber changing
taxis', Technology Policy Institute, vol 22, pp. 1-21.