Uber's Ethical Challenges and Social Responsibility: A Case Study

This case study analyzes Uber's ethical and social responsibility challenges, focusing on issues such as disregard for regulations, surge pricing, tax avoidance, and safety concerns. It explores the risks Uber faces, including competition, surge pricing backlash, and tax liabilities. The study also...Read More

“ U B E R H I T S A B U M P I N T H E R O A D ”
Comparative Business
Ethics & Social
Responsibility

Table Of Content
Introduction
Ethical challenges that Uber faced
Challenges which the Uber faced
The risks that the company will have to
overcome to be successful?
Business Model of Uber
Rules and Regulations for Uber
Conclusion
References

Introduction
Uber Technologies Inc. is the transportation
company which offers the services of the peer
to peer ride sharing.
The company was operating its services in
the 785 metropolitan areas. The company has
the headquartered in the San Francisco,
California.
In a very short period of time the Uber
becomes very famous and the demand of the
customers for booking the ride is increasing.

Ethical challenges that Uber faced
Uber doesn’t care about the
rules made by the government of
the country they always do the
business in the unethical and the
unfair way.
There are many drivers in the
country which are professional
in driving, so Uber has taken
them which were creating the
problem for the country.
Uber charges higher cost when
there is higher demand and
emergency situation raises in
the country

Ethical challenges that Uber faced
The other professional drivers pays the tax to
the government but in case of the Uber, the
driver doesn’t pay the tax which is unethical
Uber doesn’t give any kind of the safety
measures to any customers which is
unethical.
Uber also do not follow the rules of the
government and their guidelines.

Challenges which the Uber faced
Uber has many competitors in the market which are causing
risk for the company as the profit of the company get affected
due to increase in the competition.
The biggest challenging thing which the Uber faces was the
problem of the taxes. They drivers of the Uber are not liable for
paying any tax but the company is liable for paying the tax.

The risks that the company will have to overcome to be
successful?
Surge pricing: When fares are charged
above the normal fares then it becomes risky
for the company as increasing price can
losses the regular customers.
Lack of professional drivers: If the
company Uber will appoint some drivers
which don’t have any professional experience
than it can create the major risk for the
company.
Free rides: Another biggest issue or the risk
is the free rides as it becomes costly for the
company.

The risks that the company will have to overcome to be
successful?
Taxes: All the revenue payment from the ride
is the subject of the tax for the both state tax
and the city tax which becomes very risky for
the company to pay.
Fares: If the company increases their prices
at the high rate then it can cause the serious
problem as many customers will chose the
other taxi rides instead of the Uber.

Business Model of Uber
The business model of the Uber is used the
mobile app through which only the cabs are
booked.
As Uber was becoming very famous so their
business model was influenced by many
companies.
The competitors companies of the Uber are
offering the ride sharing services in the
similar way which the Uber is offering.

Rules and regulations
As per the consumer protection law, this law
helps in protecting and governing the right of
the consumers.
So the laws are made by the government that
license is required by the drivers of the Uber
so that safety can be protected by the
consumers.
It is important to wear the seat belt by the
person who is sitting as well as the driver so
that safety measures can be kept in mind.

Conclusion
From the above report it is concluded that
any business should be work in the ethical
manner so that they can get the success in
future also.
The issues and ethical challenges which the
company faces while providing the services to
its customers are explained in this report.
In this report the government rules and
regulations were also explained which has to
comply by the company so that consumers
can be protected.

References
 Bales, R.A. and Woo, C.P., (2016) The uber million dollar
question: Are uber drivers employees or independent
contractors. Mercer L. Rev., 68, p.461.
 Rauch, D.E. and Schleicher, D., (2015) Like Uber, but for local
government law: the future of local regulation of the sharing
economy. Ohio St. LJ, 76, p.901.
 Wirtz, J. and Tang, C., (2016) Uber: Competing as market
leader in the US versus being a distant second in China.
In SERVICES MARKETING: People Technology Strategy (pp.
626-632).