Uber's Market Position and Strategies: A Management Report

This report offers a comprehensive analysis of Uber, an American multinational transportation network company. It examines Uber's current market position, including its global presence in 63 countries and 785 metropolitan areas, its revenue, and its diverse service offerings such as peer-to-peer ridesharing and food delivery. The report delves into Uber's policies, market competitiveness, and the challenges it faces, such as regulatory issues and competition. It also explores the company's future strategies, including current innovations like Uber Eats and the development of autonomous vehicles, and provides a sustainability plan for the next five years. The report concludes with a discussion of Uber's major business plan, offering insights into the company's long-term growth prospects and the factors that will shape its future in the transportation industry. The report also includes figures on Uber's predicted growth and market share, providing a data-driven perspective on its performance.

Running head: MANAGEMENT
Uber and its future
Name of the student
Name of the university
Author Note:

2
MANAGEMENT
Table of Content
Introduction................................................................................................................................3
Uber Present...............................................................................................................................4
Uber Policies..............................................................................................................................7
UBER market Analysis............................................................................................................11
Figure No 1: Platform of UBER..........................................................................................11
Issues faced by Uber................................................................................................................13
Market competitiveness of Uber..............................................................................................16
Future and the sustainability of Uber.......................................................................................19
Current innovations:.................................................................................................................19
Sustainability Plan in the Next Five Years..............................................................................20
Figure No 2: Predicted Growth of UBER within 2022........................................................20
Conclusion................................................................................................................................23
Major Business Plan for UBER...............................................................................................25
References................................................................................................................................28

3
MANAGEMENT
Introduction
“UBER” is an American multinational transportation network company that offers
services of peer to peer ridership and food delivery services. The company currently operates
in across 63 countries and 785 metropolitan areas. With a revenue of around US$11.27
billion and a total asset of around US$24 billion as of 2018, the company employs close to
40,000 people directly and indirectly. The huge employment opportunity and the presence of
a good network of business in both developed and developing countries makes UBER one of
the best transportation companies of the globe.
As mentioned earlier, Uber Technologies Inc. is a multinational transportation
network company of America. It offers various services including peer-to-peer ridesharing,
food delivery and bicycle sharing structure. The organization is established in San Francisco
and operates in 785 metropolitan locations globally. Uber can be accessed through their
mobile applications and the websites (Ross 2015). Uber has 110 million users globally and a
market share of 69% in the United States for customer transport and a market share of 25%
for food delivery. Uber is very popular in sharing economy and is known as uberisation.
Uber X is the basic service provided by the company where a private ride is provided to four
customers in a standard car (Cramer and Krueger 2016). Uber XL and Uber X cars have seats
that provide child safety that can be availed with an extra charge. The different rider service
levels of Uber includes ASSIST, Bike, Black, Chap chap, Espanol, Flash, Green, Health,
Hire, Lux, MOTO, POOL, Premier, Premium, SUV, Taxi, Van, WAV, Uber Auto, Uber GO,
Uber X and Uber XL. The services that are under development are Uber AIR that will
provide short flights by using VTOL aircraft. Demonstration flights will start in 2020 in Los
Angeles and Dallas. Uber also operates promotional services. For example: A rise up to 15
minutes was launched in San Francisco in the month of September 2013. Uber also allowed
its customers to hire speedboats during the summer days on Croatia’s coastline. During

4
MANAGEMENT
Miami Art Week Uber has also provided transport across Biscayne Bay and in Istanbul across
Bosporus. Most of the Uber drivers drive their own cars instead of leasing or renting a car. It
offers car leasing or rental through Hertz, Get around and Fair (Isaac and Davis 2014).
Drivers have to meet certain criteria of age, car age, type and health and should have the
individual driver’s license, a tablet or a smart phone (Davidov 2016). Many cities follow the
rule of annual safety inspections. Uber emblem posted in the window of the passenger is a
mandate to run the business of transport. The drivers are considered as the individual
contractors instead of employees. The Uber application informs the drivers about the rider,
location of the rider, drop location of the ride and the time required for the trip. Uber drivers
opening an account at the Go Bank is provided with a debit card that gives offers on
purchasing from few retail stores. There is a strong rating system in the Uber organization.
After the completion of every ride, the rider and the driver rate each other depending on their
behaviour and service on a scale of 1 to 5 stars. Uber on the other hand, has launched a new
service of Uber Eats that provides delivery of meals to different locations. Uber in spite of so
many strengths, have many weaknesses and challenges that are questioning the existence of
the company. This report will thus talk about the current challenges faced by the company
and their possible solutions to overcome the scenario (Cramer and Krueger 2016). The future
strategies and planning of the company is also discussed which will help to analyse the long-
term growth of the organization.
Uber Present
Uber have been facilitating their service rapidly across the metropolitan cities around
the world. Sydney, Melbourne, Canberra, New York, Los Angeles, Chicago and other major
cities where the rush of the competitive corporate work life pushes people in achieving more,
Uber have been helping those people is accomplishing their daily work (Cramer and Krueger
2016).

5
MANAGEMENT
The organization, started with the name of Uber Cab in the year 2009 was founded by
Garrett Camp, was initially founded to be a personal or shared cab assistance for the public to
use. Being in the business for 10 years, it have been one of the largest organization that have
crossed a milestone of 100 million user worldwide. In the year 2019, Uber have taken up a
total of 69.5 percent of the total market share at The United States of America in public
transportation system and 25 percent for food delivery (Rogers 2015). It have also been seen
that uber have been so prominent in the sharing economy in the market, the changes in the
industry have referred their success as uberisation. The organization have spread domain
from personal ride assistance to ride sharing hailing, delivery of food and also bicycle sharing
system in some of the countries in The United States of America (Calo and Rosenblat 2017).
At present, Uber have been hailing as kind of archetypal disruptive business. The
organization have also played havoc certainly with the upcoming taxi industry as they have
been emerging in most of the major cities around the world by modifying the rules of
transportations. Therefore, in the modern marketing analyst have found many provoking
controversies at their existence in the market (Cohen et al. 2016). Despite all the challenges
and the criticism made over the organization, Uber was nominated to be the second most
disruptive companies in the world, right after tech organization Space X. With the upgrades
made with the progressive years passing, Uber have been upgrading their mode and
techniques of business. The organization have also been changing their core offering through
the years and have been introducing many new modes of transportation. They have developed
Uber Pool that allows them to share individuals to share the booked cab with another person,
where the fare to the destination gets shared between the individuals according to the distance
(Chen, Mislove and Wilson 2015). There also have been other modes of transportation plans
that Uber have developed in the recent years such as luxuries ride option known as Uber
CHOPPER. Although their main domain have been in the ride hailing business, the

6
MANAGEMENT
organization have moved their core business section in the recent years. One of the most
noteworthy contribution that have been made by the organization would be funding their
resources in mobilizing autonomous cars for research purpose (Chen et al. 2017). While there
have been many attempts my many huge organization in the recent years for food delivery
business, organization like Zomato and Food Panda, UberEats have been providing steep
competition to these organizations. The food delivery section owned by Uber have been
operating in many countries providing excellent services to their customers. Whereas, there
have been Uber Freight that have recently reported to do well in gaining traction (Laptev et
al. 2016).
The current online use of the application have crossed more than 600 cities
worldwide, where majority of the users are citizen of metropolitan cities. Currently, the
organization is service a total of 75 million passengers worldwide, providing utter customer
satisfaction and service to their brand quality (Wallsten 2015). The organization is reportedly
have more than 3.9 million drivers active globally than serves to majority of the customers to
their active area of operation. With the figures being gathered, it could be said that at present
the highest market that Uber enjoys is from the United States of America. A total of 48
million of the total users comes from the United States only (Edelman and Geradin 2015).
They have been expected from certain regions with the local business sold in the regional
operates being active too. The second highest Uber market is from Brazil where 17 million
users have been using the application, along with the United Kingdom and India being in the
third and fourth place with a user of 5 and 3.5 million of the total users (Leighton 2016). At
present, there have been a total of 10 billion trips that have been completed by Uber in the
year 2019 from their beginning. The figures have been rapidly rising as in a single day, as in
a single year, Uber completes a total of 14 million rides worldwide (Braithwaite, Churruca
and Ellis 2017). It also have been recorded that Uber have been most expectedly maximum

7
MANAGEMENT
number of vendor by completing a 12 percent of the total transaction is made from the United
States of America only. Although, they have been the highest as the second largest had been
Starbuck with a percentage of 4 (Oei and Ring 2017).
At present, an individual average cost of a ride for every 10 km that is charged by
Uber globally is $25.19. However, the cost varies from country to country with their fare
differences and depending upon the cost of fuels. Comparing the fare or cost of the ride with
other transportation application or organization in the business, it is estimated to be more
reasonable. For comparing the present value of the charge that is being charged by Uber for
their ride, Champion Traveller have been using an application tool that is being used for
finding the average cost of the ride for 10 km in every city where Uber operates. In developed
countries, the fare is slightly higher than the usual cost that is charged by the organization.
The cheapest fare that is charged by Uber could be seen in developing countries like
Islamabad and Cario under $2. Currently, Uber competition are basically the local taxi
transportation and other organization like Lyft in New York and OLA in India. They have
been getting rides along with the competition in a proper manner. It have been seen that
people in the age group of 18 to 35 have been using Uber maximum as according to
demographics, these age group have the maximum number of internet users nowadays.
Although with the huge maximization in their business, there have been certain bans in many
famous countries all over the world. Countries like Denmark, Northern Territory, Hungary,
Bulgaria, China and partially banned in countries like London, Italy and France, there have to
be a lot of work that is to be done by Uber for achieving total globalization.
Uber Policies
UBER along with the key competitors have played a key role in the transformation of
the public transportation. The structural changes to the old industry that functioned in the
same manner as it functioned a decade ago. The individuals in need of a cab or a taxi

8
MANAGEMENT
nowadays don’t have to wave at a taxi or call a local car service to reserve a car at least half
an hour before the scheduled ride. The management of the company has done the necessary
arrangements in order to ensure the success of the business in a proper and effective manner.
The management of the business organization has changed the way of cab transportation as
the people can now easily book a cab at least a week earlier. The company has been
successful in providing the services of the app cab based taxi services via smartphone from
any of the location. The disruptive technology has thus not helped the traditional taxi services
as people are now more inclined toward these app based cab services. There are often
problems arising from the clash of interests as the services of the traditional taxi services are
slowly pushed to the limits of extinction. Apart from this there are major problems that often
tend to hamper the cause of the app cab based services that includes the likes of the problems
with the drivers and some other major issues.
As said earlier, policy can be said to be one of the most important elements and
perspectives for the business of app cab. The importance of the policies cannot be
undermined easily as it shapes up the organization operations and sustainability in the market.
There has been a huge increase for UBER in the last five years globally and thus the
importance of the policies comes to the forefront. The increase in the business of UBER has
been mainly because of the growth policy of the business which has seen the expansion of the
business in different kinds of new as well as old markets. The increase in the expansion of the
business has been one of the major strategies of the business enterprise. There are different
kinds of policies that is able to ensure the success of the business in a proper and efficient
manner. There is no doubt about the global plans of the company at the very start of the
business in the market. UBER took up the problem to solve that is truly global. The company
came up with the idea in Paris, launched the company in San Francisco of America and then
just within 7 years of its existence, the company was able to expand to more than 500

9
MANAGEMENT
destinations worldwide. The company slowly expanded itself in North America and Europe
and came forward with the different services in Asia. The start of the rickshaw and the
motorbike services in Thailand as well as in India have been another major development of
the organization in the recent times. The following geographic and demographic scope of the
company has been unprecedented. The technology that the company has been unchallenged
and thus is one of the best success stories of the last decade. The company has faced the
different kind of the technological challenges which has been more accurate and challenging
than the challenges faced by the other companies in the same line. UBER has seen different
kinds of challenges in the market which has been a stumble to the different types of the
expansion plans in the business market. Some of the major challenges are as follows;
1. Lyft in US presents a stiff challenge to the market of the UBER in USA
2. CURB is another major taxi based app cab service that works directly with licensed
taxi drivers, and allows payment within the app, with cash or in any other method
available in the specific car (e.g., if the taxi takes credit cards). CURB also presents a
stiff competition to UBER’s expansion policies locally as because the company has its
presence in more than 60 different US cities of the company.
3. In Brazil 99Taxis is quite popular and offers steep competition to UBER
4. Careem is a major option in Northern Arica and the Middle East and offers multiple
levels of service as well as the ability to book in advance.
5. Didi Chuxing is one of the best options of China and is often referred to as the best
app cab services of the country. After a long, fierce price war between the two
companies, Uber China recently decided to sell itself to Didi Chuxing
6. OLA offers a steep competition to UBER in India while In Indonesia, a market that's
among the most social-media-savvy in the world, Uber's main rival is a motorcycle
taxi service call Go-Jek

10
MANAGEMENT
7. Grab Taxi is also famous in South East Asia especially in Singapore and Philippines.
Though Grab is a licensed taxi application, the company has a huge market share in
these countries.
On the other hand, safety norms an important part of the policy of the organization. The
safety policies of the organization is mandatorily to be followed by each and every member
within the business organization as well as the stakeholders, the customers and all the other
parties concerned. The aim of the organization in this regards is to provide the passengers the
facility to move safely, to look forward to the opportunities ahead, to be connected to the
people and the places that matter the most, to be focused on the business safety of the
organization and most importantly set out new business standards for the development of the
technology with the goal of reducing or mitigating any kind of incidents that may threaten the
safety of the passengers as well as the drivers. There are different kinds of safety features that
has been implemented and applied by the business organization to implement the safety of
the people and the drivers. The very first feature is provided by the management of the
company to driver’s safety. The driver’s safety is first considered by the management of the
business organization in order to ensure the safety of the drivers from different types of the
passengers. There is a specific application for the drivers that is built with the necessary
technology to help the drivers stay connected with their loved ones and the support team of
the organization. There are specifically trained teams that is able to meet the demands of the
organizations in a specific manner. Apart from the safety of the organizations, the
management of the company has also taken utmost care to ensure the safety of the
passengers. The SOS button in the application has been the best option for the organization
that has been provided to the passengers. The safety of the passengers is easily ensured by the
proper use of the particular button.

11
MANAGEMENT
UBER market Analysis
The core business of the organization is to provide a market for a ride hailing service
that is supported by the point to point software technology and different kinds of the mobile
phone application that helps to connect the drivers as well as the passengers of the app cab
based services. The management of the business organization has been able to establish a
grand business plan that has been successful in a major area of the globe and has also seen to
struggle in large parts of the world especially in countries like China and some countries of
the South East Asia. In the recent years simulation as a research method has been able to
garner a major attraction that has allowed the analysis of the different kinds of the complex
strategic phenomenon that incorporates a multitude of the interrelated issues which may lead
to the inflexible analytical models and are particularly difficult to manage in empirical
research. The management of the company has successfully proposed a value proposition
model for the organization in a proper and effective manner. Differently from other kind of
the companies the management of the company has transformed UBER into a two sided
platform that connects the drivers and the people who needs a ride. The following platform is
characterized by the presence of the transfers between the different kind of the parties, which
exchanges information, money and transportation itself.
Figure No 1: Platform of UBER
Source: (Ross 2015)

12
MANAGEMENT
The value of the platform has been measured by the ability of the organization to
connect to the parties or the stakeholders of the business and to attract the new producers and
the users and the business customers. The following value depends on the direct networks
effects. The basic utility of the following platform lies in the users increases as the size of
both the sides sees an increase. The priority for the following kind of the business platforms
can therefore be said to be based on the build-up of a large customer base in order to foster
the direct network effects and also to gain a dominant and strong position against the likes of
the different type of the new entrants in the business organization. As a two-sided platform,
Uber has managed to grow its network by subsidizing the side of the market that is more
price sensitive (the drivers) and that can provide network growth to the other side, the riders,
which is charged full price instead (Ross 2015). Drivers, in fact, do not have to pay anything
in order to use the app and they are rewarded through surge pricing when there is a higher
demand than supply (Kashyap and Bhatia 2018). In this way, Uber can manage to leverage
direct network externalities proportionally at both ends (Kashyap and Bhatia 2018).
The internal and external analysis of UBER can further help to gain a better and
diverse understanding of the business and its present features. The internal as well as the
external business analysis of the company has been provided in order to ensure the success of
the business organization.