Analysis of Uber's Self-Driving Electric Cars for Sustainable Growth

This report provides a comprehensive analysis of Uber's potential implementation of self-driving electric cars as a novel value proposition. It addresses problems faced by Uber, such as safety concerns and profitability issues, and proposes AI-driven, electric self-driving cars as a solution. The report includes a SWOT analysis, exploring strengths, weaknesses, opportunities, and threats associated with this innovation. It also analyzes the core capabilities, strategic fit, and target customers (working professionals, especially women) for the proposed solution. Furthermore, the report applies Porter’s Five Forces and value chain analyses to evaluate the competitive landscape and operational efficiencies. A business model canvas is utilized to outline key aspects of the business, and recommendations are provided to guide the implementation of this innovative concept. The report emphasizes the potential for safer transportation, reduced environmental impact, and improved customer satisfaction through the adoption of self-driving electric vehicles. The report also addresses potential challenges, such as technological reliance, ethical considerations, and job displacement, providing a balanced perspective on the proposed innovation.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author note

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Executive Summary
The report has thrown light in analyzing and understanding the novel innovation proposition for
Uber Transportation. From the different past researches and surveys, it has been noticed that
Uber was suffering from loss in profitability along with different women molestation cases. In
such scenarios, it can be seen that the implementation of Artificial Intelligence is needed to be
implemented which will be beneficial for the growth of the company in a suitable manner.
Additionally, the self-driven cars which are electrical in nature can be beneficial for the safety of
the women and it will be suitable for generating sustainability in the market successfully.

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Table of Contents
Introduction......................................................................................................................................3
Overview of Uber........................................................................................................................3
Analysis of Problem Faced by Uber Inc..........................................................................................3
Analysis of Novel Value Proposition..............................................................................................4
Core Capabilities of the Self-Driving Electric Cars of Uber...........................................................7
Porter’s Five Forces Analysis..........................................................................................................7
Value Chain Analysis......................................................................................................................8
Business Model Canvas.................................................................................................................11
Conclusion and Recommendations................................................................................................12
References......................................................................................................................................14

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Introduction
The report throws light in analyzing the novel value proposition for a product or service
which will be effective in managing the growth of the company in competitive business
environment. As commented by Dankwa-Mullan et al. (2019), the Artificial Intelligence refers to
the simulation of the human related intelligence in the machines which are being programmed to
think like the human beings and mimic their actions. As opined by Ding et al. (2020), the
transportation sector or the ride sharing companies can be using the AI in mission-critical tasks
such as self-driving vehicles carrying the passengers. The main aim and purpose of the report is
to understand the problems faced by Uber and proposing an innovative solution which will be
sustainable and effective in the near future for the company and the customers.
Overview of Uber
Uber Technologies Inc commonly known as Uber is one of the American Multinational
ridesharing services which were founded in the year 2009. The company is headquartered at San
Francisco, California. US (Uber.com, 2020). The areas served by the company are 63 countries
and the different services include vehicle for hire, delivery (commerce). Till the year 2019, there
has been high level of revenue generation that is US$11.27 billion and the total equity which has
been received by the company is US$10.333 billion and the number of employees employed in
the company is 22263 in the entire worldwide.
Analysis of Problem Faced by Uber Inc
During the previous years, it has been noticed that there had been different accidents
caused by the drivers of Uber and it made the situation worse. For instance- In Sydney, the Uber

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driver was found guilty over the death of passenger and it impacted the performance of the
company to a large extent. The 30 years old Samuel Thomas, died after he fell from Uber and
was hit by the bus in June 2019 (BBC.com, 2020). Mr. Islam did not exercise any kind of
reasonable care that the driver needed to exercise and due to his negligence, it caused death to a
passenger. From the respective instance, it can be seen that there have been different other
instances wherein there are drunk driving case in Uber in Sydney or Melbourne that have led to
the fall in the profitability of the company to a large extent. In such scenario, the behavioral
issues which have been shown by the drivers such as coming drunk or sleepy for pick-up is par
for course for the different Uber drivers and it is impacting the effectiveness of the services to a
large extent (The Guardian.com, 2020).
Analysis of Novel Value Proposition and Solution Selection Analysis
In order to reduce the different kinds of harassments faced by the different customers or
passengers travelling by Uber and the entire Uber Company wherein they have been huge impact
on level of profitability and it impacted the brand image negatively. In addition, in Uber, the
worst part is there is no such way to resolve the problem and the only thing which is done is to
message the customer support as there is no direct number of Uber. The whole process is highly
time-consuming that actual work suffers due to the uninvited issue for the day. In such scenario,
the novel value proposition which can be adopted by Uber Company is the Electric Self-Driven
Cars in the future (Ishwarya et al., 2017). Through the usage of the Artificial Intelligence, it can
be used for prediction along with detection of the traffic incidents and conditions. In Uber, the
Artificial Intelligence can be used in the mission-critical tasks such as the self-driving cars
carrying passengers.

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With the help of the SWOT analysis, the internal strengths, weaknesses along with
external opportunities and threats can be identified to understand whether it will be playing a
suitable role in the safety of the passengers and optimization of the transportation system through
usage of AI in the future.
Figure 1: SWOT Analysis of Self-Driving and Electric Cars by Uber
(Source: Created by author)
Strengths
While implementing the self-driven electric cars by Uber within 2021, the most
significant kind of benefit which will be received is potential for the safer transportation. When
the machines have the capability to reduce the human errors, it will be capable of controlling the
flow of traffic. In addition, the convenience is the key aspect which will be received through self-
driven cars as there will be no cancellation as the AI will be inbuilt and the cars need to accept
SWOT

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all the pick-ups and drop the passengers to the specific location points. Lastly, it provides less
stressful driving experience as the passengers are capable of riding the cars without any fear of
molestation or harassment (Shahin, 2016).
Weaknesses
On the other hand, the initial concerns would be related to the fact related to reliance of
technology as driving through self-driven cars can be dangerous. Moreover, the companies need
to conduct proper test drives million times as it can be risking the life of the passengers in such
scenarios (Gettman, 2019). There can be problems related to the ethicality, for instance- if there
is any kind of accidents by chance, in such scenario, there can be problems regarding the blame
of the self-driving cars to a large extent.
Opportunities
Through the introduction of the self-driving electric cars in Uber, the main advantage
which will be gained is related to the less emission in the environment, It will be making the
entire environment highly sustainable in nature that will be beneficial for the protection of the
nature in the long-run which is highly needed (Kouziokas, 2017). The electric-cars are pollution
free which works on battery or electric and it will be efficient in managing the effectiveness in
comparison to present scenario.
Threats
Lastly, the threats include misuse of the technology wherein the cars can stop working
and it will be dangerous for the passengers to understand the actual reason for the stop. In

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addition, there will be elimination of existing jobs of the different people in the market as there
will be lay-off and it can be impacting their performance to a large extent as well (Wang, 2017).
Target Customers
In the respective aspect, the main target customers will be the ones who are working
professionals especially the female passengers. The main motive for the same is to make them
feel safe and secured when they are travelling alone and it will be seen through the camera in
case of any trouble faced by them.
Core Capabilities of the Self-Driving Electric Cars of Uber (Competitive Advantage and
Strategic Fit)
Uber Company can be incorporating the respective self-driving electric cars which will
be safe for the passengers travelling as there will be less or no accidents in it. In addition,
through the usage of the AI, Uber can be predicting the different paths of the cyclists and
pedestrians which can be avoided by the self-driven cars and it will be saving time for the
passengers who are in hurry to reach to a certain destination (Ivanov, Dolgui & Sokolov, 2019).
The driverless cars which are entirely controlled by the computer hardware as well as software
are in trend and it will be impacting profitability of company appropriately.
Unlike the human drivers, the self-driving cars will be able to continuously sense the
360-degree surroundings with the usage of the multiple sensors which will be efficient in making
the passengers feel safe and the environment will be becoming pollution-free in nature. There
will be inbuilt cameras fit in the cars that will be keeping a watch on the passengers whether they

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are fine or they are in any need (Wei et al., 2019). The core capabilities of the AI system will be
of high positive advantage and it will be impacting performance of the company effectively.
Porter’s Five Forces Analysis
Threat of New Entrants- It is LOW as there are high levels of testing required for
developing the respective technology and Artificial Intelligence behind the self-driving cars. In
addition, there are high level of risks and potential liabilities which keeps the threat of new
entrants low (Müller & Bostrom, 2016).
Threat of Substitute Products- It is MODERATE in nature as there are different other
companies which are inventing solar energy proved cars which are taking a toll on the electric
self-driven cars. It can be reduced with the help of proper usage of the AI in managing the
effectiveness.
Bargaining Power of Buyers is LOW as there are no other options left for them in opting
for Lyft or other car riding services which will be making the popularity of Uber Self-driven cars
to a large extent. In such scenario, the buyers will be forced to ride the cars of Uber and they will
be enjoying it thoroughly (Jiang et al., 2017).
Bargaining Power of Suppliers is LOW as there will be very less number of suppliers
who will be able to develop the required technological aspects and it can be tedious for the
company Uber to manage the respective technological advancement.
Competitive Rivalry is LOW as only Uber will be only one to offer the respective self-
driving cars for improving their performance in the market and gain competitive advantage in the
market in a suitable manner (Jiang et al., 2017).

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Value Chain Analysis
Through the value chain analysis, it will be beneficial in enhancing the profitability
margins of the company. It is because with the effective logistics along with distribution, goods
reach final user when they need them in an appropriate manner.
Figure 2: Value Chain Analysis of Uber
(Source: Jarrahi, 2018)
Primary Activities
Inbound Logistics
It is the first and foremost aspect wherein the raw materials such as technologies like the
cameras installing services are needed to be included that will be suitable for making the
innovation highly effective in nature (Jarrahi, 2018).
Operations

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The operations of the self-driven electric cars will be starting from Australian economy
that will be appropriate for improving the growth prospects of the innovation and it will be
making the environment sustainable (Ding et al., 2020).
Outbound Logistics
The warehousing and distribution of the products and services of the self-driven electric
cars need high technological implementation which will be appropriate for improving their
performance.
Marketing and Sales
The proper sales and marketing attributes are needed to be included in the system which
will be appropriate for making the company efficient in their operations successfully. The media
advertising along with print media can be introduced by Uber for making their service efficient
in nature (Dankwa-Mullan et al., 2019).
Service
High level of customer satisfaction is the key element that will be suitable for improving
the growth of the company and it enhances their brand image.
Support Activities
Firm Infrastructure
The technological alterations are needed to be included for making the services effective
and it will be suitable for growth (Dankwa-Mullan et al., 2019).
Human Resources

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The HR of the company needs to hire the electrical engineers and other IT professionals
who have the capability in managing their performance in a suitable manner.
Development of Technology
The technological alterations like self-driven cars will be effective in improving the
performance of the company in comparison to other competitors such as Lyft.
Procurement
The procurement services will be implemented with the help of the different kinds of
services such as installation of cameras that will be enhancing their effectiveness.
Business Model Canvas
Key Partner
Large number of
investors
Venture Capitalists
Key Activities
Marketing of
the electric
and self-
driven cars
Communicati
on with
customers and
investors
Value
Proposition
Riders
Safety and
Security
through self
driven cars
which will be
automated and
cameras fitted
Convenience
with easier
Customer
Relationships
Customer is
the critical
and vital
component
Regulators
Legalists
Customer Segments
Passengers and
Artificial
Intelligence Inbuilt
self-Driven Cars
Key
Resources
Brand Image
Channels

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Improving the
algorithms
and data
analytics
transactions
Cost Structure
Customer Acquisition Costs
Costs Related to Insurance
Customer Support 24*7
Cost of the Infrastructure and Inbuilt
Technology
Maintenance of the platform successfully
Research and Development
Revenue Streams
License Fees
Transaction Fees related to rides
Analysis of the Assumptions and Uncertainties
From the analysis of the business model canvas, it can be seen that there can be financial
crunch as electric cars are costly and in order to implement the same on the cars, there can be
huge investment required by the owners which may not be possible or affordable by many. On
the other hand, the technical feasibility is high and through proper trials, the technological
aspects can be improved within the short span of time. The customer desirability is all time high
especially for the women customers as they prefer to travel alone most of the times. In such
scenario, the electric cars with self-driven cars will be the most wanted option which can be
adopted by Uber in a positive manner.

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Analysis of DE Canvas

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Why are you in
Business
Mission is to
bring
automaticity in
the transportation
which is being
used by the
different
individuals
Passions is to
make the self-
driving car
technology a
huge success in
the market
Values is to
provide the
customers with
safe and secured
journey with
Uber
Initial Assets- $5
Competitive
Advantage
Moats- It is to
provide the safest
and fast
transportation to
the customers in
the market
Core- To
generate high
profitability and
become the
successful brand
of transport
Competitive
Positioning-
International
Presence with the
first self-driven
electric cars
Customer
Acquisition
DMU:
Process to
Acquire
Customer:
Through the
usage of the
social media and
personal selling
of the idea
Windows of
Opportunity: To
manage the
women
customers
Possible
Triggers: Trial
ride and
discounts offered
on the first five
rides only for
women
Overall
Economics
Est. R&D Exp.:
$10 crores
Est. G&A Exp.:
$15 crores
LTV/COCA-
Around $5 crores
Ratio High
Enough: Yes
Design and
Build
ID Key
Assumptions:
Failure of the
electric self
driven cars
Test Key
Assumptions:
Proper trials will
be helpful
MVBP: It will
help Uber to take
ideas from
customers
regarding
betterment
Tracking
Metrics: Social
Media

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crores
Initial Idea was
to implement the
electric cars with
camera
Initial Market
Beachhead:
End User-
women working
individuals and
others
Profile: Women
customers
Customers: All
individuals both
men and women
specially women
for making them
feel safe
Value Creation
Use Case: It will
be more
technologically
advanced with
cameras and
there will be no
cases of
harassment
Prod
Description:
Research and
development
practices
Problem Being
Solved: Yes
Quant. Value
Prop.: Yes
Product Unit
Economics
Est. Pricing: $20
crores
Sales
Preferred Sales
Channel:
Facebook
Sales Funnel:
Emails
Scaling
Prod. Plan for
Beachhead: It is
made available
for the women’s
safety
Next Market: All
groups of
customers
including men
and women

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Conclusion and Recommendations
Therefore, it can be concluded that the novel value proposition of Uber with the
introduction of self-driven electric cars which will be beneficial for the environment to make it
highly sustainable along with helping the different customers with safety and assurance. In the
last few years, Uber has been facing tremendous negative impact due to the drunken driving
accident crashes and other aspects that impacted the level of profitability to a great extent. In
such scenario, the respective Artificial Intelligence used Self-Driven Electric Cars with the
cameras inbuilt in it will be highly liked and preferred by the different customers in a proper
manner. With the help of the different tools and techniques, it can be seen that Uber will be
successful in implementing the different technologies that will be enhancing their brand image
and their reputation thoroughly.
On the other hand, there are different recommendations which can be incorporated by
Uber in order to improve their performance to a large extent which will be suitable for managing
their business and gain the confidence of the customers in a suitable manner as well (Dankwa-
Mullan et al., 2019).
Firstly, the technological integration and checking the previous mishaps which took place
due to the use of the Artificial Intelligence needs to be analyzed. Through the same, it will be

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beneficial for the company in managing their effectiveness and gain competitive advantage. The
complete check up will be needed that will be effective in growth of the company in future.
In addition, there can be implementation of the different kinds of network platforms
being made by the company to improve their performance and make it highly efficient. The
technological talent is the most crucial element that will be appropriate for growth of the
company and make it highly efficient.

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References
BBC.com (2020) Uber driver found guilty over passenger's death in Sydney (online) Retrieved
from https://www.bbc.com/news/world-australia-46339176 [Accessed on 18th April
2020]
Dankwa-Mullan, I., Rivo, M., Sepulveda, M., Park, Y., Snowdon, J., & Rhee, K. (2019).
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Large-Scale decision-making: Characterization, taxonomy, challenges and future
directions from an Artificial Intelligence and applications perspective. Information
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Gettman, D. (2019). Raising Awareness of Artificial Intelligence for Transportation Systems
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Jarrahi, M. H. (2018). Artificial intelligence and the future of work: Human-AI symbiosis in
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The Guardian.com (2020) Disgruntled drivers and 'cultural challenges': Uber admits to its
biggest risk factors (online) Retrieved from
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18th April 2020]
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18th April 2020]
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axial age with ITS. IEEE Intelligent Transportation Systems Magazine, 9(4), 6-9.

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Wei, Y., Wang, Y., Chang, Y., Shi, B., & Shao, K. (2019, April). Research on the construction
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