Analyzing Uber's Business Environment: A Detailed PESTLE Report

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This report provides a PESTLE analysis of Uber Technologies, a global cab service provider, food delivery, and transportation network company. The analysis covers political, economic, social, technological, legal, and environmental factors impacting Uber's business. Political factors include controversies and regulatory challenges, while economic factors involve Uber's role in the sharing economy and competition with traditional taxi services. Social factors highlight customer-friendly services and driver behavior. Technological factors emphasize Uber's advanced application features, and legal factors address compliance with various laws. Environmental factors discuss Uber's impact on fuel usage and traffic congestion. The report references several sources to support its analysis of Uber's complex business environment.
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Uber Technologies is a cab service provider, food delivery and transporting network company. It has its
headquarters in San Francisco, California. It is operating in many countries and now it has become a very
famous brand. Every company has an impact of various environmental factors and it is important to find
out the issues in the same and resolve it. Relevant issues and analysis of various environment of Uber
are-
1. Political environment- Uber has faced a lot of controversies regarding political factors. Initially
Uber has not created proper rules and regulations regarding its accident policy. Due to the
same, there was a scrutiny conducted worldwide. In France, there were charges on Uber due to
advertisement, Netherlands protested against Uber because drivers of Uber were not having
their driving license. For resolving these issues, Uber has created strict rules and regulations
regarding accident policy as well as the code of conduct for drivers (Wei, Lu and Song, 2013).
2. Economic Factors- Uber works in a sharing economy that actually based on sharing intellectual
and physical resources. Uber use to hire a driver who can get the consumer to their locations
and communicate with them. This practice proved to be very cheap for customers. Some
counties have banned Uber services because it was creating an unfair competition against other
taxi providers. But gradually Uber has resolved all the issues and it has increased many career
opportunities in the economy.
3. Social factors- Customer of Uber feel that it is a very customer friendly. The app is very easy and
there is no technicality in using the application. Uber is known for providing a very god customer
experience. As it has become popular, it has increased the prices as well. Not only taxi services,
its other services are also providing a good experience to customers. Driver of Uber are selected
very carefully and they behave in a very proper way with the customers (Marmol, Feys and
Probert, 2015).
4. Technological Factors- Uber has always known for its technologically upgraded and simple
application. While booking cab, it shows the cab estimate, traffic, drop location and weather.
There are various modes of paying tariff that provides convenience to customers. There was no
technological issues came across Uber.
5. Legal Factors- Legal factors are all that comes under the political factors. There were different
issues like bans in different countries. Uber started follow all the laws and regulations to avoid
such circumstances. There are different laws Uber is following like Labor law, employee safety
law, copyright laws and usage laws (Franklin, 2011).
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6. Environmental Factors- Uber has become so popular in short time duration and many cabs of
Uber can be found on roads. It was believed by many people that it increases fuel usage and
traffic congestion but studies revealed that there is no truth in the belief of people. People have
started using Uber instead of public transportation and due to this the usage of fuel increases
(Warner, 2010).There are so many environmental factors that creates and impact on Uber when
it comes to final numbers.
References
Franklin, M. (2011). Managing business transformation. Ely, Cambridgeshire, U.K.: IT Governance Pub.
Marmol, T., Feys, B. and Probert, C. (2015). PESTLE analysis. [Place of publication not identified]:
50Minutes.
Warner, A. (2010). Strategic analysis and choice. New York [N.Y.]: Business Expert Press.
Wei, P., Lu, Z. and Song, J. (2013). Uncertainty Importance Analysis Using Parametric Moment Ratio
Functions. Risk Analysis, 34(2), pp.223-234.
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