University Case Study: Analyzing the Business of Uber in 2015

This case study examines Uber's business operations, exploring its rapid growth, surge pricing policies, and impact on the transportation industry. The analysis delves into customer service issues, driver relations, and the competitive landscape, highlighting the role of IT in Uber's business model. The study critiques Uber's strategies, including regulatory approvals and legal concerns, while also acknowledging its success in attracting media coverage and providing convenient transportation. Furthermore, it addresses challenges related to driver retention, employee benefits, and the overall sustainability of Uber's operating model. The case also explores the impact of IT and the use of global positioning technology. The study evaluates the effectiveness of Uber's pricing strategies, customer satisfaction, and its position within the transportation sector.

Running head: CASE STUDY OF UBER
Case study of Uber
Name of the Student
Name of the University
Author Note

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Answer 1: No, the surge pricing policy of Uber is not convincing enough. It's unworthy
to claim for extra money by Uber drivers from their clients to meet their requirements. Uber
charges a dynamic price charging technique. The charge of extra money makes the customer
feels like as if they are being cheated or is being deprived of respect, because of such behaviour
most of the customer's desires to switch from Uber service to any other cab platform. There are a
number of alternative options in the cab industry; the industry has now become competitive.
Uber is at an emerging risk of loosing its potential customers. Besides some cases have took
place in the cab industry among which there are a number of cases stating Uber brand.
Answer 2: No, I don’t agree with the tactics and business strategy of Uber as the
company operates on regulatory approval and ignoring legal concerns. Most of the Uber drivers
are very unprofessional, they are not only rude in terms of customer service, but they lack the
importance of understanding the long term customer-client relationship. They are not
professional enough to serve the professional client of the market (Moon et al., 2015). Uber was
previously banned in the region of Germany. The company undertook aggressive pricing tactics
which are not favourable all the time. The main area of focus lies in the fact that the non-
professional driver may lead to cause death of a particular client. The driver is address as a threat
to the common well-being of an individual, they do not even possess proper guidance and
knowledge of the local areas. The company even does not care to look after the security policy
measures as such it hires anybody even those who are not having any proper license. The
company should adhere to the local rules and regulation of the country and the company taking
into consideration various open opportunities can take action for a food service industry. The
company has already started such service in the region of Japan. Moreover, the company should

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focus on building a relationship with the local taxi drivers so that they do not take the cab
industry as a threat to their earning (Rogers et al., 2015).
Answer 3: Within a very short period the company has become very popular and was
successfully achieving its goals. The company achieved so by catering the needs in accordance
with the client's needs and not differentiating the clients by gender, colour, race, nationality.
Transportation is not at all very easy means when it is about metro cities because of the high
traffic, and Uber brand has to avail this facility. The implementation of IT technology has
brought the company to step further towards innovation. Besides, features like booking have
been a reliable and stable option. Some drivers fake customers and take them round and round, to
make a fool out of them. Some taxi drivers refuse to take them to neighborhoods where African
Americans reside (Moon et al., 2015). As Uber refrains from doing the above things, it has
become a preferred choice of commuting with people.
Answer 4: Uber most of the time does not concentrate on the driver segment. Most of the
driver does not get any employee benefit fringe, paid leave, medical treatment facilities and
much more facilities. This makes the Uber driver feels that they are odd treated. Apart from the
additional income generates as a tip from customers. With the implementation of IT, the
customer gets a pool of customers thus, making sure that the earnings of the Uber driver do not
get hammered. (Rogers et al., 2015).
Answer 5: The operating model of Uber is not very strong. Its major threat is not about
maintained public relation it’s about the fact that the company is hiring driver continuously this
makes chaos for the company. Driver retention is one of the major difficulty faced by the
company (Rogers et al., 2015). The fair pricing policy in term of surge of Uber is poor as

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consumers tend to feel that they are being cheated as a result that they are unlikely to use any
services provided by Uber in the near future.
Answer 6: The Uber was successful in attracting a lot of mass-media coverage in a very
short span of time because it offer customer an affordable, reliable, hassle-free, clean,
professional and convenient transportation (Moon et al., 2015). Uber fair pricing offers a ride at
an affordable price; it works upon a dynamic pricing strategy. It assures its customers that they
will get a ride after they have booked it and whenever they desire so. One can even follow an
Uber cab on one’s smart device and client further have a shorter wait time to avail a cab
(Wallsten et al., 2015). The drivers of Uber also benefit from the tips that the customers give to
its drivers; they also avail the comfort to pick operational hour of their own. The drivers on
average get hired on hourly wage basis. IT, Information technology has played a major role in
business model of Uber as the company has release application that enable the customer to book
cab by just at a glimpse of a click. In addition to that, uber drivers use global wise positioning
technology using their smart devices.

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References
Cramer, J., & Krueger, A. B. (2016). Disruptive change in the taxi business: The case of Uber.
American Economic Review, 106(5), 177-82.
Moon, Y. (2015). Uber: changing the way the world moves. Harvard Business School, Case, (9-
316), 101.
Rogers, B. (2015). The social costs of Uber. U. Chi. L. Rev. Dialogue, 82, 85.
Wallsten, S. (2015). The competitive effects of the sharing economy: how is Uber changing
taxis. Technology Policy Institute, 22.