Uber's Global Growth Strategies

This research report investigates the effectiveness of various growth strategies employed by Uber for global business expansion. It utilizes an inductive research approach and positivism philosophy, employing both qualitative and quantitative data collection methods (structured questionnaires and secondary sources like books, journals, and articles). The report examines different market expansion strategies such as opening new offices, franchising, licensing, strategic alliances, and mergers and acquisitions, analyzing their effectiveness and associated pros and cons. The study includes a literature review summarizing existing research on these strategies within the context of the taxi industry. The research aims to answer key questions about Uber's growth strategies, their effectiveness in capturing new international markets, and the differences between these strategies. The report concludes by suggesting effective ways for Uber to operate at an international level, considering challenges such as high taxes and technological awareness in different countries.

Research Methodology
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Table of Contents
TITLE AND INTRODUCTION..........................................................................................................3
Title..................................................................................................................................................3
Background of the industry..............................................................................................................3
Issue identified for research.............................................................................................................3
SIGNIFICANCE OF AND RATIONAL FOR THE PROPOSED RESEARCH.................................4
RESEARCH QUESTIONS..................................................................................................................4
RESEARCH OBJECTIVES AND FRAMEWORK............................................................................4
SMART research objectives............................................................................................................4
Conceptual framework to achieve the research objectives..............................................................5
LITERATURE REVIEW.....................................................................................................................5
RESEARCH METHODOLOGY AND DESIGN................................................................................9
ETHICAL CONSIDERATION..........................................................................................................11
OUTCOMEs.......................................................................................................................................11
TIMELINE AND GANTT CHART...................................................................................................12
REFERENCES...................................................................................................................................13
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TITLE AND INTRODUCTION
Title
“To understand the effectiveness of different growth strategies for expanding business at
global level: A case of Uber Taxi”
Background of the industry
The Taxi Industry operations in the worldwide have been run for centuries and it arose in the
response to customer demand who wanted transportation at lower prices. For hiring private cabs, it
has required to pre-book the cab via a private hire operator (Rosenbloom, 2012). If the UK taxi
industry take into the consideration than as per the new law of London government, private hire
vehicles needs to take licences to run their business in the London and other locations of UK. The
Taxi industry is giving a significant contribution to the UK economics. The Department for
Transport’s 2012 statistics indicate that there are about to 300,000 licensed taxi in which 78,000 taxi
vehicles run in England and Wales and 155,000 private hire vehicles (Aaker, 2012). Till the 2011,
the market share of private hire vehicles has about to 33%. The UK private hire transpiration
mediums target the customers on the basis of the demographic segments. About to 18 to 29 age
groups are using the private hire vehicles and people who has between the 20% to 40% income
level are also showing the interest in hiring private transportations. Along with this, disable persons
also prefer the private cabs and other transportation modes (Hitt, Ireland and Hoskisson, 2012).
In this context, Uber is one of the taxi operators which are running its business at different
nations. It is the major dominant organization in the field of taxi industry of the nation. In the
worldwide, the market share of the cited company is increasing with breathtaking speed as compare
to other traditional transportation modes. It is also very well known with the name of ridesharing
firm. Based on expenses reports from business travellers which have been published in first quarter
of 2015 shows that an average 46% of the total paid car rides were via Uber. This average was 15%
in the first quarter of 2014 (Wedel and Kamakura, 2012). As per the words of manager of company
is there is the strongest growth on Uber across business travel with the low cost option.
Issue identified for research
As Uber has expanded around the world and now operating the business in 68 countries.
Although company is trying to balance users demand for the services. The reason of selecting the
research topic i.e. understand the effectiveness of different growth strategies for expanding business
of Uber at global level is still there are some nations where company is at growing stage and
somewhere planning to enter into the countries. To become a market leader of taxi industry across
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the world, it has important to select right growing strategies to make business at all international
market (Chaffey, Smith and Smith, 2012).
SIGNIFICANCE OF AND RATIONAL FOR THE PROPOSED RESEARCH
The significance of conducting the following research is business of Uber is growing with
the exponential speed in the present time. It has run its operations in more than 68 nations by
leading the market (Amit and Zott, 2012). But still there are some countries where organization
needs to entre and show the presence at those locations. Along with this, there are some issues and
challenges face by the firm at the time of doing business which affect the performance and brand
image. So, to develop a new image in the customers mind and successfully entre into the new
markets, it has required adopting some new growth strategies in order to grab market share and
show the presence at international level (Ramamurti, 2012).
RESEARCH QUESTIONS
1. What are the different types of market expansion strategies for Uber?
2. Are the growth strategies effective for Uber to grab new market at international level?
3. What is the difference between the various growth strategies in terms of pros and cons?
RESEARCH OBJECTIVES AND FRAMEWORK
SMART research objectives
 To determine the different types of market expansion strategies for Uber.
 To evaluate the effectiveness of growth strategies in grabbing of new markets for Uber.
 To compare different types of growth strategies in terms of pros and cons with respect to Uber.
 To suggest the effective ways by which Uber can operate at international level.
Conceptual framework to achieve the research objectives
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LITERATURE REVIEW
When conducting a research, literature review is an important part of the study. The reason
is it covers all past researches which have been already done on the subject and develop a platform
for the current investigation (Silverman, 2016). Existing researchers use the old and previous
outcomes with the aim of develop their own research question and eventually to create their own
hypotheses on the theme in order to provide a focus on the analysis. The present research proposal
is based on understand the effectiveness of growth strategies for business expansion at worldwide of
Uber. In this context, a literature review is conducting which help in achieving the research
objectives and answering the research questions (Smith, 2015).
Different types of market expansion strategies
According to Ritala, 2012, “by opening a business at a new location is a good option to
expand the market for a taxi organization” (Ritala, 2012). This expansion or growth strategy mostly
prefer by many of the companies in the present time. The reason is top management of the firms
think that physical appearance of venture is more important for business expansion. But
Kumaraswamy, Mudambi, Saranga and Tripathy, 2012 has explained in his research that “offering
business as a franchise is a good opportunity for a taxi business to ensure the growth and expansion
of market share” (Kumaraswamy, Mudambi, Saranga and Tripathy, 2012). By choosing franchising
as the private taxi hire for expansion to the other companies in any area of the world then it
increases the interest of the people to work with the organization. It helps in streamline the business
of the firm in the most effective manner. Along with this, it provides an opportunity to the taxi
enterprise to look the growth in the industry at international and national level. In the contrast of the
above statement, Piotroski and So, 2012 has asserted that “giving license of the services to the other
venture, a taxi firm can easily achieve the growth and raise market share” (Piotroski and So, 2012).
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This method is effective in terms of low cost with high growth medium. It has minimized the risk
and lowers down the operating cost in the form of price for the private hire taxi business.
On the other hand, Cheng and Krumwiede, 2012 has stated that “by forming an alliance with
the other organization, a taxi firm can achieve the growth and expand the business at international
level” (Cheng and Krumwiede, 2012). It is a powerful tool of expanding the venture at different
geographical locations. Along with this, strategic alliance helps in share business skills with each
other and grabs the large market share. In addition to this, Morgan, Katsikeas and Vorhies, 2012 has
suggested that “merger and acquisition are also the best options for taxi business growth and market
expansion” (Morgan, Katsikeas and Vorhies, 2012). There may be some locations where a private
hire taxi company not able to established and generate the expected profit. In this situation, firm can
either merge or acquire other companies of similar industry in order to bring the growth of the
business.
From the above different statements of the authors, it has found that there are different
growth strategies available that a taxi organization can use for his growth and expand the market
share. The same thing applies on Uber because there are still some geographical locations where
company still not entering or at growing stage. So, with the help of mergers, acquisitions, opening
office at different locations, giving franchise to the other company, provide licensing to the taxi
services to the other firm and forming strategic alliance, Uber can achieve the growth in the
business and raise market share (Mayhew and Wilkins, 2013).
Effectiveness of growth strategies in grabbing of new markets
As per the research of Rosenbloom, 2012, “by opening an existing taxi business at new
location helps the organization to grab more market share” (Rosenbloom, 2012). Effectiveness of
this growth strategy is it maintain the bottom line profit of the firm and make sure that same steady
growth can be gained in the next upcoming years. On the basis of this, new customers can be easily
made at new location and raise market share with the time. In this context, Aaker, 2012 has stated
that “giving franchising of a taxi business to another organization helps in give an opportunity to the
business to grab a new market very easily” (Aaker, 2012). Effectiveness of the following growth
strategy is accelerates expansion over wide area and ensure the success in the business. Rather than
this, some other helpful factors of giving franchising is it provides capital of the taxi business and
increase the market share of the private taxi company. Along with this, it simplifies the management
structure which means firm can expand its business at different locations and grab the opportunity
of increase market share. On the other hand, Hitt, Ireland and Hoskisson, 2012 has asserted that
“license is more effective as compare to opening a new office at new location and giving
franchising because of its low cost feature” (Hitt, Ireland and Hoskisson, 2012). With the help of
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this, taxi organization can minimize the risk of failure of business at the new location. In addition to
this, it will be easy to grab the market share of licensing firm which ultimately raise the market
share.
On the other hand, Wedel and Kamakura, 2012 has explained that “strategic alliance is more
effective as compare to the other growth strategies for a taxi business” (Wedel and Kamakura,
2012). With the help of this, company easily entre into the new market which is not possible for him
to entre alone. So, it makes the way of taxi firms to entre at new locations and grab market share in
more effective manner. But Chaffey, Smith and Smith, 2012 has suggested that “merger and
acquisition is one of the best option for a taxi organization to enter into a new market” (Chaffey,
Smith and Smith, 2012). Effectiveness of this growth strategic option is it enhance the revenue of
the business via gaining large market share and minimize the cost of operations.
From the above stated declarations of the different authors, it can be summarized that on the
basis of the effectiveness of the various growth strategies, it has found that all have good and easily
adopt by Uber for its business (Amit and Zott, 2012). With the help of any growth tactic, company
can raise the market share and show the presence at different geographical locations.
Pros and cons of different kinds of growth strategies
According to Ramamurti, 2012, “there are some other pros and cons rather than increase
market share and business expansions of growth strategies” (Ramamurti, 2012). Author further
stated that opening a new office of taxi business at new location delivers several other benefits to
the firm in which first is revenue. This strategy enables the organization to increase number of
services at new place by grabbing more and more customers. It leads to increase the overall revenue
of the firm in with high growth rate. Along with this, opening a new office at new place gives brand
recognition to the business which helps in promotion and marketing of the brand. But Ritala, 2012
has stated that “this strategy increases the competition level within the taxi industry of a new
location” (Ritala, 2012). For example, open a new store may contain geographic, time or quantity
restrictions that protect the venture to do the business in that location.
In the contrast of the above statement, Kumaraswamy, Mudambi, Saranga and Tripathy,
2012 has stated that “franchising is most effective as compare to opening a new office at new
geographical location because of lower cost” (Kumaraswamy, Mudambi, Saranga and Tripathy,
2012). Once the business is start and running, it is the franchisee that will be rewarding taxi firm as
a monthly income. So, this is the reason of adapting franchise system with the aim of expanding the
business at new location. In this context, Piotroski and So, 2012 has asserted that “franchise
effectively penetrate the market with high level” (Piotroski and So, 2012). It is very significant
benefit for the taxi business to establish the business in the new market. Along with this, it becomes
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easy for the company to gain the greater commitment of the staff and lead the business in the new
direction. Moreover, it raises the performance level of the company and easily shows the presence
in the new market. But Cheng and Krumwiede, 2012 has suggested that “franchising is not a good
option in order to expand the business in a new market for taxi organization because company has
to share the profit with the business partners” (Cheng and Krumwiede, 2012). From this, company
loss the control over the business and start to neglect the issues in different business operational
activities.
On the other hand, Morgan, Katsikeas and Vorhies, 2012 has state that “merger and
acquisitions are more effective as compare to other growth strategies for taxi business in terms of
pros and cons” (Morgan, Katsikeas and Vorhies, 2012). It is cost efficient in the form of economic
of scale and enhance the revenue through gain market share. Along with this, merger and
acquisitions added value in private taxi hire services. For example, if the enterprise wishes to makes
its presence in the new market then merger and acquisition can be used. But Mayhew and Wilkins,
2013 has explained in this study that” merger and acquisition has some limitations which resist a
taxi organization to apply them in order to growth in the business” (Mayhew and Wilkins, 2013).
The different working styles of firms may leads the conflicts between the employees which affect
the decision making and other process of the company. Along with this, merger and acquisition
between the two ventures resist both of the enterprise to effective use of resources.
From the above discussion, it has found that every growth strategy has some pros and cons.
So, it is hard to say that which tactic would be perfect for Uber in order to growth and expansion of
business at international level.
Strategies by which Uber can get the growth in business and make the company worldwide
As per the research of Morgan, Katsikeas and Vorhies, 2012, “the rapid growing taxi
booking firm increase the competition in the taxi industry worldwide” (Morgan, Katsikeas and
Vorhies, 2012). Uber is now looking to expand its business in different locations at the global level.
In this context, it has important to determine or select those strategies which help the firm to get the
growth in business and make the business worldwide. In this context, Hitt, Ireland and Hoskisson,
2012 has stated that “before selecting the right growth strategy, it has important for Uber to find the
challenges in the various nation” (Hitt, Ireland and Hoskisson, 2012). The first challenge is high
taxes in most of the countries which might be affecting the profit level of the firm. Second one is
technology because many of the nations are coming under the developing and under developed
categories where people are not aware regarding the technology. For the same, the author has
further stated that with the help of merger and acquisitions, Uber should look towards the growth of
the company at international level. Along with this, with the help of giving franchising and
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licensing, firm should expand the business at different geographical locations in more effective
manner.
RESEARCH METHODOLOGY AND DESIGN
To carry out the research with the title of understand the effectiveness of different growth
strategies for Uber to expand business at global level, the researcher will different kinds of methods
which are as follows:
Research approach
To understand a subject or a topic, it is require development of new knowledge or theory for
it. On the basis of this, there are two types of research approaches: inductive and deductive. The
deductive approach works from “the general” to “the specific” which is also called ‘top-down’
approach. In this, investigation starts with a theory of interest as the platform and then achieve
objective with the help of hypothesis testing (Deductive Reasoning Versus Inductive Reasoning,
2014). After this, it address the research question in such a manner that data and observation align
with the testing hypothesis. But inductive is just opposite to the deductive approach where research
moves from a particular level of observations and makes the outcomes generalize (Panneerselvam,
2014). It is also called ‘bottom-up’ approach in which a analysis is carrying out to detect pattern in
the information from which new finding can be made (Inductive Approach, 2014). For the present
investigation, the researcher will use inductive research approach because it would help in
determine the different market expansion strategies for Uber.
Research philosophy
With the help of research philosophy, the researcher can clearly understand the nature of
study, backgrounds and other aspects. Interpretivism and positivism are the part of the research
philosophy (Bauer, 2014). Interpretivism involves researchers to interpret elements of the study and
also integrates human interest into the investigation. According to this framework, reality can only
be access via social constructions such as shared meanings, languages etc (Taylor, Bogdan and
DeVault, 2015). On the other hand, positivism research philosophy focuses on gaining the
knowledge from observations. On the basis of the collected data, the scholar makes the
interpretation through objective approach. Findings from this method are usually observable and
easily quantified. For the current research proposal, the suitable research philosophy will be
positivism because it will relate the viewpoints of the respondents on the selection of appropriate
growth strategies for market expansion at international level for Uber (Billig and Waterman, 2014).
Research design
Research design can be understand as a systematic plan which is necessary to solve research
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problem in logical manner. It delivers a broader and complete framework to the researchers related
to understand the topic of investigation in the right manner (Research design, 2009). Descriptive,
exploratory and cause and effect are the three types of research design. Exploratory research design
is use to investigate research issues in order to provide insights and evidence about the selected
topic of inquiry. On the other hand, descriptive research design simply describes the situation, its
characteristics and functionality to answer specific research questions (Cammarota and Fine, 2010).
While in cause and effect, the scholar compare the two or more variables with each other in order to
discover more about the study subject. In the respect of the present research proposal, the
researcher will use exploratory research design because it will provide rich quality information that
will help identify the major growth strategies that will help in business expansion of Uber at
international level (Flick, 2015).
Research type
It can be considered as a logical approach by which a researcher can gain the right outcomes
by analysis of information. Research type also called as data type and it can be divided into two
groups: qualitative and quantitative. Qualitative data type is often use for comparison purpose for
those which are difficult to quantify such as subjective, opinions, impression, observations etc
(Qualitative Research Methods Overview, 2014). On the other hand, quantitative data type is used to
evaluate the numerate data which can be measured by statistical testing. Both qualitative and
quantitative data type are having different perspectives and answer several types of research
questions (Quantitative Methods in Education Research, 2014). The present research proposal is
based on understand the effectiveness of different growth strategies for Uber to expand business at
international level. In this context, the suitable data type methods will both qualitative and
quantitative. Quantitative tool will help the researcher to compare the opinions of the respondents
on selection of right growth strategies for expand the business at global level. Qualitative will assist
to evaluate those opinions in the statistical manner to get the solution of the research questions
(Gast and Ledford, 2014).
Data collection
In the context of the present research proposal, the researcher will use primary and
secondary data collection methods. Primary method will allow getting the fresh information about
the viewpoints and opinions of the respondents regarding the selection of growth strategies for Uber
to make the business worldwide (Research Instruments for Data Collection, 2014). For this, the
scholar will use structured questionnaire which contains different questions related to the research
objectives of the title investigation. On the other hand, the reason of choosing secondary data
collection technique for the current research proposal is it will facilitate the investigator to know
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about several types of growth strategies for business expansion in general and apply them for Uber.
The sources which will use for information gathering are books, journals, articles, previous research
papers, internet etc (Hunleth, 2011).
Sampling
Sampling is a process of selecting a representative group from the population under study.
At the time of choosing participants, the sample should be in such way which can represent the
target population as much as possible (Mackey and Gass, 2015). The present research proposal is
based on understand the effectiveness of different growth strategies which can enable Uber to make
business at international level. The sampling strategy for this will be purposive sampling and
sample size will 5 people of top management of organization. The reason of selecting the following
sampling technique is the purpose of answering the research questions will only fulfil by the top
management because they have the authority to decide the growth and market expansion strategies
for the organization (Miller, Birch, Mauthner and Jessop, 2012).
ETHICAL CONSIDERATION
For the present research proposal, the researcher will face different types of ethical
challenges such as plagiarism, poor data storage and retention, wrong data collection process,
confidentiality issues of leaking of respondents’ information, use secondary information without
permission etc (Neuman and Robson, 2012). Proposed initiatives to prevent breach of results ethics
will be as follows:
Ethical issue Initiatives to prevent breach of results
Plagiarism Provide citation to the work from where information
taken
Poor data storage and retention Select right tool to store data
Wrong data collection method Proper analysis make
Information confidentiality issues Maintain security and privacy of information
Access secondary information without
permission
Take permission before using information from
other published sources
OUTCOMES
From the above research proposal, it has found that there are different kinds of growth
strategies present which will help Uber to expand its business at the international level. Along with
this, company need to indentify those areas where are more opportunities of expand the business.
Further, at the time of selecting of the growth strategy, organization has required to looked different
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factors which affect the growth of the business and help in grab the market share at the new
geographical locations (Hitt, Ireland and Hoskisson, 2012).
TIMELINE AND GANTT CHART
Activity/Week 1 2 3 4 5 6 7 8 9 10 11 12
Choosing suitable research proposal topic which address
serious issue of the organization
Evaluation of facts and figures to know about the
background of the research problem.
Formulation of aim and objectives of the research
problem
Develop research questions which directly address the
investigation objectives and align with title of research.
Prepare proper and effective outline for the research
proposal by mentioning rational of the topic.
Design structure questionnaire in the context of the
research topic
Selection valid and reliable secondary source of
information for conducting literature review
Chose right research methodologies for achieve the
objectives of the investigation
Analysis of primary information by applying different
assessment and evaluation tools and methods.
Prepare research report by writing down all facts and
outcomes of the study including evaluation
Determination of findings, conclusion, as well as
facilitation of recommendation about the study and topic
Evaluation
Creation of final report with systematic formats
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