Uber in 2016
Uber is a technology-based organization which provides taxi services across populous markets in the world. Uber sells a lifestyle using a classier transportation service than ordinary taxes. Being tech-based ensures that Uber benefits directly from taxis services without incurring regulation challenges. For instance, renewal of driver licenses and vehicle insurance services are costs incurred by individual drivers and does not fall under Uber’s expenses. The key element of Uber’s value proposition entails convenient of services. The organization creates a network which connects clients with Uber services using a mobile application. Price fluctuations favor most customers of Uber when demand for taxi services rise. Being a pioneer firm in the ridesharing market, Uber competes by establishing many Foreign Direct Investments (FDIs). Venturing into new markets enables Uber to optimize on benefits of large economies of scale creating a competitive edge over other ridesharing firms.
Threats of substitute products. Air and railway organizations which offer convenient transport services pose a major threat to Uber’s business model and strategy. Some clients prefer railway transport services due to high traffic in busy towns.
Threats of new entrants. Local ridesharing firms have posed a major threat to Uber’s FDIs in countries such as China and India where Didi Kuaidi Ola.
Bargaining power of buyers. Riders, consumers of Uber services, have the capacity to switch between alternative means of transport such as public transport and train services. Threats of new entrants
Bargaining power of suppliers. Uber has succeeded in convincing a certain social class of ridesharing services, maintaining a stable pricing strategy (Thompson et al. 2015).
Competitor rivalry. Uber faces stiff competition from other firms such as Zipcar, Ola, Taxify, Didi, and Careem. Most ridesharing firms establish similar business models and strategies affecting Uber’s effectiveness in delivering taxi services as a monopoly.
Uber has failed to meet traditional expectations of public transport service providers. For instance, the organization faced criticism as its drivers refused to provide services to physically challenged people. Similarly, Uber was condemned for female harassment by its drivers operating in Mexico. Uber’s CSR strategy elements include; conservation of the environment, the well-being of employees, promoting workplace diversity, taking part in charity, and participating in community processes (Thompson et al. 2015). In essence, Uber aims at incorporating an ethical and moral culture across all transport services it offers in different economies.
Uber’s corporate culture has attracted negative criticism from how the firm conducts its business. The organization has a volatile CEO, Travis Kalanick, who has been accused of using an aggressive management approach towards Uber’s employees. For instance, he was accused of yelling a driver for underperformance reasons. Uber’s corporate culture has also been condemned for discrimination practices against certain factions of employees. A viral blog post noted sexual harassment sentiments of a former female engineer at Uber. Susan Fowler lamented her time at the firm for encountering sexual harassment acts from senior managers. Transparency in management practices has affected Uber’s operations in significant ways. For instance, biased recruitment practices have resulted in underperformance within the organization.
Uber should consider adopting moral and ethical policies that target rogue behavior and management among all stakeholders.
- Uber should develop a framework of dealing with unethical behavior from senior managers whose personal behavior attracts negative criticism.
- Uber should develop a recruitment process which provides equal employment opportunities to all applicants with special status awarded to people with disabilities.
- Uber should consider strategizing an organizational culture that promotes its globalization objectives (Thompson et al. 2015).
- Sexual harassment cases against female employees should be regulated by policies which include legal procedures against suspected employees.
Thompson, A., Strickland, A. J., & Gamble, J. (2015). Crafting and executing strategy: Concepts and readings. McGraw-Hill Education.