Uber Technologies Inc. Business Analysis
Contents
Potential Future Financial Issue. 5
Uber Success in global markets. 6
Challenges Uber Faces in International Market 7
Introduction
Recently, the taxi industry has experienced remarkable improvement and variations as there are numerous exciting options on how to offer appropriate services, satisfy customers’ needs, and gain various organizational and financial benefits (Wang & Mu, 2018). While there are challenges in the decision-making process, taxi companies strive to solve these challenges quite in short periods and strive to make their customers and employees satisfied with the conditions offered. Uber is among the most popular taxi companies in the world and offers its services in American Cities as well as in European cities such as Turin, Minsk, Rome, and Lisbon and offers high-quality services for its passages.
However, like any other business, uber faces organizational threats and financial instabilities. On several occasions, the company has run into various issues, including regulatory aspects, issues with public perception, and challenges related to its financial struggles and seen its rising star fall a bit (Horan, 2017). While there is very little hope, the company will be the super company it was a few years back, and some people are still skeptical Uber will overcome the challenges it is currently facing. This paper analysis uber organizational, strategic, and financial issues relating to Uber. In fact, the analysis in this paper about uber financial perspective presents a crucial chance in understanding different aspects of the global market and explore the most appropriate solutions.
Current Financial Issues
One of the most significant organizational issues associated with the current regulatory environment as depending on which country or city uber tries to enter, the regulatory environment keeps shifting (Rienstra, Bakker & Visser, 2015). Therefore, instead of having one regulatory authority to deal with and work around with, uber has to deal with a variety of state and local ordinances, which can be different or change any time. These peculiarities make the company’s business model hard to implement and gives a reason as to why Uber is thriving in Houston and fails in Austin (Wang & Mu, 2018).
Uber is also facing public safety issues as the company tries to displace other taxi businesses. One of his major operating agendas is to decrease associated costs by avoiding things such as background checks, which makes its services hypothetically less safe. Consequently, most people will not be comfortable when boarding a car with a stranger as they would be if the service were vetted well. As a result, the Uber business model faces a conundrum as it is tough to reconcile the realities needed to low operational cost and customers’ public safety concerns.
The public eye on Uber’s treatment of workers is another issue affecting the taxi company. In the contemporary business world, customers are only interested in working with companies that offer premium serves to their customers and treat their employees well. Perhaps, this is the main reason why Costco is booming and becoming a famous brand, unlike Uber that is mostly in a war with its drivers, some claiming the company defrauded them while others claiming the company expects them to work at a slave wage (Oei & Ring, 2017). In short, under has been in the eyes of the public for the perception that it mistreats its employees and does not regard their livelihood.
SWOT Analysis
Strengths
Uber is highly perceived as a global brand operating in more than fifty-eight countries. The company is expected to develop quickly over the coming years, and it is estimated to worth approximately $ 78 billion. Also, uber has preserved its high services in its customer services and rides quality. The company’s drivers are highly qualified, welcoming, and respectful. They also have well organized and new cars.
Weakness
Over the past view years, the company has received negative public views for its employee’s treatment and has many controversies. Moreover, it requires at least a smartphone and internet connection to use Uber App, thus inconveniencing those without an internet connection or a smartphone.
Opportunities
The middle-class consumers have extensive benefited and pose tremendous opportunities for uber along with tourists. Further, the company has an opportunity to partner with hotel brands and hospitality businesses to tap the millions of tourists who need premium transport services.
Threats
Stiff competition in the taxi industry that has made it challenging to retain Uber drives and customers. The entry of new companies in the tax industry with a monetary advance that easily sways drivers and customers.
Potential Future Financial Issue
Generally, it is hard to predict what to expect in the future for a global company like Uber that has been in existence for a short duration of time and become a success in the international market. This is because the evaluation of its future potential issues in business is unpredictable. However, there is still a possibility to offer several ideas on what to expect.
Shontell (2015) claims that one of the Uber co-founders believes the company has the potential to spread its services to every corner of the world and be more useful to every customer than owning a car. Consequently, the future potentials described by its founders and its abilities help in realizing that the future of the company will be successful. Providing potential customers with quality and affordable transport services all over the world is possible. Moreover, the founders also think about the possibility of providing taxi services without drivers if the point eventually comes to pass.
As expected, when more people learn about Uber services, they will want to have such services in their towns. Therefore, the company needs to think about the possibilities it can offer in these small towns as access to internet connection is relatively possible in small towns nowadays. Moreover, it will not create problems for users to register and to be customers to uber within a short duration of the period. Additionally, the financial issues that can be developed for the foreseeable future are associated with the probability of having more towns and countries connected (Cohen, Hahn, Hall, Levitt & Metcalfe, 2016). There is also a high probability of offering a variety of services in various markets as well as a corporation with big international companies.
Uber Success in global markets
According to Horan (2017), the conception of the international market help in understanding the skills needed, and the knowledge necessary to effectively run the business, and in making the decisions that will define the success of the business under analysis. The essential factors that account for business success in international markets are entailed in strengths and opportunities presented under SWOT analysis. Besides, there are only a few competitors in the tax industry on the global business level. Moreover, there are many both young and older people who strive to have a credible transport service when they go to banks, hospitals, or even stores (Horan, 2017). Therefore, Uber has all the chances to meet the needs and expectations of these people using its international credibility and popularity.
Challenges Uber Faces in International Market
The most vital challenges facing Uber in an international business venture are identified within the weaknesses and threats of SWOT analysis. For example, in some states and towns, the business has faced numerous legal challenges, with some terming it as an illegal business. Similarly, it is possible to say by the mere fact the business has already solved most of these challenges, the success of the company will be on the quality of the services it offers. Additionally, it is also vital to admit the role of competitors in the tax industry and the fact it is not difficult to create a company with similar features as Uber (Wang & Mu, 2018).
Conclusion
Generally, many developing companies can employ the financial model used by Uber as in the contemporary world, and it is easy to create a business, introduce new and unusual services. However, it is worthy to note that it is challenging to prove the quality of services provided, gain a good reputation, and develop a conducive working condition. That is why uber has a complicated history. While its founders formulated what looked like something impossible, they have survived strikes, sabotages, and discontentment by various governments both in the United States and internationally. Moreover, the need to connect people with high-quality transport services affordable prices nowadays is urgent as not everyone can get the quality of services they desire. Consequently, uber has opened new possibilities and prospects that any business can explore as the company continues developing and thinking about its employees.
References
Cohen, P., Hahn, R., Hall, J., Levitt, S., & Metcalfe, R. (2016). Using big data to estimate consumer surplus: The case of uber (No. w22627). National Bureau of Economic Research.
Horan, H. (2017). Will the growth of Uber increase economic welfare? Transp. LJ, 44, 33.
Oei, S. Y., & Ring, D. M. (2017). The tax lives of Uber drivers: Evidence from Internet discussion forums. Colum. J. Tax L., 8, 56.
Rienstra, S., Bakker, P., & Visser, J. (2015). International comparison of taxi regulations and Uber. Kim Netherlands Institute for Transport Policy.
Shontell, A. (2015). Uber CEO explains his company’s highly ambitious goal to end car ownership in the world. Business Insider.
Wang, M., & Mu, L. (2018). Spatial disparities of Uber accessibility: An exploratory analysis in Atlanta, USA. Computers, Environment and Urban Systems, 67, 169-175.