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Uber Report

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36 views42 pages

Uber Report

Uploaded by

kawyahv
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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FINAL PROJECT

VIHAGA WIJEWARDHANA

Reg.No-COL00151525
Course & Batch No. Diploma in Business Management 131
Project Final Project of DIBM
Assignment Title Assignment on organizational assessment on Uber.
Tutor Leandra Joseph
Start Date
End Date 01 07 2023

Vihaga Wijewardana 5
DECLARATION BY CANDIDATE

I, Vihaga Wijewardana, hereby declare that I am a candidate for a diploma in business


management project. I confirm that this assignment is an original work of mine. Also, I’m aware
that plagiarism is wrong and it’s not accepted by the university. I’m committed to working
diligently and ensuring that all requirements are met. I accept all the challenges that come with
this project and am confident that I will be able to deliver a successful outcome.

Vihaga
.........………….....

Vihaga Wijewardhana
COL00151525

Vihaga Wijewardana 6
ACKNOWLEDGEMENT

I would like to express my sincere gratitude to all those who have supported me throughout the
process of completing this report on Uber. Firstly, I would like to thank my lecturers for
providing me with the knowledge and skills necessary to undertake this research. Their guidance
and expertise have been invaluable in shaping the content and structure of this report.
Additionally, I would like to acknowledge the contributions of my fellow classmates and friends
who have provided valuable feedback and support throughout this project. Lastly, I extend my
gratitude to the numerous academic resources and research materials that have assisted me in
gathering relevant information and formulating recommendations for the company.

Vihaga Wijewardana 7
EXECUTIVE SUMMARY

This report provides an in-depth analysis of Uber, a global transportation network company that
has revolutionized the ridesharing industry. The report begins with an introduction to the
organization, highlighting its history, current business activities, mission, vision, goals,
objectives, organizational structure, and type of business. It then delves into an organizational
analysis, presenting a situational analysis of Uber's current situation, its communication process,
human resource activities, marketing activities, and social responsibility initiatives. The report
also discusses Uber's long-term strategies and identifies problems in its current operations.
Finally, recommendations are provided to address the identified problems, including strategies to
overcome challenges and improve the company's performance.

Vihaga Wijewardana 8
TABLE OF CONTENTS

ACKNOWLEDGEMENT.............................................................................................................7
EXECUTIVE SUMMARY............................................................................................................8
TABLE OF CONTENTS...............................................................................................................9
LIST OF TABLES....................................................................................................................... 10
LIST OF FIGURES..................................................................................................................... 10
1. INTRODUCTION TO ORGANIZATION............................................................................ 11
1.1 HISTORY OF ORGANIZATION..................................................................................... 11
1.2 CURRENT BUSINESS ACTIVITIES.............................................................................. 13
1.3 MISSION, VISION, GOALS & OBJECTIVES............................................................... 14
1.4 ORGANIZATIONAL STRUCTURE................................................................................16
1.5 TYPE OF BUSINESS....................................................................................................... 17
2. ORGANIZATIONAL ANALYSIS OF THE COMPANY....................................................18
2.1 CURRENT SITUATION/ SITUATIONAL ANALYSIS.................................................. 18
2.2 COMMUNICATION PROCESS OF THE COMPANY................................................... 22
2.3 HUMAN RESOURCE ACTIVITIES OF THE COMPANY............................................ 24
2.4 MARKETING ACTIVITIES OF THE COMPANY......................................................... 26
2.5 SOCIAL RESPONSIBILITY OF THE COMPANY.........................................................30
2.6 COMPANY STRATEGIES FOR THE LONG RUN........................................................ 33
2.7 PROBLEMS IDENTIFIED IN CURRENT OPERATIONS OF THE COMPANY......... 36
3. RECOMMENDATIONS FOR THE COMPANY............................................................. 38
3.1 STRATEGIES RECOMMENDED TO OVERCOME IDENTIFIED PROBLEMS OF
THE COMPANY..................................................................................................................... 38
3.2 STRATEGIES RECOMMENDED TO IMPROVE THE PERFORMANCE OF THE
COMPANY..............................................................................................................................41
REFERENCES.............................................................................................................................45

Vihaga Wijewardana 9
LIST OF TABLES

History Of UBER 12

LIST OF FIGURES

UBER organisational structure (Source-CB insights) 16


UBER business model canvas 17
UBER social responsibility 30
Improved user interfaces 42

Vihaga Wijewardana 10
1. INTRODUCTION TO ORGANIZATION

1.1 HISTORY OF ORGANIZATION

Uber is a transportation network company that was founded in 2009 by Travis Kalanick and
Garrett Camp. The company is based in San Francisco, California, and operates in over 700
cities worldwide. In 2010, uber launched its first service, called Ubercab, in San Francisco. The
service allowed users to request a ride through the Uber app and connect with a nearby driver.
The service was initially limited to luxury vehicles but later expanded to include a variety of
vehicle options.

Over the years, uber has expanded its services and offerings. In 2012, the company introduced its
first car-pooling service, called uberPOOL. In 2014, it launched its service in international cities
and also introduced uberX, which is a low-cost alternative to traditional taxi services. Despite its
growth and success, uber has also faced numerous challenges and controversies. Some of these
include regulatory hurdles, public perception issues, and safety concerns. Despite these
challenges, uber has continued to grow and innovate, introducing new services such as electric
bike and scooter rentals, and investing In autonomous vehicle technology. Today, uber is one of
the most well-known and widely-used transportation companies in the world, and its app s an
integral part of many people’s daily lives.

Vihaga Wijewardana 11
Year Milesstone

2009 Uber is founded by Travis Kalanick and


Garrett Camp

2010 Uber launches its ride-hailing service in San


Francisco

2011 Expansion to additional cities in the United


States

2013 Uber expands internationally, starting with


Paris

2019 Uber goes public with an IPO on the New


York Stock Exchange
History Of UBER

Vihaga Wijewardana 12
1.2 CURRENT BUSINESS ACTIVITIES

Uber is primarily involved in several lines of business:

1. Ride-hailing services: The original and most well-known service offered by Uber, which
allows users to request rides through the app and connect with nearby drivers.

2. Uber Eats: A food delivery service that allows users to order food from local restaurants
and has it delivered To their door.

3. Uber for Business: A service aimed at companies and organizations, allowing them to
provide transportation for employees, clients, and customers.

4. Uber Freight: A platform connecting trucking companies with shippers, helping to


streamline the process of arranging and tracking shipments.

5. New Mobility: Uber is exploring new mobility solutions, including electric bikes and
scooters, with the goal of reducing personal car ownership and providing more
sustainable transportation options.

Vihaga Wijewardana 13
1.3 MISSION, VISION, GOALS & OBJECTIVES

Mission

To bring reliable transportation to everyone, everywhere.

Vision

To create opportunities through a reliable transportation platform and improve people's lives with
the world's best transportation.

Goals

Expanding transportation options: Providing a range of transportation options, including


ride-hailing, food delivery, and electric bikes and scooters, to serve more people in more places.

Building a sustainable future: Reducing the number of personal cars on the road and working
towards a future with sustainable transportation options.

To continuously invest in technology and innovation to enhance customer experience.

Improving people's lives: Making it easier for people to get around, freeing up time for the things
that matter, and improving access to economic opportunities.

Vihaga Wijewardana 14
Objectives

To increase the number of daily active users on the platform.

To expand into new markets and cities around the world.

To continue to improve the user experience through updates to the app and new features.

To improve the safety and reliability of the platform for riders, drivers, and delivery partners.

To further develop and scale new mobility solutions, such as electric bikes and scooters.

Vihaga Wijewardana 15
1.4 ORGANIZATIONAL STRUCTURE

UBER organisational structure (Source-CB insights)

Vihaga Wijewardana 16
1.5 TYPE OF BUSINESS

Uber is a ride-hailing company that operates a digital platform to connect riders with drivers. The
platform allows customers to book and pay for rides through a mobile application, enabling
on-demand transportation. The company does not own any vehicles but instead partners with
independent drivers who use their own cars to provide rides to passengers. This business model
has disrupted the traditional taxi industry, providing a more convenient and cost-effective
alternative for riders. Uber has also expanded its services to include food delivery and freight
transportation, further diversifying its revenue streams. The company's use of technology has
enabled it to improve the efficiency and reliability of its services, while also providing
data-driven insights to enhance the overall user experience. Uber has become a global
phenomenon, operating in over 900 metropolitan areas around the world, and its success has
inspired the growth of similar ride-hailing companies in many other countries.

UBER business model canvas

Vihaga Wijewardana 17
2. ORGANIZATIONAL ANALYSIS OF THE
COMPANY

2.1 CURRENT SITUATION/ SITUATIONAL ANALYSIS

SWOT analysis of Uber

Uber is the leading ride-sharing company that has revolutionized the transportation industry
around the world. A SWOT analysis can help evaluate its strengths and weaknesses,
opportunities and threats, and provide insight into a company's current position and potential
future prospects.

Strengths:

Global presence: Uber operates in more than 900 cities worldwide, making it a well-established
and recognized brand in the transportation market.

Technological innovation: Uber's advanced mobile app and platform have simplified the process
of booking and tracking rides, giving users a seamless experience.

Efficient use of resources: Using the sharing economy model, Uber maximizes the use of
existing resources such as vehicles and drivers, resulting in cost efficiency and reduced
environmental impact.

Diverse service offerings: Uber offers a variety of services beyond traditional ride-sharing, such
as Uber Eats for food delivery and Uber Freight for commercial transportation, diversifying its
revenue.

Customer Loyalty: Uber has built a large and loyal customer base due to its convenient and
reliable services, attractive pricing, and user-friendly interface.

Vihaga Wijewardana 18
Weaknesses:

Legal and regulatory challenges: Uber faces ongoing legal battles and regulatory hurdles in many
jurisdictions that may hinder its expansion plans and increase operating costs.

Safety Concerns: Incidents related to passenger safety and driver misconduct have raised
concerns and damaged Uber's reputation. Addressing these issues is critical to maintaining
customer trust.

Dependence on drivers: Uber's business model relies heavily on a network of independent driver
suppliers, making it vulnerable to driver strikes, disputes, and potential labor law changes that
could affect its operations.

Profitability Challenges: Despite its market dominance, Uber has struggled to generate consistent
profits. High operating costs, including driver incentives and marketing costs, contributed to its
ongoing financial losses.

Competition: Uber faces stiff competition from established transportation companies as well as
emerging startups. Competitors may offer similar services with different features or prices, which
could affect Uber's market share.

Vihaga Wijewardana 19
Opportunities:

Expansion into new markets: Uber can continue to expand its services into untapped markets,
especially in developing countries where ride-sharing adoption rates are growing rapidly.

Autonomous vehicles: Uber has invested in autonomous vehicle technology, which presents an
opportunity to reduce labor costs and increase efficiency in the long term.

Partnerships and integrations: Partnering with other companies, such as airlines or hotels, can
provide Uber with new channels for customer acquisition and integrated services, enhancing its
value proposition.

Diversification of services: Uber can explore further diversification by expanding into related
industries such as electric scooter rentals or medical transportation to capture additional market
segments.

Improved user experience: Continually improving your mobile app, including features such as
real-time traffic updates, personalized recommendations, and seamless payment options, can lead
to increased customer satisfaction and loyalty.

Vihaga Wijewardana 20
Threats:

Regulatory Changes: Changes in ridesharing regulations, employment law, and licensing


requirements could significantly affect Uber's operations and increase compliance costs.

Intense Competition: Uber faces competition from local and international rivals who may offer
similar services or competing pricing strategies, intensifying the battle for market share.

Negative Public Perception: Uber has faced backlash and negative publicity due to various
controversies and legal battles, which may undermine its brand image and affect customer
confidence. Economic Factors: Economic downturns or fluctuations in fuel prices may affect
consumer spending patterns and demand for ride-sharing services, which may affect Uber's
revenues.

Technological disruption: Rapid advances in autonomous vehicles or other disruptive


technologies could pose a threat to Uber's traditional ride-sharing business model if the company
fails to adapt and innovate accordingly. In conclusion, while Uber enjoys global recognition and
technological advantages

Vihaga Wijewardana 21
2.2 COMMUNICATION PROCESS OF THE COMPANY

Uber's communication process includes a set of interactions and channels that enable effective
communication between the company, drivers, and passengers. Here is an overview of Uber's
communication process and its different communication methods.

Communication between rider and application:

Mobile application: The main method of communication with Uber is its mobile application.
Through this app, passengers can request a ride, track the driver's location, and receive
notifications about ride status and the estimated time of arrival.

In-App Messaging: The app also offers a messaging feature that allows riders to communicate
directly with drivers for directions and special instructions.
Communication between the driver and the application:

Request a ride: When a rider requests a ride, the driver will receive a notification in the Uber
driver app showing the pickup location and passenger details.

GPS Navigation: This app provides turn-by-turn navigation to effectively guide drivers to
pick-up and drop-off locations.

In-app messaging: Drivers can communicate with passengers through the app to confirm trip
details, ask for clarification, or resolve issues that arise during the trip.

Vihaga Wijewardana 22
Customer support:

Help Center: Uber offers an in-app and website help center, which provides both riders and
drivers with a knowledge base of frequently asked questions and troubleshooting guides.

In-App Support: Users can contact Uber's support team directly through the app to post questions
or report issues for quick assistance.

Phone support: Uber also offers phone support in many areas, allowing users to speak to an agent
for more complex or urgent issues.

Communication between partners and drivers:

Partner websites and portals: Uber maintains dedicated websites and portals for drivers and
partners to provide access to resources, earnings summaries, and communication channels.

Email Notifications: Uber sends regular email notifications to drivers and partners with updates
on policies, incentives, and promotional offers.

Local meetings and events: Uber hosts local meetings, events, and training sessions to facilitate
face-to-face communication, address concerns and build relationships with Drive.

Vihaga Wijewardana 23
2.3 HUMAN RESOURCE ACTIVITIES OF THE COMPANY

Uber follows a comprehensive recruitment and selection process to attract and hire qualified
candidates. This process includes several steps such as online application, screening and
assessment, interview, background check, and final decision. The first step in the process is for
candidates to submit an online application through Uber's website or mobile app. Candidates are
required to send their resume and relevant information.

Uber then reviews and evaluates the applications received. This may include reviewing CVs,
assessing qualifications, and conducting tests and assessments to assess a candidate's skills,
knowledge, and suitability for a role.

Finalists will be invited for an interview. Uber's interview process typically involves several
steps, including a phone interview, a video interview, and an in-person interview with Uber's
recruiters and recruiters. These interviews evaluate the candidate's technical capabilities, cultural
fit, and overall fit with the role and the company.

After the interview, Uber conducts background checks on selected candidates. These checks
verify work, education, and criminal records to ensure the integrity of potential employers.

Uber will make the final hiring decision based on interview performance and background checks.
Successful applicants will receive a job offer that includes details such as compensation, benefits
and start date.

Vihaga Wijewardana 24
Employment evaluation method:

Uber uses a variety of recognition methods to evaluate employee performance and progress.
These methods include:

Performance Review: Uber regularly conducts performance reviews to evaluate employee job
performance, productivity and adherence to company policies. These reviews may include
feedback from superiors, colleagues, and even customers.

Key Performance Indicators (KPI): Uber establishes key performance indicators to measure and
track employee performance against predetermined goals and objectives. For example, driver
ratings, trip completion rates, customer satisfaction metrics, and other relevant metrics are used
to evaluate performance.

Vihaga Wijewardana 25
2.4 MARKETING ACTIVITIES OF THE COMPANY

Uber uses various marketing activities to promote its services and attract customers. The main
marketing activities carried out by Uber are:

Product:

Uber's primary product is ride-sharing, which connects riders with drivers through a mobile app.
Uber offers various types of services, including UberX (economical rides), UberXL (larger
vehicles), UberSELECT (premium rides), and UberBLACK (luxury rides). In addition to
ride-sharing, Uber has expanded its product portfolio to include services such as Uber Eats (food
delivery), Uber Freight (commercial transportation), and Uber Health (healthcare transportation).

Promotion:

Uber utilizes a mix of online and offline promotional strategies to reach its target audience. The
company heavily relies on digital marketing channels, including social media platforms, search
engine marketing, and mobile advertising, to create awareness and drive user acquisition. Uber
also runs promotional campaigns, offers referral incentives, and partners with various brands and
organizations to expand its reach and engage with potential customers.

Place:

Uber operates in numerous cities globally, allowing users to access its services across different
regions. The company strategically expands its market presence by entering new cities and
countries based on factors such as population density, transportation demand, and regulatory
environment. Uber's app-based platform serves as the primary interface for users to access its
services and connect with drivers.

Vihaga Wijewardana 26
Target Market:

Uber's target market primarily consists of urban dwellers, frequent travelers, and individuals
seeking convenient, affordable, and reliable transportation options. The company appeals to a
wide range of demographics, including young professionals, college students, and tech-savvy
individuals who embrace the sharing economy and value convenience, flexibility, and
cost-effectiveness in transportation.

Positioning Strategies:

Uber positions itself as a pioneer and leader in the ride-sharing industry by emphasizing the
following strategies:

Convenience and Accessibility:


Uber positions itself as a convenient and accessible transportation option, allowing users
to request rides with just a few taps on their smartphones. The app's user-friendly
interface, real-time tracking, and cashless payment options highlight the company's
commitment to providing a seamless and hassle-free experience.

Competitive Pricing:
Uber positions itself as a cost-effective alternative to traditional taxis by offering
competitive pricing, transparent fare estimates, and options for different budget levels.
This pricing strategy appeals to price-sensitive customers and positions Uber as a more
affordable option for transportation needs.

Vihaga Wijewardana 27
Safety and Trust:
Uber places a strong emphasis on safety, implementing measures such as driver
background checks, vehicle inspections, and two-way rating systems. By prioritizing
safety, Uber aims to build trust among riders, positioning itself as a reliable and secure
transportation provider.

Innovation and Technology:


Uber positions itself as a technology-driven company at the forefront of transportation
innovation. By leveraging advanced mobile app features, GPS navigation, and real-time
data analytics, Uber aims to enhance the overall user experience, differentiate itself from
traditional transportation options, and position itself as a modern and forward-thinking
brand.

Branding Strategies:

Uber's branding strategies focus on establishing a strong and recognizable brand identity. Key
branding elements include:

Logo and Visual Identity: Uber's logo, a stylized "U," is widely recognized and
associated with the brand. The company uses a sleek and modern visual identity with a
black and white color scheme, conveying a sense of professionalism, simplicity, and
sophistication.

Consistent Brand Voice: Uber maintains a consistent brand voice across its marketing
communications, emphasizing concepts such as convenience, reliability, and seamless
experiences. The brand voice reflects the company's mission to "ignite opportunity by
setting the world in motion."

Vihaga Wijewardana 28
Partnerships and Collaborations: Uber strategically partners with various brands and
organizations to strengthen its brand image and expand its reach. Collaborations with
popular brands, events, and influencers help create brand associations and generate
positive brand perception.

Vihaga Wijewardana 29
2.5 SOCIAL RESPONSIBILITY OF THE COMPANY

Uber has undertaken a variety of social responsibility initiatives to address social and
environmental challenges and make a positive contribution to the communities in which we
operate. Here are some examples of Uber's CSR projects.

UBER social responsibility

Uber Green:

Uber has introduced the Uber Green initiative to promote green transportation. Promote the use
of electric vehicles (EVs) by giving travelers the option to request an environmentally friendly
vehicle for their trip. The initiative aims to reduce carbon emissions and promote sustainable
alternative transport methods.

Uber Access:

Uber Access is an app designed to improve transportation access for people with disabilities.
Through partnerships with disability service organizations and accessible vehicle providers, Uber
offers options for passengers with mobility needs, such as wheelchair-accessible vehicles, in
select cities.

Vihaga Wijewardana 30
Commitment to Community Impact:

Uber runs a variety of community-driven programs to address local needs. For example, Uber's
"Drive to Donate" campaign allows drivers to donate a portion of their earnings to charity. Uber
also works with food banks and community organizations to facilitate food donations and
support hunger relief efforts.

Commitment to Women's Safety:

Uber has prioritized women's safety through initiatives such as the 'Safety Toolkit' and the
'Women's Preferred View' feature. These features offer more safety options and allow women to
choose a female driver if they wish. Uber has also partnered with women's safety organizations
to develop awareness campaigns and educational resources.

Vihaga Wijewardana 31
Disaster Response:

Uber has used its platform to help with relief efforts during natural disasters and emergencies.
The company has offered free or discounted rides to affected areas, facilitated financial aid and
partnered with local governments and aid organizations to provide transportation assistance to
affected areas.

Inclusive employment:

Uber is focused on providing economic opportunities for people who may face traditional
employment barriers. For example, Uber partners with organizations that help refugees.

These CSR projects highlight Uber's commitment to sustainability, accessibility, community


engagement, safety and social inclusion. By focusing on these key areas, Uber aims to positively
impact society while aligning its business operations with broader social and environmental
goals.

Vihaga Wijewardana 32
2.6 COMPANY STRATEGIES FOR THE LONG RUN

Uber has implemented several long-term strategies to ensure its continued growth and success in
the competitive transportation industry. Here are some key long-term plans and strategies the
company is pursuing:

Service diversification:

Uber aims to expand its core ride-sharing service by diversifying its offerings. This includes
businesses such as UberEats for food delivery, Uber Freight for commercial transportation and
Uber Health for healthcare transportation. By diversifying its services, Uber aims to tap into new
markets and revenue streams and reduce its reliance on a single service.

Autonomous vehicles:

Uber is investing in research and development of autonomous vehicle technology. The company
envisions a future where self-driving cars will be a significant part of its transportation network.
By incorporating autonomous vehicles, Uber aims to reduce costs, increase safety and provide
efficient transportation services.

Electric vehicles and sustainability:

Uber has set goals to transition its fleet to electric vehicles (EV) in the long term. The company
plans to partner with car manufacturers and develop infrastructure to support the adoption of
electric cars among its drivers. This strategy is in line with Uber's commitment to reduce carbon
emissions and promote sustainable transport.

Vihaga Wijewardana 33
Global expansion:

Uber continues to expand into new cities and countries to build a strong presence around the
world. By expanding its market reach, Uber can tap into new customer bases and expand its
driver network, creating economies of scale and strengthening its market leadership position.

Technology integration:

Uber's long-term plans include further technology integration to improve the user experience.
This includes using artificial intelligence (AI) and machine learning (ML) algorithms to improve
matching algorithms, optimize route planning and customize user recommendations. Using
technology, Uber aims to offer more efficient, personalized and seamless transport solutions.

Regulatory and Policy Advocacy:

Uber recognizes the importance of working with regulators and policymakers to develop
transportation policies and regulations. The company aims to work with authorities to develop
frameworks that support innovation, consumer safety and fair competition. By actively engaging
in policy enforcement, Uber seeks to foster a favorable regulatory environment for its long-term
growth.

Partnerships and collaborations:

Uber aims to create strategic partnerships and collaborations with other companies and
organizations to expand its reach and improve its offerings. This includes partnering with car
manufacturers to supply vehicles, working with public transport authorities to integrate Uber
services with public transport and alliances with technology companies for research and
development initiatives.

Vihaga Wijewardana 34
Focus on customer experience:

Uber places great emphasis on improving the overall customer experience. This includes
investing in customer support systems, improving the app's interface and functionality, and
providing reliable and high-quality shipping services. By prioritizing customer satisfaction, Uber
aims to build long-term loyalty and attract new customers.

These long-term plans and strategies demonstrate Uber's commitment to innovation,


sustainability, global expansion, technology integration and customer focus. By effectively
executing these strategies, Uber seeks to consolidate its position as a leader in the transportation
industry and create long-term sustainable value.

Vihaga Wijewardana 35
2.7 PROBLEMS IDENTIFIED IN CURRENT
OPERATIONS OF THE COMPANY

While Uber has achieved significant success, there are certain challenges and issues that exist
within the company's current operations. Here are a few key areas where Uber faces challenges:

Regulatory Challenges:

Uber has encountered regulatory hurdles and legal battles in many markets around the world.
Local governments and transportation authorities often impose strict regulations on ride-sharing
services, leading to disputes and operational restrictions. Navigating these complex regulatory
areas requires significant resources and may hinder Uber's expansion plans.

Safety Concerns:

Safety is an ongoing concern for Uber. Incidents involving drivers or riders have raised concerns
about background checks, safety protocols and overall safety standards. Ensuring the safety of
both passengers and drivers remains a critical challenge for Uber as it strives to build trust and
maintain a reliable and safe transportation platform.

Driver retention and satisfaction:

Uber relies heavily on its driver network, and driver retention and satisfaction are critical to its
operations. However, some drivers have expressed concerns about low earnings, lack of benefits
and inconsistent policies. Maintaining a satisfied and motivated driver base is critical to Uber's
ability to provide reliable, high-quality service.

Competitive landscape:

Uber faces intense competition from both traditional taxi companies and other ride-sharing
companies. Competitors offering similar services and pricing models create challenges for

Vihaga Wijewardana 36
customer acquisition, market share and profitability. Uber must constantly
differentiate itself and adapt to changing market dynamics to stay ahead in a highly competitive
environment.

Public perception and reputation:

Uber has faced negative publicity and public relations challenges related to issues such as
workplace culture, data privacy and controversial statements by company executives. These
incidents have affected the company's reputation and created a perception problem among
consumers, which can lead to a loss of trust and credibility.

Financial performance:

Despite significant revenue growth, Uber faced financial losses. The company has struggled to
achieve profitability, largely due to high operating costs, significant investments in research and
development, and competitive pricing strategies. Achieving sustainable profitability remains a
significant challenge for Uber.

Driver Classification and Labor Laws:

Uber faces ongoing legal disputes and regulatory scrutiny related to the classification of its
drivers as independent contractors versus employees. Several jurisdictions have challenged the
independent contractor model, arguing that drivers should be classified as employees entitled to
benefits and protections. The resolution of these legal and labor issues could have significant
implications for Uber's business model and cost structure.

Addressing these challenges requires continuous efforts and strategic solutions from Uber
management. The company must continue to invest in safety measures, driver support programs,
regulatory compliance, and improving its public image to overcome these obstacles and ensure
sustainable growth in the future.

Vihaga Wijewardana 37
3. RECOMMENDATIONS FOR THE COMPANY

3.1 STRATEGIES RECOMMENDED TO OVERCOME IDENTIFIED


PROBLEMS OF THE COMPANY

Several strategies can be implemented to overcome the problems identified in Uber's current
operations. Here are some recommended troubleshooting approaches:

Regulatory Challenges:

Engage in proactive communication and collaboration with local governments and transportation
authorities to create favorable regulatory frameworks.
Promote fair and flexible regulations that balance innovation and safety and highlight the
benefits of ridesharing for both riders and drivers.
Allocate resources to comply with existing regulations and increase the transparency of
operations to gain trust with regulators.

Security Concerns:

Implement more stringent driver screening processes, including comprehensive background


checks and ongoing monitoring of driver behavior.
Enhance in-app safety features such as real-time emergency assistance, sharing trip details with
trusted contacts, and improving user feedback mechanisms.
Provide comprehensive driver safety training programs and facilitate communication channels
for reporting safety issues.

Vihaga Wijewardana 38
Driver retention and satisfaction:

Improve driver profits by implementing dynamic pricing mechanisms that take into
account market demand and supply.
Offer incentives and rewards for top-performing drivers, such as rating-based bonuses or referral
programs.
Provide additional benefits and support such as access to healthcare, financial planning
assistance and flexible scheduling options.

Competitive landscape:

Focus on innovation to differentiate Uber services, such as introducing new vehicle options,
expanding into complementary sectors, or leveraging emerging technologies.
Strengthen the loyalty program and reward system to motivate repeat use and attract new
customers.
Invest in research and development to explore new market segments or disruptive transportation
solutions.

Public perception and reputation:

Implement transparent communication procedures to quickly and openly address public


concerns. Strengthen company culture and promote an inclusive and respectful work
environment. Actively engage with the community through partnerships, initiatives and
corporate social responsibility projects to demonstrate commitment to social and environmental
issues.

Vihaga Wijewardana 39
Financial performance:

Optimize operational costs by exploring efficiency measures including fleet management,


predictive analytics and intelligent routing algorithms.
Continually evaluate pricing strategies to balance competitiveness and profitability.
Diversify sources of income by expanding into related sectors or discovering new business
opportunities.

Classification of drivers and labor law:

Work with relevant stakeholders to find mutually beneficial solutions, such as introducing a
hybrid model that offers more flexibility to drivers while providing certain benefits.
Push for regulatory reforms that recognize the unique nature of the gig economy and provide a
framework that supports both driver and platform interests.
Invest in driver support programs, including access to benefits and resources, to address concerns
raised by labor laws.

By implementing these strategies, Uber can address identified issues, improve its operations,
strengthen its market position and maintain sustainable growth over the long term.

Vihaga Wijewardana 40
3.2 STRATEGIES RECOMMENDED TO IMPROVE THE
PERFORMANCE OF THE COMPANY

There are several strategies Uber can adopt to improve company performance. Here are some
recommended approaches to increase organizational performance:

Operational efficiency:

Implement data-driven analytics and predictive models to optimize pricing, supply and demand
dynamics, and driver allocation, ensuring efficient use of resources.
Simplify processes and workflows to reduce friction and increase operational speed and
efficiency.
Invest in technology infrastructure and systems to support scalability and handle growing
demand.

Improving the customer experience:

Continuously monitor and analyze customer feedback to identify weaknesses and areas for
improvement.
Personalize your user experience with targeted marketing, personalized recommendations and
tailored promotions.
Focus on customer service and responsiveness, prompt resolution of customer issues, and
resolution of issues.

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Improved user interfaces

Driver experience and retention:

Develop programs to support driver well-being, including financial planning assistance, health
benefits and skills development opportunities.
Foster a strong sense of community among drivers through forums, meetups and driver
appreciation events.
Provide regular training and communication to ensure drivers are up-to-date on policies, safety
measures and service standards.

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Innovation and technology:

Invest in research and development to stay at the forefront of new technologies such as
autonomous vehicles, electric mobility and mobility-as-a-service solutions.
Foster a culture of innovation and creativity, encouraging employees to contribute ideas and
experiment with new features and services.
Collaborate with technology partners and startups to leverage their expertise and bring
innovative solutions to market faster.

Strategic partnerships and alliances:

Establish strategic partnerships with car manufacturers, technology companies and other industry
players and explore joint ventures, research projects and shared resources.
Work with public transportation authorities to integrate Uber services with public transportation
systems that provide seamless multimodal travel options.
Look for partnerships with local businesses and organizations to provide riders with unique
offers and experiences to build customer loyalty.

Talent acquisition and development:

Attract top talent through competitive compensation packages, a positive work culture, and
opportunities for growth and career advancement.
Foster a diverse and inclusive workforce, value different perspectives and promote a sense of
belonging.
Provide training and development programs to improve employee skills and competencies and
ensure a high-performing workforce.

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Financial sustainability:

Focus on achieving profitability through careful cost management, including optimizing


operating costs and reducing non-essential expenses.
Explore alternative revenue streams such as advertising partnerships, data monetization and
strategic investments in related industries. Monitor and adjust pricing strategies to deliver real
value to customers while maximizing revenue.

By implementing these strategies, Uber can increase its performance, strengthen its competitive
position and provide an excellent experience for both riders and drivers. Continuous
improvement, innovation and a customer-oriented approach are the keys to achieving long-term
success in the dynamic transport industry.

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REFERENCES
Yahoo Finance. UBER financial details. [Online]

Available at: https://finance.yahoo.com/news/uber-hits-highest-level-since-121500958.html

[Accessed 11 05 2023].

Insider Business. UBER system. [Online]

Available at:
https://www.businessinsider.com/uber-app-update-operating-system-of-your-life-2019-9

[Accessed 13 06 2023].

Bloomberg television. The history of UBER. [Online]

Available at: https://www.bloomberg.com/profile/company/0A1U:LN

[Accessed 23 01 2023].

CNBC. UBER feature updates. [Online]

Available at:
https://www.cnbc.com/2023/05/17/uber-will-let-you-book-rides-without-app-request-car-seats-an
d-more.html

[Accessed 21 03 2023].

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