UBER case study

UBER case study

Introduction

Changes in technology in all facets of socio-economic activities have been the main determinant factor of development. With technological improvements, it’s entirely possible to provide for new services and hit a lot of achievements with fewer inputs. Generally, the transport system’s history is a history of changes or revolutions. The technological mutation has led to the transformation of the transport sector by implementing new ways that elevate the industry in terms of the speed, commercial space, and the quality of service offered. This report seeks to provide a quantitative history of the Uber transport system, which seems to take over the traditional taxi industry.

As established by Snead (2015), the traditional taxi industry was introduced back in 1897 and for a long time, has been the most dominant form of road transport in the cities. Around the 1960s, several cities already had put across government policies concerning the traditional taxi companies to prevent the much supply of taxis. This was out across to control the taxi prices, reasonable payment of the drivers, and to ensure the safety of both the customer and the taxi driver. Nevertheless, the governmental regulations that were put across banned access by capping taxi supply, which eventually led to the existence of individually possessed taxis in some cities.

The traditional taxi industry has been making lots of profit until in the recent past. The main challenge being faced by the taxi industry is the technological change that has led to the innovation of ride-sharing applications, which includes uber and Lyft. This has led to completion in this area of transportation leading to changes in the taxi sector. However, the traditional taxi industry was ripe for disruption since technology has taken a new turn, and technological changes are embraced to fit the new error the people are living in.

Uber embraces the use of mobile technology and data to create a customer-centric experience. The customer at the comfort of their phones can download the uber application and order for uber services through the internet. However, some of the market entry strategies and tactics employed by the uber company has been termed as questionable.  Some of these strategies include using brand ambassadors to book for rides with the Lyft company and trying to persuade them to work for them. They also purchased analytical data that provides for Lyft customer’s information to use it to assess the financial position of Lyft. Besides, uber also made use of Greyball technology to help them escape from the government officials who were investigating the uber company (Robert, 2018).

As Uber Company was developing, it encountered stiff resistance, especially from the taxi company and government officials claiming that by uber avoiding license fees and avoid local policies, then their competition becomes unfair. Uber handled the resistance of their new model by agreeing to work with the local government to make their model work.

Uber managed to use psychological techniques to influence the availability and working hours. This included the use of graphics and video games to entice their drivers. Another method uber used to get their drivers was by sending numerous emails and pop up texts through the app, sometimes accompanied by maps giving directions of where they should be.  The work experience of an uber driver differed from that of a taxi driver in the sense that taxi drivers were more concerned about providing high quality and more individualized service as compared to an uber driver who aimed at the distance of the journey against to the quality of service they offered.

What made uber attractive to its customers is by the fact that the Ubers were readily available, and the drivers were distributed in different locations. Apart from uber’s extensive distribution network, the many cars on the road gave a more eloquent service to customers. Also, an Uber ride costs lesser than one in your vehicle with your driver. The customers were also attracted because with the provision of your location; the uber drivers pick the customers from their places. This aimed at cutting the cost of having to travel before getting the primary vehicle to your destination.

The principle of uber dynamic pricing practically works at charging more when the demand for rides is at its peak than the supply of the cars. To balance between demand and supply, uber charges higher when there are more people requests for trips than the number of vehicles available. To avoid frustrating the customers, the uber has installed a rating systems system for both the driver and the customer. The system promotes trust between the customer and the uber company.

Uber Company needs to call itself ‘Technology Company’ since it’s at the same pace with the current technological issues. Since phones are more convenient because they are being used by the majority of people making the access of the uber equally easier. The disruptive model seems to be working so well by the way the people have embraced it. People seem to prefer Ubers as compared to the taxi. The main challenges are the latest complaint about the numerous sexual harassment of the customers (Robert, 2018).

Uber is more than a transportation company but becoming a logistical nervous system in the cities as stipulated by Travis in the sense that it’s becoming the economic backbone and source of employment to many people. So apart from just transporting people, it also supports the living standards of the people.

Conclusion

Though Uber being the outstanding transport company at the moment, it’s notable that it is likely to go out of the market in the next 12-18 years.  This is likely to happen following the declaration of Waymo beginning the mass production of self-driven cars. It said that Waymo is ahead of the competition and will not partner with Uber Company.

References

Robert, E. (2018). Uber: Kalanick’s Tumultuous Era. Journal of Ivey Business School Foundation

Snead, J. (2015, December 10). Taxicab Medallion Systems: Time for a Change. Retrieved March 27, 2016, from http://www.heritage.org/research/reports/2015/12/taxicab-medallion-systems-time-for-a-change#_ftn10