Type: Evaluation Essays
Sample donated: Joan Montgomery
Last updated: December 27, 2019
Uber rican technology company basedin Silicon Valley and headquartered in San Francisco, California, United States. Its main product is aride-hailing application by the name of ‘Uber’, which is one of the world’smost popular taxi apps. The company has so far covered 674 cities in 83countries in all 6 inhabited continents, completing more than 40 million ridesa month worldwide. Apart from its flagship service ‘Uber’, the company has alsoventured into a variety of different areas, including food delivery and self-driving,autonomous cars. Owing to its ginormous size and a host of other challenges,the company faces various problems on a daily basis, which test its rapidexpansion and phenomenal growth rate. Through the course of this report, we will study thefollowing topics:1.
Evaluate of Uber,2. Uber faced various different issues. 3. Uber’s influence in New Zealand4.
Ethics and professionalism within the ICT EssayQuestions and DiscussionPositive 1.AccessibilityOrdering a cab on theUber app is as straightforward as two touches on the screen. Uber utilises thedevice’s GPS, or the Global Positioning System, to find the user’s locationonce the destination is entered and in a matter of minutes, you are in yourtaxi, comfortably cruising towards your destination.
This makes ordering ataxi, and potentially anything, a child’s play. The sheer ease of access is oneof the company’s biggest selling points, and what endears it to its more than17 milliion users all over the world. 2.
ReliabilityA hugepart of Uber’s appeal is that drivers are motivated to deliver a pleasant and safeexperience for the passengers. The company has a minimum required customerrating of 4.6 out of 5.0 for all its drivers, which helps keep the drivers incheck and give the customers the best possible experience. Every passengerrates the driver at the end of each trip. Hence,this rating system is a strong incentive for the drivers to work hard for everypassenger’s satisfaction.3. OptimalHA2 pricingUber imposes ‘surgepricing’ for high traffic situations, like a major event or a holiday, whichcan take the fair as high as 2x or even 7x the normal fair.
But in normalconditions, Uber is generally substantially cheaper than the generic publictransport.Even though actualrates vary from city to city and time to time, there is significant public datathat shows that ride-sharing can cut down fairs by as much as half. Uber doesn’t encouragetipping, and all payments made are made on the app itself, hence removing anychance that the driver may have to fleece the passenger. 4. Quick, Cashless payment systemAs stated previously,all payments are made on the Uber app online, through Net Banking, Credit Card,Debit Card, etc. which makes over-charging impossible. Furthermore, the paymentis fast, without any hassles of physical money like change and the like.
5. Efficient FeedbackThe driver not onlyneeds to meet the company’s standards, but also to meet the requirements ofpassengers. After the end of the trip an evaluation of travel experience ismade by not only the passenger, but the driver as well, who rates the passengeraccording to the ride.
Rating the passengers helps to protect futuredrivers from having to deal with rude, violent, aggressive, and drunkpassengers.Hence, the company takes ample measures to notonly make the ride a favourable experience for the rider, but the driver too. 6.Uber Offers Different Service TiersUber offers a range of servicetiers, spanning from single riders and groups up to executive limoservices. Uber offers five tiers of service: UberX is the cheapest and most common form of Uber. Regular consumer cars, up to 4 riders. Vehicles must be 2000 model year or newer. Fares are typically half that of a taxicab in the same city.
UberPOOL, offered in some cities, allows you to share your ride with another person and split the cost. UberXL is a service that can accommodate 6 passengers with an SUV or minivan; more expensive than UberX. UberSelect offers luxury sedans with leather interior, including brands such as Audi, Mercedes, BMW, which are the common vehicle brands. Expect to pay a premium price, and accommodate up to 4 riders. UberBLACK is the luxury limousine service with vehicles dedicated to executive-level services.
6. Drawing in new customersUber has beenconsistently attracting new customers every day, with a well-organized andpotent marketing team with an up-to-date marketing strategy that takes care ofemerging trends in the market and thus helps the company always stay one stepahead of the competition. This facet of the company is especially important,since acquiring new customers is of utmost importance to regularly increasetheir revenue and maintain a consistent growth rate. Uber deeply attractedpeople to choose from different gradations because there are a variety ofmarketing programs7.
And going globalThe rapid growth of Uber in emerging markets around the world, along withthe developed population has proven favourable for the host countries too. Thepower of Uber to once again turn people towards public transport has helped tacklemajor issues like vehicular exhaust emissions, messy mass transit systems andthe rising load on the due to the ever-increasing population. Negative Legal Uber have been walking on the edge of suspension in many countries.Most governments around the world have preferred to maintain a position of ambiguity about the legality of Uber, since even though it has proved to be a hugely convenient for the public, it has many legal and political implications that are hard to ignore. Uber’s policy about its working, customer handling, driver-management and existing public transport has been unclear for most of the time.It has been banned in multiple countries around the world due to this and many courts all over the earth has ruled against it.
EmployeesIt is undeniable that the Uber has become a “on demand economy” model, it provides services by consumers. But for many people, the Uber Cup is also a “model” of a series of unlawful acts. In the eyes of labor rights defenders, Uber is notorious in dealing with labor relations, one of which is that Uber has always denied 400,000 US drivers as employees, and they are called independent contractors. In this way, the “cooperative” relationship between Uber and the driver is not subject to the current US labor law on the minimum wage, the maximum working hours and other restrictions. DangerousWhile the company istackling multiple charges of unfair competition and whatnot, a reality oftenoverlooked is that the job done by the riders is accomplished in conditionsthat have a huge potential of turning adverse at the drop of a hat.
Thetaxi-driver’s job is one of the most dangerous ones, as is suggested by multiplereports around the world. Driving a taxi is possibly 15 times as dangerous asthe average job (in 2013-14 in Victoria for example, there were 51 assaults intaxis). TaxisTaxi operations are a monopoly industry. If there is no license, cannot operate a taxi in various countries. However, through Uber, anyone can use their private car to provide a taxi service. For many drivers, holding a license for the taxi company has been of little significance.
As a result, the thriving economy of many cities, the prices of taxi licenses have fallen sharply. While the taxi industry-related stock prices are also falling. Despite the booming urban economy, these taxi license prices have fallen sharply. While the taxi industry’s share price is also declining. When the individual interests are affected, society is prone to unrest and instability. EnvironmentThe ever-increasingpopulation of cars has contributed massively to global warming due to emissionof greenhouse gases and other pollutants. Being a global company that dependssolely on cars for all its revenue, the company thus has a massive responsibilityto take care of the environmental damage that its vehicles are causing each day,every minute, every second.
Uber has thus been becoming more and more seriousabout its environmental responsibility, launching new services like UberPool,which is based on the concept of carpooling. Uber believes that this newfeature is beneficial to all stakeholders, because while it costs less since peopleshare the fare, the driver is also incentivised to drive longer routes to makemore money, reducing the vehicular exhaust pollution to the environment, inturn reducing the traffic congestion. The rise of Uber has caused a decrease inthe number of cars on the road, providing an effective solution to a number ofenvironmental problems. It is only fitting here to take into account that theUber driver without a passenger usually stops driving until a customer raises arequest for a ride.
In contrast, even without passengers, taxi drivers oftenply the road looking for more potential passengers.Time and moneyFirst, Uber has a veryhigh time sensitivity – when a market is more sensitive to the time, thecorresponding business opportunities are more profitable. They are usually readyto pay a higher price when they cannot find a taxi .Uber’ raise precious pricethan ordinary taxis, but users still to pay. Which shows that car rental realmarket demand. Second, Uber has pricing power for the car rental service itoffers. At some peak time (such as after the end of a large event, because ofthe need to rent a lot of people, the demand for car rental being over thesupply, Uber’s price is higher, which further improve the profitability ofUber. It is reported that the cooperation with Uber when the daily income ofmore than 500 US dollars, Equityissues The continuousoccurrence of taxi drivers strike in major cities, but also pose a threat tothe development of Uber.
The rapid development of the taxi software, howeverthe traditional way to call the car occupy the mainstream position. The taxidriver cannot be ignored. When they are collective strike, the whole city’straffic systems will fall into a mess. Although theoretically, different modesof travel are substitutes of each other, there is a huge different in thetravel distance and flexibility. Therefore, from the main positioning of theUber market, it is currently facing the alternative not much, alternativethreat is not too possible. The report estimates Uber can cut more than $500mfrom Australian taxi bills – close to 10% of the $5.5bn spent each year byAustralians catching a taxi.SocialissuesUber has also faced manylegal face-offs with regulators and incumbent taxi companies worldwide, whichimpeded its ability to assimilate onto the world stage with ease.
Taxidrivers all over the world has protested against unfair competition from Uberas the taxi industry has to operate under the city’s rules and prices, but Uberdoes not have to obey those requirements and has an unfair competitiveadvantage over licensed cabs.For instance, officials inDelhi and India banned all app-based ride services to protect cab driverunions. InBelgium, the Netherlands, the Philipines, and South Korea, police forcesconducted sting operations against Uber drivers who operated vehicles that werenot licensed for commercial use. Theissue of safety has also surfaced with the many accidents caused by theinexperienced and unlicensed Uber drivers, which had resulted in multiplelawsuits against Uber. Theseissues certainly came at a reputational cost to Uber. At the same time, more thanhalf of the women don’t feel safe a taxi alone at night in many countries. Uberhowever suggestion customers some power.