Uber's Biggest Problem Analysis Assignment Sample

Describe how Uber’s Business Model Works and The Role Technology Has Played in Its Success

One of the most fast growing company in service sector is Uber. The basis of the working of the application Uber is the geographical location of both the people who require a taxi and the taxi driver. In the Uber application, the taxi drivers have to register themselves and create an account for themselves. They have to provide their identification as well as the car registration details. Similarly, the customer who wants the taxi has to register on the Uber application.

The technology plays a very key role in the use of the Uber application. It is vital that the Uber application is installed in both the devices of customer and the taxi drivers. An active internet connection along with their GPS on with the Uber application given the permission to trace their location is required. The map on the application shows the available taxi near the customer. The customer can request for a ride and call the taxi driver.

It is seen that there are several countries which offers monthly packages to taxi drivers. The taxi drivers could subscribe for these package and start running the application. The business model of Uber has made it very convenient for everyone to just tap on there phone and book a taxi that will arrive at the destination in no time. The technology has led Uber to fulfill their business model. Also, the payment can also be done through phone and the cash is deducted directly from the bank account. The profits of Uber is divided between the company and the drivers (Mims, 2017).

There are various factors that are leading to the opinion of banning these types of businesses. One of the primary reason is the safety issue. Also, these type of applications take the business away from the taxi drivers who do not use the application. There are people who are not able to use the technology. The increasing success of the Uber application is also leading to loss of jobs of the taxi drivers who do not have access to the Uber application. Also, Uber has not installed proper system that can scrutinise the taxi drivers. The taxi drivers can easily get registered by just uploading some of the documents online. This is in contrast with the traditional taxi companies that perform a proper criminal check of the drivers. This is essential for the safety of the customers and to prevent the life of the customers.

The reduction in the market share of the traditional taxi drivers has also led to fall in the overall profits of the drivers. It is often complained by the drivers that the cash given to them is negligible as compared to the cash kept by the company. The low fares hurt the taxi drivers.

It is seen that in some countries like Taiwan and Greece, these types of businesses also violets the regulation. It is not appropriately regulated under the umbrella of laws that are vital to control the taxi services. It might be possible that the application is violating laws that prevent the disclosure of privacy information of the passengers and their location. It is very important to ponder about the data which is left by the customers for the marketers. The traceable sources of online activities is the digital footprints. The marketers are always interested in looking for the digital footprints. It is important to safeguard the privacy online. There are a lot of information shared even by using things which are free online like watching videos, free online forms etc. Everything come at a cost. The credit card information needed in any website can be misused. Therefore, it is necessary to check the legitimacy of the website before giving the debit or credit card details.

There are several arguments in favour of defending these types of businesses. The application of Uber is very user- friendly. It is accessible and respond very fast. The tracking facility of the Uber application has made it convenient for the passengers to track here the car is. The business model of Uber has differentiated itself from the traditional service provided by the taxi. The business model of Uber consists of driver, rider, fare and the application. It is possible to become a driver provided the age of the person is 21 or above, has a license and a car (Smith, 2016).

Also, Uber application is more suitable than the traditional taxi service for the people. In the case of traditional taxi service, it requires calling the taxi company which would then look after the taxi and then inform the passenger. However in the case of Uber application, it is just a one click and the passenger can himself trace and book the driver. Many customers of the Uber have an opinion that getting taxi from the Uber application is cheaper than the traditional taxi companies. It is very convenient for the drivers as cashless transactions are also done. Thus, drivers do not face the problem of unpaid fares or robbery. The ease of using the Uber application has made it more popular than the other taxi companies.

References for Uber's Biggest Problem Analysis

Mims, C. (2017). Uber's Biggest Problem: Its Business Model. Uber Technologies Inc. Retrived from https://www. wsj. com/articles/with-kalanick-out-ubers-troubles-are-just-beginning-1498049054 [Accessed on 12 Jan 2019].

Smith, J. W. (2016). The Uber-all economy of the future. The Independent Review, 20(3), 383-390.

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