UBER: Changing the Way the World Moves Case Solution
Question # 01
Uber app isfast, responsive and a user-friendly cab service provider, which is very easy for customers. It does not have any previous competitors available in the market. And by using all the available opportunities; it has made a good brand, consumer interest and strong infrastructure in the market. The adaptive nature of Uber has strong recognition value in the globe. It has great international exposure, which allows it to integrate with the citizens of different countries. It has a dynamic pricing strategy so its drivers earn a good substantial amount at the night and on holiday nights. It has also made the best brand recognition system in more than fifty countries.
There have been many questions over the past few days regarding why Uber’s service model is failing. These questions are particularly pertinent for people who are new to the service. First, there were questions on the lack of availability of drivers. This problem has actually been around since the inception of their service. This is a problem because it indicates that if a customer is looking for a driver, then customers are going to have to find one by themselves. The other major complaint about the service has been the pricing structure. Although the pricing structure might be a little bit high for now, but it should be reasonable enough for people to afford. Another area that I want to highlight is the customer service that they offer. It’s pretty hard to believe that they could offer such high quality customer service given the problems that they have.
Drivers are not very much happy because they are unable to make a high profit there, because in some situations they don’t get any countable profit due to the maintenance cost. And Uber is not paying them any money for the maintenance of their vehicle. And, the second point is Internet availability, if there is not any internet connection available then the customer or drivers both are facing issues. There is a need to make Uber’s business model more reliable for the facilitation of the customers and for the satisfaction of its drivers.
Question # 02
I agree with the dynamic pricing system of Uber because it is the best way to keep drivers on road. When drivers logging off from the app so then Uber does not have any direct control over them, and it only gives financial incentives. There are three reasons that can pertain to the unfairness of Uber:
- Losing customer loyalty and customer backlash.
- Government regulations and policies.
- The need for a lawsuit for the implementation of the surge policy at the time of crisis.
The main goal of any company is to make a profit, but by putting a focus on the surge pricing strategy of Uber.It seems that Uber doesn’t want to be fair, because in such situation there is a need to refund the amount to its customers. Uber knows the problem &it has an idea about the rate of risk involved in it. Due to this, Uber is finding solutions &it wants to make change in it, but the company doesn’t want to completely eliminate it. Uber has decided to make a change in its algorithm, but it seems that the surge pricing process should be continued.
Advantages of Surge Pricing Policy for Attracting Customers
Uber’s surge policy is quite effective in attracting the new customers. It allows the users to travel at cheap rates without any additional charges. Therefore, the customers do not have to be concerned about the transportation expenses. The customer transporting expense can be saved to a large extent. Another benefit for customers is that they can plan journey on the basis of how much money they can afford. Along with it, it also allows the customers to pick the time of their travel, depending on the demand. So, if there is heavy traffic on the road; the customers would be able to pick the time of their trip. On the other hand, if there is less traffic on the road; the customer can plan the trip accordingly and arrive at the destination on time.
Question # 03
Critics of the aggressive business tactics used by Uber, are questioning why there has been so much attention given to this company’s efforts to dominate the transportation industry. Many are worried that the companies plan to dominate the transportation industry may include more than just driving. They worry that the company is trying to control the customer, which will hurt both customers as well as the drivers.
It looks like this is going to have a negative effect on the company as a whole, which could cause the company to have some bad PR along the way. Many believe that the company is trying to monopolize the transportation industry. The company uses several tactics to get into the industry, including: aggressive marketing campaigns. These efforts have been getting them some bad press and they also tendto hurt the company’s reputation among the consumer.
Consumers are becoming increasingly fed up with bad press and negative coverage. This has caused many to question the legitimacy of the company and its plans. There are some who say that the company is using unethical business practices to gain more control over the transportation industry. They believe that these tactics could even cause someone to sue the company. These tactics include having drivers pick up customers for them.
However, aggressive tactics help in making a profit for the business, and it’s the best way to create its value in a new market. When Uber gets introduced in a new market then it makes its best efforts to find opportunities in the area, and wants to make more and more benefit from the given resources. It finds ways to attract more people towards it. The main part is that fame is the best way of success and it ultimately increases the revenue. Innovation in technology is aggressive, so the company may not take a steady approach here. Uber doesn’t want to collaborate with the businesses that are already banned, because its making a bad impact on its customers. So due to this, Uber is not taking any steps that are harmful to its infrastructure………………….
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