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    Satyam
    Uber faces regulatory challenges in foreign markets like Europe and China that have slowed its growth. To succeed, Uber may need to collaborate with foreign governments by obtaining licenses and certifications, which could generate trust among users but also be an expensive endeavor. Governments may impose extra fees to advantage local competitors. Uber could also leverage digital platforms to enhance trust by allowing users to share ride experiences, but this risks negative publicity that could damage Uber's image. The sharing economy represents both threats and opportunities for companies to adapt.

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    Q3

    Uploaded by

    Satyam
    432 views2 pages
    Uber faces regulatory challenges in foreign markets like Europe and China that have slowed its growth. To succeed, Uber may need to collaborate with foreign governments by obtaining licenses and certifications, which could generate trust among users but also be an expensive endeavor. Governments may impose extra fees to advantage local competitors. Uber could also leverage digital platforms to enhance trust by allowing users to share ride experiences, but this risks negative publicity that could damage Uber's image. The sharing economy represents both threats and opportunities for companies to adapt.

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    Uber

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    Uber faces regulatory challenges in foreign markets like Europe and China that have slowed its growth. To succeed, Uber may need to collaborate with foreign governments by obtaining licenses and certifications, which could generate trust among users but also be an expensive endeavor. Governments may impose extra fees to advantage local competitors. Uber could also leverage digital platforms to enhance trust by allowing users to share ride experiences, but this risks negative publicity that could damage Uber's image. The sharing economy represents both threats and opportunities for companies to adapt.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    432 views2 pages

    Q3

    Uploaded by

    Satyam
    Uber faces regulatory challenges in foreign markets like Europe and China that have slowed its growth. To succeed, Uber may need to collaborate with foreign governments by obtaining licenses and certifications, which could generate trust among users but also be an expensive endeavor. Governments may impose extra fees to advantage local competitors. Uber could also leverage digital platforms to enhance trust by allowing users to share ride experiences, but this risks negative publicity that could damage Uber's image. The sharing economy represents both threats and opportunities for companies to adapt.

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    Can Uber overcome the challenges from foreign governments?

    Should it try to collaborate with these


    foreign governments? If so, how? What are the pros and cons of doing so?

    Uber is facing stringent regulatory issues in foreign Markets which is leading to stifle participation
    and significant reduction in customer engage especially in European and Chinese market. Due to
    heavily regulated markets in Europe and the strong presence of trade unions, Uber did not grow
    there as quickly as it did in the U.S . Protests against the ridesharing service were staged across
    Europe and Uber’s budget service, UberX, was banned in most of Western Europe as a result.
    In China Meanwhile, Uber’s operation in Hong Kong was facing charges of providing illegal private
    rides.
    Validation by External Institutions

    In order to succeed in such foreign markets where regulations are raising barriers to entry uber needs
    to collaborate with foreign governments. A government certification would help in generating trust
    among potential customers. For a firm like Uber, whose business model is based on matching model
    and crowd-based transportation platform, one of the key drivers is development of trust among the
    users. Regulatory approval could work as an effective signal of trust and safety to end users which
    would also help to deal with trade union protest in European market, where such unions have
    significant hold.

    Con
    Obtaining government licensing and certification could become challenging as well as an expensive
    endeavour. Foreign governments might levy extra charges, tariffs and restrictions on licensing for
    uber drivers in order to provide advantage to local players(GetTaxi in Europe, Did Dache in China
    and Ola in India). Such expenses might led to uber driving prices and lose business to local
    competition.

    Leveraging Digitized Social Capital


    Familiarity is a cumulative process, something that builds over time. Therefore, trust increases with
    every positive experience. When the experiences of users get digitized and made publicly available
    through digital social media platforms, peoples’ ability to trust uber might get enhanced because, in a
    sense, we can learn from the experiences of others who have interacted with them. Currently, Uber’s
    ride rating- system by uber is trying to achieve. For Instance, WeChat, a popular messaging app, used
    by Didi Kuaidi receives greater number of bookings per day. Uber can also collaborate with popular
    platforms to enhance their bookings.

    Cons
    Although leveraging digital landscape to make users broadcast their ride experience might develop
    trust among other people but it also runs a risk of negative publicity by customers which would hinder
    Uber’s image and perception among customers, leading to cascading effects on business.
    The sharing economy is gaining ground, fundamentally altering how people own and consume.
    Network technologies, social and collaborative software and the changing habits of consumers are all
    abetting this growing movement. While the shift toward more sustainable modes of consumption
    represents a major threat to a number of established business models and revenue streams, it also
    offers several potentially profitable paths by which companies can benefit.

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