MASTER OF BUSINESS ADMINISTRATION

INTERNATIONAL MANAGEMENT IN CONTEXT

(BCC713)

The Case Study: Uber

Submitted by:
Eng K. Kajeenthan
i15690041
[email protected]

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Executive Summary
From the studies on the management and business context of Uber, it is identified that the firm
faces the contextual factor, regional economic issue that influences the business planning and
management strategy of Uber. Uber operated in 300 locations on 6 continents till 2016 from
its beginning in 2009, and Uber generated 20 billion dollars in 2016. In fact, Uber was losing
$2.8 billion in gross 2016, illustrating how dedicated it is to go forward and to develop new
transport sector services and technology. Uber is still diversifying. Uber Eats, the food supply
business, was established in August 2014 by Uber. The market share of Uber Eats increased
from 3% to 24% in 2018. The Uber Freight, Uber Health, Uber Business and JUMP Bikes are
some less well-known subsidiaries. In spite of Ubers' success, the firm also received some bad
publicity and has been linked to problems over management and leadership in the company,
intellectual property litigation, driver's rights and autonomous vehicle accidents. Uber has
recognized the value of strong financial management in minimizing infrastructure costs,
utilizing suitable incentives to recruit employees and to simplify and streamline their activities.
The Company should develop a high level of awareness about knowledge and standards on
information management, environmental and customer protection, the learning and cultural
training environment for taxi drivers, e-commerce, social media marketing tools, risk
management. For convenience and comfort clients, it should adopt a cost-effective approach
and dependable and timely Taxi services. This study will examine the critical examination and
evaluation of management practices related to the organization's employees, operations,
finance and marketing.

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Table of Contents
Executive Summary .................................................................................................................... i
Chapter 1 - Introduction ............................................................................................................. 1
1.1 Introduction ................................................................................................................. 1
1.2 Background ................................................................................................................. 1
1.3 Mission and Vision...................................................................................................... 1
Chapter 2 – Overview of Performance and Management Issues ............................................... 2
2.1 The Internal Environment ........................................................................................... 2
2.1.1 Current marketing strategy and performance. ..................................................... 2
2.1.2 Current and Anticipated Cultural and Structural Issues. ..................................... 2
2.1.3 Product Purchase Challenges ............................................................................... 2
2.2 The External Environment .......................................................................................... 3
2.2.1 Competition.......................................................................................................... 3
Chapter 3 – Critical Analysis of Management Practices ........................................................... 6
3.1 Human Resource Management ................................................................................... 6
3.1.1 Introduction to human resource management ...................................................... 6
3.1.2 Human resource functions at Uber ...................................................................... 7
3.2 Finance Management .................................................................................................. 9
3.2.1 Financial Model of Uber ...................................................................................... 9
3.2.2 Financial results ................................................................................................. 10
3.2.3 How does Uber make money and optimize it to make more profit? ................. 10
3.2.4 Why is Uber in losses? ....................................................................................... 11
3.2.5 Uber valuation .................................................................................................... 12
3.3 Marketing Management ............................................................................................ 14
3.3.1 Branding ............................................................................................................. 14
3.3.2 Cost Awareness .................................................................................................. 14
3.3.3 Partnerships ........................................................................................................ 14
3.4 Operations Management ........................................................................................... 15
3.4.1 Uber’s business structure ................................................................................... 15
3.4.2 The demand of the buyers: ................................................................................. 15
3.5 UBER Competitors ................................................................................................... 16
3.5.1 Uber vs. taxi usage ............................................................................................. 16
3.5.2 Uber vs. Lyft vs. Grab vs. Didi Chuxing ........................................................... 16
3.5.3 Uber vs. Lyft drivers .......................................................................................... 17
Chapter-4 Recommendations ................................................................................................... 19
4.1 Strategic Issues & Solutions...................................................................................... 19
➢ Insurance ................................................................................................................ 19

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 ➢ Technology ............................................................................................................ 19
➢ Customer satisfaction ............................................................................................ 19
4.2 Final recommendations ............................................................................................. 19
4.2.1 Attracting and Retaining Customers .................................................................. 19
4.2.2 Attracting and Retaining Drivers ....................................................................... 20
Conclusion .............................................................................................................................. 21
References ................................................................................................................................ 22

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List of Figures
Figure 1-Competitor’s list of Uber ............................................................................................ 4
Figure 2-SWOT Aanalysis of Uber ........................................................................................... 5
Figure 3-PESTLE Analysis of Uber .......................................................................................... 5
Figure 4-Organizational structure of Uber ................................................................................. 6
Figure 6-Uber net revenue, millions of USD ............................................................................. 9
Figure 7-Uber gross revenue ...................................................................................................... 9
Figure 8-Uber’s net revenue and GAAP loss in 2014 and 2015 for 3Q’s ............................... 10
Figure 9-Fares of Uber, base price and prices for every mile, minute and cancellation fees for
two types of vehicles ................................................................................................................ 11
Figure 10-Uber core financials as of quarter 2 of 2018 ........................................................... 11
Figure 11-Th comparison graph for net and gross revenue of Uber for the year 2018 ........... 12
Figure 12-Uber valuation history ............................................................................................. 13
Figure 13-Uber valuation compared to other ride-hailing businesses ..................................... 13
Figure 14-Uber vs. taxis vs. Lyft rides per day in New York .................................................. 16
Figure 15-Uber vs Lyft vs Grab vs Didi Chuxing ................................................................... 17
Figure 16-Uber vs. Lyft rating by business travellers.............................................................. 18

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Chapter 1 - Introduction
1.1 Introduction
This assessment report aims to evaluate the major challenges facing Uber and the
recommendation for existing difficulties. This study will create a thorough understanding of
the internal context variables and their influence on corporate choices and company growth.
1.2 Background
The "sharing economy" has swept the market in recent years, spawning a slew of really
ground-breaking firms. While a lot of firms have benefited from this trend, Uber is the
uncontested king of the sharing economy. Uber is a ride-sharing service that allows anybody
to start earning money with their vehicle and allows those in need of a ride to locate one
quickly and inexpensively. Uber has had an incredible amount of success in such a short
period of time. Uber, is a ridesharing, taxi cab, food delivery, and transportation network firm
based in San Francisco, California, with operations in 83 countries around the world. Uber
has its headquarters in California's city of San Francisco in the US and is one of the worlds
top online transport technological firms. Uber was created and started in March by Garrett
Camp and Travis Kalanick. This is the world's biggest technology industry in the online
transport sector, enabling customers and tourists to submit a travel application using the Uber
app. After receipt of requests by clients, Uber offers taxi services and automobiles for rent.
The Uber application, which delivers the Uber driver to the nearest visitors/customers, alerts
the conductor about the signals of the client location after receiving the travel request from
them (Augeneder, 2014).
1.3 Mission and Vision
The mission statement of Uber
Uber's mission statement is a public document that outlines the company's beliefs and
strategic goals. Uber's mission statement also highlights the reason for the company's
existence, emphasizing the services and goods it provides. In addition, the mission statement
defines Uber's operational goals, the procedures the business employs to reach those goals,
the target client segments, and the location in which the company works.
The vision statement of Uber
Uber's vision statement is its long-term strategic strategy, defining what and where the
company intends to go in the future. Uber's vision statement is a document that identifies the
company's objectives in order to aid its strategic, managerial, and general decision-making
processes (Enberg.M,2016).

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Chapter 2 – Overview of Performance and Management Issues
2.1 The Internal Environment
2.1.1 Current marketing strategy and performance.
In improving and supporting the business's performance, a company decides to follow a
strategic strategy. As a method to increase the success of its operations, Uber uses diversity.
The diversification plan covers both product diversification and operational diversification.
Diversification improves the company's competitiveness by extending the breadth of its
products and services as its consumers grow. The company makes major investment in brand
awareness promotion initiatives. Customer care for the items supplied is extensively used in
the Buzz marketing approach. In order to improve their market domination, Facebook
Campaigns are employed. The advertising activities are also designed to emphasize the
convenience and pricing of services and goods provided. Uber-Company confronts other
operators like as Lyft and must guarantee efficient performance in order to remain competitive
in the business (Weske, 2010).

2.1.2 Current and Anticipated Cultural and Structural Issues.

Uber-present Company's leadership is seen as unjust to its drivers. For example, the firm has
set limitations and regulations to be followed by drivers. For example, Uber-Company
demands that its drivers accept 99% of their driving requests and make at least one ride each
hour and be online for 50 minutes each hour. The company is also concerned with ethical
problems. In New Delhi, for example, the company's services were banned because the Uber
driver raped his customer. Such incidents will continue prevalent owing to the fact that drivers
working throughout the world lack strict procedures to improve ethical standards. In 2015, the
business acknowledged that their data was bleached. Inadvertently names and information were
revealed on license plates for about 50,000. This basically alerts the firm to its processes for
knowledge management. The company has set up operating offices in several locations to
increase service efficiency (Stredwick,2013).

2.1.3 Product Purchase Challenges

Uber goods confront a wide range of problems. The firm was constantly undermined if it failed
to manage its prices to allow fair dealings with other rivals. On several instances, taxi
companies have engaged in confrontations with Uber drivers, claiming their low rates do not
allow them a fair share of clients. Concurrent might choose services from other firms at the
expense of Uber goods since the price boom approach is extremely uneconomic, the moral

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standards of the drivers are not strongly highlighted and some drivers are not yet able to conduct
professional training. This generates concern between prospective consumers who feel
uncomfortable and choose services from other suppliers because of awareness. Failure of
drivers to be unprofessional, since accession services are prohibited in some nations. The
advertising utilized by the firm contains misleading information which is simply intended to
attract clients' attention. It does not help the company while it is unfair to other rivals
(Doscher,2014).

2.2 The External Environment

2.2.1 Competition.
There is a vast array of difficulties with products. If it failed to maintain its pricing to allow
fair transactions with other competition, it was continually undercut. Taxi firms have
confronted Uber drivers on many occasions, saying that their poor ratings do not enable a fair
distribution of customers. Competitors may pick services from other companies to the
detriment of Uber goods as the price boom method is very inefficient, drivers' moral standards
are not heavily emphasized and some drivers have yet to undertake professional training. There
are also regulatory limits on its operations. This company's prices are greater than those of
Uber. Unlike Uber, taxi does not provide advance reservation services; its method of payment
is described as queuing, payments are paid directly to the passenger, no passenger rating
mechanisms are in place and their automobiles are entirely owned by the firm. While in times
of great demand, Uber price rises, the taxi answers this by charging a further fair. Both compare
time and distance with their fare.
For its competitors the major obstacles are the absence of sufficient resources for the success
of their brand and for global diversification. This makes Uber a major player in the sector.
Times, price, availability of other alternatives and the customer experience are the
characteristics of Uber and its rivals. Section 4 contains the thorough examination of Uber
competitors (Needle,2010).

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 Figure 1-Competitor’s list of Uber

Political Trends
Uber Company is fighting the necessity for various countries to overcome sanctions.
Restrictions for the firm have proven to be a regular occurrence. The Taxi Users Lobby Group
prevented the company's efforts to spread its services to different cities around the world. The
organization argues that the undertaking has unfair competition on the market due to its reduced
rates. The price perceived as an unfair benefit for Uber at the expense of taxi companies, who
are obliged to wait because of their heavy costs. Issues of law and regulation. There are several
hurdles facing Uber both legal and regulatory. Many lawsuits contesting its services have been
fought by the corporation. The Uber company's services have been banned from implementing
policies by several nations (Martinez-Lopez,2013).

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SWOT and PESTLE Analysis

Figure 2-SWOT Aanalysis of Uber

Figure 3-PESTLE Analysis of Uber

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Chapter 3 – Critical Analysis of Management Practices

3.1 Human Resource Management

3.1.1 Introduction to human resource management

Figure 4-Organizational structure of Uber

The internal and external organizational study of Uber indicates that the firm may use better
procedures to negate the negative consequences of some forces and maximize the influence of
favorable ones.
Uber's performance as a company depends on his personnel with excellent technological
abilities, based on the organizational analyzes above. HRM can make sure Uber is able to
recruit and retain staff. Wildfire among technology businesses in San Francisco remains
prevalent (The Economist, 2016). Therefore, with the aim of keeping talent, HRM may make
sure that HR initiatives are executed at Uber. It is essential to overhaul how HR recruits best
to ensure that the success of Uber is not affected.
HR at Uber was mostly concerned with recruitment and not retention, or to ensure that everyone
was welcome! HR at Uber! Start-ups like to approach HR via retraining bonuses since Uber's
HR strategy is growing unparalleled, and other elements like retention rates should also be
carefully considered (MaRS Market Insights, 2012).
Uber's brand image was adversely influenced in PR disasters involving sexual assaults (Levin
2017). HRM should also guarantee that the inacceptable conduct is discouraged and that more
crises are reduced. Stamarski (2015) suggests that businesses should use HR practices in a
close-up with organizational structures, processes and practices in order to decrease gender

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discrimination on the workplace (McKenzie et al, 2012). Thus, creating and executing HR
regulations should take primacy because Uber is sensitive to sexism crises.
In its success as a corporation Uber's drivers play a crucial role. Drivers tend to be underplayed
by Uber, as New York's class action confirms (Garun, 2017). For other firms, as contractors,
Disenchanted drivers may start driving for Lyft. HR initiatives at Uber might thus include
points-based driver compensation schemes in order to increase retention rates.
Women drivers earn 7% less than men, which shows that there is a gender pay gap between
drivers of the firm (Korosec,2018). Uber's HRM should create new gender blind compensation
algorithms. HRM can boost the image and value of Uber's brand by guaranteeing wage fairness
for Uber (Ashton,2014). These and other HR methods can guarantee that Uber is able to deal
with the problems and optimize business prospects (Teece,2009).

3.1.2 Human resource functions at Uber

Recruitment
Uber recruitment may be very difficult, including numerous telephone interviews and testing
before candidates get a job offer. First invitations to phone interviews are made to candidates.
After a telephone conversation, nominees will be asked to interview on site. Tech applicants
can ask themselves questions on design, algorithms and data structure during on-site exams
and interviews while managers are interrogated on their analytical skills (Bradford,2018).
Recruitment at Uber is viable as the HRM firm is all about the skills it needs.

Training
Uber training is a three-day experience of "Uberversity." Training at Uber. The aim of
"Ubersverity Experience" is to make sure prospective employers are aware of the company's
working conditions and culture. (Switzerland, 2014) Training at Uber should be revamped to
ensure that more time is allocated to teach the new talent. Drivers are not properly trained by
Uber, on the other hand. Uber has a video that explains new drivers how to use the Uber app
in 10 minutes. Training for new drivers is no longer available (French version, 2015). Uber
should offer drivers with further training to enhance both customer and staff happiness. Overall,
Uber should provide its workers and drivers with further training.

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HR challenges at Uber
HRM in Uber presents a lot of problems. The following are the following HR challenges:
▪ First, the aim of HRM is to revive and make Uber's working culture less sex-sensitive.
Following CEO Travis Kalanick's dismissal, Uber has undergone a number of
organizational adjustments. Despite these changes, the culture of Uber is more or less
identical.
▪ Second, it is necessary for Uber to train all the drivers that it contracts with. It may be
tedious yet necessary to develop a training program and to apply it among the Uber
drivers. Training percentage of Uber drivers is 38 percent and Uber simply offers a
video showcasing the Uber app.
▪ Thirdly, Uber and Uber tend to be unhappy about their work. A new compensation
scheme should be established to enhance work satisfaction among its drivers and
employees. Lyft has an existential risk as it can attract some drivers from Uber, and it
has been overdue for a long time to establish a new compensation structure.
▪ Fourthly, in order to make the management of employees more efficient, Uber must
adopt new HR techniques. That would make it more convenient for everyone to create
a friendly workplace. If procedures are in place to ensure that employees' views are
taken into consideration, HR problems would have been avoided.

Performance appraisal
The performance evaluation method of Uber is unfair, as it has offered bonuses to the most
successful players eight times more than other players (Donnely,2017). This kind of approach
for performance evaluation results in blatant prejudice, as Davis has studied (2011). In the
development of motivated and competent workforce, Boice and Kleiner (1997) mentioned the
crucial significance of performance evaluation. Therefore, to make sure Uber introduces the
"real time talent management system," Uber has to correct the present assessment of
performance (RTTMS). RTTMS may bring several advantages in creating a reasonable and
equal performance evaluation system (Samarakone, 2010). RTTM systems may have costly
implementation, however RTTMS' advantages overweight these costs. Uber should thus
implement RTTMS and other tools in order to ensure that its performance assessment system
functions for all employees.

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3.2 Finance Management
3.2.1 Financial Model of Uber

Figure 5-Uber net revenue, millions of USD

Uber gross revenue has been growing steadily since the beginning of 2017.

Figure 6-Uber gross revenue

Uber is mainly a transport network (TNC) firm that provides services such as peer-to-peer ride
sharing, ride service hailing, food supply and bicycle sharing, which are the company's core
source of income. The Uber application provides drivers a default fare before to confirming

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the journey. Uber utilizes a dynamic price model based on the supply and demand for trips, the
rates for the same route fluctuate on the basis of the ride request.

3.2.2 Financial results

▪ Over 495,3 million dolars' total sales, Uber recorded a loss of 671 million in 2014.
▪ In 2015, the revenues of Uber increased to an estimated $1.5 billion.
▪ Over 2.8 billion losses in 2016 were disclosed by Uber.
▪ Losses increased to 4.5 billion by 60 percent in 2017.
▪ Uber reported a loss of 1.8 billion in 2018.

Figure 7-Uber’s net revenue and GAAP loss in 2014 and 2015 for 3Q’s

3.2.3 How does Uber make money and optimize it to make more profit?

▪ The company earns profits largely via charging customers for trips, promotions and
collaborations involving other parties, even if advertising earnings are derived through its
website.
▪ Customers request the trip from their present location with an app on their smartphone that
earns money when the app is downloaded from the play store. Google Play Shop and Uber will
gain money.

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 ▪ Drivers for this firm mainly utilize Google Maps or comparable browsing technology to seek
customers and identify the best path for retrieving those customers and providing them to their
desired locations, which, in their turn, produces Uber's income.
▪ In real-time sharing, the cost of transportation reduces and, in turn, the use of fuel saves fuel
and money by seats not registered in cars.
▪ Instant payments are processed using the optimization algorithm similar to the assignment
problem algorithm we have learned, which is a tool that lists and organizes all the necessary
information and sorts it accordingly so that it can make use of time and fuel most efficient, as
well as to make the journey for customers as pleasant as possible (Stamarski, C S,2015).

Figure 8-Fares of Uber, base price and prices for every mile, minute and cancellation fees for two types of vehicles

3.2.4 Why is Uber in losses?

Figure 9-Uber core financials as of quarter 2 of 2018

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 ▪ Local companies' competition as mentioned above like Ola means an extra cost for advertising
and free trips to attack clients.
▪ It costs more than its gross profit than its capacity or operational costs for revenues.
▪ Operating costs are much higher than income.
▪ Uber has been obliged to continually struggle with recruiting, providing new drivers
registration incentives considerably in excess of $1,000 (up from the regular remuneration),
resulting in a loss of a lot of money.
▪ Management mistakes have further hampered Uber's performance and feed increasing
consumer, driver and regulatory distrust.
▪ Investors in auto-cars and motorcycles have resulted in plenty of costs but little income.
(Frambach,2011)

Figure 10-Th comparison graph for net and gross revenue of Uber for the year 2018

3.2.5 Uber valuation

Its valuation increased over the last two years, amounting to an estimated $350 million in the
beginning of 2012. Two years later it reached a maximum of $18 billion. This had more than
doubled by the end of the same year, 2014. Since then, the value has been on the rise except
from the Softbank re calibration. Its value-added rocketing has resulted to a 'unicorn' being
labelled – a new enterprise with an assessment of $1 billion. Uber now classifies a "decacorn"
technically with a value of exceeding $10 billion (Richardson,2011).

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 Figure 11-Uber valuation history

Figure 12-Uber valuation compared to other ride-hailing businesses

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3.3 Marketing Management
3.3.1 Branding
The development of brand awareness is one of Uber's major methods for his effective
marketing. With its simplicity and clarity, the branding approach for Uber is unmatchable. If
you would ask someone what Uber is, their answer is that it is an application that enables
consumers to connect to drivers and to be of highly practical and current value to both sides.
The marketing approach that Uber compete with in the taxi business is completely complicated
and hassle-free.
3.3.2 Cost Awareness
Successful marketing techniques allow the client to get comfortable and loyal to a specific
brand or company. Uber offers consumers a knowledge of cost advantages that they cannot
readily discover anyplace else when it comes to the vehicle hire industry. This marketing
technique enables customers to see exactly how much they would pay for a journey anywhere,
with precise changes and in their chosen way. The marketing cost awareness technique makes
it simpler for consumers to go from one spot to another, as stated by the folks behind Free bird,
without stressing the expense. The advantage of this approach is that in many situations Uber
trips will be less expensive than other taxis with loyalty discounts and promotional offers.
3.3.3 Partnerships
Many companies, whether in the same or similar sector, employ partnerships to encourage
more people to use both companies' services. In every field, partnerships are successful. Uber
has managed to make enormous use of this marketing approach by frequently collaborating
with other companies and providing promotions to individuals who utilize each company's
services. Uber customers now have the opportunity to link their profiles to other company app
profiles and benefit from a number of benefits of such collaborations which frequently reward
loyalty to companies in which Uber is engaged.
The achievement of the global firm Uber's competitive marketing techniques is why it has
achieved a tremendous success worldwide. They think of Uber nowadays, every time someone
thinks of a vehicle hire company. Successful marketing creates a firm and draws an increasing
number of consumers. Uber has succeeded in creating a devoted client base and continued to
expand with successful partnerships and brand recognition through its clever and creative
strategies. Understanding Uber's marketing tactics will enable other companies to create their
own creativity methods to attract their clients in their own sectors.

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3.4 Operations Management
3.4.1 Uber’s business structure
Uber's business style is extremely easy and travellers can simply query to hire every taxi they
want by picking the location of the cab and they can also hire a taxi of the sort they seek for
(Cannon et jordlag., 2014). We also provide the choice for a cab which was held by simply
Uber, which also allows consumers to cut the cost of the planning process together with other
passengers on the same route and on the same cabin. The drivers who are not booked are really
matched by the system and then the owners are requested to take the passengers themselves
with the assistance of the system and start by saying that the drivers are also obliged to accept
the inquiry. The customers are also satisfied with all the assistance they can offer to convey the
location of their drivers in real time. In addition, the consumers may also analyse if their own
ride has been fundamentally large or whether their persons have maintained improper manners.
This allows the specific driver group to take action against the drivers and create driver's
behaviour statistics.

3.4.2 The demand of the buyers:

In fact, there are nations such as India, Pakistan and Nigeria, where the costs of unemployment
are higher and that is why it is necessary to cut the cost of cab stop often because customers'
requests reduce their journey much more. Sense intrudes a wide range of clients who are always
looking for discount on transportation, as well as those clients who prefer to make a journey
by themselves. Some people anticipate to travel luxuriously and utilize the Wi-Fi function
during the excursion. Therefore, there are four travel strategies that Uber has introduced for
travel. There can be an Uber Pool area service for men and women who want to travel by taxi
on the lowest fare on the same route to encourage their clients' journeys (Geradin, 2015). We
also have economic pricing that the company has exposed, so that travellers may travel alone
and with their homes, but no Wi-Fi features can be found or simply faster. Themes given as in
case of greater booking quality are completely free.

And thus, to satisfy the need of the customers' less costly fares, Uber's principal operational
crew concentrates on reducing the costs of operating procedures by reducing the new driver
fees for each journey.. At the time of release, when there are significantly fewer drivers who
have adopted the exact Uber type and who have been able to reward the customer interest, more
drivers and even car owner were definitely paid for with higher costs. But the scenario changed
over and over again in modern times, with numerous cars doing the job under it and Uber
(Bernhardt, 2016).

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3.5 UBER Competitors
3.5.1 Uber vs. taxi usage
In New York, perhaps the home of the world’s most iconic taxis, Uber became the most popular
form of private hire transport in terms of rides per day in September2017. Since then, bara
couple of minor dips, it’s been in front - and continuing to pull away. As of Augus 2018,
436,000 Uber rides took place per day, compared to 275,000 taxi rides, and 122,000 Lyft rides.

Figure 13-Uber vs. taxis vs. Lyft rides per day in New York

One of the reasons Uber is able to command such a lead is due to the considerably larger size
of its fleet. Around 63,000 Uber vehicles were available to New Yorkers in Augus 2018,
compared to 34,000 Lyft vehicles and a mere 16,000 yellow cabs.

3.5.2 Uber vs. Lyft vs. Grab vs. Didi Chuxing

Uber was the first mover in terms of ride-hailing apps. Chief among its rivals is Lyft Grab, and
Didi Chuxing. Th fist operates solely in the US market (and a tiny part of Canada), while the
latter two operate in the lucrative Southeast Asian and Chinese markets respectively. Didi
Chuxing controls 90 % of the market in China. While Uber’s key focus is on North American
market, the global ride-hailing market is concentrated in Asia.

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Uber controls 46 % of the market in India - the world’s third-biggest

Lyft is the only true direct rival in the US, with local operators Didi Chuxing and Grab
operating in markets in which Uber does not have a significant presence - in both cases because
business was sold to the local rival.

Figure 14-Uber vs Lyft vs Grab vs Didi Chuxing

User and driver ratings play a big part in the ride hailing experience. In this respect Lyft can
claim the edge over Uber, with scores of 4.8 on average, compared to 4.4. A normal taxi ride
is likely to average a mere 4.0.

3.5.3 Uber vs. Lyft drivers

In a survey of 1,200 drivers conducted in early 2018 found that over half of US ride-hailing
app drivers only used Uber - not too far under four times those who used only Lyft One in five
reported using both.

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Figure 15-Uber vs. Lyft rating by business travellers

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Chapter-4 Recommendations
4.1 Strategic Issues & Solutions
➢ Insurance

As Uber boosts its profit deduction, the number of unwilling drivers might go out of hand.
Recent legislation on health insurance might force drivers to cover their health.
Solution:
Uber could offer training programs that enhance driving abilities, minimize irresponsible
drivers' danger, and cut liability insurance costs.

➢ Technology

Customers are careful about installing applications and certain internet companies are
attacked for information on credit cards.
Solution:
Uber may update its security system to decrease the dangers associated with financial or
personal account information.

➢ Customer satisfaction

Some clients had long waiting experiences, unskilled drivers and even claimed sexual
harassment.
Solution:

• ·Uber should properly register drivers and utilize suitable software for the protection of women
and children in particular.
• ·Uber should set up a center for tracking drivers and pickups in every city.
• ·Upon arrival at late or no first taxi, you need to enhance your service to provide a new tour.

4.2 Final recommendations

4.2.1 Attracting and Retaining Customers

Uber may cooperate for this with local organizations — pubs, restaurants and event
locations. This, on the one hand, helps local advertising firms, and Uber will find this new
means of attracting customers who want to do activities. Events in the city and advertising
for drop-offs at certain locations might lead to more passengers and a greater income for
Uber.

To do this, we require strategic marketing and procurement teams at several locations to

negotiate with local agencies. Uber ought to build up additional hub’s offices. One approach
to develop client loyalty is by enrolling them to a loyalty program based on credit. Just like
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a credit card compensation system that encourages a lot of trustworthy consumers to
continue using credit cards, Uber may provide their loyal customers rebates and prizes.

4.2.2 Attracting and Retaining Drivers

Opening offices at hub locations can also provide a personal touch to the driver's contact.
And the number of events linked to drivers' background checks might potentially be
reduced. This sort of human contact is vital for the national competition to maintain its
physical presence at the site. One last reason is that if more consumers are loyal to the firm
and consistently use Uber, it will recruit loyal drivers, since this solves not enough drivers.
This reduces ETA for consumers if we get into a more committed driver and more customers
are ready to utilize Uber often (Aytes, 2012).

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Conclusion
Disruptive technology, tremendous expansion, and continual controversy make it an interesting
company in the last decade. The firm, which is over 10 years old, rapidly became the world's
top private start-up company. Their business model and commitment to technology can be
credited with Uber’s mainstream success; however, the company needs to rehabilitate them
image as a misogynistic and unethical corporation. While the company has released several
advertisements to communicate their commitment to being better, they have to win back the
trust of many consumers. If uber is focus on critical analysis and evaluating the management
practices relating to people, operations, finance and marketing within the organisation it can
overcome all the business barriers.

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References

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