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A Case Study On UberCab

1) Uber was founded in 2009 by Travis Kalanick and Garrett Camp who came up with the idea after having trouble finding a taxi on a snowy night in San Francisco. 2) Uber pioneered the ridesharing industry through innovations like dynamic pricing, cashless payment systems, driver ratings, Uber Pool, and AI applications. 3) Uber has expanded to include services beyond ridesharing like food delivery and freight, and now has over 93 million active users conducting billions of rides and deliveries annually.

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Siddhant Pandey
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0% found this document useful (0 votes)
102 views9 pages

A Case Study On UberCab

1) Uber was founded in 2009 by Travis Kalanick and Garrett Camp who came up with the idea after having trouble finding a taxi on a snowy night in San Francisco. 2) Uber pioneered the ridesharing industry through innovations like dynamic pricing, cashless payment systems, driver ratings, Uber Pool, and AI applications. 3) Uber has expanded to include services beyond ridesharing like food delivery and freight, and now has over 93 million active users conducting billions of rides and deliveries annually.

Uploaded by

Siddhant Pandey
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Surname 1

Your Name

Supervisor Name

Course Name

Due Date

"A Case Study on UberCab"

Uber, initially referred to as UberCab has a fascinating backstory. It all began again in

2009 when Travis Kalanick and Garrett Camp teamed up to create a business enterprise in San

Francisco, California. The concept of Uber got here to them on a snowy night after they had a

problem finding a taxi. This irritating experience made them come up with a transportation

service that could be accessed through a Mobile app. In 2010, Uber launched its first model,

which allowed customers to request high-priced black cars using their smartphones. This new

carrier stuck on quickly, attracting the eye of passengers who wanted a more convenient

alternative to traditional taxis and drivers looking for flexible methods to earn cash (About Us).

Uber since then has gone on to expand multiple services, including Rideshare, Food Delivery,

Freight, and Business. Uber currently has 93 million active users and currently does over 5

billion rides every year (Dean).

Uber has been highly innovative over the years to pioneer the ridesharing industry.

Uber's initial innovation was its business modal. In the age of expensive Taxi cabs that weren't

accessible depending on various circumstances like weather, city, and time of the day, Uber

created a way for users to make the service accessible while also creating opportunities for

many people to have flexible jobs and get paid. To deal with a vast demand, Uber also

innovated dynamic pricing. This sets the fees based on supply and demand. So, in cases where

the demand is very high but the supply isn't, dynamic pricing increases the price to incentivize

drivers, whereas when the demand is low, the users can get the ride for a lower price. The other

innovation of Uber is the promotion of cashless systems. In the days of Taxi cabs, cash was
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primarily used as a payment method. In Uber, everything is cashless. The users even have the

ease of making payments using modern-day products like Apple and Google Pay, alongside

traditional card payments and Uber Cash.

The other innovation of Uber is the Rating and Feedback systems. This allows riders to

know what to expect from drivers. The users can give feedback on many aspects of the Driver,

including the car, driving performance, and behavior. This innovation promotes accountability

and ensures a quality experience for both parties. The feedback system also helps Uber

promptly identify and address issues or concerns, such as blocking drivers below a specific

rating. Uber Pool is another innovation from Uber that allows multiple riders to share a ride

resulting in lower prices while boosting company and driver profits. Uber also has been speedy

in keeping up with the innovations in AI for multiple benefits ranging from decreasing the

number of crashes to improved user experience. Uber mentions on their website, "We leverage

sensors as a source of truth and develop algorithms to solve our users' top pain points, ranging

from crash detection to improved GPS, menu OCR to automatic driver license approval, and

many more use cases, requiring expertise in signal processing, computer vision, and NLP"

(Uber Ai Home).

Uber has been focusing on creating positive change in urban areas through partnerships

with local organizations and supporting community development initiatives. Uber made it

easier to donate fresh food from Uber Eats to nonprofits, reducing food waste and helping those

in need. Furthermore, Uber has partnered with organizations like Meals on Wheels to provide

free or discounted rides to seniors for medical appointments, grocery shopping, or who need

transportation assistance for social activities. Uber has also donated a million dollars to the

same organization and made it possible for seniors to access quality meals (Te).

With several rides and delivery in billions, Uber has taken significant steps to reduce

its Carbon Footprint. Uber is pushing all restaurant partners to follow more sustainable
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guidelines. To list a few initiatives, those guidelines include sustainable packaging guidelines,

pushing for electric vehicles for delivery, promoting restaurants that offer sustainable packing,

and Providing grants for more sustainable packaging. Uber is also heavily invested in research

for sustainable deliveries. Uber says it is "Teaming up with RMI to analyze the specific

challenges and opportunities we face in helping couriers make the switch to last-mile zero-

emission transportation" (Gore-Coty).

Furthermore, Uber is teaming up with other players to promote micro-mobility and is

enhancing their batching and routing processes. Praising Uber's efforts and influence to make

positive environmental changes, Mary Jo Snavely, Director at WWF, says, "The rate of plastic

pollution entering our oceans will triple by 2040 unless we change course by transitioning to a

circular economy — and companies must be a lever for enacting such change. With both global

reach and local influence, Uber Eats' plans for increasing sustainable packaging use within their

merchant ecosystems are necessary to have the potential to enable wide-scale change across

the food delivery sector" (Gore-Coty). Uber playing a significant role in creating a greener

world seems inevitable in the years to come. Uber is also highly involved in the community.

Uber's success or failure can't be linked to a single cause or person but to a confluence

of several factors and conditions. However, management and leadership style were critical

factors in determining Uber's course.

success criteria

 Travis Kalanick, co-founder and former CEO of Uber, was instrumental in establishing

the company's goals and fostering its expansion. Uber became a dominating player in

the market thanks to Kalanick's unwavering pursuit of his audacious goal of using

technology to transform the transportation sector.

 Uber's business strategy was unique and disruptive, providing a fresh take on

transportation by utilizing the strength of mobile applications and on-demand services.


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Uber entered a new market and achieved a significant competitive edge thanks to its

disruptive invention.

 Uber's decision-making procedures showed adaptability, as it adjusted fast to market

circumstances and client requests. They could maintain an advantage over rivals and

quickly penetrate new markets.

 Uber's success was aided by its focus on offering users a simple and comfortable

experience. To attract users and set Uber apart from other taxi services, the firm

prioritized features like simple booking, real-time tracking, and cashless payments.

(Goswami)

Failure Criteria

 During its expansion period, Uber had several problems and scandals, many directly or

indirectly related to Travis Kalanick's management style. The company's reputation was

damaged, and problems like reports of toxic workplace culture, sexual harassment

complaints, and legal infractions hampered its expansion.

 Uber came under fire for its aggressive business practices, which included dubious

methods of breaking into new areas, dodging laws, and engaging in unfair competition.

The company's reputation was harmed by these actions, which also gave rise to legal

problems.

 Uber's boardroom dynamics and governance model came under investigation. Conflicts

inside the organization, mainly disagreements between co-founders, led to leadership

changes and strategic ambiguity.

 In many cities and nations, Uber has to overcome considerable regulatory obstacles.

Entry restrictions, penalties, and legal disputes brought forth by resistance from existing

taxi companies and regulatory authorities hampered Uber's expansion and financial

success. (Voss)
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It's crucial to remember that variables other than leadership and management style

impact Uber's success and failure. Several external variables significantly influenced Uber's

development, including market dynamics, rivalry, technology breakthroughs, and others.

With a substantial worldwide footprint, Uber is a transnational transportation network

corporation. It offers ridesharing, food delivery, and other transportation-related services in

multiple cities spanning over 65 nations. The organizational structure of Uber is built to support

its daily operations and long-term objectives. A broad description of Uber's organizational

structure is mentioned below. However, organizational structures can change over time.

 Chief Executive Officer (CEO): As the company's senior executive, the CEO is in

charge of the company's overall strategic direction as well as decision-making and

leadership.

 Top executives supervising Uber's operations in finance, operations, technology, legal,

marketing, and human resources make up the executive leadership team.

 Regional or Country Managers: Regional or country-level managers at Uber manage

business operations and expansion in particular regions. To handle regional difficulties,

regulatory compliance, and market development, these managers collaborate closely

with local teams.

 Uber has several business divisions that each specialize in a specific service they

provide, including Uber Eats (food delivery), Uber Freight (logistics and freight), and

Uber Elevate (an aviation subsidiary specializing in aerial ridesharing). The

management structure and teams assigned to each business unit's operations may vary.

 Operational Teams: Within each business unit, operational teams are in charge of tasks

including finding and supporting drivers and partners, providing customer service,

running the marketplace, developing new products, and maintaining the technical

infrastructure.
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 Support Functions: Centralized services and expertise are provided by support

functions, such as finance, legal, marketing, human resources, and data analytics, to

assist the entire operation of the business. (Khan)

Uber hires a broad group of people for various positions to support its operations and

services. The following categories are used to group the many sorts of Uber employees:

 Drivers/Partners: Using their vehicles to provide transportation services, drivers and

partners make up most of Uber's workforce. These people work as independent

contractors for Uber, using the app to accept trip requests and generate cash.

 Corporate Workers: Uber also has a sizable workforce of corporate workers that do

various tasks to support business operations and strategic goals. Professionals in fields

including finance, marketing, human resources, law, operations, product development,

data analytics, and technology are among those that fall under this category.

 Operations and Support Workers: To manage and assist with the business's day-to-day

operations, Uber hires operations and support workers based locally. This comprises

positions like community managers, support agents, driver onboarding specialists, and

managers of municipal operations.

 Engineers and technologists: The technology that powers Uber's platform and services

is crucial. The firm hires engineers and technicians with expertise in software

development, data science, artificial intelligence, machine learning, and other technical

fields to create and improve Uber's technological foundation and algorithms.

 Delivery Partners: In addition to offering rides, Uber also runs the food delivery service

Uber Eats. It works with delivery partners that transport meals from restaurants to

clients on their bikes or automobiles.


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 Specific roles: Uber has hired people with specific knowledge in industries like

autonomous car technology, logistics, aviation, and regulatory affairs as it has expanded

into new regions. (Uber)

The recent result of the first quarter i.e. 2023 shows that the company is in a profitable

state. With Mobility Gross Bookings of $15.0 billion (+40% YoY or +43% YoY constant

currency) and Delivery Gross Bookings of $15.0 billion (+8% YoY or +12% YoY constant

currency), Gross Bookings increased by 19% year over year ("YoY") to $31.4 billion, or by

22% on a constant currency basis. To reach 2.1 billion journeys during the quarter, trips

increased by 24% YoY or an average of 24 million trips daily. Due to a shift in the business

model for the UK Mobility business, revenue growth notably outpaced gross bookings growth,

increasing by 29% YoY to $8.8 billion or 33% on a constant currency basis. Uber

Technologies, Inc.'s net loss was $157 million, with a $320 million net profit (pre-tax)

principally attributed to net unrealized gains from the revaluation of Uber's equity assets. (Uber

Technologies)

Uber is a huge and complicated business. The world is changing drastically towards

modern scientific innovation and inventions and I see Uber's market will rise to a greater extent

soon but the company has to develop different strategies and tactics to remain stable in this

competitive world. I will recommend the following suggestions so that the company may

remain financially stable and may achieve larger growth in the future:

 Improve Driver and Partner Relations: Uber's success depends on its ability to forge

strong bonds with its drivers and partners. Driver retention and satisfaction may be

increased by increasing pay for drivers, giving additional incentives and perks,

improving support and communication channels, and including them in decision-

making processes.
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 Prioritize Customer Experience: Uber must always concentrate on improving the

customer experience. This entails making sure services are dependable and effective,

enhancing app usability, responding quickly to client comments, and giving tailored

options that take into account various user preferences.

 Embrace Sustainability: As the importance of sustainability grows, Uber may increase

its efforts to encourage environmentally friendly modes of transportation. A more

sustainable and ecologically friendly service may be achieved by making investments

in electric cars, assisting drivers in switching to cleaner vehicles, and looking at joint

ventures for renewable energy sources.

 Strengthen Safety Measures: To foster confidence between passengers and drivers,

Uber should give priority to safety measures. This entails thorough background checks

on drivers, the implementation of improved safety measures inside the app, assuring

adherence to regional laws, and upholding open reporting and resolution procedures for

safety problems.

 Collaborate with Local Authorities: Building strong relationships with local

governments and regulatory bodies is crucial for Uber's long-term success.

Collaborating proactively, addressing regulatory concerns, and working towards

mutually beneficial solutions can help navigate complex regulatory landscapes and

improve the company's image.

 Foster Innovation and Diversification: Uber should continue investing in research and

development to stay at the forefront of emerging technologies and trends. Exploring

new areas for diversification, such as autonomous vehicles, drone delivery, or other

transportation modes, can help Uber expand its service offerings and remain

competitive.
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Works Cited

About Us | Uber, www.uber.com/us/en/about/. Accessed 15 June 2023.

Dean, Brian. "Uber Statistics 2023: How Many People Ride with Uber?" Backlinko, 28 Mar.

2023, backlinko.com/uber-users.

Gore-Coty, Pierre Dimitri. "Delivering a Greener Future." Uber Newsroom,

www.uber.com/newsroom/delivering-a-greener-future. Accessed 14 June 2023.

Te, Nhu. "Uber Enters Partnership with Meals on Wheels." Nonprofit PRO, 22 Nov. 2017,

www.nonprofitpro.com/article/uber-enters-2-year-partnership-meals-wheels/.

Uber Ai Home | Uber Ai, www.uber.com/us/en/uberai/. Accessed 15 June 2023.

Goswami, Chayanika. “Uber - How did this Ride-Hailing Giant Make It to the Top?”,

Startuptalky, 9 August 2022, https://startuptalky.com/uber-story/

Voss, Stephen. “Uber Fail: Upheaval at the World’s Most Valuable Startup is a Wake-Up Call

for Silicon Valley.”, Time, 6 November 2013, https://time.com/4819557/uber-fail-

upheaval-is-wake-up-call/.

Khan, Osama. “UBER Organizational Structure.” Prezi, 17 June 2018,

https://prezi.com/p/hjo8dn5xlhgz/uber-organisational-structure/

Uber, “People & Places”, Uber, https://www.uber.com/us/en/careers/teams/people-and-

places/.

Uber Technologies, Inc. “Uber Announces Results for First Quarter 2023.”, Investor, 02 May

2023, https://investor.uber.com/news-events/news/press-release-details/2023/Uber-

Announces-Results-for-First-Quarter-2023/.

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