The third tool chosen to analyze the research question, “to what extent have Uber's attempts to penetrate the Vancouver taxi market been hindered by the impact of external environmental factors?” is a Force Field Analysis. Developed in 1951 by social psychologist Professor Kurt Lewin, it is based on the premise that successful businesses are constantly adapting to change. The tool is generated by both driving forces, which push for change in an organization, and restraining forces, which act against change. (“Hoang, Paul. Business & Management.”) A manager assesses the firm, taking into account both external driving and restraining forces. Following the identification of all forces; values are attributed from one to five. (Five carrying …show more content…
Following further investigation it was determined that because Uber drivers are independent contractors. Responsible for paying “their own vehicle operating expenses, including fuel, maintenance, insurance, and car payments,” ("The Hidden Cost of Being an Uber Driver and Why Fare Cuts Really Do Hit Their Bottom Line"). Shown in Appendix 3.2 and 3.3, many people see this as a distressed attempt by Uber to cut operating costs. Through thorough examination drivers may find these hidden costs unattractive, in turn potentially decreasing the number and quality of the available workforce ("The Hidden Cost of Being an Uber Driver and Why Fare Cuts Really Do Hit Their Bottom …show more content…
In every city Uber cabs have flooded, there have been numerous occasions where this ride sharing mogul has been taken to court. Whether by its own ‘independent contracted’ drivers or by disgruntled customers, to say the least Uber’s penetration into new cities is never easy. Taking the landmark California court case as an example of legal expenses endured by Uber, the firm was challenged in court which later ruled that Uber drivers were indeed employees of the company ("California Says Uber Driver Is Employee, Not a Contractor"). This momentous court case is just one example of legal fees Uber has had to pay, which resulted in the deterioration of the firm’s available
In the article “No driver? Bring it on. How Pittsburgh become Uber’s testing ground” (Kang 2016). I learned start from 2016 Uber start to introduce driverless cars into Pittsburgh. With governor’s and Carnegie Mellon University’s support, Uber company successfully let Pittsburgh become driverless cars testing ground. That is a really big jump from theoretic to realistic for driverless car (DeBoord 2016). Even though Uber company successful test driverless cars, there are a lot of hidden problems for driverless cars.
“It’s a simple experience and a much more pleasant way to get a ride than stepping onto a busy street and waving at oncoming traffic” (Stone, 2014, p. 53). It is convenient for both the employee and customer to arrange a ride, which makes Uber preferable. Additionally, the employees of Uber are given more benefits than the employees of taxi companies. For example, Uber issues an iPhone with the Uber software, free gear to secure it to their windshield and an hour of orientation (Stone, 2014, p. 52). It is this simplicity that appeals to people seeking employment. They are also using a platform that is accessible to many of their customers, because, as of 2015, “64% of American adults now own a smartphone of some kind” (Smith, 2015). Since their focus is on luxury, innovation, and results, they have transformed the public transportation system in their favor.
The management has to be vigilant when managing these factors for the future betterment of the company (Drucker, 2016).
Uber as a business have conducted and implemented many harmful tactics and policies. The primary issue that Uber has been deemed harmful are Uber taking and requiring all drivers to accept the percentage cuts. In addition, the higher percentage cuts will be deduct from each earned revenue the driver obtain while driver for Uber. This is a very harmful tactics
Employment received a hard hit by the recession, but this “gig economy” has been able to provide job openings that are in need. According to a recent study, jobs in the gig economy has grown from 9 to 14% from 2002 to 2014, compared to overall employment which only grew around 7%. Moreover, the gig economy has also had an impact in the current economy, specifically coming from the famous startups such as Uber and Lyft. The Uber and
Uber has widely known for its lower transaction costs which is resulted from efficiency in operation cost, or in other word low labor cost. Uber drivers is not the company’s employees but independent contractor. Therefore, Uber has been criticized for their treatment to the individuals who provide the service under their smartphone applications and take benefits from them (Dyal-Chand, 2015). Average hourly wages for drivers is around USD8 – 10, exclude their car depreciation (Weber and Silverman, 2015). Therefore, Uber transfers part of operation cost such as vehicle depreciation cost and employee benefits to the drivers as its independent contractor. In her note, Posen comprehensively describes and analyzes the lawsuits from taxi industry and states where it operate. Unfortunately, she only provide a glimpse about the lawsuits from Uber’s drivers without any solution to be
John McDuling‘s article “Locals fight back against Uber in ridesharing battle” in the Australian Financial
The thesis of this article explains that despite surge pricing achieving the goal that it’s supposed to, (bring more drivers online and present available services to consumers who need them the most) most believe Uber is taking advantage of customers by using extreme multiplier prices. While the author states that this issue between price and product/service is giving Uber a relative degree of bad press, he also gives solutions as to how to fix this problem.
A similar situation is happening now in Brazil, my country: some States prohibited Uber to offer their services,
However, recently there have been several issues that have jeopardised the image of taxi aggregators like Ola and Uber. There have been incidence of Molestation, rash driving and rape that has shaken the faith of frequent passengers of the aggregators.
With new Presidential leadership, Uber has faced major political challenges with the restrictions and emphasis on illegal immigration. Furthermore, the restrictions on illegal immigrants have affected the support drivers of Uber as many of the drivers were illegal immigrants (Anand, 2017). Consequently, when the current president imposed the travel band many Uber drivers that were outside the United States were unable to re-enter the country (Anand, 2017). As previously noted, Uber has faced many political challenges regarding its failure to require the Uber drivers to have background checks. Furthermore, there has been allegations of untrustworthiness of its drivers, which many have faced some type of criminal charges (Anand, 2017).
Let me start by saying: Why the government consider the Uber service specially the Uberx as an illegal
Since operating 7 years ago, Uber has seen a great business as alternative for taxi. In 2016, Uber service is accessible in 66 countries and more than 507 cities internationally. The rise of Uber become people favorite choice especially the one living in the urban center. Besides, the low rate charge for Uber also become one of the main reasons why people prefer to use its service rather than the traditional taxis. In some cases, taxi charges are quite high even though the distance is short but due to traffic jam, the duration waiting in a taxi to arrive may feel longer. Even so, some taxi drivers also have the tendency forgotten to switch on the distance meter on their taxi thus charged the passenger for an unreasonable price. Moreover, it
This is not the case with ridesharing services, as customers are happy with the services provided by theses new entrants. Cabcharge, as part of its strategy, should establish a separate ridesharing service company either through the sole, joint ventures, partnership or acquisitions, dedicated purely to opportunities that have arisen from the ridesharing disruption, Ihail has not gone far enough. So for some time, Cabcharge would manage two very different operations, as the disruptive stand-alone business grows, it may ultimately steal customers from the core, thus providing another revenue stream at a relatively low entry cost. In support of this Cabcharge have the tangible, intangible resources and organisational capability to do
Uber is an innovative company that operates as a transportation company and a food delivery service around the globe. In addition, Uber is a company that was invented five years ago. Furthermore, during Uber’s early stages of development, the servicing company was referred to as “UberCAb”. Then an individual in San Francisco had decided to try out their service. From the individual’s first experience, the individual was very impressed. In addition, from that point, the company referred to as “UberCab” became commonly known as Uber. Also, Uber operates their service business in fifty eight different countries and have allocated over $60 billion in revenue. Uber faces many issues in their human resources operations implementation regarding drivers and internal employees.