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The Vancouver Tax Market

Decent Essays

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

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