How Uber can satisfy its customers as well as its drivers simultaneously?

The business model that uber follow is that it acts as medium between customers and taxi
drivers by connecting them via mobile application. Uber does not have its own cabs and it hire
cab drivers on contract basis, paying on the basis of business they do. So, workers are bound to
take rides, whether they want to drive or not is completely up to them. So, uber has to satisfy
its driver as well in order to make them reluctant to work for Uber. At the same time, it has to
satisfy its customers, which itself is an issue. Uber follow surge pricing i.e. pricing its customers
2x to 7x than the normal fares in the peak hours or in bad environment conditions when
demand is high and supply is less. Uber cannot stop charging surge charge because it helps
them to lure drivers to pickup the customers during peak hours. But it creates customer
dissatisfaction as customers needs to pay much more than the normal fare prices. Moreover,
there are cases of unprofessional behavior of drivers with customers. So how uber can satisfy
its customer as well as its drivers simultaneously is a question?

Uber can set certain targets for its drivers and if they achieve their targets, they will get extra
rewards apart from their regular incentives. This can lure drivers to pickup more rides, resulting
into lesser cancellation of rides from the driver’s end. Instead of hiring nonprofessionals for
UberX it can hire professionals like it hire for Uber Black. This will reduce the customers
complaints of unprofessional behavior of drivers. This may lead to charging higher prices for
UberX but still the cost will be less as compared to hiring nonprofessionals and training them.

Apart from this, since uber cannot completely remove the surcharge efforts can be made to
minimize it. This can be achieved by hiring more cab drivers so at the time of peak hours or bad
weather conditions, there will sufficient supply for increased demand. Moreover, uber can give
estimated total cost of the journey to its customers. So that customers can compare the prices
and can decide whether to choose Uber Black, Uber X or Uber XL. This functionality is already
being used by Uber now days and is giving better results.

These are the few things Uber can do in order to satisfy both its customers and drivers at the
same time.

SARANSH KANSAL

SAP ID: - 80303180090

Submitted to: - Dr. Kavita Kulkarni