Lê Quang

Trường
2005051203 – FUOB-12C

2005051203-Le Quang Truong

1.GIỚI THIỆU
1.1 GIỚI THIỆU CHUNG VỀ UBER
Uber là một ứng dụng dành cho thiết bị di động thông minh, điển hình là ứng dụng
được cài đặt nhiều nhất trên điện thoại di động thông minh (các hệ điều hành iOS, Android,
Windows Phones).
Về mặt bản chất, Uber là dịch vụ thương mại điện tử, cụ thể là dịch vụ “taxi chia sẻ”
hay “đi chung xe, đi nhờ xe”. Uber được tải và cài đặt hoàn toàn miễn phí trên các nền tảng
di động iOS, Android, Windows Phones. Uber có hai loại tài khoản do người dùng đăng ký,
đó là tài khoản “người lái xe” – tức là tài khoản của người có xe muốn cho người khác “đi
chung, đi nhờ” và tài khoản của người dùng thông thường – là người có nhu cầu tìm kiếm
một “Uber Driver” thích hợp cho chuyến đi của mình.
Tiếp theo, khách hàng có thể ung dung đợi một vài phút chờ một tài xế nào đó gần
mình gửi yêu cầu nhận chuyến. Khi đó, bạn sẽ nhận được các thông tin cơ bản về tài xế và
chiếc xe như: Họ tên, tuổi, tên xe, biển số, màu xe, số liệu thống kê các chuyến đi thành
công… Nếu đồng ý chấp nhận, tài xế ngay lập tức gọi điện hỏi địa điểm chính xác của khách
hàng và đến tận nơi đón người.
Cả điện thoại của bạn và tài xế đều hiện chỉ đường trong suốt chuyến đi. Khách hàng
không cần phải lo lắng tài xế gian lận quãng đường hoặc có ý đồ xấu khác như khi đi taxi
truyền thống nữa. Kết thúc chuyến đi, bạn chỉ phải trả bằng đúng số tiền Uber đã tính toán
cho bạn khi đặt chuyến đi cho tài xế. Thậm chí, bạn còn có thể đánh giá tài xế bằng hình thức
chấm điểm để những khách hàng sau dựa vào điểm số đó để lựa chọn có tin tưởng tài xế hay
không.
1.2 CÁC DỊCH VỤ CỦA UBER
The main ride-hailing services offered by Uber include:
UberX, Uber Pool, Uber Comfort, UberXL, Uber Black, Uber Lux, Uber SUV, Uber Taxi,
Uber Green, UberWAV, Uber Flash, Uber Pet, Uber Auto, UberX are the most popular
services with seats for 4 people.
In Uber Pool, you share your ride with riders and pay a portion of the fare. offers
original Uber service when you ride in a black luxury car. You can assist local taxis by using
Uber Taxi. Green helps you stay environmentally conscious with electric cars, and Uber
WAV gives you a wheelchair-friendly car. If you're not picky, Uber Flash makes UberX or
Uber friends. Taxis nearby. Uber Pet, which has similar terms to Lyft's pet policy, gives you
and your furry friend a ride. Finally, Uber Auto gives you an auto rickshaw. Keep in mind
that not all of these options are available everywhere. Some cities allow you to rent electric
bicycles or scooters. You can explore Uber Eats for restaurant food delivery. Uber Connect
allows drivers to deliver packages between homes. You can find transit times on the app and
Uber Freight matches drivers and shippers.

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2. Business analysis
3.1 SWOT analysis
Uber’s Strengths
Largest Ride Sharing Technology: Uber has positioned itself as the largest ride-sharing
technology in the world. It was one of the first ride-sharing apps, operating across the globe.
In 2020, Uber is available in more than 93 countries and over 900 cities, with 103 million
monthly users served by a total of 5 million drivers.
Strong Brand Recognition: Uber has maintained a strong brand recognition in over 93
countries. It has already overtaken GM, Honda, and Ford regarding brand value framework.
With its incorporation of new technological features, it is predicted to enhance its services in
the next few years. In 2020, Uber’s valuation stands at $75 billion.
Low Fixed Investment: Uber operates on low fixed investment (low operational cost) and has
easily accessed more cites in its communicative network. Because there is no fixed
infrastructure or investment in place, the company continues to expand at a fast pace.
Dynamic Pricing Strategy: Uber has remained consistent in its dynamic pricing strategy. It’s
“Higher the Demand; Higher the Price” policy has proven to be beneficial to its drivers and
industry. Its drivers earn a substantial amount at night time and during bad weather and
holiday nights.
Adaptive Nature: The adaptive nature of Uber has great recognition across the globe. Its
International exposure has allowed it to blend and integrate among different nationalities and
cultures. It in turns has helped Uber to earn trust and reliability. It has received acclaim for
its smart marketing. For example, the company uses its social media accounts to get in touch
with customers. Through Facebook, Twitter, and Instagram Uber lets its customers know
about deals, promos, and any updates. Additionally, the company also addresses the
complaints of its customers through social media channels. These social media channels are
great for customer engagement and quick feedback.
Low Prices as Compared to Taxis and Other Commute apps: Uber offers low prices as
compared to traditional taxis. The biggest difference between taxis and Uber is that Taxis
charge per mile (while traveling) and per minute (when not traveling). On the other hand,
Uber charges per minute and per mile for both moving and idling. This pricing strategy has
proven to be beneficial for customers. Additionally, Uber is cheaper than Lyft and SideCar in
20 major U.S cities. However, other variables affect the final price of a ride. These include
the geographical location, distance traveled, surge pricing, cancellation fees, and other trip-
specific additions.
Customer to Driver Interaction: The business model of Uber is ideal for a customer to driver
interaction. Uber has created a rating system that helps customers rate their traveling
experience as well as the driver. This rating system helps identify the best drivers and
monitors the performance of the drivers.

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Uber’s Weaknesses
Multiple Scandals: Uber’s brand has received negative coverage over numerous scandals and
controversies. Cases such as sexual harassment and targeted attacks have defamed the
company. It came to the point that its co-founder Travis Kalanick had to resign. Public
outcry over these allegations resulted in #DeleteUber campaign where about 500K users
deleted their accounts in 2017.
Substantial Losses: Although it has increased its revenues, Uber has been facing significant
losses since 2009. In order to beat out its growing competition, the company began providing
bonuses to its drivers and discounts to its customers. This investment has only resulted in
Uber’s net losses to exceed $2.75 billion in 2016. Losing $1.1 billion in the fourth quarter,
Uber said $243 million was due to stock-based compensation. So Uber lost $8.5 billion in
2019. Due to the impact of covid-19, Uber lost $6.8 billion in 2020.
Dependency on the workforce: Uber’s heavy dependence on its workforce and internet has
not been advantageous for the company. The behavior of its drivers has been unpredictable
and has damaged the image of the company. Over 103 Uber drivers in the US were accused
of sexual harassment and abuse which paints a poor picture of the company culture.
Public Backlash: Uber faced a severe public backlash over its high pricing during Hurricane
Sandy. This forced the company to revise its policy.
Exploitative Business Model: Multiple governments and workers’ unions are agitating for
Uber to change their business model. Uber’s model misclassifies its drivers as independent
contractors instead of employees, which robs them extensive benefits. Uber has been sued by
Massachusetts and California for misclassifying its drivers. [3]
Poor Working Condition: Most companies invest heavily to support their employees. On the
other hand, Uber’s drivers are almost entirely on their own, which exposes them to security
risks. Also, they have to bear expenses like insurance, repairs, and gas. [4]
Uber’s Opportunities
Accountability and Performance: Customers are no longer impressed by unorganized cab
services who have been over the market. This presents a lucrative opportunity for Uber. It
can improve by offering its services based on accountability and performance. By tracking
the performance of the drivers, the company can identify top performers. Additionally, the
company can address the numerous cases of sexual misconduct that have been reported
against many Uber drivers.
Utilize Digitalization: The world is becoming increasingly digital. More people prefer an
interconnected – network that is easily available on their smartphones. Uber should continue
to invest in services like Uber Eats and expand its customer base accordingly. There are
countries and places where Uber does not operate like China and Denmark. Uber can
increase its customer base by expanding its operations in these areas.

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Driverless Technology and other services: Uber has the potential to venture into driverless
technology and other special transportation services like ambulances or other forms of
emergency vehicles. This will help the company to differentiate, gain more popularity in
public and the mainstream media.
Logistics: Uber can also launch its own movers and packers for the public’s convenience,
They don’t have any shortage of resources after all.
Air Taxis: According to research by Morgan Stanley, the global market for electric air taxis
or flying cars is projected to grow to $1.5 trillion by 2040. Uber has partnered with Hyundai
to build flying taxi for Uber’s Elevate aerial ride-hailing service. The prototype was unveiled
recently and can carry four passengers for up to 60 miles per trip at 180 mph.
Strengthen Delivery Services: Recent events have increased demand for delivery services.
Uber already offers food delivery service via Uber Eats and can strengthen this service
further. In July 2020, Uber launched an app-based grocery delivery service in Canadian and
Latin American cities and planned to expand the service to the U.S.
Expand through Acquisitions: Uber recently acquired Routematch, a transit software
provider. The acquisition allows Uber to expand its public transportation service. It also
acquired Postmates for $2.65 billion to expand Uber Eats food delivery service and supply
everyday goods.
Diversify Offerings: Transportation in urban areas has been transformed by recent events.
Commuters are seeking alternative options to avoid crowded buses and trains. Uber can
exploit changes in travel habits. It recently acquired Routematch in its push into the public
transportation sector and is also offering its software expertise to several public transit
organizations.
Uber’s Threats
Customer and Employee Retention: With competition on the rise, customer and employee
retention can prove to be a challenge for Uber. Any financial incentive from its competitor is
enough to steal its customer base and employees.
Lawsuits: About 300,000 Uber drivers filed lawsuits against the company over the
company’s minimum wage policy. These were settled out of court However, the cases were
enough to threaten and damage Uber’s public image.
Increasing Competitors: Competition from Lyft and other transportation services such as Ola
in India has significantly affected Uber, DIDI Chuxing in China, Grab in Southeast Asia.
Stringent Regulations: Several U.S. states are enacting regulations focusing on the
employment status of tens of thousands of gig workers like Uber’s independent drivers. In
California, regulators ruled that all drivers should be classified as employees. Providing
employee benefits to all drivers can overburden or even bankrupt Uber.

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Economic uncertainty: Recent events have created uncertainty in markets globally. Uber was
forced to lay off 1000 employees in the first round and 3000 employees in the second round
after trip volume reduced by 80%. Also, it has spent $19 million to assist its drivers
financially.
Employees’ Strikes: Just like any service company, Uber depends heavily on its large
workforce. A strike can ground its operations and affect the bottom line. In June 2020, more
than 1000 food delivery drivers in Brazil participated in a strike to demand better working
conditions. [11]
3.2 Porter’s five forces analysis
This method is used for understanding the threats and opportunities for Uber in the current
marketing environment. Porter’s Five forces concerning Uber are as follows:
Threat of New Entrants: This threat is low for the Uber as barriers to entry are very
high. It is quiet difficult for the new entrants to handle all barriers or restrictions for creating
a successful place in such a high competitive market. Along with this, large regulations on
the amount of drivers also lower the threat of new entrants for the Uber.
Threat of Substitutes: This threat is high for the Uber in San Francisco as there are
various substitutes exist in the market like Public Transportation, Lyft, Sidecar and motor
bikes. Another reason for high threat of substitute is quality performance and price
comparisons. People like to prefer those services which provide high quality performance at
affordable prices. Due to this, Uber is offering its services at cheap prices at US (Wagner &
Piller, 2013).
Bargaining Power of Suppliers: Uber’s suppliers include oil and gas prices,
manufacturing leverage, supply of drivers, etc. The bargaining power of suppliers of Uber is
low due to the loyalty and fixed price strategy.
Bargaining Power of Buyers: In Uber, price of travelling are fixed and due to this
bargaining power of buyers is very low. Passengers have to pay the fix price which also
helps in maintaining trust and loyalty among them. This strategy helps Uber in building
strong brand image not only in US but worldwide.
Threat of Rivalry: According to the case, Uber is facing high threat of rivalry at US.
The company is facing high competition with the Lyft which is a privately held company
based in San Francisco. With respect to smaller competition, Uber has threat of sidecar
which offer passengers to select car as per their price along with the vehicle model.
3.3 Pestle analysis
Political Factors:
The political factors in the Uber PESTLE Analysis can be explained as follows:
Uber has always faced endless debates globally. Most of the government are worried about
the guideline of the sharing economy. Rising of Uber had a troublemaking effect on the
business of traditional taxi services which lead to a rise in disapproval against them at several
stages. Even government and law are concerned if they need to make new commandments
for the service providing companies like Uber. Political discussions about drivers being

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companies employees, not contractor have led to face a lawsuit in California, US. And this
issue not limited to the US only, Uber is facing the same issue in South Africa. The South
African government initiated seizing the uber cars because the driver didn’t hold a taxi
permit. Another discussion were the wage laws in this industry, and whether Uber was
adhering by these rules. Business licenses are also required by the government,
documentation to be given by Uber as well.
Economic Factors:
Below are the economic factors in the PESTLE Analysis of Uber:
Sharing economy is based on the physical and intellectual resources by Uber.
The sharing economy has generated employment for people in large numbers. A large
number of employment opportunities for drivers was created by this shared economy in the
case of Taxi services. Uber is also providing taxi services at a lower price which, causing
worry for the other taxi drivers. Traditional taxi services had to cut down their rate to remain
the competition. As people would opt for cheaper products and services in the economic
downturn, when it comes to economic recession uber does not get affected deeply as
compared to other industries. The development of Uber has been exceptionally quick even
when they have had a challenge of low prices put up by the normal taxi drivers maintaining
the incredible care they provide.
Social Factors:
Following are the social factors impacting Uber PESTLE Analysis:
One good thing about Uber is that customers have mostly been happy about the service
provided by them. Smartphones have made it even easier and friendlier for the people to get
a picking point, pick-up time a, dropping time, even people can track their routes. The price
has been less as compared to other taxis and this has lured many. Awareness has been
spreading by ads, social media and mostly by word of mouth. So with all this fame, the
prices of the rides have also increased especially in the urban areas which is good for Uber
but not taken up well by the customers. But even after everything clients pick Uber only
most of the times due to its usability. Due to its availability people have been inclined to
Uber greatly.
Technological Factors:
The technological factors in the PESTLE Analysis of Uber are mentioned below:
Innovation is at the foundation of everything enormous in the 21st century and development
doesn’t work without innovation. The ride sharing business for Uber has been an incredible
innovation aswell as an incredible experience for riders as well as drivers and this could only
have been possible through the technological advancement and innovation. Uber has
coordinated a few unique highlights into its application to give a remarkable encounter.
Geolocation being one of them, message pop-ups being another, Uber has it all. In this way,
innovation is one of the significant components driving Uber's quick development.
Legal Factors:
Following are the legal factors in the Uber PESTLE Analysis:

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Companies have to abide by the law or else they have to pay fines and Uber being in the
transportation industry, has great fines if not complied by the laws. Uber has been put on a
platform where it is being charged on by the customary administrations about the laws
applied to it. It is in legitimate trouble where a driver complained about low wages being
paid to them which has put them in a fix. The human asset value is being challenged at Uber.
Thus, In 2015, California state controllers decided that Uber must regard its drivers as
workers and not as temporary workers. In France as well, Uber was hit with fines over
unlawful driving without appropriate grants.
Environmental Factors:
In the Uber PESTLE Analysis, the environmental elements affecting its business are as
below:
Sustainability has been a concern for most of the businesses thus Uber has also given
importance to it. Traffic congestion and fuel consumption have increase, believed by many.
But studies haven’t shown an increase in the traffic due to the use of Uber cabs people may
have used Uber instead of public transport. Uber Green has been launched as its pilot project
to take sustainability into consideration. The project takes riders requests of a green ride at a
couple of buttons.
3. Industry Analysis
Trong nỗ lực thu hút người dùng và thâm nhập thị trường các nước lớn, Uber đã mất
hàng tỷ USD trong vài năm qua. Cụ thể, công ty gọi xe qua ứng dụng lớn nhất thế giới này
đã tiêu tốn 4,5 tỷ USD trong 2019 và 2,8 tỷ USD trong năm trước đó.
The company faces an array of competitors from global ones like Lyft, Gett, mytaxi
and Didi Chuxing to local ones like Ride Austin in Austin, Texas. One of the newer
additions to this ride-sharing market race, Singapore-based Grab, recently received $2.5
billion investment round led by SoftBank and Didi Chuxing. Looking at the number of
startups in this sector is staggering. They are all vying to take market share from Uber.
1. Mỹ
Tại quê nhà của Uber, đối trọng chính của hãng chính là Lyft. Đây là ứng dụng gọi xe ra đời
năm 2012. Với cách thức hoạt động gần như tương tự với Uber, Lyft vẫn có lượng khách
hàng thường xuyên đáng kể và cung cấp 18,7 triệu chuyến xe mỗi tháng chủ yếu tại thị
trường này.
Năm 2016, doanh thu của Lyft là 700 triệu USD, tuy nhiên hãng lỗ ròng 600 triệu USD.
2. Trung Quốc
Tại quốc gia đông dân nhất thế giới, Uber đã thử sức và thất bại hoàn toàn trước Didi
Chuxing. Dù là công ty có tuổi đời khá trẻ, ra đời sau thương vụ sáp nhập 2 ứng dụng gọi xe
lớn nhất Trung Quốc, Didi Chuxing lại có tiềm lực rất lớn và đánh bật Uber chỉ trong một
năm.
Uber gia nhập thị trường Trung Quốc vào năm 2013, khi đó Didi còn là một ứng dụng được
giới phân tích đánh giá là "tồi tệ, khó dùng". Tuy nhiên, hãng gọi xe Trung Quốc đã lột xác
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sau thời điểm năm 2015, đến năm 2016, Uber chính thức tuyên bố nhượng lại bộ phận kinh
doanh tại Trung Quốc cho Didi Chuxing, đồng nghĩa với một thất bại toàn diện.
Theo định giá của CNN, Didi Chuxing hiện có giá trị khoảng 50 tỷ USD, bám sát Uber với
giá trị 68 tỷ USD. Hai hãng gọi xe này đang là hai doanh nghiệp startup có giá trị lớn nhất
thế giới.
Didi Chuxing đang nắm vai trò quan trọng trong liên minh chiến lược toàn cầu, bao gồm cả
Lyft, Grab, Ola Cabs và Go-jek.
3. Ấn Độ
Tương tự như tại Trung Quốc, Uber đang vấp phải sự cạnh tranh mạnh mẽ từ một ứng dụng
địa phương, là Ola Cabs. Đây là công ty được thành lập năm 2010, mô hình hoạt động tương
tự Uber.
Nếu không có Ola Cabs, gần như Uber sẽ độc chiếm thị trường 1,3 tỷ dân của Ấn Độ. Tuy
nhiên, tình thế hiện tại đang là sự giằng co một chín một mười của hai ứng dụng.

Ola Cabs đưa ra mức giá gần như ngang bằng với Uber tại Ấn Độ. Hiện hãng vẫn đang vận
hành lỗ, nhưng CEO của hãng khẳng định doanh nghiệp sẽ sinh lời sau hai năm nữa.
4. Đông Nam Á
Đối thủ chính của Uber tại Đông Nam Á là Grab, với tên gọi trước đây là GrabTaxi. Từ một
ứng dụng bên thứ ba cung cấp dịch vụ gọi xe taxi thuận tiện, Grab ngày càng mở rộng và
hướng tới mô hình kinh doanh gần giống với Uber.
Ứng dụng từ Malaysia này hiện đã mở rộng hoạt động sang các nước láng giềng như
Singapore, Indonesia, Philippines, Việt Nam, Thái Lan và Myanmar. Hãng cũng công bố đã
chiếm lĩnh khoảng 70% thị trường ứng dụng gọi xe tại khu vực Đông Nam Á.
5. Châu Âu
Tại châu Âu, Uber không có một đối thủ lớn thực sự nào. Đáng kể nhất trong số những cái
tên hoạt động theo mô hình ứng dụng gọi xe theo nhu cầu là MyTaxi.
Trước nguy cơ bị cấm hoạt động tại London (Anh), có thể châm ngòi cho việc nhiều thành
phố khác ban hành lệnh cấm, Uber đang chịu áp lực từ cơ quan chức năng các thành phố
châu Âu nhiều hơn là từ các đối thủ cạnh tranh.

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4. Resources and Capability analysis
VRIO FRAMEWORK
For competencies and resources to become core competencies, they must be valuable (V),
rare (R), inimitable or irreplaceable (I), and exploitable by the organization ( O), known,
(VRIO). These measures can be used to examine the strategic value of resources and
capabilities and are discussed below:
 Valuable, Uber (implementing low cost strategy) offers their services at low prices
compared to traditional taxis and provides valuable high quality standard services to
its customers.
 Obviously, Uber's business model strategy can be replicated and it's easily available,
but combining and deploying Uber's resources and capabilities in its own way will set
it apart from the competition. .
 The ability to imitate, Uber is the first enterprise of the technology taxi industry,
therefore, customers prefer Uber over others. The implementation of Uber's
knowledge, experience, online transportation network and skills has catapulted the
Uber brand to fame both in South Africa and internationally, and created a loyal
customer base for uber for its high quality standards.
 Organization, hese resources are uniquely developed for the Uber, and cannot be used
by competing players in the industry. These resources have no substitutes, and thus
cannot be employed by companies other than the Uber, and as such allow the
company to exploit opportunities and make use of resources effectively for business
growth . Uber has financial strength, fuman resources, corporate leadership and
vision, employee training, investment in research and development, distribution
channels
Resources: The most important resources of the Uber platform are its network effect. It is
important to have proper data, algorithms and capability to analyze the insights. The network
effect between the participants i.e. drivers and passengers should be proper and effective.
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Along with this, the Uber app is also important to manage. Any issue or error to the app can
lead to big loss to the company.
Workers of the company are skilled and talented in the area of analytical, technical and
management skills. Recruitment of the city managers and large number of marketing teams
help company in reaching to the customers and improving their strategies. The effective
routing and pricing algorithms are invaluable resources of the Uber which are developed by
its technically talented employees. With the help of this, Uber services are more efficient and
effective.
Capabilities: The app of Uber is very user-friendly which helps in gaining competitive
advantages. Along with this, the company uses word of mouth technique for marketing of its
services.
5. Competitive advantage
Advantage 1: Greater size
Lyft said in a recent SEC filing that it has 39% of the market in the U.S., which leaves Uber
with nearly all of the remaining share. The U.S. is one of Uber's most lucrative markets, and
having about 60% of the ridesharing services here is a huge deal.
In 2018, Uber totaled $50 billion in bookings (the amount the company collects from its
users, before paying drivers and other fees), which dwarfs Lyft's $8 billion in bookings.
Uber's bookings also came from far more users than Lyft's did. One analyst estimate put
Uber's monthly active riders worldwide at 95 million in 2018, while Lyft ended last year
with 30 million monthly active riders.
Advantage 2: Brand awareness
Uber has the benefit of its name being nearly synonymous with ridesharing.Uber is present in
over 10,000 cities in 63 countries, and the cities listed even extend to surrounding regions.
Uber currently has 3.5 million active drivers. This is down from five million Uber drivers as
many are unable to find work during the COVID-19 pandemic. 3.5 million drivers serving 93
million consumers monthly, the number of Uber passengers decreased from 111 million to
93 million (16.2% decrease) from 2019 to 2020. At the beginning of 2021, the number of
drivers Drivers logged into the Uber app fell 37.5%.
Advantage 3: Strong financial backing
Uber's total revenue for three quarters of 2021 is $14 billion . Uber's total assets to the third
quarter of 2021 were $36 billion, an increase of 1.75% compared to the second quarter of
2021 and an increase of 27.5% over the same period in 2020.
Part of Uber's ability to grow so quickly has come from the company's significant financial
backing from early investors. For example, Uber closed its latest round of private funding
last October by raising $2 billion, giving the company a total of $24 billion in funding and a
valuation of more than $100 billion. Lyft, on the other hand, had raised about $5 billion
before it went public and is valued at about $24 billion.

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Uber's investors include GV, the venture-capital arm of Alphabet , Softbank, Toyota, and the
Saudi Arabian government. Uber has used the funds from these companies and government
to build out the biggest ridesharing company in the world. When it goes public, it hopes to
raise even more money from individual investors. The company's large market share and
huge valuation will likely convince investors to buy up Uber's shares and help the company
raise even more capital to expand the business.
Advantage 4: Diversified revenue and new opportunities
The company knows that focusing on passenger-car ridesharing may not be enough to satisfy
investors. That's why it's important for potential investors to know that the company's food
delivery service, Uber Eats, brings in more than $2.5 billion of the company's total bookings
each quarter. That matters not just because it offers alternative revenue from ridesharing but
also because the food-delivery business is estimated to grow to about $24.5 billion by 2023.
Additionally, the company is pursuing new opportunities like Uber Freight, which is a
platform to bring shippers and truckers together so businesses can move freight more easily.
The business is still in its early stages, but it shows that Uber sees itself as a broad
transportation company, with multiple segments working to make money.
Along those same lines, Uber is pursuing autonomous vehicles as well and is looking to them
as a future part of its business. The company is testing its own autonomous vehicle (AV) tech
in Pittsburgh right now and has also partnered with Toyota to work on new AV systems.
Toyota made a $500 million investment in Uber's Advanced Technologies Group last year,
and the two companies plan on releasing autonomous ridesharing vehicles in some capacity
in 2020.
Lyft and other ridesharing companies around the world are pursuing driverless vehicles as
well. But the reach and brand awareness of Uber make it a likely candidate for future
partnerships with companies wanting to launch their AV tech on a grand scale.
Advantage 5: Technological progress
Uber App Safety Features: Uber allows users to see license plates, pictures, car models and
colors, they can see driver and rider ratings to feel safe about the person you're interacting
with. The app has location sharing feature if you notify Uber of any safety issue you can
contact the emergency dispatcher on the app and you can share your location yourself with
friends and family. They keep your personal information private so the driver or rider can't
track you after reporting.
Notable user safety incidents . Some notable user safety incidents include:
- A driver kidnaps and sexually assaults a drunk woman
- A driver kidnaps an executive
- The driver used a hammer to hit the passenger
- A 2018 CNN investigation found that 103 Uber drivers had been charged with sexual
assault.
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6. Business-level strategies
Defined as a platform-based business model, Uber – at its core – acts as a
matchmaker for those seeking a service, and those providing it. Most famously, this takes the
guide of vehicular transport; users register either as drivers or as customers, with Uber acting
as the platform through which these two groups can then access each other based on their
location. Therefore Uber will use business strategies to grow and become number one in the
technology taxi industry as competitive strategy: It refers to a plan that combines the clout of
the external situation. Along with the integrative concerns of the personal status of an
organization. The competitive strategy aims at gaining against a competitive advantage in the
marketplace competitors and business strategy: This strategy emphasizes the building up of
the company's competitive position of products or services. Business strategies compos of a
competitive and cooperative approach. The business strategy covers all the activities and
tactics for competing in denial of the competitors. And behavior management addresses
various strategic matters. Uber has also used an operating strategy to an advantage over all
competitors in the world and has prioritized focusing on finding talented leaders to lead the
company to success.
Competitive Strategy:
A pioneer of the sharing economy, Uber’s business strategy is both a cost-leadership
and differentiation strategy. The cost leadership advantage comes from the fact that it offers
customers a lower price than traditional cab services do. Its differentiation strategy stems
from its ability to overhaul how people think of the transportation business (Rasheed 2012).
In other words, its business differs, fundamentally from conventional taxi operators. For
example, part of Uber’s success story has hinged on its ability to provide customers with
clean and stylish cars, at any moment, and at all locations that it operates. Traditional cab
services cannot offer such sureties. This differentiation strategy is mainly supported by an
innovations strategy. According to Rasheed (2012), an innovative business strategy is one
that strives to enhance a company’s success through product and service innovation. At the
core of such a strategy is the ability to show clients that the traditional way of doing business
could be improved. Typically, companies that adopt an innovative business strategy
demonstrate that their service could be adopted through a disruptive technology, or through a
product improvement strategy (Rasheed 2012).
Business Strategy:
Uber demonstrated that its differentiation strategy is disruptive, as opposed to product
enhancing. In other words, it fundamentally changed how people use taxi services. Indeed,
the company has used innovation to disrupt the traditional models of taxi business by
introducing flexibility to the business model and reducing operational inefficiencies
associated with linking drivers and customers. Through innovation, the company has
provided a more reliable and efficient flow of information between customers and taxi
operators by taking advantage of GPS mapping, which could pinpoint where a customer is
and where he wants to go to. The same differentiation business model has created more trust

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between customers and taxi operators because clients could easily determine their fares
before they order a ride. This way, there is minimal probability that the client could be
overcharged. Innovation has made all this happen. Tamberino (2016) supports this strategy
by saying its focus on creating a virtual–based company, as opposed to the capital-intensive
model of taxi business has increased the company’s profitability and made it capable of
adjusting to different market dynamics as well as respond quickly to market challenges.
At the core of Uber’s differentiation strategy has been an unwavering focus on
technology. The company has invested a lot of money in developing and iterating its mobile
app to make it seamless and responsive to market needs and demands. This approach affirms
its steady steadfast commitment to make its operations user-friendly and adaptive to different
market dynamics. Its tech focus has allowed the company to seamlessly connect customers
with taxi operators without necessarily having to set up a brick-and-mortar business, as
traditional business models would demand. This advantage has partly spurred its cost
leadership advantages. It has also provided it with scalability advantages and eliminated
barriers to growth. Optimization for ease of use has also helped the company to venture into
new businesses, such as delivery services, without necessarily having to tweak its business
model. The combination of cost leadership advantages and product differentiation benefits
are at the core of Uber’s business model and are responsible for most of its current success.
Operating Strategy:
Uber’s internationalization strategy
Internationalization strategy has been one of the most successful strategies in the past
decade which had a perfect business model to complement it. In 2020, Uber is available in
more than 93 countries and over 900 cities, with 103 million monthly users served by a total
of 5 million drivers. Foreign direct investment is what Uber followed and the company did
not have to license anyone or acquire any company to start its business in another company.
The company started its own offices in the new country, hired appropriate talent and used its
expertise and capabilities it has developed in the US to emulate that success in these
countries. The business model does not have any cultural or organizational barriers to
overcome. Uber also did not have to set up manufacturing plants or fulfilment centres in
other countries to start with. The company did not have to invest in heavy marketing and
advertisements after the initial stages and the brand earned good recall quickly.
Uber's top executives:
Following the operational departures of Camp and Kalanick (Camp remains a board
member, while Kalanick resigned as CEO in 2017 and sold off the majority of his shares in
December 2019), Uber is now under the operational control of former Expedia CEO, Dara
Khosrowshahi.
CEO: Dara Khosrowshahi (2017-present)
With a leadership style that could be deemed a combination of transformational and
democratic, Khosrowshahi is nothing if not different; he has been publically described as the
polar opposite of his predecessor, who – to the increasing detriment of the company – was

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far more aggressive and autocratic in his approach. Termed a "listener" by senior Uber
executives, the Tehran-born Brown alumnus described the situation he inherited as "messy",
spending much of his first year consulting with employees, engineers and drivers who had
grown disillusioned with the increasingly "toxic" culture at the company. He has since been
responsible for leading Uber's IPO, as well as attracting significant investment and
accelerating product diversification.

CFO: Nelson Chai (2018-present)

An experienced former investment banker and financial executive, Chai was
appointed as the company's CFO specifically for his IPO-heavy background; hand-picked by
Khosrowshahi, he is also an important ally in Uber's notoriously volatile boardroom. Despite
significant initial losses on the company's aforementioned new ventures, Chai, along with his
boss, has been keen to allay fears and is responsible for managing the expectations of the
company's shareholders accordingly.
CTO: Thuận Phạm (2013-present)
A talented MIT graduate and former HP engineer, Phạm was allegedly interviewed
for 30 hours over the span of two weeks before being hired as Uber's CTO in 2013.
Responsible for scaling the company's technological infrastructure to keep pace with the
growth of its real-time consumer demand, Phạm has enabled Uber to go from handling
30,000 rides a day to 14 million per day, creating a resilient and robust architecture that
continues to thrive.

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