Analyzing the Marketing Environment

Activity 1.

Describe how Uber’s business model works and the role technology has played in

its success.

Answer: Uber's business model employs a multi-sided platform that provides both

drivers and passengers with a single interface through which they can quickly

connect and make payments. All passenger bookings are made using its

application, and the income collected from it determines the company's profit

level depending on the commission received every ride. Technology is the most

important factor in the company's success. Through technology, it generates leads

and provides a quick way to book rides and make payments via its website.

Technology allows both drivers and riders to quickly navigate, allowing the

organization to handle traffic and complex exchanges.

Arguments in favor of banning these type of business.

Answer: Some people want these companies to be outlawed because they

constitute a threat to regular taxi services and have a harmful influence on industry
competitiveness. They're also upsetting the industry's wage market equilibrium, as

many workers don't even make minimum wage, forcing them to work extra hours

to make a living.

Arguments against banning these type of business:

Answer: Many people believe that these services are critical for creating job

prospects in the new economy. It enhances consumer surplus and allows them to

receive a cashless and professional transportation service. It raises or lowers prices

based on the functioning of market demand and supply, allowing market forces to

operate freely.