The paper "The Challenges Uber Facing Besides Establishing Company's Objectives" is a perfect example of a Marketing Term Paper. Uber as a mobile app was developed in San Francisco with the aim of reducing the waiting time for taxi riders. The app was based on customers logging into the app and submitting a trip request which is then directed to the nearest driver (Wingard 2016). Since the fare is automatically calculated by the software program, the Uber Company gets a commission of about 20-25%. Presently, Uber has reached about 66 countries and still growing with a net worth of $50 billion (Cramer & Krueger 2016).
This retrospect paper seeks to discuss the growth strategy at Uber by examining the internal and external environment for Uber and the challenges facing the company besides establishing Uber objectives. 2.0 Uber Internal and External Environment 2.1 Uber SWOT Analysis Strengths Reduced prices Free apps allow them to reach most of the targeted audience Opportunities Investment in electric cars to save on trip expenses Offer rides for patients and elderly Weaknesses Band public image due to rape cases No motivation for the drivers that lead to demoralization Threats Stiff competition Self-driving cars threaten Uber drivers Table 1.0 Uber SWOT Analysis Source: Posen 2015 By November 2016, Uber had become one of the dominating auto companies in the UK and the world at large (Cramer & Krueger 2016).
For instance, the 2016 valuation statistics indicate that Uber is worth $62.5 billion dollars which places it ahead of famous auto companies like Ford and GM besides competitors like Lyft, Ola, and GrabTaxi (Freier 2015). The statistics have been outlined in table 1.0 below Table 2.0 Ride-Hailing Auto Companies Stackup Source: Sonders 2016 The trend in the Uber downloads indicates that the app is the most downloaded app with regard to competitors such as Lyft in 2016 (Freier 2015).
Besides, very few Uber users also use Lyft which is contrary considering that most of the Lyft users also use Uber at the same time according to Survey Monkey statistics.
Cramer, J & Krueger, AB 2016, ‘Disruptive change in the taxi business: The case of Uber’,The American Economic Review, vol. 106 no. 5, pp.177-182.
Farrell, MB 2014, ‘New lawsuit claims Uber exploits its drivers’,The Boston Globe.
Fortune 2016, ‘Here's Where Uber Is Facing Some of Its Biggest Legal Problems’, [online] Available at: http://fortune.com/2016/10/28/uber-legal-lawsuits/[Accessed 16 Dec. 2016].
Freier, A 2015, ‘Uber Usage Statistics and Revenue’,Business of Apps, vol. 14.
Glöss, M, McGregor, M & Brown, B 2016, May,‘Designing for Labour: Uber and the On- Demand Mobile Workforce’, In Proceedings of the 2016 CHI Conference on Human Factors in Computing Systems, ACM,pp. 1632-1643.
Hall, JV & Krueger, AB 2015, ‘An Analysis of the Labor Market for Uber’s Driver-Partners in the United States’,Princeton University Industrial Relations Section Working Paper, vol. 587.
Kelly, RW 2016, ‘The Uber Effect’.
McGregor, M, Brown, B & Glöss, M 2015, ‘Disrupting the cab: Uber, ridesharing and the taxi industry’,Journal of Peer Production, vol. 6.
Posen, HA 2015, ‘Ridesharing in the Sharing Economy: Should Regulators Impose Uber Regulations on Uber’, Iowa L. Rev., vol. 101, p.405.
Roderick, L 2016, ‘Uber expands into food delivery as it brings UberEATS to London - Marketing Week’, [online] Marketing Week. Available at: https://www.marketingweek.com/2016/06/16/uber-expands-into-food-delivery-as- itbrings-ubereats-to-london/[Accessed 16 Dec. 2016].
Samuels, G 2016, ‘Uber drivers accused of 32 rapes and sex attacks in London over the past year’, [online] The Independent. Available at: http://www.independent.co.uk/news/uk/uber- drivers-accused-of-32-rapes-and-sex-attacks-on-london-passengers-a7037926.html [Accessed 16 Dec. 2016].
Sonders, M 2016, ‘These latest Uber statistics show how it's dominating Lyft’, [online] SurveyMonkey Intelligence. Available at: https://www.surveymonkey.com/business/intelligence/uber-statistics/[Accessed 16 Dec. 2016].
Tonin, G 2015, ‘Uber: Disruptive innovation and regulation challenges’.
Wallsten, S 2015, ‘Has Uber Forced Taxi Drivers to Step Up Their Game?’’The Atlantic. July, 9, p.2015.
Wallsten, S 2015, ‘The competitive effects of the sharing economy: how is Uber changing taxis?’ Technology Policy Institute.
Wingard, J 2016, ‘What Uber is getting right that other startups aren’t’, [online] Fortune. Available at: http://fortune.com/2015/09/19/uber-google-skills-gap/[Accessed 16 Dec. 2016].