Drivers: The number of disgruntled drivers could get out of…

LieutenantRedPanda4027  Drivers: The number of disgruntled drivers could get out of… Drivers: The number of disgruntled drivers could get out of control if Uber increases its profit share deductions. With recent laws mandating healthcare insurance, drivers may require healthcare coverage. Training programs to improve driving skills could reduce risk from negligent drivers and decrease liability insurance costs. Additionally, if Uber successfully expands into the autonomous car industry, it will most likely have to deal with resistance as autonomous vehicles could reduce and/or eliminate the need for drivers. Finally, strong competition in the industry has caused Uber to make changes in how it compensates drivers, which has prompted some drivers to complain that they cannot make a sustainable income.  Competitors: Uber’s business model can be found in similar rides-for-hire servic- es, such as Lyft and the Indian ride-sharing service Ola. More rides-for-hires could emerge, in addition to the everyday competition from taxis, limos, rental car businesses, air travel, trains, and city and chartered buses. Switching costs for customers are low, and because ride-sharing companies do not own their own fleets, costs of operating are much less than in other industries. This means that Uber must remain competitive if it wants to keep its customers loyal. Lyft is probably Uber’s biggest competitor in the United States with 20 percent market share. Its smaller size makes it easier for Lyft to subsidize drivers and lower fares. Expanding into the autonomous car industry will also place Uber in competition with Google, Tesla, and major automobile manufacturers that are also trying to enter the industry. Customer Base: Increasing the demand for rides-for-services is a continuous or future challenge that requires attention primarily to safety improvements and rates that have a cost/benefit to both passengers and drivers. Unpredictable demand is a future risk that could be met with product diversification. Currently, Uber offers technology-oriented products, and it must continue to be competitive in an industry where there is intense competition for rates. Technology: Customers are wary of downloading apps, and some online businesses have been hacked for credit card information. Uber could upgrade its database security system to reduce financial or personal account information risks. Additionally, success in the autonomous car industry will take a lot of investment from Uber, and many regulators are likely to be initially wary of self-driving cars—especially since there are so few laws governing it. Customer Satisfaction: Long waits, inexperienced drivers, and even sexual harassment have been reported. Better Business Bureau complaints mainly involve pricing and problems with service. Uber might use the Internet to check consumer complaints and address them to improve customer satisfaction.  The emergence of Uber has influenced many services to follow the Uber business model. There are similar firms that offer ride-sharing services, and there are firms that want to be an Uber-type business in the way they deliver goods and services. For example, Cargomatic has developed an app to help fill space on trucks. Cargomatic, which now operates in California and New York, has been called the Uber for truckers because it connects ship- pers with drivers who are looking for extra shipments to haul. This is signaling a shift in the industry, in which people are the infrastructure rather than buildings or fleets of vehicles. Uber faces a number of ethical challenges, including regulatory and legal issues both inside and outside of the United States. Laws that protect consumers specifically target taxi services, whereas Uber defines its services as “ride sharing” and Uber as an “agent” of their “individual contractors.” However, many courts do not view its services in the same way and are forcing Uber to comply with licensing laws or stop business in certain areas. Additionally, snafus by Travis Kalanick and Uber’s aggressive corporate culture has led to Kalanick’s resignation as CEO. Despite Uber’s challenges, the company has become widely popular among consumers and independent contractors. Supporters claim that Uber is revolutionizing the transportation service industry. Investors clearly believe Uber is going to be strong in the market in the long run. Uber has a bright future and expansion opportunities are great. It is therefore important for Uber to ensure the safety of its riders and the drivers. It should also adopt controls to ensure that independent contractors using its app obey relevant country laws. Uber has to address these issues to uphold the trust of its customers and achieve long-term market success.  1. What are the ethical challenges that Uber faces in using app-based peer-to-peer sharing technology? 2. Since Uber is using a disruptive business model and marketing strategy, what are the risks that the company will have to overcome to be success 3. Because Uber is so popular and the business model is being expanded to other industries, should there be regulation to develop compliance with standards to protect competitors and consumers? BusinessBusiness – Other