essay 2 pages

Uber Technology Incorporated is a transportation network founded by Travis Kalanick and Garrett Camp back in 2009. Known as UberCab a decade ago, the company became a hit in San Francisco. The company rebranded to Uber during 2010 to avoid possible marketing tensions with existing taxi companies. Uber’s purpose is to grant riders the ability to request a ride from the several available drivers within a perimeter at an affordable price. All that is necessary is a smartphone with the application installed and the existing need for transportation. Uber not only offers rides but also an array of services such as food delivery, public scooters, and bikes, along with their recently announced new flight service, Uber Air, launching in select cities.

PART 2: COMPETITIVE CAPABILITIES EVALUATION

· Low-Cost Operations Evaluation

· In an analysis of Uber with its primary competitor, Lyft, both companies operate similarly in terms of revenue generation. However, Lyft pays their drivers better per ride, but Uber provides better Surge Deals for drivers; this is during times of high demand when rides are more expensive. Surge prices increase Uber’s payout up to seven to eight times whereas Lyft’s surge is only doubled.

· In comparison to Lyft, Uber loses more than $3 billion in operating losses annually compared to Lyft incurring just under $1 billion. Uber takes on these losses, which allow the company to maintain a competitive advantage from its predatory pricing while also offering a respectable pay package for their current and future drivers.

· Top-Quality Evaluation

· Uber offers niche ride-summoning features for their riders, such as: the ability to split the cost of fare with multiple riders, an option discontinued by Lyft. Wheelchair assistance and other special needs are accommodated for in approximately 15 of Uber’s top operating cities.

· Consistent Quality Evaluation

· Uber has been involved in a series of unethical practices during 2017.

· A former employee detailing of an existing culture of sexual harassment.

· Delivery Speed & On-Time Delivery Evaluation

· Paying mind to both the expected and unexpected allowances taking place, Uber’s ETA System is known to be punctual for its riders. Once a customer orders a ride, a driver is assigned with an estimated time of arrival.

· Development Speed Evaluation

· UberAIR is a concept that’s been in the works since 2016. It’s evident that Uber is an innovative company. Now being ten years old and possibly launching the first aerial rideshare service in the near future, the company could be viewed as an entity with swift development in their hands.

· Customization & Variety Evaluation

· For the customization and variety sections, Uber has a lot of variability. They offer many tiers of rides, in varying qualities, and with many options in between. The options are abundant and give the customer the flexibility to find a ride that meets their exact needs.

PART 3: SUGGESTIONS

1. Concentric diversification is an explorative strategy. With many private and independent storage companies emerging, Uber should attempt to extend its marketing services by introducing an appropriate fleet of moving vehicles. Services may include vehicles such as trucks, vans, and trailers for rent. This should be available for both commercial and domestic use.

2. Uber needs to significantly improve its overall software security. They were victims of a few serious cyber-attacks. Ensuring this higher level of security will improve customer retention and the brand’s overall image. As a result, Uber will go through fewer lawsuits, and customers will feel more secure when using Uber.