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UBER SWOT Analysis
UBER SWOT Analysis
1.1 STRENGTHS
Scalable solution, high potential for international operation – 30 points
market for taxi services exists everywhere.
Cash-less payments; ability to track and choose highly rated 25 points
drivers; getting a car with a single tap; clear pricing - ability to
check how much money you will pay up front and what the
price includes.
High valuation of Uber, large amounts of money from investors 20 points
are available for expansion of the company.
Low operational costs. The service is based on customer-to- 15 points
driver interaction through the application; no need for a
dispatcher or similar services.
Low prices compared to traditional taxi operators (uberPOP - in
Poland prices are 10-20% lower than a regular taxi).
10 points
No full-time drivers. Uber does not hire drivers, hence they do UNSELECTED
not have traditional responsibilities as a company toward
employees.
Convenient for the drivers: flexible hours, ability to serve Uber UNSELECTED
as a part-time employee. Ability to reject unwanted clients.
High standard of service (or very high: mostly with Uber Black), UNSELECTED
verified drivers and cars.
Ethically questionable relationships between Uber and its 40 points
drivers. Lack of real connection/loyalty between Uber and its
drivers.
Unpredictable business model. Uber is operating in highly 30 points
regulated market, constrained legislation and regulations.
Lack of bond between the company and its customers. For a 20 points
large number of clients the incentive to stay with Uber is low.
Low driver earnings in comparison to the high costs of operating
10 points
vehicle.
Privacy issues. Uber records where client gets the cab and UNSELECTED
where he goes with it.
Dissatisfaction with cab companies due to high prices or long 35 points
waiting time (especially in the U.S.).
Growing number of Uber's drivers will lower the ETA (Estimated
Time of Arrival) and make Uber service more popular and more
25 points
profitable for drivers (shorter time when the taxi is vacant).
New, big, exploitable markets in countries where taxi services
are expensive or inconvenient (e.g. India).
20 points
Increasing valuation, which can attract more investors and
provide Uber with more money to operate.
10 points
Additional services: transporting children to school, transporting 10 points
older patients to hospital, transporting pets to the vet.
Cheaper electric cars, which will reduce the cost of working as a UNSELECTED
driver and increase the driver’s profit margin.
Drivers unhappy with lower profit margins will cause bad 45 points
publicity and discourage new drivers from joining Uber.
New legal regulations which will ban Uber from operating in
certain countries (Germany).
40 points
Conflicts with local authorities, which can lead to a number of
fines imposed on the company (as in Germany) and potentially
10 points
bad PR.
Growing competition will cause a decrease in prices, which may
discourage drivers from joining Uber in new markets and will
5 points
cause loss of some customers and eventually dilute the
company's revenues.
In the distant future: self-driving cars (e.g. Google Cars) will UNSELECTED
completely eliminate the need of having Uber or a taxi.
WHETHER STRENGTH:
Scalable solution, high potential for international operation – market for taxi services exists
everywhere.
Cash-less payments; ability to track and choose highly rated drivers; getting a car with a single tap;
clear pricing - ability to check how much money you will pay up front and what the price includes.
High valuation of Uber, large amounts of money from investors are available for expansion of the
company.
Low operational costs. The service is based on customer-to-driver interaction through the
application; no need for a dispatcher or similar services.
Low prices compared to traditional taxi operators (uberPOP - in Poland prices are 10-20% lower
than a regular taxi).
WHETHER STRENGTH:
Scalable solution, high potential for international operation – market for taxi services exists
everywhere.
Cash-less payments; ability to track and choose highly rated drivers; getting a car with a single tap;
clear pricing - ability to check how much money you will pay up front and what the price includes.
High valuation of Uber, large amounts of money from investors are available for expansion of the
company.
Low operational costs. The service is based on customer-to-driver interaction through the
application; no need for a dispatcher or similar services.
Low prices compared to traditional taxi operators (uberPOP - in Poland prices are 10-20% lower
than a regular taxi).
WHETHER WEAKNESS:
Ethically questionable relationships between Uber and its drivers. Lack of real connection/loyalty
between Uber and its drivers.
Lack of bond between the company and its customers. For a large number of clients the incentive
to stay with Uber is low.
WHETHER WEAKNESS:
Ethically questionable relationships between Uber and its drivers. Lack of real connection/loyalty
between Uber and its drivers.
Lack of bond between the company and its customers. For a large number of clients the incentive
to stay with Uber is low.
vs
51.8 % 71.5 %
74.0% 27.2%
Strengths allow for the use of Opportunities Strengths allow you to overcome Threats
62.8% 81.3%
Weaknesses limit the use of Opportunities Weaknesses intensify the impact of Threats