THE QUEST FOR LEGITIMACY IN DIGITAL DISRUPTION : THE CASE OF UBER

GROUP 5
 GROUP 5

AJENG DAMAR ZAFIRA YUNARA

AWALLUDIN BUDIMAN RAHMAT
RARASATI SENJA
2201021020 2201021019 2201021018 2201021017
THE QUESTION
Where Do Your-group Stand In The Controversies Surrounding Uber’s
01 Disruption Of The Taxi Industry? Justify.

02
How Is Uber Similar To Traditional Two-sided Online Marketplaces, Like Google, And
Amazon? What Are Critical Success Factors For A Two-sided Online Marketplace?

03 How Robust Is Uber’s Business Model? What May Cause Uber’s Business
To Collapse?

04 Would You Consider Uber’s Performance Thus Far A Success? Why?

 OUR OPINION AS BUSINESS ANALYSTS

Actually, when viewed from the side of the use of opportunities. Uber doesn't break the rules.

Uber's position doesn't really disturb other taxi businesses because it comes back to how the

innovations of each taxi company are, whether it's conventional taxis or online taxis. Uber is

superior to regular taxis because they can use technology, whether it's for ordering, customer

convenience or even the safety of the Uber product itself.

 PESTLE ANALYSIS OF UBER
POLITICAL FACTORS ECONOMIC FACTORS SOCIAL FACTORS

Uber has faced controversy. In its initial The industry that Uber operates in is the Customers of Uber enjoy its easy to
development, Uber didn’t have clear sharing economy. It means that this access platform.
regulations. It was difficult to pinpoint economy is based on sharing physical
insurance lie in — if there is an or intellectual resources. In this case, Choosing an appointment and pick-up
accident, is the Uber driver at fault, or Uber hires drivers to respond to time is easy using the app on
the company itself? customer and drive them to a location. smartphones. It requires no
It’s often deemed cheaper than taxis communication rather than a few
They have faced additional scrutiny and easier to schedule an appointment. presses of a button. The cheaper price
worldwide; France filed charges based Uber has grown exponentially since its is enticing to many, which has led to the
on advertising, the Netherlands ruled initial launch. But countries have explosion of Uber’s growth all over
against Uber for their drivers not having banned or restricted its services due to North America.
Taxi licenses, cease and desist orders Uber having an unfair competition
from Portland, with additional ban against regular taxis. Other companies As consumers enjoyed their rides, they
considerations in Asian countries. in this industry face debate, but Uber’s posted about their experience on social
fast development has led them to be the media sites. Word of mouth spread
Additionally, there were political focus point. awareness quickly. But with the
discussions about minimum wage laws People are studying whether this type of popularity increase, prices in major
in the taxi industry, and whether Uber economy brings new career cities rose too. Good for Uber, but not
was abiding by these rules. The opportunities or takes them away from welcome by riders.
government requires commercial existing positions (Uber vs. traditional
licenses as well, requiring Uber to taxi driving). Or bringing in new Still, because of the ease of use,
provide that documentation. opportunities but for lower pay. customers choose Uber frequently. The
One thing is certain, Uber has grown at more accessibility Uber provides, the
an alarming rate — showing there is more people will use its services rather
economic potential in this market. But than taxis or even public transportation.
as Uber grows larger, other platforms
like Lyft must fight to stay relevant.
 PESTLE ANALYSIS OF UBER
TECHNOLOGY FACTORS LEGAL FACTORS ENVIRONMENTAL
FACTORS
Uber spread like wildfire through social Legal factors were touched on under the Uber’s effect on the environment is ever
media. People explaining their riding political factor part of this analysis. shifting. Many believe it increases traffic
experiences online spread and share congestion and fuel usage. But studies
stories. It encouraged new users to do Uber faces much criticism, bans and have shown Uber hasn’t increased
the same. Buyers are searching for attempted bans in locations worldwide. congestion.
cheaper transportation options and Uber The company must follow technical
fulfilled this need. usage laws, copyright laws, labor and People may use Uber instead of public
employee safety laws. transportation. Analysts will have to
Consumers make appointments through compare Uber fuel usage versus public
the app. An estimate for the ride cost transit versus own transportation for a
can appear in the app — it depends on thorough analysis of Uber’s
many factors like drop off location, traffic environmental impact. As many different
and weather. They can pay for the ride factors can contribute to the final
up front through the app too. And drivers number.
who are on duty respond and pick up
the passengers to take them to their
destination.

The app is incredibly important to Uber.

It can’t function if the app goes down or
suffers difficulties. The company must
ensure everything is working, reliable
and ready to go. Many drivers use 4G
networks to connect to the app — it’s
deemed critical to do their jobs.
 UBER IS OPERATING A TWO-SIDED MARKET, WHERE A STRATEGY TO
MEDDLE MAKESECONOMIC SENSE.

The Economic Structure Of Online This Two-sided Market Structure

Platforms Are Well-understood By Means That User Acquisition And
Business Strategists: platforms Must Retention Are Critical; each Side Of
Continue To Attract Users On Both The Market Needs The Other For The
Sides Of The Market — Both Market To Succeed. Two-sided
Buyers And sellers — Since They Markets Need To Keep An Optimal
Extract Revenue From The Balance Of Users In Each Group
Economic Activity On The Platform. Orrisk Losing Users On The Other
Side, Pricing Is A Key Consideration
For Platforms Operating these
 If UBER has too many drivers, they will be driving around aimlessly without learning anything and
will quickly abandon the service.
 If there are too few drivers available, riders might defect to a competitor.
 Uber’s surge pricing represents the company’s strategy to manage real-time supply and demand by
enticing more drivers out onto the road during busy periods.
 But behind the scenes, the company also needs to manage long term driver supply.
To Avoid Labor Regulation, The Company From a business strategy perspective, it’s in the
Vehemently Resists Establishing Contractual
company’s interests to make it as hard or
Employment Relationships With Drivers. Although
They Are Subject To Uber’s Terms Of Service, undesirable as possible for drivers to switch. This

Drivers Are Free To Switch Platforms At Will. economic imperative becomes highly relevant when
But Since The Barrier To Entry For Drivers Is
imagining all the ways Uber might be manipulating
Higher That For Riders Drivers Need A Car, Must
Wait To Pass A Rudimentary Background Check, its position as a two-sided market platform.

And Need To Commit Far More Time Than Riders

— Platforms Must Do More To Attract And Retain
Them.
o Uber works as a digital aggregator app platform, connecting passengers who need a ride from point A to point B with

drivers that are willing to serve them.

o “Passengers” generate the demand, “drivers” supply the demand and “uber” acts as the marketplace/facilitator to

make this all happen seamlessly on a mobile platform.

o Through its model, uber has been able to generate strong value propositions for both passengers and drivers to get

onboard on its platform and create disruption in the taxi/cab industry.

BUSINESS MODEL OF UBER

 Uber’s SWOT Analysis

STRENGTHS WEAKNESS
• Cashless Payment System. • The Idea Can Be Easily Copied.
• Uber Can Track And Choose Highly • The Relationship Between Uber And
Rated Drivers. S W The Drivers Is Ethically
• The Prices Are Lower Compared To Questionable.
Traditional Taxi Operators. • Privacy Concerns To User.
• High Standard Of Service.
• Verified Drivers And Cars.
• Operational Cost Is Quite Low.
SWOT
OPPORTUNITIES ANALYSIS Threats
• Can Spread the Business to other Country • Legal Regulations In Different
• Can Exploit other Service Countries
• Additional services like transporting older O T • Problem With Local Jurisdictions
patients to hospital, transporting children to • Increasing Competition Will
school and transporting pets to the vet can be Ultimately Decrease Prices
offered • As New Markets And Drivers Are
Joining, Fraud And Scandals Are
Also Increasing.
 UBER WILL COLLAPSE IF
Unable To Find A Solution To Privacy Concern 01

02
Unable To Find A Solution To Overcome Surge Pricing

03
Not Complying Local Licensing Rules

Not Looking For New Ideas

04
We can said UBER will be succeed in future, cause as we know at the case UBER can
solve their problems

SAFETY AND DRIVER INSURANCE

PRIVACY PROBLEM
BACKGROUND CHECK COVERAGE

• Uber hired a data privacy expert • Uber purchased an insurance

and a law firm to seek • Vehicle legally authorized to to provide primary third party
recommendations drive liability Insurance
• New privacy policies were • Must possess a personal • This insurance was issued that
shorte, simplified and explainable license were accepted even during the
period-1
• Users will be able to choose • Diver had to be at least 21
whether to share the data with years old
Uber
• Personal auto-insurance and
they will explain the SOP
We can said UBER will be succeed in future, cause as we know at the case UBER can
solve their problems
UBER’S BUSINESS
SURGE PRICING MODEL
• Won battle of banning by
reaching out to it’s customers
• The price was later shown not • Customer’s sent mails, twitted
only for distance and duration personally to the jurisdiction of
alone different states

• The price included tolls, traffic • Uber remover “taxi” from it’s
and surge prior to customer’s name as it was not a taxi
business so adhering to taxi
request for pickup
licensing rules was ruled out
Later
• Useful for customers during the
time of surge pricing

• Drivers time online was further

brokendown into 3 significant
components
ありがとうございました

Thank you