Uber Case
Uber Case
Uber Case
Views: Recommendations:
● Uber is just a platform which has simplified the user ● Defining driver selection process and sharing it with
journey & experience for taxi booking compared to what Governments so as to maintain transparency and ensure
used happen earlier. the safety of passengers.
● Government regulations are important but not required to ● Aligning policies with respective governments to certain
be implemented excessively if some technology is extent so as to avoid clashes and run smooth operations.
disrupting market for a better change. ● Adding more employee benefits scheme so as to avoid the
● Discouraging Uber’s operations just to encourage other
criticism of partner not being treated as employee
competitors like Taxi Cartel or State Run Luxury car rental
services is wrong if its not beneficial for end users
Problem Statement: Surge Pricing Effect
Case Facts:
● During 2011's New Year's Eve, demand was extraordinarily
high, and prices were seven times the average.
● In 2013, when East Coast snow storms occurred, prices
rose dramatically once more.
● A large number of people expressed their unhappiness,
like Jessica Seinfield, who posted a picture of a $415 bill
on Instagram to express hers.
● Even with these criticisms, Uber continues to employ this
method to ensure that the number of passengers meets
demand during peak hours.
Recommendations:
● Uber should provide additional drivers for times when
demand increase so the prices don’t increase. It is possible
to expect some increases depending on the date, the
weather forecast and the information.
● Uber should promise not to exceed a certain percentage
above the base price even in times of high demand, as
they have done before. (Taken from the Exhibit 3 of the Case:
● Even though surge price effect can’t be removed UBER: Changing the Way the World Moves)
Case Facts:
● In 2013, its gross revenue was roughly around $500 million
and net revenue $100 million.
● In 2014, net revenue had grown more than $400 million
and a year later, company doubled that
● Uber was widely assumed to be taking a loss
● Investments came from high profile firms like Menlo
Ventures, Google Ventures, Fidelity and BlackRock
● Uber was subsidizing riders to gain control in Asian
markets
● Uber continued to invest in R&D
Recommendations:
● Uber should follow same operate-at-loss feature to grow
approach and expand that other disruptors have used. Eg,
Amazon
● Keep attracting investors and maintain low levels of debt
● Uber should stay private and re-evaluate IPO in next few
years.