Additionally, while traditional taxis deal with customers through casual interactions and scheduled appointments, Uber delivers a ride service to customers via the smartphone app linked to a nearby driver reaching the customer within a minute. In particular, the model implies that Uber works as a private limousine service, allowing for evading the costly regulatory regime that suggests purchasing a “medallion” and undergoing strict screening procedures for drivers. SWOT Analysis Strengthsįirst, Uber developed a unique business model that significantly differs from conventional taxi services.
Therefore, the primary problem of Uber is its dishonest and disrespectful conduct towards its stakeholders, competitors, local and state governments, and consumers overall. This occurred because Uber created a “de Blasio” tab in its app, indicating the time that clients would have to wait due to the offered cap.
#Ubar and company drivers
For instance, in New York, the citizens made the mayor reject the idea of limiting the number of Uber drivers in the city. In this respect, Uber enjoys its broad support from drivers and customers to avoid interference from regulatory agencies. Such controversial status prompts the drivers to unionize and sometimes appeal to the local courts to defend their rights as it was when, in 2016, Uber had to pay $100 million.īesides, Uber is known for its rapid expansion at the expense of neglecting local and federal laws, which often resulted in legal proceedings and claims, as well as criticism from notable politicians and journalists. For example, Uber’s definition of drivers as independent contractors enables the company to shirk responsibility concerning paying minimum wage, driver payroll taxes, vehicle maintenance costs, and wrong actions or incidents committed by the drivers. In different cities, including its hometown San Francisco, states, and countries, Uber was fined and prohibited for various issues such as unreasonable overpricing, anti-competitive tactics, inappropriate drivers’ licensing, vague classification of drivers, among others. However, from the foundation, the company experiences significant concerns primarily related to federal and international regulations, corporate culture, public behavior, and the relationship with drivers and other employees. In the transportation sector, Uber has become one of the largest and most successful companies, demonstrating continuous commercial and technological growth and geographical expansion.
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