DIGITAL BUSINESS –INDIVIDUAL ASSIGNMENT –UBER CASE ANALYSIS
Uber case study is a striking analysis because it is one of those rare innovative and disruptive companies that completely transformed the transportation industry and changed many long-standing beliefs and habits. The Uber case is about the value creation potential of sharing/gig economy businesses, the challenge of managing satisfaction in two-sided markets, the specific dynamics that make for a highly disruptive market entrant and the ripple effect that companies with highly disruptive value propositions have on an established market.
1. How do you evaluate Uber´s pricing policy? What are the up- and downsides of their pricing policy?
Uber connects drivers seeking rides and passengers …show more content…
They started off by building an app that enables drivers in San Francisco to connect with riders and launched the site in 2010. Uber’s aggressive business tactics have been how the company was able to grow in its early days. In the early years, it spent zero money on marketing, relying instead on word of mouth advertising to spread the news about its services. But this was only one aspect of Uber’s growth potential. After all, it created a disruptive business model whereby it used to earn direct revenues from every ride that took place and hence there was no need to make a huge investment in marketing and advertising; and, as seen earlier it could expand to different cities as well. These were main features of Uber’s service, and how it operates within its markets. Considering the current state of the taxi industry and the need by its customers and managing the demands, it’s difficult to think of a more diplomatic and soft approach in this market. However, things could change if the surge pricing could be dealt in a more gentle …show more content…
This service and the business model have its own strengths and weaknesses. Uber app is user-friendly, gets it advantages from the tech-front and systems and minimal glitches make Uber exceptional. However, Uber is inundated with legal questions with respect to liability questions and insurance issue, more than any other start-up services. There is a huge demand for such service among customers, but the overhead cost and expensive legal battles intimidate the business.Moreover, the business model can be replicated by others as well like Didi and Lyft and Ola. This is one of the weak links in its business model apart from the uncertain connection between Uber and It’s drivers, no attachment with Uber and it’s customers, High operating costs, Unpredictable business model and privacy & safety concerns for customers.Also, its app is not a powerful technological breakthrough in the current state of tech development, It does offer useful functionality, but since this software can be, and has been, easily replicated, it cannot generate a long-term
Uber case study is a striking analysis because it is one of those rare innovative and disruptive companies that completely transformed the transportation industry and changed many long-standing beliefs and habits. The Uber case is about the value creation potential of sharing/gig economy businesses, the challenge of managing satisfaction in two-sided markets, the specific dynamics that make for a highly disruptive market entrant and the ripple effect that companies with highly disruptive value propositions have on an established market.
1. How do you evaluate Uber´s pricing policy? What are the up- and downsides of their pricing policy?
Uber connects drivers seeking rides and passengers …show more content…
They started off by building an app that enables drivers in San Francisco to connect with riders and launched the site in 2010. Uber’s aggressive business tactics have been how the company was able to grow in its early days. In the early years, it spent zero money on marketing, relying instead on word of mouth advertising to spread the news about its services. But this was only one aspect of Uber’s growth potential. After all, it created a disruptive business model whereby it used to earn direct revenues from every ride that took place and hence there was no need to make a huge investment in marketing and advertising; and, as seen earlier it could expand to different cities as well. These were main features of Uber’s service, and how it operates within its markets. Considering the current state of the taxi industry and the need by its customers and managing the demands, it’s difficult to think of a more diplomatic and soft approach in this market. However, things could change if the surge pricing could be dealt in a more gentle …show more content…
This service and the business model have its own strengths and weaknesses. Uber app is user-friendly, gets it advantages from the tech-front and systems and minimal glitches make Uber exceptional. However, Uber is inundated with legal questions with respect to liability questions and insurance issue, more than any other start-up services. There is a huge demand for such service among customers, but the overhead cost and expensive legal battles intimidate the business.Moreover, the business model can be replicated by others as well like Didi and Lyft and Ola. This is one of the weak links in its business model apart from the uncertain connection between Uber and It’s drivers, no attachment with Uber and it’s customers, High operating costs, Unpredictable business model and privacy & safety concerns for customers.Also, its app is not a powerful technological breakthrough in the current state of tech development, It does offer useful functionality, but since this software can be, and has been, easily replicated, it cannot generate a long-term