Uber tried its level best to bring an end to the rivalry
Uber is a US based gigantic company that provides ridesharing services by facilitating a connection between the drivers and the riders with the use of an app. The drivers are also known to be the independent contractors. The company has expanded its operations to about fifty-eight countries around the world and it is valued at around forty-one billion dollars. The service costs are less than that of the traditional taxi, it has experienced resounding success and also it is looking toward the wider expansion all over the world.
Uber’s rapid success is creating a lot of challenges and for sure zoplay it will overcome the social and technical obstacles in the future. Some of the major cities are banning the ridesharing services like Uber because of various concerns. Recently, the taxi industry is arguing that Uber has an unfair advantage because it does not face the same licensing requirements as they do. The company has also faced various lawsuits, including a lawsuit filed against by them by its independent contractors.
Despite Uber’s challenges, the company has become widely popular among the consumers and the independent contractors. The supporters claim that Uber is revolutionizing the transportation service industry. The investors clearly believe that Uber is going Zuket to be strong in the market in the long run. It has a bright future and the expansion opportunities are great. It is, therefore, important for Uber to ensure the safety of their riders and the drivers.
What are the challenges faced by Uber?
The company faces a number of challenges including the internal struggles, legal and regulatory challenges, and global issues. In the United States, major cities are considering regulating Uber. However, it faces, even more challenges as it expands internationally as some countries are opting to ban Uber or certain services that it offers. The company will have to adapt its marketing strategy to address both domestic challenges within the United States as well as to the various laws enforced in different countries.
The company operates in an industry where the trust between strangers is vital. This trust enables a safe and comfortable ride for both passenger and driver. It has developed a rating system to help assure this trust and reliability between the passengers and drivers which are known to be rideshare rating system. This complex system poses a unique challenge for Uber because of the way they are set up and the level of rider objectivity. The company’s insistent policy known to be five-star fleet can put the drivers at a disadvantage. Uber rivals have also similar policies, for instance, Lyft tells the customers that anything less than five stars indicates unhappiness with the ride.
The low score drivers can mean the drivers are forced to take restorative classes where they can learn about safe driving techniques. Those who fail to increase their scores risk suspension or permanent deactivation. Because of the consumers have different opinions; it can be argued that Uber drivers are placed at the mercy of the consumer’s thinking. The drivers have also expressed unhappiness with Uber’s pay. It will also offer lower fare rates in order to gain a competitive advantage in different markets, which reduces the driver earnings. Additionally, the drivers are driving their own cars and spending their personal funds on insurance.
International expansion is a major target of Uber, and thus it has far established the ride-sharing service in fifty-eight countries. It assumes that the customers from other countries would also appreciate low cost, convenience, and freedom that its app services offer. Most of the countries have managerial barriers that have caused trouble for Uber to successfully operate in the conventional areas.
Uber addresses risks depending on four Important Key Areas
The number of critical drivers could get out of control if Uber increases its profit share deductions. The important laws of healthcare insurance, the drivers may require healthcare coverage. Training programs to improve the driving skills could reduce the risk from inattentive drivers, and decrease liability insurance costs.
Uber’s business model can be found in similar ride-sharing services such as Lyft, Sidecar etc. The day by day competition increases because of rental car businesses, air travel trains, charted buses etc.
Increasing the demand for rides for services is a future challenge because that requires attention primarily to safety improvements and the rates that have a benefit to both passengers and drivers. At present, the gigantic company offers technology-oriented products and it must continue to be competitive in an industry where there is an increased competition for the rates.
The users are cautious about downloading the apps, and some online businesses have been hacked for the credit card information. The company also could upgrade its database security system to reduce the financial or the personal account information risks.
Some of the customers experience long waits, inexperienced drivers and still more complaints have been reported. Better business complaints mainly involve pricing and problems with service. Uber might use the internet to check the consumer complaints and address them to improve the customer satisfaction.
What is the opinion from the Company side?
Driving an Uber cab for about six hours a day would make the drivers earn up to twenty-five thousand per day and at least would amount to thousand five hundred per day. The Uber drivers earn money from fares paid by the riders, but also from the incentives. These incentives vary widely by the individual drivers. The app-based taxi hailing company is expecting an increase in hiring and making it the most attractive choice. The future of the business depends on making driving with Uber. The company is seeking sustainable earning opportunities for the driver partners and sustained interest in driving with Uber about sixty percent year-on-year increase in driver sign-ups in the future. The app-based taxi hailing companies like Uber and the Ola are offering budgetary incentives to the Uber drivers for completing a set number of rides each and every day. The driver earnings have evolved over time and while some drivers do earn less than three years ago. Uber believes that driver earnings in India are attractive for the majority even after the reductions in incentives and the driver’s costs are taken into account.
The company also exclaims that the driver incentives were not only the thing they had to look into keeping in mind the economical rides so as to expand the business. The Uber drivers were categorized into two types, they are low end and high-end drivers where the low end would be driving for typically short distances and would reject rides more frequently and they are stable only to a particular area. The high- end drivers would prioritize driving at peak demand periods when the incentives are the highest and drive in the entire regional area. The small numbers of individuals who do not represent the majority of the driver community have been preventing drivers who want to work from doing so. The company has been communicating to the drivers through phone, text and video messages and in person at the important centers where every day thousands of drivers walk in to resolve the concerns.