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Transcript

Outline

1

  • Introduction
  • Why it was a success
  • How it became failure in some places
  • What organizational structure Uber followed
  • Employees problem
  • Places where Uber was partially or Fully Banned
  • Recommendations and Conclusion

  • Aug 2008: Inspired by the difficulties to find a taxi in Paris, Travis Kalanick and Garrett Camp invented UberCab
  • Originally a private car service for executives
  • Communication through emails and codes
  • It is a mobile-app based instant cab service

Introduction

Overview

Jul 2010: UberCab went live as a luxury private transportation between San Francisco and Silicon Valley

In May 2011, the company changed its name to Uber

July 2012: Uber started to expand internationally.

Uber is in more than 500 cities

Business Model

  • Users can request cabs by simply entering their location
  • They can select the type of cab they are looking for.
  • They can also select cab sharing if available. This allows uber to match with other users who are may be going on the same route to combine their rides into one.
  • Drivers are matched by the system and the request is sent to the nearest drivers.
  • The drivers who accept is shown to the user.
  • The user gets an ETA of arrival as well as real time location of the driver.

Business Model

Model End

  • The driver gets direction to the user so he can reach the exact location.
  • Once the driver reaches the location, the user is sent a notification of arrival.
  • Once the ride is complete, the driver marks the trip as complete.
  • Ride fare is calculated and also shown to the user in real time as well as the driver.
  • Final fare is charged to the user on his credit card.
  • User can leave a review of the driver once the ride is complete.

2

Why UBER is Successful

#1

  • Making transportation safer with self-driving cars
  • Delivering food quickly and affordably with Uber Eats
  • Reducing congestion in cities by getting more people into fewer cars
  • Uber POOL launches in San Francisco Riders headed the same way share the ride and split the cost—that leads to less congested and less polluted with every ride.
  • Uber Freight launches:Uber Freight is an easy-to-use tool that connects trucking companies and their drivers directly with shippers

#2

  • Uber riders across the US donate #5MillionMeals to children in need.
  • Cities are safer after Uber teams up with MADD to reduce drunk driving
  • Deaf partners find a new way to earn
  • Former secretary of Defense, Dr. Robert Gates partners with Uber to create UberMILITARY. Only 18 months later, over 50,000 military personnel earn money driving with Uber

#3

  • Riders donate over 5,000lbs of clothes :#UberSpringCleaning to provide on-demand donation pickups
  • The purrrfect partnership October 2014Uber teams up with animal shelters across the United States to launch UberKITTENS. Riders request 15 minutes of snuggle time and cupcakes—all proceeds benefit local shelters.

Factors leading to Failure

  • In 2013, Uber New York manager Josh Mohrer and his team were caught ordering and then canceling thousands of rides from competitor Lyf (Griswold, 2015)
  • Assaults on Uber customers by Uber drivers, which led to criticisms of the company’s background check policy (Huddleston,2014)
  • Lawsuits plagued Uber as it expanded. Several cities took legal action to try to shut the firm down because of the threat it posed to the traditional taxi industry.Kalanick said the company was spending $1 million per year on legal costs
  • Uber's Travis Kalanick stepped down as CEO :the company had been facing numerous problems, including sexual harassment issues in the workplace.

Work Culture

Culture

  • The management style of Uber can be described as one that is hostile and extremely competitive to a point that managers are only interested in their own successes as opposed to a collaborative team approach.
  • The culture of any organisation is built upon the individuals that have the most influence
  • The culture of any organisation is built upon the individuals that have the most influence
  • Uber also faces at least three lawsuits in at least two countries from former employees alleging sexual harassment or verbal abuse at the hands of managers
  • One employee hijacked a private shuttle bus, filled it with friends and took it for a joy ride
  • Uber drivers were independent contractors rather than regular permanent employees of Uber. As
  • Contract workers, they did not receive health benefits, retirement, disability, vacation leave,
  • Unemployment or injured workers compensation; they were simply paid for the business they generated driving passengers.

Uber Organizational Structure

  • De-layering of organizational structure may be introduced, removing certain levels of management in order to make the business more flexible to respond to the changes in external marketplace.

UBER Banned

North America

United States: Uber is currently banned in Oregon, except for Portland and in central Oregon.

Canada: Uber is currently banned in Vancouver

Asia-Pacific

Australia: Uber is currently banned in the country’s Northern Territory.

Hong Kong: Uber is currently banned—though it continues to operate in defiance as drivers face increasing crackdowns.

Europe

  • UK: Uber will be banned in London, starting Oct. 1, if it fails to renew its license. It still operates in other cities and regions of the UK.
  • Bulgaria: Uber is currently banned across the country.
  • Czech Republic: Uber is currently banned in Brno, the country’s second-largest city.
  • Denmark: Uber is currently suspended because of government regulations.
  • France: Uber’s cheapest service, UberPop, is currently banned.
  • Germany: UberPop is currently banned.
  • Hungary: Uber is currently suspended because of government regulations.
  • Italy: UberPop is currently banned.

Recommendation

Recommendation

  • Deregulate fares
  • Cashless transactions
  • Licensing
  • Training
  • Insurance
  • Provide transparency on the algorithm used to set surge pricing
  • Uber should together their operation.
  • Captain information needs to be more transparent

?

Conclusion

References

  • Salmon, Felix. The Economics of Everyone’s Private Driver. Medium, June 1, 2014.(bit.ly/1MfTNsQ).
  • Bhuiyan, J. (2014, November 10). Exclusive: NY attorney general comes out against rules that would limit Uber and Lyft. Buzzfeed, retrieved

from http://www.buzzfeed.com/johanabhuiyan/exclusive-ny-attorney-general- comes-out-against-rules-that-w#.mdEX75p94

  • Uber. (2015, July 15). Mayor de Blasio's proposal will destroy 10,000 jobs [Video file]. Retrieved from
  • https://www.youtube.com/watch?v=xFOQ6ID6lvk
  • Uber. (2015, July 17). Don't let Mayor de Blasio strand New Yorkers [Video file]. Retrieved from https://youtu.be/ePAxy5PCeuk
  • Uber Crunchbase. (n.d.) Retrieved from https://www.crunchbase.com/organization/uber/funding-rounds
  • Uber NYC Launches Service (2011, May 3). Retrieved from https://newsroom.uber.com/uber-nyc-launches-service/

Any Questions

Thank You!

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