One major strength of Uber is its debit/credit card only payment method. This would inevitably affect the amount of available drivers, raise prices, things that would destroy the pros of Ubers entire market. I really liked you post! Uber has revolutionized ride sharing and kickstarted a movement of Gig economy market. Uber has had many investors who have invested over a billion dollars, and at one time, was seen as a company that was trending in the right direction. Allowing the drivers to be independent contractors allows them to have more flexibility with when they want to work and it allows them to make as much money as they desire in the amount of time that they desire. 3. Once the ride is requested the driver is then sent a notification that someone needs a ride and where they are located. Uber also has a questionable longevity, due to its heavy dependence of the internet. What are it’s strengths and weaknesses? I also happen to agree with everything you said in your answers to the questions. On the other hand, I’ve read that these laws have had an adverse effect on some of the other “gig” jobs. On the other hand, some weaknesses consist of the legal and liability side of uber. If so, why? Like most things in life, jobs change with the times. Hi Tony, 1) What is the Uber business model? The passenger’s credit card is used as the sole payment method. For a city of, what, 15 million people, that’s an awful big difference. Uber has placed itself as the leading ride-sharing application and it is one of the first ride-sharing apps, operating across the globe. pension plan, insurance, vacation pay, etc.)? With the workforce, employers are now seeking people who balance work and play, and who work at what they are passionate about, are often more focused and productive. We offer a comprehensive line of stainless steel equipment. The total process is very simple, registered Uber users asks for a taxi using the Uber app, an Uber driver then dispatched to the passenger’s location and assist the passengers to reach his destination. Il nostro team in Italia. Also, it is okay for people to create new products or services that differentiate themselves, that is exactly what happens in a competitive market. The increasing regulations (which cut into the ability of Uber to maximize their revenues) and the lawsuits have helped contribute to Uber’s $1.1 billion losses claimed in 2019. A few weaknesses are that the relationship between Uber and the drivers is ethically questionable. So, I do not think Uber should be banned, but I do think the ride-shares should be as regulated as the taxis. Uber will appeal the decision, Transport of London, which is responsible for regulating taxi and private services, said Uber did not meet the “fit and proper” standard required to hold a taxi license, This highlights Uber’s overall struggle to enter European markets such as Germany, Spain, Italy, and Denmark because of stricter regulations, This is not the first time Uber has had their license revoked in London. – Uber is a smartphone app which provides on-demand service to users. The imputed value for Uber was $17 billion. I also see this as a demand from society as they were not getting what they wanted from the taxi industry so they choose Uber instead. This gives them ability the work around their schedule to make a couple of extra bucks. The strengths to the business model are that it is usually more affordable than ordering a taxi, and allows the customer to order the Uber right from their smartphone without having to use cash like you would for a taxi. Uber does not hire drivers, there are no responsibilities toward employees. When you need a ride, just pull out your smartphone and tap a button to order a car. Therefore, it can be argued that operating at low costs thorough innovation is placed at the core of Uber business strategy. One notable weakness Uber has directly impacts their drivers and becoming an increasingly ongoing problem that is forcing drivers to leave the app entirely. What are its strengths and weaknesses? Uber has made a rating system that assist customers to rate their riding experience as well as the motorist. Essentially, its like a taxi that you can call at any time. Uber’s business model is not like the Taxi business. This is what competition of the market looks like. To gain a good understanding, I think it is important to see how the IRS defines what and independent contractor is. Rates vary based on time of day and if rides are in high demand. They provide this kind of car-matchmaking service without having to provide the cars, fuel costs, or other incidentals to the drivers, and while also avoiding having to pay for other employer-related costs, such as healthcare and other benefits, retirement benefits, sick days, etc. This is a great aspect of the business as it allows for there to be rate transparency and ensures the costumer is not getting ripped off. Uber is so successful today because of the Business Model Innovation. Uber was built off the idea that drivers are their own boss. In my opinion, obviously it’s not “fair” that this market is losing business. Additionally, the medallion thing… I mean, you can’t just get rid of them, I guess, because of how much is invested in them, but that system needs a kind of overhaul. It can help the employees potentially make more money, but they are more at risk with their hours of service and also their independent ratings when they are on call. At Aurora, we are driven by our mission to deliver the benefits of self-driving technology, and guided by our values, including focus, setting outrageous goals, and creating a culture where we win together. Share. It most definitely goes both ways in regards to the drivers being considered independent contractors. If not, what range of responsibility should Uber, and other companies like Uber, have on their workforce? Now, Uber is faced with many hurdles ranging from safety concerns and employee conditions. Lyft and Uber disrupted the taxi industry by giving riders a way to hail a ride and pay their driver with their smartphones. reguardess of these however, Its still a marketable service to this day, and it may not be the best, but it does do its job well. I’m not too sure. If the Uber driver is listed as and employee then I think Uber should have to take a more in-depth approach to vetting who can become a driver. Tony, I feel that it definitely possible to for the system of Uber to remain the same due. Does something like this constitute shutting down and banning the service, or does the fact that their model is not the same as a taxi model enough grounds to disagree? This would allow for the drivers to maximize their earning and could open up a few different advantages for Uber itself. Another major weakness of Uber, is that the brand of Uber is heavily dependent on its behavior of its drivers and when its unpredictable, the company name is tarnished every time a story leaks and gains traction. Also, the dependency on the workforce. I did notice they took a hit with COVID and are no longer offering pool rides, only Uber X which may hurt the connivence appeal that they typically offer. Is Uber disruptive innovation? This is like any other business or industry, when the current system in place is not working then a new business comes in and takes some of their cliental and revenue and if the original business does not change to meet the needs and demands of clients then they usually die out. Again, mixed feelings on this one. The criticism of Uber from taxi drivers is that Uber, and other companies like Uber, are putting many taxi drivers out of business in large cities such as New York. The company knows that their customers complain all the time about their pricing and how its to expensive but the company has refused to lower it. Do you agree with The California State Law which now requires companies like Uber and Lyft to treat their workforce like employees as opposed to independent contractors? All of this is a low-cost market where the driver gets a good cut (80%) and can still grow. I also agree and like how you touched upon the aspect of following the California law, and that they also should be paid and regulated due to the similarities between processes of hiring full-time employees. The other form is when a company provides a mobile app (for a fee) that suppliers and customers use to buy and sell goods and services, Disruptive innovation is an innovation that creates a new market and value network and eventually disrupts an existing market and value network, displacing established market-leading firms, products and alliances, Not all innovations are disruptive, even if they are revolutionary, For example, when automobiles hit the markets, they were not disruptive towards the market of horse-drawn vehicles because automobiles were seen as an expensive luxury item, Disruptive innovations tend to be produced by outsiders and entrepreneurs in startups, The business environment of market leaders does not allow them to pursue disruptive innovations when they first arise, because they are not profitable enough at first and because their development can take scarce resources away from sustaining innovations (which are needed to compete against current competition), A disruptive process can take longer to develop and usually have more risk associated with it but when it hits the market it achieves much faster penetration and a higher degree of impact on the established markets, Beyond business and economics disruptive innovations can also be considered to disrupt complex systems, including economic and business-related aspects, A gig economy is a free market system in which temporary positions are common and organizations hire independent workers for short term commitments, The term gig is a slang word for a job that lasts a specified period of time and is usually used by musicians, Examples of gig employees include freelancers, independent contractors, project based workers and temporary or part time hires, Gig employees have become more popular in the more recent years, has also contributed directly to a decrease in jobs as software replaces some types of work to maximize time efficiency, People tend to change jobs frequently throughout their life so the gig economy can be seen as an evolution through that, With this type of economy saves businesses resources such as benefits, office space and training and have to ability to work with experts for specific projects that might be too expensive to hire as staff, The gig economy is part of a shifting cultural and business environment that also includes the sharing economy, the gift economy and the barter economy, employment rate between the highest- and lowest-income families is at its widest it has been in 10 years, For those earning $20,000 or less the unemployment rate is 21 percent, close to what it was during the Great Depression in the 1930s, A new revolution is currently taking place, that will form a new type of economy. I think that cities should allow Uber to compete within the transportation market. On one hand, I like the protection and support of all workers. By doing this, it would take away the flexibility and freedom the workers currently have. Print. – I personally think they should keep allowing companies like Uber or Lyft enter into cities because it serves as a major convince for people. With all of the service and Uber gets 20 % of the worker ’ s key strength has to doubling. Uber services reduces customers journey steps and makes everything easier and faster the edibility to have protections! Each ride excluding tips employees when AB5 took effect January 1st ; AB5 is California ’ s business model that... Innovation is all about and that advantage is totally fair in the taxi company called the gig.! For each question will determine the market, due to the taxi service essentially! Also be the pricing for not updating their services and internet has been! 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