Category: Uber

This report aims to provide business solutions to a multicultural issue that affects Uber Technologies Inc. Uber represents a visible multinational company that has received considerable negative attention in the media. However, few people know of the extent of its aggressive management approach that led to various problems such as sexual harassment scandals, discrimination, ethical issues, and so on.

Much of the publicity about Uber is both a direct consequence of and a direct consequence for stakeholder relationships. This case was created using secondary data sources from publicly available sources. In order to choose this company, the author made research and after looking into the available data, decided upon Uber or H&M. The author went to the designated team and presented arguments in favor of choosing Uber. After every member confirmed, the author informed Professor Khan.

The team agreed for each member to do their research and then confront the information and link it. The case study structure attached at the end of the appendices represents a summary with some sources to the secondary data websites of the information that the author presented to the professor in order to get feedback. After the presentation, the team split the issues, each member focusing on one intercultural issue. The issue on which the author focuses is related to discrimination. After analyzing the context, the author made some recommendations in order to eliminate that threat using cultural theories from course slides and recommended books.

Nowadays, discrimination is a very serious issue in both, personal and professional life. Many multinationals deal with its repercussions and have lost important sums of money by being forced to pay millions of dollars for discrimination settlements. Furthermore, the effects of discrimination go way beyond cash liabilities impacting the internal workforce productivity, the ability to retain and recruit staff, and even the brand image. This report focuses on the analysis of Uber’s discrimination issues and providing relevant solutions. The author chose this multicultural problem because it is linked indirectly to the majority of the other problems. Also, it is a very important issue nowadays.

A flawed organizational culture causes and empowers discrimination in the workplace. This statement is supported by Kartolo and Kwantes’ (2019) research in which they discovered that individuals’ perceptions of discrimination in the workplace are influenced by both perceived discrimination in society and perceptions of behavioral norms related to organizational culture. Findings indicated individuals’ attitudes and beliefs manifested in the societal context were carried into, and reflected in, the workplace. Additionally, beliefs related to organizational discrimination were found to be amplified or minimized depending on organizational culture; specifically, organizations dominated by culture norms reflecting behaviors related to individual security needs predicted higher levels, and culture norms reflecting behaviors related to meeting employee satisfaction needs to predict lower levels of perceived organizational discrimination.

This is the case of Uber, which had serious internal and external discriminatory issues in recent years. Most of their problems are linked to their bad organizational culture that doesn’t embrace diversity – “Our workplace culture and forward-leaning approach created significant operational and cultural challenges that have in the past harmed, and may in the future continue to harm, our business results and financial condition” (Uber IPO, 2019). Uber investors, Mitch and Freada Kapor (2017) wrote an open letter to the company’s board in which they were condemning Uber’s culture – plagued by disrespect, exclusionary cliques, lack of diversity, and tolerance for bullying and harassment of every form. Although their mission is ‘to bring transportation – for everyone, everywhere (Uber, 2019), unsurprisingly, they never respected that statement. Originally, drivers have been able to see just the origin, not the destination of a requested trip before deciding whether to accept it or not. Many times, if the trip was not long enough for them, they would cancel as can be seen in IMG 1. At the end of 2019, Uber changed their app algorithm (Uber Blog, 2019) and instead of trying to solve the problem, it made it worse. Now, drivers can see whether the journey will end in a wealthy neighborhood or a low-income one, and discrimination regarding social status may occur. A 2016 report from the National Bureau of Economic Research in the US found that female passengers were taken on longer, more expensive rides. This was down to “a combination of profiteering and flirting to a captive audience”, the report claimed. Black passengers, meanwhile, were made to wait 35pc longer for rides. Another report by the Kelley School of Business at Indiana University, published in 2018, found that riders displaying LGBT symbols in their profiles were almost twice as likely to be refused rides.

Also, the company’s cultural norms are not in balance with its actions. As an example, they affirm that they ensure people of diverse backgrounds are welcomed, encouraged, and heard. This is clearly not the case as the New York Times reported in 2018 that Liane Hornsey, the human resources chief, was departing. The staff change came after an accusation that she didn’t take allegations of racial discrimination seriously. Also, Business Insider (2018) reported that Barney Harford, the chief operating officer, had apologized to employees after complaints he had made insensitive racial remarks during a conference call.

Uber formed some empowerment groups – one for women, one for Asians, one for African-Americans, and so on for every minority category. Their aim was to show people that they value all genders and races but by grouping them and encouraging them ‘to form their own groups, they don’t support diversity, they split them. This might cause more harm if the groupthink phenomenon occurs. If some of the persons in that group feel discriminated by others, and they have any kind of power over the group or they become emergent leaders, they could also induce this idea to the others causing serious ethical breaches. For example, in 2018, two Latin-American women engineers accused the ride-services company of gender and race discrimination. The lawsuit ended with the company agreeing to pay $10m in gender and race discrimination settlement to 285 women and 135 men of color for financial and emotional harm. According to GLOBE Study, the Latin America cluster has an average score for Humane Orientation and Gender Egalitarianism. This means that people from that culture are not necessarily urged to be sensitive to forms of racial discrimination. Furthermore, they do not expect power to be distributed evenly among citizens, instead of accepting authority, power differentials, status privileges, and social inequality. Humane orientation means that a society “encourages and rewards individuals for being fair, altruistic, friendly, generous, caring, and kind to others” (House & Javidan, 2004, p. 13). There is relatively little and seemingly contradictory evidence on this concept. Kabasakal and Bodur (2004) explored the relation of humane orientation with other cultural dimensions of the GLOBE study and found humane orientation to be strongly positively related to institutional and in-group collectivism, and negatively related to assertiveness. Humane orientation was also negatively related to the willingness to justify unethical behavior (Parboteeah, Bronson, & Cullen, 2005). However, other results on humane orientation have raised doubts concerning an unambiguously positive interpretation suggested by its definition. Kabasakal and Bodur (2004) noted a positive correlation of humane orientation with right-wing orientation. Gupta et al. (2004) found a relationship between humane orientation and items on racism and xenophobia from the World Value Survey. Humane orientation was not related to either societal tolerance or well-being; instead, societies with a high degree of humane orientation tended to be poorer, less educated, and less urbanized than low humane-oriented societies (Kabasakal & Bodur, 2004). Bond et al. (2004) identified a positive relation of humane orientation with “dynamic externality” (a measure of a naive belief in a just world with authoritarian streaks) and a combination of high religiosity and superstitious beliefs. Its scores are relatively low on several other dimensions including Future Orientation, Institutional Collectivism, and Uncertainty Avoidance. In a conclusion, it can be stated that the groupthink phenomenon influenced the two Latin women to take this unusual decision.

Another fact that shows signs of race discrimination, as can be seen in IMG 2, is the distribution of Uber employees by ethnicity in different departments. It is obvious that around 50% of Uber’s employees are part of the white race.

In February 2017, according to Business Insider, Susan Fowler, an Uber engineer published a widely-read blog post in which she said HR ignored her complaints about a manager who propositioned her for sex. Fowler said she was told the manager was considered a high-performer who shouldn’t be punished for an innocent mistake. Considering the fact that the US had a relatively low Power Distance, Susan did not accept these power differences, and status privileges based on a dramatic lack of Gender Egalitarianism. Hofstede (2006) considers one of the aspects of predominantly masculine countries such as the United States – 62 (IMG 3) to be the prudishness about sexuality and gender.

Another important issue is gender discrimination. According to Uber D&I report (IMG 6), Uber female workers are still fewer than males. Figures from the firm show that 38% of Uber’s workers were women as of March 2018, up from 36% a year earlier, but women in leadership roles fell to 21% from 22% a year earlier.

The data (Uber report, 2018) indicates a continued need to focus on women (-1.8 percentage points), Black/African American (from 0% to 0.8%), and Hispanic/Latins (also from 0% to 0.8%) employees in tech leadership roles. Furthermore, in the tech department, the discrepancy between genders is very high, with only 21.9% being women (IMG 4).

The difference between the United Stated together with Canada and Latin America regarding gender employment is very obvious (IMG 5). While the first group had significantly more male employees, their southern neighbors almost reached equality in number. This could be owed to the average Gender Egalitarianism score which does not under qualifies women as it does in other countries.

In addition, a study from Stanford University (2019) has found that there is a gender pay gap at Uber with male drivers outearning women by roughly seven percent. During a typical week, a male driver would earn an average of $397.68 compared to a female driver taking home $268.18 on average. The study says that the entire gap can be explained through a number of factors. First of all, male drivers tend to operate in more lucrative locations. For example, they have a higher willingness to drive in areas with higher rates of crime and more drinking establishments. Another reason is that men drive more often every week and they accumulate more experience and capital. They are also less likely to stop driving with Uber and they have a lower tendency to cancel trips.

It is clear to say that Uber faces many multicultural problems such as sexual harassment scandals, ethical scandals, and discrimination. The root of all of these is the vague organizational culture which was not strong enough or even defined to deal with the intercultural differences that occurred on the international market in this globalization time. In consequence, the author gathered and analyzed secondary data from publicly available sources and came up with some recommendations. Firstly, the group thinking phenomenon could be used in order to decrease judgemental behavior and discrimination inside the company. Secondly, the organizational culture should be redefined and employees should be hired according to the company’s values. Next, the leadership and management team should know how to identify and fulfill their staffs’ needs in concordance with their culture.

If Uber manages to escape from this discrimination culture, the other multicultural problems will also disappear. In order to do so, the first step would be for the company to redefine and impose its organizational culture, including its values. Next, it has to change its employment criteria and start hiring cultural fits. It’s really important for them to understand that cultural fit shouldn’t be used to discriminate against diversity and that great company culture will reflect a diverse workforce. The reason behind this statement is that a multicultural team is described as being task-oriented (Marquardt and Horvath, 2001) and concentrated on accomplishing their shared objectives by taking advantage of their unique abilities, communication skills, and shared talents (Lane et al., 2009). As claimed by Rice (2010), in this context, the focus should be on embracing differences and planning a safe environment in which people can feel appreciated and respected.

All of these should be implemented by the manager. Its role is to motivate the people, decrease the level of uncertainty and reward good performance. According to Trompenaars and Hampden-Turner questionnaire (1998), a good manager is a person who guides subordinates continuously and helps them solve various problems as they arise. He/she acts like a parent, not a taskmaster. Mullins (2005) in examining motivation in workers suggests that a major determinant of behavior is the particular situation in which individual workers find themselves; motivation varies over time and according to circumstances.”

In consequence, in order to motivate people, the manager should use Maslow’s Hierarchy of Needs. Based on the gathered data, the needs of Uber employees are mainly gravitating towards Esteem and Safety level with an intense need for respect, security, achievement acknowledge. However, before applying this theory, the board should have some discussions with their staff in order to corectly identify their needs.

Hofstede suggests that this theory is based on ‘self-interested need/want satisfaction’, so people will need self-advancement and self-satisfaction which is gained through increased material rewards, increased status, and personal self-actualization. As a recommendation, in the United States’ case, awards such as ‘Employee of the month’ or annual rewards or bonuses should be given in order to stimulate because of its individualistic, masculine/achievement orientated culture with low uncertainty avoidance – these should awake their internal motivation. Management style should be a move towards theory X and the leadership needs to be strong. Rotter (1954,1982), describes the way individuals attribute responsibility for different events. In the case of the United States, they have an internal locus because of their focus on themselves and self-improvement, strong self drives to control the external environment.

Regarding the gender difference, to help address this gap, Uber should provide mentoring and coaching programs globally that could help people achieve their standards and with social integration and acceptance.

Turning to the next recommendation, group thinking might be a phenomenon that encourages discrimination in this company, as was discussed previously. However, it could also be a phenomenon that could contribute to decreasing its level. If Uber will start to offer training and coaching to their teams and lead by example (the board and the managers should inspire love and embracement for diversity), other people might change their minds and also embrace it. People don’t need to stay and spend their time only with people of their own race or gender, they should be mixed up in projects and departments.

Next, it is essential to build a campaign that would rehabilitate the brand’s image. Because of all that bad PR, people started to associate Uber with discrimination of all kinds. It is essential to project a new image and support it through all possible channels, including word-of-mouth. Employees are the most important aspect of this strategy – if they trust and respect the company, they could recommend it. If they don’t feel good working there, they will continue to spread the word and this will lead to another possible issue: lack of labor. People won’t want to work for a company that lacks ethic and respect towards their employees and customers.

In order to solve gender inequality, Uber should go for example to Universities and offer internships to students of all races and genders and build their knowledge through training and mentoring as they want and need to. This way, they will have loyal employees that will have the expected and required knowledge.

Introduction

Uber is a mobile application that allows taxi drivers to connect with their clients and to some level, make the drivers their chauffeurs. The application is a product of Uber Technologies Company founded about five years ago in San Francisco, US. There was profound growth in the popularity of the application especially in the US before it gained popularity worldwide. For instance, the Saudi market is one of the most recent acquisitions in the Middle East following a launch in Riyadh (Reynolds 1). There has been a tremendous response from people towards the application, with some of them describing it as an opportunity of owning a car and a driver. Such a response is albeit in line with the consideration that the country has about half of its adults banned from driving (Roth 1). As such, the people who cannot afford the luxuries of private cars get the chance of moving to places with the same comfortable private car owners. Today, the application operates in about 43 countries and more than 150 cities globally (Owen 1). Therefore, the application is an opportunity for many people in the Kingdom of Saudi Arabia to gain access to cheap taxi services. In this work, there is an analysis of the application’s usage and its advantages and disadvantages.

Privacy and Security Issues

There have been considerable concerns about the privacy and security issues of using the Uber application. In this case, it is noteworthy that the security matters relate to the driver and their clients while the privacy issues concern the data usage on the application. In consideration of the levels of security, it is needful to note that the developers of the application designed a system that would enable proper care of the clients. For instance, all drivers undergo a stringent screening process, which includes verification of their ages. In line with such a factor, the company recommends that all the drivers must be at least 21 years and have an additional clean criminal record (Cook 1). The latter issue requires that the police clear aspiring drivers before they get licenses. Another considerable factor is the need that the drivers to have an excellent driving record, which is a record from the relevant bodies in the Kingdom, and their vehicles must not be older than 2005 (Jennings-Edquist 1). All drivers that pass the preliminary stages undergo training on the usage of the application as well as customer service delivery efficiencies. The users of the application have a chance of viewing their driver’s picture and profile once they accept their job offers. The profile is based on a rating system for both the customers and the drivers. The biggest criticism that the software faces is its inability to protect private data from customers. The application keeps the records of the passengers’ destinations and schedules, which could pose a potential risk of data trafficking, as well as physical safety.

General Safety and Efficiency of Uber

Using the application is one of the most efficient methods that customers have to get drivers and travel between destinations. For example, the application competes with other taxi services in the country found practical all over the cities. For such a reason, the application has features that make it outstanding to the customers such as the allowance of sending a link for a live map of their destination to anyone they wish. In doing so, the application creates a feeling that the customers have all reasons to feel safe. The usage of the software allows the customers and the drivers to interact based on customer choice, which implies that clients will always have a driver at their disposal (Trenwith 1). The customers only need to log on to the application and find their destinations. They also have the choice of choosing the fare rates according to the levels of cars they wish to use. Using the software, therefore, give the customers a real-time experience with their drivers. However, the application has the problem of delayed arrivals in comparison to the white taxi cabs in the country. The delay for as many as 10 minutes during the off pick times and 20 minutes in the peak times. Therefore, such a constraint hinders the rather high efficiency of the application in fetching drivers for their clients.

Some People Do Not Welcome the Idea

As much as the use of the application provides an efficient chance to improve the state of taxi transport in the Kingdom, some do not welcome the idea (Al-Erian 1). Such individuals have several reasons for their stance, such as the fact that they feel that the application makes them vulnerable to insecurity because of the possibilities of data trafficking. The fact that the application leaves personal data of the users for public viewing scares people who are sensitive to cybercrime. Some other drivers may not welcome the idea because the company does not have its drivers, which means that drivers require their cars. Therefore, there are those with a feeling that the company should have made efforts to buy cars and hire drivers (Owen 1). Other people, especially the customers do not welcome the idea of Uber Taxi because of the delays experienced during times when they have to make urgent journeys. The rest of the people in the taxi industry who do not use the application have a feeling that the company takes away their customers, which is the reason for protests against its usage.

How Uber Transforms the Lives of People in Saudi Arabia

There are many ways that the application changes the lives of people in Saudi Arabia. Most of the transformations in the country that relate to the use of the application indicate the usefulness of technology in the performance of businesses. The first significant way is clinging to the status quo. For this case, the application gives the users a chance of riding with their preferred drivers at their favorite pick-up places (Bremner 1). Therefore, there is the generation of a feeling that the users of such services belong to the high social class. It also impacts the nature of business in the country by demonstrating that technology can add value to businesses (Kalra & Sanjeev 1). Another implication is the idea that the country has started embracing the use of technology as a method of opening up the economy to the outside world (Euronews 1). Such occurrences necessitate the use of modern technologies by industries in the Kingdom.

Conclusion

This wok has therefore analyzed the use of Uber mobile application in the Kingdom of Saudi Arabia. The application is a development of the Uber Technologies Company in San Francesco in the US allowing cab drivers to connect with their potential customers over the internet and arrange for travels. The application provides one of the safest platforms for customers in Saudi Arabia to order taxis through the screening process that drivers undergo before they qualify to work for the company. However, the biggest concern is that the application exposes its users to the danger of data trafficking and cybercrime. Most people welcome the idea, but some refuse it because of the inconveniences caused by arrival times and the security challenges. Therefore, the primary advantage of the application is that it gives the users a chance of interacting and strike deals, which enables the customers to ride with their preferred chauffeurs. However, the use of the application faces the criticism of exposing the personal data of the users to potentially wrong people.

Works Cited

Al-Erian, Mohamed. Column: Creative Self-disruption. The Financial Express. Financialexpress.com, 2015. Web.

Bremner, Caroline. Uber and Out? What Might the Future Hold for the Controversial Car-Sharing App? Euromonitor International. 2015. Web.

Cook, James. Despite The Scary Rape Headlines, Uber Is Probably Still The Safest Way To Order A Taxi. Business Insider. Business Insider, Inc, 2014. Web.

Euronews. Taxi Battle: Traditional Cabbies Take on Car-sharing Service Uber. RSS. Euronews, 2014. Web.

Jennings-Edquist, Grace. Explain to Me: “What Is Uber and Is It Actually Safe to Use?” Mamamia RSS. Mamamia RSS, 2014. Web.

Kalra, Aditya, and Sanjeev, Miglani. Uber Restarts Service in Delhi; Govt Says Firm Still Banned. 2015. Web.

Owen, Richard. How Uber Has Thrown Traditional Taxi Services Under the Bus. The Huffington Post. TheHuffingtonPost.com, 2014. Web.

Reynolds, Molly. Why Every Business Model May Soon Look Like Uber’s. Inc.com. Inc.com, 2015. Web.

Roth, Selma. Another taxi smartphone app takes over the streets of Saudi. SaudiGazette. SaudiGazette, 2014. Web.

Trenwith, Courtney. Qatar Fund Buys Stake in Taxi App Uber – Report. Arabian Business. Arabian Business.com, 2014. Web.

Background Information

Saudi Arabia initiated many projects of infrastructures and many extensive transportation network developments in order to support different economic growth. The Saudi Arabia highways in the city are always well maintained. The roads in the Riyadh capitals have been constructed with lots of care observing all the required measures needed in the road construction rules in making sure the roads are durable and of good quality. The roads were constructed with the best contractors, who made sure the right building materials were used to enhance the consistent resistance to high temperatures to avoid strong reflection of sunshine on the roads (Abdulrahman 159). The roads outside the city are not high as compared to those inside the city but the Saudi Arabian government is already rebuilding them. What are importance and limitations of provision of apps in the Saudi Arabian Market?

Taxis in Saudi Arabia have different shapes and sizes. Most of the taxi drivers come from the south Asia although recently the number of the Saudi Arabian citizens has been taking the job. The cost of taxis in Saudi Arabia is immensely cheap compared to London. The taxi cost in the country has never been fixed and all the taxi users are given an opportunity to negotiate. The transport system available in Saudi Arabia is the best since bus transport allows the passengers to travel luxuriously either locally or internationally. Renting a car in Saudi Arabia is the cheapest and most convenient practice, especially with the right documentation. Most of the people in this country rent cars due to the affordability and availability of parking space (Abramson 36). The parking space is always available, especially in the major city.

Research problems

The Saudi Arabian government came up with several programs that they believed were the lasting solution to the transportation problems facing the citizens. The Saudi Arabian government came up with an idea of introducing a carriage facility that would only be for women in order to give them the optimum privacy they needed the implementation of the project had not taken place yet. The Riyadh metro carriage is supposed to solve transport problems, especially on women (Kent 3493). Regardless of the existence of lots of cash in the government of Saudi Arabia, the country was faced with the problem of high prices of oil due to low-interest rates from the government, which caused a lot of troubles on the economy since there was very little return on the foreign investments.

The Saudi Arabian government had several programs that were supposed to be implemented by them in order to improve the living standards of the women and the poor in the country, but they had not yet been implemented. The delay of implementation of these programs has caused a lot of problems in the transportation sector since most of the women / poor are faced with lots of difficulties due to high-cost charges. The introduction of subways in the country was supposed to solve women problems, especially in transportation, since women would be allowed to drive by themselves (Pukthuanthong and Richard 230). Due to implementation delays caused by the government on their projects, the women problems are not yet solved and it seems it is even accelerating according to the recent statistics.

Research question

This research paper expounds on whether the online apps and uber should be allowed in Saudi Arabia by the government. The usage of uber in Saudi Arabia has become viral, especially with the ban of women to drive. The uber usage has enabled women in Saudi Arabia to be more independent and more company are believed to be willing in supporting it in order to win over the courts since some of the influential people in the Saudi Arabian government are to oppose the uber usage (Melick and Charles 103). The ride sharing and uber usage has greatly helped more Saudi Arabian citizens on transportation means when going for work and even from work to their respective destination.

The app companies recently have reported that the most of their customer in Saudi Arabia are actually women. Women are being empowered with the available and reliable cars instead of depending on the chaotic country’s systems of transport. These kinds of services are very beneficial to the Saudi Arabian citizens and should be embraced and supported since they are helpful to many people. These kinds of services have been of great help to the transportation sector in the country.

The services are believed to be accessible, affordable and easy to use by the citizen, that is why it became viral in a very short period of time in Saudi Arabia. Before the car booking apps were introduced in Saudi Arabia, women were limited to travel options. Most of them were forced to employ a full time driver, which was so costly due to the driving ban for women in the country (Pukthuanthong and Richard 230). Some of the women were forced to use taxis, which caused them a lot of problems since some of the taxis were in poor conditions and smelly. The use of taxi was very expensive to them and most of the taxis had several maintenance problems, such as the broken seat belts and meters. The uber usage has helped in solving almost the transportation daily challenges, such as waiting for so long in the street for a taxi or bus.

Claim

The uber usage and other online ride sharing app have been cost friendly to many, especially the women. Most of the women living in Saudi Arabia have greatly benefited with the services since they no longer wait in the streets while looking for taxis or busses due to the availability of this kind of services. The usage of these services is efficient and easy to apply compared to the usage of taxis (Kent 3493). The usage of uber and other ride sharing app can be of great problem, especially with the issue when women being banned from diving. Some of the drivers employed by companies offer these kinds of services to Saudi Arabian citizens, especially the women who are believed to be most users of those services.

Conclusion

In conclusion, the usage of uber in Saudi Arabia has become viral, especially with the ban for women to drive. These kinds of services are very beneficial to the Saudi Arabian citizens and should be embraced and supported since they are helpful to many people in Saudi Arabia. Most of the women living in Saudi Arabia have greatly benefited with the services since they no longer wait in the streets to find taxis (Melick and Charles 103). Most of the taxi drivers in Saudi Arabia come from the south Asia, although recently the number of the Saudi Arabian citizens has been taking the job.

Works Cited

Abdulrahman, Naser. “Application of quality tools by the Saudi food industry.” The TQM Magazine 19.2 (2007): 150-161. Print.

Abramson, Bruce. “ARCO1: An application of belief networks to the oil market.” Proceedings of the Seventh conference on Uncertainty in Artificial Intelligence. London: Morgan Kaufmann Publishers Inc., 2005. Print.

Kent, Matthews. “Market structure and competitive conditions in the Arab GCC banking system.” Journal of Banking & Finance 30.12 (2006): 3487-3501. Print.

Melick, William and Charles Thomas. “Recovering an asset’s implied PDF from option prices: an application to crude oil during the Gulf crisis.” Journal of Financial and Quantitative Analysis 32.01 (2007): 91-115. Print.

Pukthuanthong, Kuntara and Richard Roll. “Global market integration: An alternative measure and its application.” Journal of Financial Economics 94.2 (2009): 214-232. Print.

App-Based Technologies

The Digital revolution has changed the way most businesses in the world operate. One area that has been highly affected is the Supply chain management sector. Web-based applications such as uber freight, Magaya supply chain, Keeptruckin, Shipsy, Amazon, and Cargomatic, among others, have reduced the cycle time within supply chain management in an unprecedented manner. Meanwhile, the applications have also disrupted the existing world businesses to a huge degree. This paper will look at the pros and cons of web-based applications such as Uber freight, how the apps will continue to reduce the cycle time within the supply chain and how they will continue to affect world businesses.

Pros and Cons of App-Based Technologies

Like all things that deal with technology, App-based technologies will continue to provide massive advantages but at a cost. The first advantage that Uber freight and similar apps will provide is a drastic reduction of operating costs for an organization. Instead of spending millions to cover employee expenses, these forums will give an alternative self-service platform. The platform will be not only continent but simple hence encouraging even more purchases. This will be achieved through a web-based computer or smartphone application software.

The Web-based applications will also, in addition to reducing costs, offer better customer service. The algorithm set will be able to help both the customers and the employees navigate the systems with ease (Cempírek et al., 2019). The systems will also provide a platform that is free from human error and emotional bias. The technology will also be of use for the employees in logging bills through the applications. The apps will continue to provide customer reviews as they have done. This will not only help the potential clients know the best employees to work with but also the ones that offer services to their personal preferences.

Such technologies will, however, continue to cost the organizations that procure them a big sum of money. As technological changes continue, the cost of constant updates, maintenance, or a complete overhaul of the system will continue to be incurred. Some consumers will continue having problems with the navigation of the systems, and this will force the organizations using the technologies to add a separate manual department where such clients will be served. Different software will need different applications making the costs generally high, unlike if only one type of application was designed.

How App-Based Will Reduce Cycle Time in Supply Chain

Web-based applications will provide a direct link between the supplier and the client. The client, through the app, will select the product of his/her choice, select the preferences they want, and say color and quantity. The supplier, not a middleman, will be immediately notified when an order is made and payment is made. A receipt of the order will be directly printed without the intervention of any employee. The drivers will also be notified by the app of the location they will be supposed to deliver the goods or services. Automation of tasks will reduce the cycle time of the supply chain by a margin.

How App-Based Technology Will Disrupt Existing Global Business

Suppliers who are used to the slow shipping practices will soon find themselves out of the market, having been replaced by overnight one clicks app-based technologies people are getting used to. Middlemen in supply chain management will continue to be kicked out of work as algorithms will be doing their work. The profitability of organizations that procure the technologies will continue to increase all other factors remain constant.

Reference

Cempírek, V., Rybicka, I., & Ljubaj, I. (2019). Development of electromobility in terms of freight transport. LOGI – Scientific Journal on Transport and Logistics, 10(2), 23–32. Web.

Introduction

While the development of modern technologies brings some advantages, it also has some drawbacks. The utilization of self-driving cars by Uber can serve as an excellent example of the negative impact of technologies on humans’ lives. The use of automated cars by Uber led to several accidents that resulted in the death of one of the pedestrians in Arizona. Consequently, Arizona’s governor has suspended Uber’s ability to test self-driving cars in the state (Johnson & Fitzsimmons, 2018). When a car accident takes place, it is necessary to apply to legislation to reveal the guilty party and impose penalties through the court system. In this essay, the information about the courts where Uber could be sued, and factors that should be considered in deciding what court to sue will be discussed. Also, government organizations that may be involved in the investigations and how their actions may affect the litigation will be identified.

Main Objectives

There are four primary state courts in Arizona, namely, Arizona Supreme Court, Arizona Court of Appeals, Arizona Superior Courts, and Justices for Peace. There is a federal court in Arizona as well, which is called the United States District Court for the District of Arizona. Traffic cases are heard in the Justice of the Peace Courts, which also have jurisdiction over misdemeanor crimes, collection cases, and more (“Types of courts,” 2020). Another court that may consider car accidents is the Magistrate Court (City of Municipal Court). If the decision of mentioned courts does not satisfy all parties of the judicial process, it is possible to apply to the Arizona Supreme Court and the Arizona Court of Appeals. They are called as the courts of last resort because they review decisions made in other legal institutions.

The primary factors that should be taken into account when deciding in what court to sue include the type of an accident and courts’ jurisdiction. In addition, the costs for filing a claim should be considered, as the sum may vary in different courts. It is also necessary to know what type of claim should be filed. In the described case, a personal injury claim is the best option. It refers to the situation when a human being was injured or killed as a result of a wrongful act of another person (State Bar of Arizona, 2020). Being aware of the mentioned factors will help the claimant to choose the right court.

The primary U.S. government agencies that investigate civil transportation accidents are the National Transportation Safety Board (NTSB) and the National Highway Traffic Safety Administration (NHTSA). These organizations often conduct analyses of car accidents in collaboration. For example, when a crash that involved a Tesla car and a fire truck occurred in California, two agencies investigated the driver and vehicle factors to examine the situation (“2 federal agencies investigate Tesla crash,” 2018). Even though neither NTSB nor NHTSA has the power to enforce safety recommendations they make, their actions have a substantial impact on litigation. Both agencies work to reveal the causes and guilty parties of accidents. The courts give the participants of cases an opportunity to prove their innocence. However, the litigation is still relied on the analysis of investigative agencies due to their reputation for objectivity and accuracy. In the case with Uber and the pedestrian from Arizona, the agencies concluded that if the car operator was more attentive, she would have enough time to react to the pedestrian (Falcone, Allsop, & Eaton, 2019). It would help to either avoid the crash or alleviate the impact.

Conclusion

Therefore, the Justice of the Peace Courts, the Magistrate Courts, the Arizona Supreme Court, and the Arizona Court of Appeals are the courts where Uber could be sued. The factors that should be taken into account when deciding in what court to sue include the type of an accident, courts’ jurisdiction, and costs for filing a claim. It was also revealed that the primary U.S. government agencies that investigate civil transportation accidents are the NTSB and the NHTSA. The actions of these organizations have a strong impact on litigation due to their good reputation.

References

Azcourts.gov: Arizona Judicial Branch. (2020). Types of courts. Web.

Falcone, J. G., Allsop, J., & Eaton, C. (2019). NTSB determines immediate cause of fatal Uber crash was failure of human operator [Blog post]. Web.

Johnson, L., & Fitzsimmons, M. (2018).Uber self-driving cars: everything you need to know.Web.

State Bar of Arizona. (2020). Personal injury law: What you need to know. Web.

The Associated Press. (2018). 2 federal agencies investigate Tesla crash on 405 Fwy in Culver City. Eyewitness News. Web.

Waymo (Self-driving car subsidiary of Alphabet, Inc.) sued Uber for allegedly stealing trade secrets. According to them, Anthony Levandowski had stored files containing data on Google’s research on self-driving cars (the project was later moved to Waymo) on his personal laptop while still working there (Henning, 2019). This data constituted a trade secret, which financially benefits Uber while harming Waymo (Henning, 2019). Allegedly, Uber used this research in its self-driving car project without paying a license fee, thus depriving the tech company of its profit from the research (Porter, 2019). An independent expert has confirmed that Uber’s current technology can be based on the data that constitutes Waymo’s trade secret (Porter, 2019). At the core of this issue is Levandowski’s transferal of data and whether it constitutes the theft of intellectual property.

Intellectual property and trade secret laws exist to encourage and protect competition. Thanks to them, an individual innovator or company can benefit from novel technology and thus compete with established actors in the field. This prevents major players from establishing a monopoly by acquiring such technology. By relying on intellectual property and trade secret laws, an entity can defend its innovation from being used in such a manner. Competition needs to be protected because it promotes innovation and general better practices, which benefits the vast majority.

Although the initial lawsuit between Uber and Waymo was settled, disputes about the use of the contested technology are still ongoing. As part of the settlement, both companies agreed to employ an independent technical expert to ensure no Waymo technology is incorporated in Uber’s hardware and software (Korosec, 2019; Lee, 2019). This expert, according to Uber, has “made adverse findings as to certain functions in [their] autonomous vehicle software” (Lee, 2019). As a result of these findings, the company is likely to be forced to pay a licensing fee to Waymo or implement significant design changes (Porter, 2019). The latter option, as explained by Uber, would likely take a significant amount of time and resources, and is, therefore, less likely than simply licensing the technology in question (Porter, 2019). Considering the difficulty of developing and adjusting innovative technology like that involved in self-driving cars’ hardware and software, the benefits of this decision are likely to outweigh its drawbacks. Furthermore the rate of development of this segment of technology, it is probable that the specific solutions that are being contested are likely to be obsolete within a decade, thus making the licensing fee redundant.

References

Henning, P. J. (2019). What is a trade secret? A key question in the case against Anthony Levandowski.New York Times. Web.

Korosec, K. (2019). Anthony Levandowski, former Google engineer at center of Waymo-Uber case, charged with stealing trade secrets.TechCrunch. Web.

Lee, T. B. (2019). Uber still using Waymo-derived self-driving technology, expert says.Ars Technica. Web.

Porter, J. (2019). Uber may have to pay Waymo to use its self-driving tech unless it makes changes to its autonomous technology.The Verge. Web.

Uber uses surge pricing to balance supply and demand, which is especially effective in case of emergencies and high-demand periods. Even though the dynamic price formation may seem to be unfair to customers, it ensures that they have a car to travel to the required destination while paying extra charge (“Why Uber is an economist’s dream”, 2016). Otherwise, they will be less likely to get a ride, and there would be no motivation for other users who request a taxi to drop out. At the same time, surge pricing stimulates supply since Uber drivers are likely to travel to the areas with high demand if they receive extra money (Cohen, Hahn, Hall, Levitt, & Metcalfe, 2016). The effectiveness of such an approach is evident in practice. After the concert of Ariana Grande, surge pricing allowed achieving a 100% completion rate, and the waiting time increased only moderately (A fare shake, 2016). Moreover, without the mentioned algorithm, the completion rate was less than 25%, and the waiting time was 2-8 minutes on New Year’s Eve in 2014.

The power of surge pricing should not be overestimated as the pre-emptive responses of drivers tend to improve, which would balance demand and supply. As for the fairness of such pricing, it is possible to suggest that those who have transportation alternatives are more sensitive to changes. The areas with little options can be characterized by more critical price increases, which seem to be unfair. Surge pricing that is based on machine-learning tools can be used in other businesses as well. For example, retailers can estimate the purchases of customers and predict their future needs to send them timely notifications and preparing the necessary products in stores.

References

Cohen, P., Hahn, R., Hall, J., Levitt, S., & Metcalfe, R. (2016). Using big data to estimate consumer surplus: The case of Uber (No. w22627). National Bureau of Economic Research. Web.

A fare shake. (2016). The Economist. Web.

Why Uber is an economist’s dream (Ep. 258). (2016). Web.

Introduction

The Boeing Company is a global-based organization that models, builds, and sells aircraft, rockets, rotary-wing airplanes, satellites, missiles, and telecommunications devices. Its inception dates back to 1916, when William Boeing established Aero Products Company following his development of a single-engine seaplane, the B&W, with the United States Navy major Conrad Westervelt (Nirino et al., 2021). Over the years, the corporation has undergone a series of strategic development, such as Vertol Company’s purchase, then the leading producer of helicopters, which occurred in 1960 (Nirino et al., 2021). In the following years, in the 1970s, the American aircraft behemoth expanded its operations by diversifying into segments such as marine craft, energy production, transit systems, and agriculture (Dong et al., 2020). Today, the consortium’s business units are divided into three significant groups: commercial airplanes, space and communications, and military aircraft (Dong et al., 2020). The corporation has developed to become one of the leading aircraft producers in the world, alongside Europe’s Airbus.

Uber Technologies is an American-based firm that offers a wide range of services such as food and package delivery, freight transportation, and ride-hailing. The establishment of this company occurred in 2009 when it was created as Ubercab by Garrett Camp and Travis Kalanick (Muller, 2020). The latter traded his Red Swoosh venture for approximately $19 million in 2007 (Muller, 2020). The idea for the creation of Uber originated from a simple concept when Camp and his acquaintances spent about eight hundred US dollars hiring a private driver; therefore, he developed an idea to minimize the cost of transportation (Muller, 2020). This paper compares and contrasts the financial information of Boeing and Uber by analyzing their balance sheets and operating margins to gain insight into the differences in their accounting practices.

Boeing Balance Sheet

Table 1 below illustrates the financial information associated with Boeing’s operations for the year ended 2020. During this financial year, the American aircraft maker recorded about $152.136 billion in total assets, accompanied by nearly $170.211 billion in aggregate liabilities (Nirino et al., 2021). From the information indicated in table 1, the corporation’s liquidity can be computed to analyze its ease of conversion to cash while using both current and quick ratios.

Table 1. Boeing Balance Sheet for the Year Ended 2020 (Boeing Reports Fourth-Quarter Results, 2021).

Current ratio = (Current assets/current liabilities)

Table 2. Current Ratio of Boeing (Boeing Reports Fourth-Quarter Results, 2021).

In Boeing’s case, its current ratio as of December 31^st, 2020, was 1.39. This metric suggests that if the corporation was requested to settle all its short-term debt, it could have done so. Generally, the whole S&P 500 has an average current ratio of approximately 1.20, implying that Boeing is in a better financial position than most multinational organizations in its industry (Nirino et al., 2021). As compared to Uber technologies current ratio of 1.44 (December 31^st, 2020), both companies are in an excellent financial position since their current assets are almost twice as many as the liabilities.

Quick ratio = (Current assets – inventory) – current liabilities

Table 3. Quick Ratio of Boeing (Boeing Reports Fourth-Quarter Results, 2021).

A quick ratio shows the number of assets that a company has available to cover its temporary obligations. Therefore, a quick ratio of above 1 indicates that a corporation is in an excellent financial position. However, in the case of Boeing, its quick ratio is 0.46 for the year ended 2020. It suggests that the aircraft maker does not have adequate liquid assets to settle its current liabilities.

Uber Balance Sheet

Table 4 below illustrates Uber’s financial information for the year ended 2020. During this time, the American ride-hailing company recorded about $33.252 billion in total assets, accompanied by approximately $20.285 billion in aggregate liabilities (Muller, 2020). Therefore, Uber’s quick and current ratio can be calculated to analyze its ability to settle its current debt obligations without relying on external financiers. Thus, the table below shows Uber’s balance sheet for 2019 and 2020.

Table 4. Uber Balance Sheet (Uber Announces Results for Fourth Quarter and Full Year 2019, 2020; Uber Announces Results for Fourth Quarter and Full Year 2020, 2021).

Table 5. Current Ratio of Uber (Uber Announces Results for Fourth Quarter and Full Year 2019, 2020; Uber Announces Results for Fourth Quarter and Full Year 2020, 2021).

In Uber’s case, its current ratio is computed by dividing the values of the current assets by the figures in the current liabilities section. Its current ratio equals 1.44 and 2.47 for the years 2020 and 2019. These values suggest the American ride-hailing company was in a financial position that allows to it settle its short-term obligations twice as much in 2019 than in 2020.

Operating Margin

A company’s profitability is a significant metric that determines if a firm is performing well in its industry. Accountants use operating margin to measure the amount of profit a corporation generates on a unit of sales after settling the variable costs of manufacturing, such as wages and raw materials exclusive of interest or tax (Cokins, 2017). It is computed by dividing the values of operating income by revenue. In Boeing’s case, its trailing 12 months (TTM) revenue is about $58.16 billion and an operating income of approximately -$12.77 billion as of December 31^st, 2020 (Dong et al., 2020). In contrast, Uber’s TTM revenue is about $11.14 billion and an operating income -$4.86 billion (Dong et al., 2020). Table 6 below shows a comparison of Boeing and Uber’s operating income for the year ended 2020.

Table 6. Operating Margin.

Different industries have different operating margins based on multiple reasons. As such, most corporations prefer to record an operating margin of about 15% or higher. Managers want to see their organizations’ operating margin growing because it shows that they are managing their operating costs well and making more profits. Both the American companies above have negative values in their operating margin indicating their inability to control their costs.

Lessons Learnt

Both Boeing and Uber companies are operating in the United States, but they have different approaches. According to both companies’ liquidity ratios, their financial position can help the two settle their short-term obligations. However, since the companies operate in an oligopolistic market with its dominant competitor, Airbus, the American brand can incorporate several strategies to increase its liquidity ratios, such as managing its receivables and payables, cutting back specific costs, and opting for long-term financing. Moreover, both corporations have a negative operating margin, which indicates that they should consider reducing their costs. It is recommended that both companies should improve their revenue-generating activities such as boosting sales. Additionally, both of them can lower their operational costs, such as opting for alternative sources of raw materials.

Conclusion

This paper has analyzed the financial aspects of Boeing and Uber companies. The former is an American-based aircraft maker headquartered in Chicago, where it models, makes and sells airplanes. Generally, this company offers its target market products in various categories such as military airplanes, space and communications, and commercial aircraft. According to its liquidity ratios, this corporation should consider implementing some strategies of lowering its operational costs to improve its profitability. In contrast, Uber is an American consortium specializing in offering its customers ride-hailing services while also participating in food and package delivery, freight transportation, and several other benefits. The company has recorded a good financial performance, but it needs to improve its liquidity ratios by considering long-term financing also to boost its operating margin.

References

Boeing Reports Fourth-Quarter Results. (2021). Web.

Cokins, G. (2017). Strategic business management: From planning to performance. John Wiley & Sons.

Dong, Y., Skowronski, K., Song, S., Venkataraman, S., & Zou, F. (2020). Supply base innovation and firm financial performance.Journal of Operations Management, 66(7–8), 768–796. Web.

Muller, E. (2020). Delimiting disruption: Why Uber is disruptive, but Airbnb is not.International Journal of Research in Marketing, 37(1), 43–55. Web.

Nirino, N., Santoro, G., Miglietta, N., & Quaglia, R. (2021). Corporate controversies and company’s financial performance: Exploring the moderating role of ESG practices.Technological Forecasting and Social Change, 162, 120341. Web.

Uber Announces Results for Fourth Quarter and Full Year 2019. (2020). Web.

Uber Announces Results for Fourth Quarter and Full Year 2020. (2021). Web.

Task 1

Uber has employed many people as drivers, and many depend on it for income. Uber Technologies struck a deal with the taxi industry so that they could bring car vehicles such as traditional taxis into the application. This report is based on the sharing economy, the socioeconomic model that shares resources to produce, distribute, trade, and reach consumers from different fields. It focuses on finding out how its operations affect macroeconomic factors like inflation and Gross Domestic Product (GDP) in the United States of America.

Economic Indicators

Macroeconomic Indicators

Inflation is the general increase in the prices of goods and services in the economy progressively. It corresponds directly to a decrease in the ability of a currency to purchase. It is measured in terms of the inflation rate, which is calculated annually by finding the change in the percentage of the price index in general. The increase in prices makes Uber raise the cost of its services, thus making it expensive for consumers (Geissinger, Laurell, and Sandström, 2020). Another aspect of macroeconomics that affects the industry is interest rates. Changes in the rate of borrowing money impact the economy. A large number of firms that rely on loans to finance their operations are not capable of accessing the required amount of capital due to an increase in interest charges.

Microeconomic Indicators

In the transport industry, microeconomic factors affect the working of this company’s availability of Shareholders. Uber Company needs funds to grow and operate its business activities. Investors and shareholders give the company funding to expand the operations to better the reward. They offer the required financial support to boost the overall processes in the organization. In addition, the availability of skilled and qualified personnel who are motivated to work for an organization is essential to achieving success. Employees of an organization determine the output it produces since they are involved in the production process.

This industry has affected the annual (GDP) of the economy of the US. The spending of the drivers and their earnings play a key role in the general income of the country. The community spending on this firm and the transport of potential investors across the country add value to the country’s GDP. In 2017, for instance, the gross revenue generated by the drivers and their deliveries was reportedly higher than $12.9 billion (Kim, Baek, and Lee, 2018). Many drivers opt to join this company over other industries because of its flexibility and independence of work. Some drivers use this company to boost their sources of income, although others were previously unemployed before the organization came into existence. This innovation brought significant motivation to people’s lives and made them increase revenue generation. It is clear that Uber has contributed positively to the local and national economies.

External Analysis: PESTEL Analysis of Uber

This company is regarded as the leading in-app taxi-sharing organization. There are factors that influence its operation, which include Political, Economic, Social, Technological, Environmental, and Legal. These aspects have impacts on the operations of the industry in the economy in different ways. The analysis provides deep insight into how the factors determine the success of Uber Company in the sector. The framework allows the organization to evaluate external factors that contribute to its performance.

Political Factors

The transportation sector has been affected by policies aimed at minimum wages, and discussions have been carried out for drivers to abide by the taxi rules. Documentation should be provided as per the government requirement to have commercial licenses. There has been an endless controversy facing the industry at large in which the insurance policy would cover individuals or the company in case of an accident.

Economic Factors

There is a potential market, as indicated by Uber’s alarming rate of growth. It has created career opportunities such as taxi drivers and the technical team that operates the app. Since its initial launch, this organization has grown substantially, bringing in the issue of unfair competition against taxi companies. In some countries, it has been banned, while it has been a focal point in others. It is way cheaper than the other cars in the transport sector.

Social Factors

The platform Is easy to access and user-friendly to the consumers hence more markets. There is not much communication required but only pressing a few buttons, and the rider is available at the convenient place of the customer. The app can be accessed anywhere and anytime, provided that the internet is present and a smartphone. Feedback is shared on the same platform and therefore reduces the risks of poor customer service. It is preferred by many compared to public transportation or other regular taxis.

Technological Factors

People search for cheaper or affordable means of transport, and this has led the majority to the Uber app. It has spread on social media because clients share their riding experiences online, encouraging new users to download this app. The whole operation depends on the technology for the drivers to pick up their passengers and drop them at their destination. It has pushed many to use 4G networks to ensure the connectivity is reliable.

Environmental Factors

It is believed that the number of vehicles has increased hence causing road traffic congestion and also hiking the usage of fuel with high carbon content, which is harmful to the environment. In matters concerning the environment and a greener world, Uber has contributed less to its maintenance. The decision made by many people to use the industry over public means of transport has been developed as a pilot to sustain consideration. The application accepts the rider’s requests to take a green ride in many buttons. Traffic congestion is not increased since the introduction of this firm since people opt to use it over other modes of transport.

Legal Factors

Uber Company encounters a number of restrictions from the various laws in the country that hinders its operations. The firm has experienced attempted bans to stop it from accessing crucial aspects of the economy. The government wants the organization to comply with several employment policies, labor acts, and the safety of workers. These factors make it challenging for the business organization to thrive effectively in the sharing economy.

Socioeconomic and Technological Factors

Socioeconomic and technological drivers contribute a lot to the success of an organization. There are three drivers of these factors that contribute to the success of an industry. The determinants are productivity, labor, and capital are the focus of all organizations to succeed. In the long run, production remains the key to a company’s prosperity. Employees become productive when they perform large tasks in a limited amount of time. When fewer hours are used to accomplish tasks, there is a reduction in the cost of operation. This translates to employee motivation and customer satisfaction, and a good brand image created for a firm (Xu et al., 2019). The same output is given with a low cost of production, making the process profitable.

Low productivity means reduced quality for the end-users due to a reduced work rate. This leads to dissatisfaction and the emergence of billing costs. Resources and time are significant factors that can reduce the profit if they do not work correctly (Özdeşer, 2020). When the production is high and meets the demand of the population, it ensures the most significant success of a business firm is achieved since it consistently generates an income.

Labour is a determinant of the success of a company or enterprise. It refers to the workforce working to attain a particular objective. It is greatly influenced by capital investment, the humans deployed for tasks, and the technology used to realize the achievements of an organization. A country’s economy depends on the total labor output per hour (Corral et al., 2021). For a government to increase its production of goods and services, the labor invested must be directly added to match the output required.

Capital is the assets or physical equipment, or tools used by an organization in its production to generate output. It is different from land and labor because it must be made by humans and for a specific purpose. An example is types of machinery like computers, tractors, or railroads. It is a driver of an enterprise’s success, and the output depends on the input invested. It caters to needs that cannot be addressed by other factors of production. A company cannot use the money to build good buildings but can buy the needed material to make a building.

The Uber Company needs to put into use these factors that could see it soar to the highest levels of success and gain more profit. The first strategy is to improve the cash flow and profitability of the organization. This enhancement can be achieved by increasing productivity, which is essential to enable the firm to succeed in its overall goal of profit-making. Risk mitigation strategies addressing the recent legal environment changes are also essential for Uber. In the US, demand for customer transportation is very high, and the industry needs to work efficiently within short periods to achieve success. Hence, Uber’s management should focus its efforts on the short-term profitability of this company. The number of vehicles used to pick up riders needs to be increased to allow the drivers to meet their objectives. These factors of production must be put into practice by the industry to remain competitive among its rivals.

Political Influence

The political agenda of labor groups in the US affect Uber and its operation across the country. Taxi cartels have lobbied municipal governments to limit Uber’s operations. The San Francisco’s Board of Supervisors has proposed a ride-sharing levy. New permits for on-demand automobiles have been capped in New York City. Seattle attempted to allow drivers to negotiate collectively but was unsuccessful in court. Moreover, unions want this company to categorize drivers as employees, requiring the company to fund workers’ benefits, such as health insurance, meals, overtime pay, and all vehicle expenditures.

Legal Factors

Under the anti-trust policies, Uber has a two-sided business model taking advantage of the indirect network effects that exist between drivers and passengers. Uber’s platform thrives not only because it improves effectiveness and eliminates underutilized vehicles and driving abilities but also because it enjoys a self-reinforcing effect. This is because a greater number of drivers attracts more passengers and vice versa. However, from an antitrust viewpoint, the existence of network effects does not warrant any interference because antitrust law accepts markets as they are and only interferes against certain commercial activities that undermine the competition. The Uber Company is under the law like its competitors to ensure smooth operation in its activities. Uber as an app formed a formidable partnership or shared economy between them and the taxi vehicles. This brought a significant development in the history of transportation as one can track movement easily using geological and technological features over the internet.

Reference List

Alemi, F. et al. (2018) ‘What influences travelers to use Uber? Exploring the factors affecting the adoption of on-demand ride services in California,’ Travel Behaviour and Society, 13, pp. 88-104.

Corral, P. et al. (2021) ‘Utilizing human capital’ in World Bank (ed.) The human capital index 2020 update: human capital in the time of COVID-19. Washington: World Bank, pp. 15-20.

Geissinger, A., Laurell, C. and Sandström, C. (2020) ‘Digital disruption beyond Uber and Airbnb—tracking the long tail of the sharing economy,’ Technological Forecasting and Social Change, 155, p. 119323.

Kim, K., Baek, C. and Lee, J.D. (2018) ‘Creative destruction of the sharing economy in action: The case of Uber,’ Transportation Research Part A: Policy and Practice, 110, pp. 118-127.

Özdeşer, H. (2020) ‘Analysis of the economic impacts of the euro, the efficiency of the euro in the optimum currency area, and the place of the euro in global economics,’ European Review, 28(2), pp. 258-275.

Schwieterman, J.P. (2019) ‘Uber economics: evaluating the monetary and travel time trade-offs of transportation network companies and transit service in Chicago, Illinois,’ Transportation Research Record, 2673(4), pp. 295-304.

Xu, W. et al. (2019) ‘Spatiotemporal variation and socioeconomic drivers of air pollution in China during 2005–2016,’ Journal of Environmental Management, 245, pp. 66-75.

Task 2: Reflective Report

Curiosity

The course introduced the concept of employment and labor law that protects the rights of workers. It includes aspects of unions’ management and equal opportunities; however, taking a deep look into the economy, there are limited practices of the guideline because a number of employees are facing continuous exploitation. There is harassment from their colleagues and managers while they are assumed to be protected by the laws. My query was to determine and evaluate what immunity these Acts provide to the vulnerable workers in the companies. Additionally, I wanted to know if there is a guarantee that most organization applies and adheres to such laws to enhance the welfare of staff members. When there are answers to seek, learning becomes interesting since it creates the urge to establish and configure the reasons. Curiosity adds taste to education, and it prompts a learner to aspire to obtain more relevant knowledge, which is essential for the purpose of learning. Furthermore, it makes students access other significant information that enriches their understanding in the process of trying to satisfy the inquisitiveness. I acquired more ideas from fellow students, and I comprehend how the laws operate.

Description

The most fundamental concept I learned is the idea of sharing economy. The philosophy is interesting in the essence of how it operates around the human objective. The aspect of co-production of products and utilizing them together is fascinating. Generally, the economy is always more planned or free, but with sharing setting, it makes the whole model looks different. The system allows individuals to produce openly without restriction. This concept is essential because it makes people understand the value of having each other active in the industry. I will apply the concept to comprehend and relate how projects can be properly managed when individuals are brought together to cooperate. Furthermore, it will enable me to maximize the use of idle resources within the environment. For instance, when I have assets such as rooms that are not occupied, I will lease them in order to benefit the users.

Self-Realization

The topic of monetary and fiscal policy made me understand how the government and central bank operations ensure the economy remains stable. Before taking the course, I used to wonder why the government could not just print more money to increase its supply to the economy. However, going through the unit, I realized several factors in play hindered that act. The concept of monetary policy prompted me to understand how the central bank enacts its measures to curb the impact of inflation and the rising rate of unemployment in the economy. Similarly, the fiscal policy made me research how the government authorities use taxes to control some critical aspects of development. The two concepts play a significant role because they explicitly elaborate on necessary drivers and determinants of economic growth. After understanding the whole concept, I become passionate about the topic of fiscal policy. The concept talks more about how government raises its revue through taxation to develop other aspects of the economy. It gives more details on how taxes influence the aggregate demand and supply of products and the way they impact the prices of goods and services. The topic covered crucial aspects of the government operations, such as taxation and expenditure, which made it different from other sections that dealt with the general economy.

Extension

I would wish to have an extension of the concept of consumer protection laws. The topic has more weight, and I have been eager to learn more about it. Generally, the end-users and critical drivers of the economy are consumers. Through their purchasing power, manufacturers are able to continue producing a large number of products. However, in recent days there has been a developing trend of exploitation whereby some organizations provide falls details of commodities or even charge high prices for their own benefit. By learning the laws, I would be able to detect and understand possible ways producers and sellers can manipulate other buyers, and I create awareness to protect other customers. In addition, deep insight into the practice will grant me an opportunity to secure a job opportunity in the same line. Consumer protection is a priority that is partially neglected by governments and other agencies fighting for the rights of customers. Therefore, my aim for having the extension is to advance my knowledge about the related laws for professional development.

Executive Summary

Uber and Lyft taxi services are two companies that offer the same service with almost equal measure. This paper seeks to evaluate the websites of the two companies to find out the edge that each has over the competitor’s site. The websites have been evaluated along with a five-point matrix of usability, design, content, trust, and limitations. In this case, the Uber site is the main site while the Lyft site is the competitor’s site. The analysis finds that the Uber website is much more superior to the Lyft website in terms of coverage. Although the use of a website is meant to be global, it also needs to be relevant to the user. Other functions and ratings that are provided for the two companies’ websites give them an almost equal footing, with either of the two winnings.

Introduction

Uber and Lyft are the most popular rideshare companies in the world to date. The two companies have employed the use of electronic media and phone applications as a way of creating an access point for drivers and passengers. The provided rideshare applications on the phone and the general websites are meant to answer any simple question that the customer might have in mind. Therefore, the website, in this case, has been used as the face of the company and the primary interactive tool for both the driver and the client. This paper provides an analysis that compares the strengths and weaknesses of the two companies’ (Uber and Lyft) websites as effective marketing tools for mother businesses.

Website Analysis Criteria

As Chaffey, Ellis-Chadwick, Johnston, and Mayer (2012) assert, websites have become very important when it comes to marketing a product because they provide an interactive medium through which clients can inquire and/or get the service they need at the comfort of their houses. When two businesses offer the same service with an almost equal measure, other additives that make up the business presentation start to count. Before clients settle for a particular website, they consider several elements. According to Carpio (2015), such elements include website usability, key information, the purpose of the business, content, design quality, functionality, customer journey, limitations, and visual appeal among others.

Usability

According to Chaffey et al. (2012), a good website should be easy to use by the customer because it is a tool meant to serve the customer with minimal queries arising. According to Leger (2016), the usability of a website is reflected in the volume of traffic the site generates. Usability can be measured in terms of how friendly the website appears. The website should be in a language that is easily understandable by the majority of users. A good website should be void of technical jargons that are only understood by a few people. This is because they can easily put off potential visitors to the site. Web traffic is very important to a given website because it provides the much-needed feedback to the owners and designers of the site. Bavan’s framework as depicted by Chaffey et al. (2012) provides specific points such as usefulness, yield, and contentment, which should be used in evaluating usability. The elements to be assessed include:

• I can complete errands straightforwardly.
• I can complete errands swiftly.
• I can search for information effortlessly.
• All links on the website are operational.
• I am contented with my general experience on the website.

The assessment of the usability aspect will help Uber in determining areas that are better or substandard to the rival Lyft. The goal is to evaluate how the simplicity of use and direction-finding could be enhanced.

Design

Websites are always designed to attract users and/or make their experience good. The artistic design of a website makes it easy for a user to understand how it works. The design should incorporate elements that identify with the business (Chaffey & Smith, 2013). The design should accommodate the logo, the colours of the company, and information that the company needs to convey. According to Escalas, Jain, and Strebel (2001), the design should allow all elements on the face of the website to exist without impeding all other components.

Different areas of interest and their headings should be arranged in a systematic order. Navigation through the website should lead the user from one point to the next and back without a hitch. The site should be designed in a manner that allows adjustments in a way where updates can be posted easily. Escalas et al. (2001) have defined one of the best design assessment tools, which provide standardised web design areas for evaluation. The areas are as follows:

• The website has a dependable plan across all pages.
• The website’s plan matches the character of the intended market.
• The website design draws the user’s attention.
• The writing is simple to understand.
• The design of the website is well structured.

Content

Content is the most important facet that any website should possess. The content is the primary information that the business wishes the customer to read. The content should be in a simple language that summarises what the business wants to relay to the intended audience. It should be precise and organised in a manner that makes sense while reading. The content should be arranged in a systematic format. Other than the content being organised, it should be relevant to the purpose of the business (Vaidyanathan & Mautone, 2009). Not all information about the business should be posted on the website. There is a need for continuous updating of content material to match any new developments.

Trust

According to Gonzalez, Quesada, Davis, and Mora-Monge (2015), any website should pass the basic test of trustworthiness. Any information that is displayed on the site should be the truth about the situation on the ground. The site should be devoid of any misleading information that is primarily meant to lure customers (Feng, Tien, Feng, & Lai, 2014). Customers visiting the site should be confident that the information available is the absolute truth that they can bank on in their pursuit of service. Some websites have suspicious activities that run behind the scenes. Such websites have malicious intentions of luring unsuspecting individuals to give their information.

Therefore, businesses using websites should provide a guarantee that the sites can be trusted with private information such as bank details. This situation requires enhanced security features to be used for the site. Trust will be assessed using Gonzalez et al.’s (2015) unique framework that captures trust areas that individuals look for in a website. The elements include:

• I am secure when handling this website.
• I trust the website to maintain my data secure.
• I trust that my private data will not be distorted by the business.
• The website offers transaction precaution information.
• I think I can rely on this e-tailer.

Limitations

Limitations on a website are two-sided points that can be viewed on the positive and negative side. Although websites are meant to give information about the business, they are limited by different factors that define their operations. A website cannot capture all the information that all users would want. However, this limitation is usually taken care of by the assumption that certain standard information is what the client would want to look out from a website. According to Arya and Srivastava (2015), a website should meet e-quality standards. Other limitations can be manifested in the ability of the website to handle high traffic without collapsing. For instance, when a certain website is on high demand, the traffic can be overwhelming to the extent that it cannot handle the demand. Therefore, website limitations should be within an acceptable threshold that maintains a website’s core purpose.

Conclusion

The two companies have established websites that have successfully been adopted as a platform for presenting business-specific information. As revealed in the above website analysis criteria, a good website should provide satisfaction to the customers on the expected value of service while at the same time encouraging them to go ahead to procure the service. On the other hand, a poor website can easily put off a potential customer, even if the service to be provided is good.

Competitor Website Analysis: Lyft

Usability

Rideshare company, Lyft, has developed a website for both its drivers and clients for interaction in terms of business. Lyft website is plain and straight forward in terms of the services rendered, including the kind of information a user can look for. Website usability depends on its structure and other functions that are required to make it useful (Ghandour, 2015). Lyft website meets all the expectations that any client might look for. Hence, it can be categorised as usable.

The website has organised the different handles under-specific subheadings that guide a user to a point where they need to be. The number of handles on the face of the website is very few. Hence, a user has to go deeper to find more handles. The main headings are the only ones allowed on the face of the site. The site has handles for different users, which guide the user to a specific area of interest. This plan eliminates a mix of information that can confuse the user.

Trust

Lyft website meets any trust requirements that a website should demonstrate. The site is an online platform that is used for communication and financial transactions. Such a website is usually required to meet stringent federal rules that govern money exchange and privacy laws (Chaffey et al., 2012). Lyft website has been designed on a secure platform that provides high-security cover for any information that goes through it.

The website meets other trust requirements by providing the right information that a client needs. According to Chaffey et al. (2012), misleading information is detrimental to the functioning of a site because it can easily turn clients away. As a rule, a website needs to be attractive enough for the user to be interested in coming back. The website has secured its customers against malicious encroachment from hackers and other malware by employing the services of web security companies. These companies continuously update and monitor the website against any form of invasion using the latest security software.

Design

As Horpedahl (2015) observes, the primary purpose of web design is to provide an interactive platform for the owners and users of the site. The website should be designed with the consumer in mind. Lyft company’s website reveals that it has been constructed with a specific purpose to guide the user by simply scrolling down (Horpedahl, 2015). The face of the site is devoid of too much information that can easily lead to a mix up of information and services. A well-designed website contains primary information that the user will always look for while using the service. It will also have information that might be of great help to the user, just in case he or she is not aware of the applications’ availability. This information can be found on Lyft’s site.

Content

Lyft has developed different contents for its website concerning its services and customer needs. The site has an interactive platform for drivers who wish to join the service and for customers who need to link up with the drivers (Chafkin, 2015). The content of the site is deep enough to provide the user with information with a breakdown of services and the advantages that Lyft offers over other providers.

The content includes the scope of the company’s operations, mode of payment, types of vehicles offered, cost of the service, and/or where to sign up or sign in. As Guo and Han (2013) assert, “the content of a website should strictly be relevant to the purpose it is meant to serve” (p. 417). Irrelevant content drowns the useful information, which the user ends up missing. Lyft site contains other enticing information such as how the company has been rated, insurance cover, and the conditional requirements that come with the service.

Existing Online Value Proposition

Lyft has several online value propositions that make the service what it is. The most important value that the writer identified is, “full disclosure of fares.” The service provides information that the client needs to know, which includes a variance in fare charges in different locations. It is always an assumption that cab charges for a specific company are uniform in all the geographical areas it operates. This assumption does not exist with Lyft because it varies its charges.

The website provides a handle that informs the user if there is a variance in charges from the normal rates. The proposition, in this case, is an honest provision of a service according to the expectation. Rideshare services have become popular and common. This commonality is a source of competition to all players because it now attracts new players to the field. The other online value proposition is the company’s operational information in terms of geographical location. This information satisfies the customer’s expectations.

Overall Rating

The Website has an overall rating of 85%. Many users of the site have given it a 4 out 5 ratings.

Company Website Analysis: Uber

Usability

The Uber website is usable. It meets all the required usability values towards the intended users. As a share ride platform, the website has been developed using different languages as a way of accessing other markets. Besides being available through a click of a button, the website is fast enough for use. Being a popular website service, there is a need for instant speed when one is using the service. The diagram below shows the various platforms that customers use to interact with the company.

Uber website’s handles are systematically arranged according to the primary needs of the user. The website has the necessary entry points for either a driver or a customer who wants to use the service. This separation of services enables individuals to access only the services they are interested in pursuing (Chafkin, 2015). The site can be accessed using the computer and mobile phones. Thus, it is handy for individuals in every location. Uber’s handles lead the user to other handles within each section. The site meets standard usability requirements that are necessary for its transactional business.

Trust

Uber’s site provides information about the company. The site is a primary source of information for all users and hence the face of the company. The site provides real-time information about the company’s operations. Any content that is posted is real. According to Horpedahl (2015), trust in a website can be derived from the belief that any information required can be obtained. The site has other social media handles that can be used to send queries to the customer care service in case of queries.

The site can be trusted with the client’s information because it has been designed with consumer protection values in mind. The site meets federal requirements that allow it to transact electronic money transfer. The fact that Uber has grown so much by using a website and other phone applications is a clear testimony that clients have trust in the site. Uber drivers are recruited using their website. Passengers find drivers on the same site.

Design

Website design is meant to capture the users’ attention while at the same time relaying the businesses’ information to clients. The design of a website should include relevant colours, patterns, and other artistic values (Feng et al., 2014). Uber’s website has been designed in a way that allows users to see the most crucial information first such as route charges before they can delve deeper. The site is easy to manoeuvre through as one looks for the right information. A systematic arrangement of the different profiles enables a customer to have a great overview of what the website contains before opening the profiles. The site allows a client to predetermine the fare that they may be charged before booking the service. Other than profile features, the site has a picture background of happy users of the service as shown below.

According to Feng et al. (2014), a website’s design is a great determinant of a client’s continuous interest. Although repeat users tend to ignore design features, first-time users take a particular interest in the way a site presents its features.

Content

A website’s content is its primary value. The communication tool is meant to cut other channels by consolidating important information that needs to be relayed to users. Uber’s content is straight to the point because it provides information to all users of the site to their advantage. The site provides customers with all the information they need to know while at the same time providing drivers with information that they need. It has area maps for each area the driver operates. It also has a provision for making payment services. A rating service enables a client to assess the driver. Such content is important because it provides a platform for new users to evaluate the new service (Horpedahl, 2015). Uber has a catalogue of all cities in the world. The content found on the site is updated regularly to indicate changes that are taking place.

Potential Online Value Proposition

The company has used the Uber website service to inform users about incentives that are on offer. Online service users value the information that a company places on the website. Uber has achieved much because it has become the primary source of interaction among all players. The graph below shows the company’s returns in its major markets.

The service can be used as a mobile application by customers and drivers, thus allowing them the convenience they need. The advantage of having a service on the mobile device has given the site a great value proposition because it does not limit the users of the service.

Overall Rating

Uber has an overall rating of 90% because it stands out as the most popular service in this segment. It has continued to expand its services to many other cities in the world. Therefore, it has a global presence compared to other locally based services.

Comparison of Table

Considerations, Implications, & Recommendations

This analysis report probes and compares how the two websites are working and if they have achieved the requisite standards. Both websites stand out as credible concerning the standards that they are supposed to meet. Although the Lyft site competes favourably with Uber, it has a few deficiencies that need to be addressed by the company. The services of the company should be a true reflection of what the site has proposed. On the other hand, Uber should come up with more innovative services as a way of adding value to what already exists. The concept of rideshare has become common. Hence, the entry of new players will take a share of the two companies’ client base.

Conclusion

Rideshare is a concept that is widely being adopted by many cities as the best way to travel. It can be described as a green process in terms of pollution because it eliminates many cars on the road. As revealed in the paper, the use of a website as the primary tool requires companies to use this service to live up to client expectations because the website is a virtual service. Trust and quality services form the driving force that will sustain this business. Uber and Lyft have confirmed how digital marketing has become an embodiment in the present world because of the way it has been used to the advantage of marketing firms and service providers. The advancement of technology and the use of internet services have seen many innovations that have been successfully adopted to boost business operations.

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