Free Essay Sample on the Uber Company

Published: 2019-10-31
Free Essay Sample on the Uber Company
Type of paper:  Essay
Categories:  Business Uber
Pages: 6
Wordcount: 1450 words
13 min read

To link both riders and drivers over a seamless technological understanding providing our passengers with a secure facility, while ensuring fair and profitable income streams for our employees.

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Background on the owner(s), management and operational team

In 2009, Uber co-founders Travis Kalanick and Garret Camp established an application from a smart phone that links both drivers and potential clients in need of a ride to a different destination within their cities. The state-of-the-art service eventually was created as UberCab Inc. which was a private entity. In the year 2010, the firm branded Uber Technologies was launched, with a mobile application by Co-founders Kalanick and Camp. The application made it easy for customers to connect with their drivers more quickly predicting a moment of arrival from the driver on their Smartphone with the use of an integrated GPS system.

Due diligence on the business idea

The company operates on a digital platform and uses various models that are convenient to the prospective customers.

Business strategy

Due to globalization and technological change, business firms are increasingly investing in new ideas that can make them more efficient. Some business firms such as Uber have opted for a digital platform to sell their products and services and to reach their clients. The Uber business model enjoys the customers' Smartphone technology and connects them with their drivers as their cabs. This type of operation has provided a more competent and affordable means of obtaining transportation.

The company also offers the variety of services that are more convenient to their prospective clients of their taste and preferences. These services are available at their own Smartphone, and they can buy them at their convenience. Uber X, is a small budget option. Uber X is an option that allows the driver to use their vehicle to move passengers. Uber TAXI, only application ties licensed taxi operators to clients while Uber BLACK designed for consumers who require some privacy hence have their drivers in a high-end vehicle. Uber LUX is a luxurious service designed for those customers who need to enjoy some luxury.

Human Resource

The company is functional in over 57 countries with over 500 employees. Its operation is digital. In the United States alone the company has over 162,000 drivers according to their human resource database and makes at least four trips in a day and most of them are part-time drivers. The company has also partnered with other undertakings within the United States like American Express and this initiative allow card owners to earn points with Uber for a ride. This partnership is vital for the company as it expands its branches internationally and acquires more workers since the enterprise can apply knowledge and resources of local businesses conversant with the state's culture. The company (Uber) has also joined a partnership with other international firms to enable it to expand its services globally.

The Legal Hurdles

Uber as a company has faced several accusations against their services. In a civil court case in Berlin Germany, Uber BLACK was accused of violating the German competition law. In this particular case, drivers were made to appear outside the business premises but did not react to a real assignment. In 2014, the Higher District Court of Berlin issued a preliminary injunction which was not for Uber. Uber challenged the ruling through its legal team, but the appeals court overturned the measure. In 2015 February, the Berlin Higher court ruled that Uber BLACK indeed violated the German competition law as a business model. The company launched an appeal which was unsuccessful.

In another law suit, the company's business model Uber POP is sued, the complainant argued that the service violated German competition law by using unlicensed drivers. This act was against the section 2 of the Passenger Transport Act of Germany. The German court abolished Uber POP services later due to the unlawful act.

Marketing Strategy

Uber has executed various partnership programs to inveigle both first-time and faithful clienteles to take a ride. This initiative helps of its card holders to obtain economic rides. The company had also partnered with some hotels where preferred guest members get points for every trip they take. In some hotels, the customers are given a financial incentive ride on Uber.

A Loyalty Program

This loyalty scheme Uber VIP is meant for those who are typically loyal to Uber and have taken more than 100 Uber rides. The main substantial gain of the program is that the VIPs have exceptional access to high-end drivers. However, the program also denotes a vow to and a dollop of gratitude for this returning clientele, who evidently feel somewhat proud of the fact that they're "imperative.

Uber Referral Program

This program offers friends a free ride, and it's only for early adopters while at the same time allow them to earn credits. The program offers Uber first timers substantial grounds to try the service. The program is massively successful both for Uber and other clients. The drivers are not left out in this program because they too obtain incentives making acquisition easy.

Early Adopter Advocacy

Marketing has played a vital role for the company. The company initially hired Silicon Valley and asked them to activate their brand. Uber also took advantage and targeted many techies who were in need of a novel product which could change their style. They were giving first-time riders a free trial, and espousing a new stratagem that changes shape with each new market the company enters.

Financial Analysis

Uber Technologies Inc. is a registered private entity. According to the financial records of the year 2016, the company's financial records indicate that in the first quarter of the year 2016, Uber lost close to $ 520 million in the New York stock exchange. In the second quarter, the losses extensively surpassed 750 million dollars in addition to 100 million dollars deficit in the United States. This loss totaled to nearly 1.27 billion dollars in the first half of 2016. These losses are on grants given to Uber's drivers globally.

Summary financial analysis for the first Quarter and Second Quarter for the Year 2016.

First Quarter - 520,000,000 dollars

Second Quarter 750,000,000 dollars + 100,000,000 dollars

Total = 1.2 Billion dollars.

According to the reliable financial sources from the company, the company recorded a growth estimated at 3.8 billion dollars from the first quarter of this year to the second with more than 5 billion dollars. Net revenue, grew to about 18 percent, from about $960 million dollars in the first quarter to about $1.1 billion in the second.

Establishing Operations

After the merger with Didi Chuxing, of China, the company is now focusing on other rival markets that might lead to its expansion in those countries such India South East Asia and the U.S where they are facing rival Ola, Grab and Lyft respectively.


Franchising is a legally binding agreement signed by two independent parties that give a company or a person ( the franchisee) a legal right to market a product or a service using a trade name of another business( the franchisor). The power gives the franchisee an obligation to pay the franchisor some fee for these rights. Uber Technologies Inc. has recently signed a deal to sell some of its China operations to its fierce competitor Didi Chuxing at 7 billion dollars. Didi who is the franchisor, in this case, will invest 1 billion dollars in Uber's global company. This move will enable Uber to expand its China market and end price wars that had resulted in lose. This step will also allow it to extend its operations to other countries where they are facing fierce competition from their rival companies like Ola in India and Grab in South East Asia and Lyft the U.S.

Exit strategy

The merger between the two rival firms, Uber China and Didi Chuxing is a long-term strategy that the company might use as an exit plan should anything arise. The merger of the two companies where Uber controls 17.7 percent worth of shares with an investment of 7 billion dollars in its China market is a mere exit plan.


Many international firms usually face challenges in pursuing their goals and objectives. This problem comes in the form of rivalry they face when entering an individual market forcing to merge or franchise with a rival firm. Another challenge is the price wars that may eventually lead to the closure of their business or result in massive losses that may interfere with normal operations of the firm.

Works Cited

Hall, Jonathan V., and Alan B. Krueger. "An Analysis of the Labor Market for Ubers Driver-Partners in the United States." Princeton University Industrial Relations Section Working Paper 587 (2015).

Rahel, Steven. "Economics of the Taxi Industry: An Uber Shake-up." (2016).

Wallsten, Scott. "The competitive effects of the sharing economy: how is Uber changing taxis?." Technology Policy Institute (2015).

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