To: Uber CEO Dara Khosrowshahi. Essay Sample

Business Impact Summary: Uber is one of the prevalent demand cab-hailing service providers known all over the world. It is a smartphone mobile application providing on-demand services to users globally. It connects its passengers seeking taxi services to taxi cab drivers. Their clients simply use the Uber mobile application to secure the ride, providing full information on the cost of the ride and how long it will take for the taxi to arrive at their specific destination (Jordan, 2017). There is an automatic charge of fare from the client’s credit card once they have reached their destination, thereby providing much convenience. Despite Uber being one of the most preferred cabs-hailing service providers in New York and other parts of the world, it faces numerous challenges that need to be fully addressed for it to be more profitable and effective.

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Uber is not in possession do of any taxi and therefore, they do not incur financing and maintenance costs. Taxi drivers using this specific mobile application that links them to their customers, therefore, they use their cars when providing taxi service. Uber, regard their drivers as independent contractors (Jordan, 2017). Therefore, their drivers do not enjoy compensations and other benefits of employee status. Moreover, the company does not adhere to minimum workers' wages since drivers get their pay from a specified percentage of the fare. Additionally, the company does not offer training, health insurance, no drivers’ background check, and no commercial licensing cost for their drivers (Jordan, 2017).

Uber has been on the publicity for transgressing transportation laws and requirements by classifying its drivers as contractors and not providing the essentials discussed above to their drivers. Besides, failure by the company to conduct drivers’ background check, training, and providing commercial licensing, has led to increased criminal activities orchestrated by some of their drivers and escalated traffic congestion because unqualified drivers who do not observe traffic rules. The company has also been found to be misusing its drivers’ and customers’ data which is explicitly against data protection laws.

Recommendation 1: For sustainability, further growth and development, Uber should consider adopting other favorable models of engaging their drives appropriately by providing essentials, training, and ensuring that they meet required international standards as professional drivers. Furthermore, they should treat their drivers as their workforce rather than independent contractors. That way, they will ensure safety measures are taken, reducing crime rates and dangers customers are exposed to as a result of criminal activities orchestrated by some of their drivers.

Recommendation 2: To be able to mitigate regulatory obstacles that it faces in different states, the company must ensure that it abides by public transportation legislation and regulation that ensures both customers and driver protection. Additionally, this will also determine how much tax they pay thus, the company’s profitability

Reference

Jordan, J. (2017). Challenges to the large-scale digital organization: the case of Uber. Journal Of Organization Design, 6(1). https://doi.org/10.1186/s41469-017-0021-2

Zimmermann, S. (2019). Digital Fluency – a Key Competence to Perform in the Digital Age?. Academy Of Management Proceedings, 2019(1), 11870. https://doi.org/10.5465/ambpp.2019.11870abstract