Uber Chicago is known as the wildest developing app taxi-sharing organization. At the same time, it has also faced various disagreements in the cab industry (Fast Company , 2019). The most serious ones being ban in international countries and minimum salary problem. Nevertheless, it still goes on thriving. This is a PESTLE analysis of the Uber Chicago.
In the context of political factors, originally Uber had no clear rules and the motorists need not have a driving license. This motivated most drivers to venture in the Uber market. Thus reaching many consumers and making more profit. Unfortunately, this was quite a challenge to cooperate with Insurance (Hsieh, 2019). For example, in the case of an accident one would not easily distinguish if the company or the driver was responsible. Moreover, the company has encountered further challenges globally with governments (Newcomer, 2019). The Netherlands banned Uber since their motorists lacked Taxi licenses, while France filed charges based on advertising, there are also various bans in Asian countries. Currently, there are political debates on the minimum salary in the taxi industry and if Uber is enduring these regulations.
Uber functions in a taxi-sharing economy. It hires drivers to drive clients to their locations. It is regarded as cheap as and easier to operate than its counterparts. Something which has seen it grows gradually (Sherman, 2018). However, the unfair competition against steady taxis has seen Uber banned in some countries. Uber success has made it the focal point of taxis with debates on if its type of economy has brought career developments or depriving them. Other taxis such as Lyft are trying to remain relevant in the economy.
In the aspect of social factor, Uber customers enjoy easy access to transportation. The easiness of the app, as well as the cheaper charges, motivates many, which has enabled the expansion of Uber (Smith, 2018). Customers also have the option of posting their experiences on social media sites. However, as a result of Uber popularity charges have increased in some cities.
Technology elements such as social media have enabled the development of Uber. Customers posting their good experiences on Uber encourage other users to do the same. Customers can also pay from the app (The Conversation , 2019). However, if the app goes down, then the company suffers challenges. For example, if there is network failure then the app will be unavailable.
The legal environment of Uber is closely tied to its political environment. Noting that it faces bans by some local governments it should technically follow laws, copyright laws, and ensure motorist safety to better their services (Tophan, 2019).
Overall, the environmental effect of Uber however steady. In some towns and in various times Uber could increase or reduce traffic congestion as well as fuel usage. When the traffic is fewer people often prefer to use Uber and when traffic accumulates people prefer Public transport.
References
Fast Company. (2019). Uber. Retrieved 2019, from https://www.fastcompany.com/company/uber
Hsieh, B. (2019). Year in Review: 2018 Highlights from Uber Open Source. Retrieved from Uber https://eng.uber.com/uber-open-source-2018/
Newcomer, E. (2019, February 15). Uber Revenue Growth Slows, Losses Persist as 2019 IPO Draws Near. Retrieved from https://www.bloomberg.com/news/articles/2019-02-15/uber-results-show-revenue-growth-slows-amid-persistent-losses
Sherman, L. (2018, July 18). Is Uber For Everything A Good Thing? Retrieved from https://www.forbes.com/sites/lensherman/2018/07/17/is-uber-for-everything-a-good-thing/#3ace71d510ef
Smith, Y. (2018, December 10). Uber Is Headed for a Crash. Retrieved from http://nymag.com/intelligencer/2018/12/will-uber-survive-the-next-decade.html
The Conversation. (2019). Work in the 'gig economy': one-night stand or a meaningful relationship? Retrieved from https://theconversation.com/work-in-the-gig-economy-one-night-stand-or-a-meaningful-relationship-111047
Tophan, G. (2019, February 26). Uber survives legal challenge brought by London cabbies. Retrieved from https://www.theguardian.com/technology/2019/feb/26/uber-survives-legal-challenge-london-black-cab-drivers
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Uber PESTLE Analysis, Essay Example for Everyone. (2022, Feb 18). Retrieved from https://speedypaper.com/essays/uber-pestle-analysis
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