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Introduction
Modern technologies are currently transforming business operations and processes. Uber Technologies is one of the companies that have capitalized on the power of smartphones and apps to deliver high-quality services to the targeted customers. Unfortunately, the organization is facing various obstacles that have the potential to affect its future performance. This paper begins by giving a detailed summary of the presented case study. It goes further to identify Uber as a new organization, its business type, and the major challenges disorienting organizational performance.
Summary
In 2009, Garrett Camp and Travis Kalanick founded Uber with the aim of presenting an app for contracting transport services. Presently, the concept of surge pricing is used whereby fares are determined by distance and demand. By 2016, the company had recorded tremendous success in different cities across the world (Laudon and Laudon 399). The use of online platforms and marketing strategies has made it possible for Uber to attract the attention of politicians and other stakeholders. Unfortunately, the level of opposition has remained high in Europe since some cities have banned its operations (400).
Fortunately, Europe’s Digital Agenda has been on the frontline to identify such malpractices as inappropriate and anti-technology in nature (Laudon and Laudon 400). The provision of reduced prices explains why the level of opposition has been on the rise.
In Germany, drivers tend to be treated as contractors without liberties or rights. Uber pursues e-commerce trends to offer on-demand services. However, this model is viewed as a threat to contemporary or existing industries. The outstanding obstacle is how this organization will become profitable based on its model (Laudon and Laudon 400). The reliability and convenience associated with this company’s services have disrupted the traditional taxi industry. The regulatory and political opposition combined with the increasing number of competitors might affect this company’s future performance.
Overview
The case reveals that Uber is currently a successful organization in different African and American cities. Unfortunately, Europe has continued to oppose its entry and performance in the taxi industry. The existing laws and requirements are making it impossible for Uber to achieve its objectives. The greatest fear is that its entry and performance might disorient the effectiveness of the traditional taxi companies (400). Despite such issues, the company has been battling in different courts to ensure that all drivers are treated fairly and empowered. However, the future of its disruptive business model remains uncertain in different regions.
Business Type
From the studied and analyzed case study, it is agreeable that Uber is currently operating an e-commerce business. This concept revolves around the use of emerging technologies to provide exemplary services, including smartphones and apps (400). Such a model makes it possible for this organization to provide on-demand and surge pricing options to different customers.
Responses
Many industries and sectors are currently focusing on emerging technologies and trends that can result in improved performance. New organizations have capitalized on existing gaps and challenges in an attempt to produce and deliver superior goods or services to the targeted customers. Uber is one of these companies that are relying on the use of smartphones and apps to provide better experiences to passengers.
This means that it has managed to disrupt the traditional taxi business. From this analysis, it is clear that Uber’s business model is sustainable and viable (Laudon and Laudon 400). Through the use of such a strategy, the company has managed to attract more customers in African and American cities. Most of the individuals are the ones in need of reliable and undisturbed transportation service in various countries.
Unfortunately, the organization has faced diverse challenges in the European market. Although the company might have been unsuccessful in this region, chances are high that things will change in the future. This is the case since technology is a powerful force for presenting new changes and dictating the way different organizations pursue their objectives (Laudon and Laudon 400). The leaders of Uber should continue to pursue such a model, address the challenges and problems many drivers face, and focus on the nature of the existing competition.
This strategy will ensure that evidence-based solutions are presented in an attempt to make Uber a market leader. It is also evident that every new change will usually trigger some form of opposition. With this kind of model, the level of competition will decline because more customers will be ready to use the available transportation services.
Personally, I think that the use of Uber is more convenient in comparison with regulated taxis. This is the case since such services are available and accessible by just logging into an app. On the other hand, traditional taxis can be quite hard to get and achieve the intended objectives. The Uber model is appreciable since it addresses most of the obstacles and challenges associated with traditional practices.
The acceptance and success recorded in different regions explain why more people will continue to select Uber’s services in the future. The use of a regulated taxi can also be demanding for drivers since they have to wait for passengers who are in need of such services (Laudon and Laudon 401). For Uber, both clients and drivers will enjoy the comfort and convenience associated with the use of smartphones and emerging technologies. This analysis reveals that this corporation will have increased chances of tackling most of the identified problems and eventually add value to its passengers and drivers.
Challenges
Uber has remained successful in different American cities due to the effectiveness of the established strategy and the accessibility of its transport services. Unfortunately, political structures and legal guidelines continue to disorient performance in Europe and other regions across the globe. Many competitors are against the model since it has the potential to affect their aims and initiatives. Some drivers have been engaging in strikes in an attempt to have their demands addressed (Laudon and Laudon 400).
The company’s entry into the taxi industry continues to disrupt the performance and success of existing businesses. This means that there is a need for its leaders to be aware of these issues and consider the most appropriate initiatives to address them and continue improving business performance. This approach will ensure that the needs of different stakeholders are met, thereby making the organization successful.
Conclusion
The above discussion has identified Uber as a leading competitor in the global taxi industry. However, its new business model has disrupted existing practices and objectives in this sector. The identified challenges should become powerful guidelines for presenting a superior business strategy that will support its aims and eventually make it more profitable. This approach is critical since the emerging demands of different clients will depend on nature, availability, and convenience associated with the available transportation services.
Work Cited
Laudon, Kenneth C., and Jane P. Laudon. Essentials of Management Information Systems: Managing the Digital Firm. 14th ed., Pearson, 2015.
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