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Posted: September 19th, 2023

E-Commerce Assignment

E-Commerce Assignment
Online Business Analysis (Uber)

Executive Summary
(REEMA)
(DEEM)
(NOUF)
(MADHAWI)
(DANA)

Uber is a global leader in the urban transportation industry, operating in more than 900 cities worldwide. Uber’s business model is based on connecting drivers and passengers through a smartphone app, offering cheaper and more convenient rides than traditional taxis. Uber’s mission is to ignite opportunity by setting the world in motion.

However, Uber also faces many challenges and threats in its competitive environment, such as regulatory barriers, legal disputes, public backlash, driver dissatisfaction, and rising competition from local and global rivals. Uber needs to adapt its strategy and operations to different markets and customer segments, while maintaining its core value proposition and competitive advantage.

This report provides a comprehensive analysis of Uber’s business model, using the Business Model Canvas framework. It also evaluates Uber’s strengths, weaknesses, opportunities, and threats, using the SWOT analysis tool. Finally, it offers some recommendations for Uber to improve its performance and sustainability in the global market.

Uber Strengths and Weaknesses

 Uber Strengths
1. Uber has the strength of being technologically innovative. It leverages data analytics, artificial intelligence, and machine learning to optimize its platform and services. For example, Uber uses dynamic pricing to adjust fares according to demand and supply, surge pricing to incentivize drivers during peak hours, and route optimization to reduce travel time and distance.
2. Given that Uber is one of the most prominent transportation firms in the world, their tremendous brand recognition acts as a strength for them. Uber has become synonymous with ride-hailing and has a loyal customer base that values its convenience, affordability, and quality.
3. Compared to other transportation services and providers including traditional taxis, Uber offers more affordable ride costs. Uber’s fares are lower than taxi fares in most markets, and it also provides various options for different budgets and preferences, such as UberX, UberPool, UberBlack, UberEats, etc.
4. Uber has favorable conditions in the contracts they have with their drivers. Uber affiliated drivers are regarded as independent contractors rather than employees. This means that Uber does not have to pay for benefits, taxes, insurance, or maintenance costs for the drivers or their vehicles. This also gives Uber more flexibility and scalability in its operations.
5. Uber has the strength to maintain low operational costs, especially for a business of its scale. The drivers supply the vehicles; therefore, Uber is not responsible for maintaining or acquiring them. Uber also does not own any physical infrastructure or assets, such as offices or parking lots. Instead, it relies on cloud computing and online platforms to run its business.
6. Uber users can review their experience and rate drivers. As drivers constantly strive to raise their evaluations, this guarantees that the service they provide continually remains at the highest caliber. This also creates a feedback loop that helps Uber improve its quality and customer satisfaction.

 Uber Weaknesses
1. Uber’s primary transportation service is relied upon and provided by drivers. However, many drivers are dissatisfied with Uber’s policies and practices, such as low wages, high commissions, lack of benefits, unfair ratings, etc. This leads to high turnover rates, driver protests, strikes, and lawsuits against Uber.
2. Uber has faced several scandals and controversies over the years. Some of them have only caused mild difficulties, whereas others may have placed their survival in danger. For instance, Uber has been accused of sexual harassment, discrimination,

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