Uber and the Digital World
Uber has been thriving in our present day market with consumers who prioritize efficiency. It’s great accessibility has given people the ability to relax and not worry about how they are getting a ride home. Needing a designated driver on a night out is no longer a necessity when you can book and get in an Uber in a matter of minutes. With 103 million active users in 2019, Uber has made a huge name for itself in the digital world. They have taken many opportunities to expand, but have also been faced with challenges that set them back.
A large challenge Uber faces is it’s competitors, including Taxis and other Ride-Hailing Apps. While Uber dominates the market, their market share went from 74% to 69% due to Lyft’s rise in the market. This could be due to Lyft having a better subscription option than Uber. While both Lyft and Uber both have subscription options, Lyft’s subscription is $5 cheaper at $20 per month. For people that utilize ride-sharing apps often, they have a high chance of opting for Lyft over Uber for this deal. Some people have chosen to use Lyft instead of Uber because they have better reviews for employee satisfaction. 52% of Lyft drivers enjoy working for Lyft, but only 48% of Uber drivers enjoy working for Uber.
To overcome this challenge, Uber should either lower it’s subscription price or increase the benefits of having a monthly subscription. Because Uber has Uber Eats, they could integrate coupons off of a meal delivery. This is something Lyft would not be able to compete with unless they integrated a delivery service into their company as well. Another benefit of a monthly subscription could be a Select/Black Uber at a price of an UberX. This would give the passengers the opportunity for a nicer ride at a more reasonable price for a fancy night out.
While Uber has expanded into 80 countries, some countries have banned it due to its legality and safety along with its lack of corporate responsibility. Some countries that do not have Uber are Denmark, Hungary, Bulgaria and China. Some of these countries had concerns because the drivers on Uber were not required to have a taxi license, making the service appear unsafe for customers. Uber does not always fit in well with different cultures, including Denmark where many people choose cycling in their everyday lives over vehicles. Markets also have ethical concerns regarding the employees pay. While Uber itself is a billion dollar company, their employees get a small fraction of money from each ride they provide.
Uber has been faced with many legality issues which has put it in a difficult position. There have been thousands of reports of sexual assault and even a murder. This is most likely due to inefficient background checks resulting in unauthorized drivers and felons becoming Uber drivers. With this information, customers have felt a large sense of discomfort. Uber decided to integrate safety features into their app, including texting 911 through the app and recording the audio during their trip. These digital advancements were extremely necessary for them to overcome this issue.
The input of these safety features are great, but Uber should integrate more of these features. Before they provide the option to rate and tip the driver, they should provide a button for users to press stating that they safely arrived at their destination. If this button hasn’t been pressed within 5 minutes of arrival, Uber should send out a message to the user to make sure they are okay. This digital integration would give the customers a sense of security that the company is looking out for them.
The viral pandemic, COVID-19 has taken over leaving many people and organisations highly concerned, including Uber. Uber has had to take steps to reduce the spread of the Coronavirus, including suspending the Uber Pool option for people in the US, Canada, London and Paris. However, Uber has also taken this time to market for their Uber Eats delivery service. They have integrated a $0 delivery fee for people who have to or have decided to self-quarantine. Customers will appreciate this considering grocery stores have limited options now and it’s safer to stay within their homes.
Uber Eats was an extension to Uber that they integrated into their company which has expanded their services to include food delivery. With certain restaurants not offering delivery, Uber was able to take it into their own hands and allow customers to order food through the Uber app. The drivers would go to the restaurants and pick up and deliver the food for them. McDonald’s was the first major restaurant to give Uber Eats a breakthrough with an increase of 20–30% in their orders. Uber Eats has expanded their number of customers as well because 1/3 of Uber Eats customers haven’t used Uber rides.
Uber Eats has had the ability to also gather new employees who may not have a car or who’s car is not approved of for the ride sharing. By introducing more restaurant partners and having continuous expansion, they will need more employees. For potential employees that don’t have access to a car, they should receive access to Uber’s Jump scooters. Introducing more of these would be extremely beneficial for the company. Using their technology to track these scooters to help employees reach one nearby would increase efficiency and quick customer delivery.
Uber has made a great name for itself in the world of technology. They have taken advantages of great opportunities to expand including Uber Eats and Jump Scooters. The app has a huge presence throughout the world, and although they have encountered scandals, they don’t have much holding them back. Even with the Coronavirus and people remaining at home, they still know how to reach out and make revenues. I would simply advise Uber to utilize their technology to create stronger background checks and safety features for passengers. Ride sharing is the present and the future and they will have continued opportunities for growth.
