Case UBER PDF

Title Case UBER
Author Hữu Thịnh Bùi
Course International Business
Institution Đại học Kinh tế Quốc dân
Pages 2
File Size 63.2 KB
File Type PDF
Total Downloads 99
Total Views 146

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UBER: GOING GLOBAL FROM DAY ONE Recent years, technology taxi (Uber, Grab) becomes the biggest rival of the traditional taxi companies. This new kind’s business model is quite different from the traditional ones’. In the past, the riders had to contact the taxi companies’ switchboard in order to book a taxi and then the riders spent 10 to 15 minutes waiting the car. Lots of customers complained that 10minute waiting was too long. In contrast, the Uber’s users can easily book a car through the mobile app Uber and the car will pick them up after 3 minutes, it’s much shorter than waiting the traditional taxies. Whether people like Uber or not, its on-demand business model has been very very successful. Uber founders came up with this business model when they were unable to find a taxi at night in Paris. Therefore, Uber appears to satify the immediate needs of travel of citizens and they primarily focus on the majority cities. It’s on-demand business model might be appropriate with Service Industries. Any where, any times, there are always lots of people whose needs are immediate such as travelling, cleaning or delivery. To meet these demands, several companies follow what Uber has done: designing an mobile app for Android and IOS that the users can directly order services through the apps. For instance, PicUp and WumDrop are two companies offering the delivery service, the customers can be served everytime wverywhere and all they need to do is tapping the app. These two companies will transport the goods by everything from bicycle to car and the price depends on the goods’ weight, the transportion and the distance between starting point and destination. Overall, the on-demand business model of Uber can be applied in different industries, especially service industry because of its modernity, convenience and promptitude. Banning Uber outright from operating in the community obviously impact badly on the citizens and visitors.The very first thing is about the price. After the cities ban Uber, people have to use traditional taxi and the price per kilometer of the traditional taxi companies is much more expensive than Uber’s. For example, in Hanoi, the average price per kilometer of traditional taxi companies is around 13.000 to 17.000 VND and the fare of Uber is around 9.000 VND per kilometer. Thus, Uber app will notify the price of that trip so the riders will know exactly how much the trip costs. Secondly, the customers can follow the routes on the map; therefore, they won’t be afraid of being cheated. On the other hand, the traditional taxi drivers sometimes just goes around in order to increase the fares. That usually occurs to foreigner visitors. Lastly, when Uber is out, the number of cars in the cities will decrease sharply. Because when Uber still works, a great number of people who have cars applied for a job; when it’s out, these people will be out too. Consequently, there will be lack of cars when the population in the cities is increasing dramatically.

The old saying “do first, ask questions later” might not work well in the long run. In the beginning, the companies which establish first and then fight attempts by regulators will be very very successful. But in the long run, these companies will meet the protest of the competitors and the governments. In many countries, when Uber has problems with the governments, it uses riders to pressure local governments to change the law and allow Uber to offer its service. That act leads to the consequence that lots of laws had been enforced to limit Uber or in some countries, Uber was banned by the govenrment and had to leave. Uber has difficulties not only with the governments but also with the competitors in the local area. Because of the strategy, Uber is not welcomed in many countries; therefore, Uber’s local rivals such as FastGo in VietNam, Didi Kuaidi in China, etc get lots of help from the local governments (some aspects like income tax, fee of facilities using, market advantages,...). Consequently, Uber would compete failed with the local rivals and in the long run, this business is not able to approach viable the local markets....


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