Uber Hits A Bump In The Road Case Study Analysis PDF

Preview

Summary

Uber Hits A Bump In The Road Case Study Analysis...

Description

VALUE-SYSTEMS-AND-PROF-ETHICS ABHILASHA SINHA

ASSIGNMENT 1 UBER HITS A BUMP IN THE ROAD - CASE STUDY ANALYSIS

I’d like to begin this analysis by clarifying that the article and the following points may be outdated. The tech world changes daily, and I will try my best to update relevant information as and where it is valid. This case study discusses the journey of Uber: from a ride sharing app developed by a need in the market, to a disruptor so large that its very name has become a verb. The case study explains the way the app works, the challenges it faces, compliance and licensing issues globally and potential solutions to its ethical issues. In short: consumers use the Uber app to contact a driver in the nearby vicinity when they want a ride. The app also allows consumers to get an estimated time of arrival on their smartphones with the use of an integrated GPS system. Many people use Uber as an alternative to taxis, which has upended the taxi industry on a global scale. It is important to keep in mind though that after and during the pandemic, ride sharing apps like Uber and Lyft were badly affected and are now even more expensive sometimes than local taxis, which has brought back some life into the taxicab landscape. (Evans, 2021)

Uber is also having an impact on other industries as well. For instance, companies like Zappos are planning to adopt Uber’s surge-based pricing strategy. (Hawkins, 2020) Drivers for Uber act as independent contractors who can run their own ridesharing business and drive whenever they so choose. However, Uber encountered a lot of

VALUE-SYSTEMS-AND-PROF-ETHICS ABHILASHA SINHA

challenges as it expanded globally. Internally, Uber faced and continues to face some problems with its drivers. Despite the drivers’ status as independent contractors, Uber still exerts much control over the drivers, including setting rates. In California lawsuits have been filed by Uber drivers claiming that they should be legally considered as employees. One driver won a lawsuit against Uber in California. Uber might need to amend its strategy so that Uber drivers will fall beneath the employee threshold. In a recent 2020 vote, a California court voted that Uber and Lyft did not require its drivers to be full-time employees, but only contractors. This may have to do with the fact that large firms lobbied behind this decision, raising millions of dollars more than the unions that wanted the drivers to be employees. (Zillman, 2021)

Additionally, Uber has faced many difficulties from the taxi industry. The taxi industry points out that it is unfair that Uber gets to offer taxi-like services without having its drivers go through the same licensing requirements that taxi drivers must go through. Many governments seem to agree, and Uber has been partially or wholly banned in places such as France, Germany, India, Australia, South Africa, Spain, and Indonesia. Protests of taxi drivers further discourage Uber’s expansion. An alleged rape in India by an Uber driver has caused some governments to question how Uber vets its drivers, prompting Uber to implement more safety measures. Uber has also clashed with laws such as the American with Disabilities Act because many of the drivers drive their own personal vehicles, which are not wheel-chair friendly. In India specifically, Uber has a

VALUE-SYSTEMS-AND-PROF-ETHICS ABHILASHA SINHA

tough local competitor, Ola, which won permissions to ply taxis when Uber was rejected back in 2015. At this time, both Ubers and Ola are available in India. (Reuters, 2015)

In 2017 Uber’s co-founder and CEO, Travis Kalanick, resigned. Kalanick was known for his aggressive strategies, and critics believe this began to trickle down into the corporate culture. Additionally, some female employees at Uber claim they had suffered sexual harassment on the job. Uber’s resistance to releasing its diversity statistics also led to major criticism. The investigation into the harassment claims resulted in 20 employees being fired. Investors were uneasy about Kalanick’s leadership ability and pressured him to resign, although he remains on the board.

Here are a few glaring issues that Uber has been in the spotlight for in the past, and continues to be so even in today’s age:

Surge pricing: Uber applies surge pricing that increases the fare based on the supply and demand of the vehicle. This means that the customers often need to pay exorbitant amounts for transportation and this makes it exploitative.

Partners: Uber has not provided their partners (drivers) with any additional benefits other than monetary benefit. This means Uber’s partners are often treated as mere resources with no consideration for humane treatment such as family leave, medical benefits, etc. This has caused a very unhealthy work condition for the partners

VALUE-SYSTEMS-AND-PROF-ETHICS ABHILASHA SINHA

Government: Uber has been portraying themselves as a rideshare app and thus has been avoiding government regulation in several countries. However, if the recent (this is an outdated article) EU verdict is anything to go by, the company should be considered as a transportation company. Thus they need to focus on various regulations that they have skipped thus far. Uber is currently facing many regulatory lawsuits. (Allon, 2019)

In order for them to be successful in the long run, the organization needs to focus on making sure that their public image and their practices reflect ethical and responsible behavior. This is something the company has not been successful to do so far.

Uber usually has only 1 or 2 direct competitors in each of the countries where they operate. While it is true that they have disrupted the market wherever they have gone, the company is comparatively new. This means that instead of creating new regulations and laws for app based services, governments need to focus on placing Uber in one of the categories where they can be property regulated. Transportation industry is one such and can help the organization streamline its operation as per the overall welfare of the community.

VALUE-SYSTEMS-AND-PROF-ETHICS ABHILASHA SINHA

BIBLIOGRAPHY

1.

Evans, D. (2021, September 1). Uber and lyft rides are more expensive than ever because of a driver shortage. CNBC. Retrieved October 6, 2021, from https://www.cnbc.com/2021/08/31/why-uber-and-lyft-rides-are-more-expensive-th an-ever.html.

2. Allon, G. (2019, December 3). Can Uber overcome its regulatory obstacles? Knowledge@Wharton.

Retrieved

October

6,

2021,

from

https://knowledge.wharton.upenn.edu/article/can-uber-overcome-regulatory-obst acles/. 3. Gaskell, A. (2017, January 27). Study explores the impact of Uber on the taxi industry.

Forbes.

Retrieved

October

6,

2021,

from

https://www.forbes.com/sites/adigaskell/2017/01/26/study-explores-the-impact-ofuber-on-the-taxi-industry/?sh=3949708216b0. 4. Hawkins, A. J. (2020, November 4). Uber, lyft drivers aren't employees after all, California

voters

say.

The

Verge.

Retrieved

October

6,

2021,

from

https://www.theverge.com/2020/11/4/21546037/prop-22-california-uber-lyft-ballotmeasure-result. 5. Thomson Reuters. (2015, July 8). High Court revokes ban on Uber in New Delhi. Reuters.

Retrieved

October

6,

2021,

from

VALUE-SYSTEMS-AND-PROF-ETHICS ABHILASHA SINHA

https://www.reuters.com/article/india-uber/high-court-revokes-ban-on-uber-in-new -delhi-idINKCN0PI17V20150708. 6. Zillman, C. (2021, April 24). Zappos is bringing uber-like surge pay to the workplace.

Fortune.

Retrieved

October

https://fortune.com/2015/01/28/zappos-employee-pay/.

6,

2021,

from...