Uber’s Business Model

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Uber refers to a transport technology in which an application is installed in the user’s smartphones which allows willing passengers connect to drivers promptly for transport services. As such, this paper will provide a report on the Uber business by discussing various aspects of the transport system.

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Uber’s Business Model

Recent reports have indicated that the Uber business is valued at $70 billion and is in use in more than 633 towns worldwide today. As such, the business has attracted many investors who have relished making profits from the business venture. The Uber business generates its revenue by employing two popular revenue generation methods. First, Uber generates revenue by levying fixed charges on its customers for the specific rides (Cramer, Judd, and Alan 177-182). Secondly, Uber generates its revenue through promotional partnerships and offerings which involves the third parties. As such, the Uber business can either use one method at a time or combine the two methods to generate its revenue for future growth and development. Currently, the Uber business provides its users with affordable and convenient transport services. This service is offered upon request by the customers by logging in through an application which connects the user to the nearest Uber available. Among the expenses that Uber incurs include the legal costs for its advocates, the periodical maintenance costs and license fees among other overheads.

Uber’s Economic and Legal Environments

Uber operates within a sharing economy where intellectual or physical resources are shared by the industry players since Uber hires drivers to facilitate movement of its customers (Cannon, Sarah, and Lawrence 24-28). Although Uber business has developed over the recent years, countries have started implementing strict regulations on the business perhaps due to the unfair competition in gives the taxi business. As such, people are wondering whether Uber’s economy presents new opportunities or whether it is taking away the traditional taxi opportunities. The rapid growth of Uber has, therefore, indicated a strong economic potential in the market. On the legal environment, Uber has had to fight various issues related to its operations. The Uber business faces bans, criticism, and attempted bans in some cities in the world due to the stiff competition it gives the traditional transport system, the taxi. Therefore, Uber is by law expected to adhere to the copyright, labor, employee safety, and usage laws.

Uber’s Organizational and Leadership Structure

Uber has a hierarchical organizational and leadership structure with its chief executive officer being the senior-most personnel in the organization’s leadership rank. After the CEO, there are departmental managers such as the chief financial officer, chief technology officer, chief legal officer, chief human resource officer, chief product and chief of security respectively (Dudovskiy). After these departmental managers, there is the general counsel, president ridesharing and head of Uber everything personnel.

Uber’s Business to Consumer and Business to Business Models

The most common model used in the Uber market is the business to consumer model. In this model, Uber directly sells its transport services to willing consumers by charging them a given cost depending on the underlying factors such as the availability of other transport means, and distance covered. However, Uber has since expanded its services to cover the business to business model. Here, Uber is contracted by various organizations to transport their employee leaving office at late hours to their residences and also driving employees from one organization to another for various business activities (Teece 40-49). The business to business model has, therefore, helped organizations cut on costs and have a reliable means of transport for their employees.

Uber is fast growing and expanding and it is important that organizations and users worldwide embrace this transport advancement for efficiency and effectiveness.

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Uber's Business Model. (2019, Dec 24). Retrieved December 1, 2022 , from
https://studydriver.com/ubers-business-model/

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