SWOT Analysis of Uber
Strengths
Uber appears to be an unsinkable company whose brand is so recognizable that the company’s services will never completely go out of use. Despite its low financial performance, the company is one of the key brands in the world, which is one of its strong points.
Weaknesses
Among the main weaknesses of the company, it should be noted the low level of development of network communication and internal communication. The logistics of the company does not correspond to the indicators declared by the director of the company at the moment, or correlates with them very weakly.
Opportunities
Opportunities for further growth for the Uber company have opened only recently, where there is an increased demand for the market in the era of Covid.
Threats
However, the financial problems experienced by the company can lead to an even greater decrease in the respectability of cooperation with the company and further loss of personnel. Due to numerous systems of restrictions and low payment for a trip, working as a taxi driver in such a highly branched system is becoming less and less profitable and prestigious (Munn, 2017).
SWOT Analysis Strategy
- Better customization to the client base, provision of taxis in all areas.
The company needs consistent improvement of intra-system relations to bring the project to the level promised by the creators. This includes improving the delivery system, improving the distribution of vehicles across locations. Uber already has brand awareness, but the brand needs to re-adjust comfortably to the customer.
Localization of machines at the level of individual districts to improve efficiency during pandemics. It seems that it should start with a more perfect adjustment to the client base. Uber must provide round-the-clock taxi services in all areas so that each client has the opportunity to use the services of this particular company. However, this requires an improved logistics system that distributes drivers in such a way that the streets are equally loaded with the firm’s taxis. Moreover, in the context of the past two years and the changed socio-economic environment, Uber is forced to adapt to the conditions of the pandemic and look for winning solutions. One of the most logical strategies in this context is the localization of machines at the level of individual districts to increase efficiency in the quarantine era.
- Finding better conditions for drivers.
In the context of the current situation of low assessment of the Uber driver profession, the company needs to develop a strategy that will completely change this popular point of view. At the same time, an increase in wages is not an option as it will lead to financial stress. The only way out for the company is to attract as many customers as possible to ensure sufficient workload for each driver.
- Establishing a fine-tuned communication and navigation system.
The main weakness of the company is its disjointed internal communication system, which needs improvement. With the successful development of new software capable of saving drivers’ time and planning taxi routes due to the workload of a particular area, the company could greatly increase its earnings. The main threat to the company is the insufficient number of employees due to the loss of a sense of benefit. Therefore, both employees and potential customers should be as much as possible notified about those colossal changes that are taking place in the company in the name of its improvement. Only in this way it becomes possible to attract the necessary human resource, both in the form of an employee and a client.
Competitiveness Strategy
Return brand appeal by revising the system of fines and compensation. Uber needs to develop a strategy to improve working conditions, reduce fines to increase attractiveness. Working at Uber has to be rewarding again, so finding a better environment for drivers is required. In this regard, it is required to restore the attractiveness of the brand by revising the system of fines and compensation. Fines have turned into a condition that scares off potential employees of the company from work, while the risk of receiving a fine is not so great. It is due to the facilitation of the penal penitentiary system, while maintaining the same remuneration system, that it is possible to attract new able-bodied personnel and raise the efficiency of the company.
The company needs consistent improvement of intra-system relations to bring the project to the level promised by the creators. This includes improving the delivery system, improving the distribution of vehicles across locations. Improving the delivery system is vital for the company during this time of the global pandemic. It would probably make sense to combine the work of taxi drivers and delivery couriers in order to further increase the efficiency of the company. Thus, not only will the responsibility grow and the scope of activity of each employee will grow, but also time and the need to hire an excessive number of personnel will be saved.
Profitability Strategy
Maximize driver’s productivity
An important task for Uber programmers is to ensure the number of trips sufficient to increase daily earnings. Therefore, the company needs to establish a communication and navigation system, provide cars in each covered area by improving the logistics system. This strategic innovation is required to maximize driver time savings and mobility.
Probably, a classification of cars is required into those that move long distances and those that transport people only inside nearby areas. Classification of vehicles is probably required as those that travel long distances and those that transport people only within the surrounding areas. In this way, the productivity of the company could be increased with the proper technical support. Thus, the work of the company’s employees could be more coordinated and, accordingly, the speed of customer service would increase. A very important element in the work of a transport company is the speed of detection of the driver, their proximity to the client and the waiting time for the car. By improving each of these components by classifying the machines and distributing them by area, the attractiveness of the company and the number of orders completed would increase greatly.
Communications Plan
Customers can be attracted by what the company already has – the brand and its ubiquitous availability, which should actually be visible. It is necessary to attract the attention of customers by communicating what strategies are actually used by the company in order to provide the most comfortable and profitable conditions for customers. Any positively oriented actions taken by the company should be covered in the media and social networks. The client should be aware that by supporting Uber they choose to give money to those people who earn it honestly.
It also makes sense to create a separate online resource in which employees can leave their comments and wishes regarding the improvement of the system. Thus, the employees of the company would be aware that they are being invited to express their own opinion, which certainly gives motivation and faith in their place of work. Communication and two-way dialogue in general are principles of work ethics and therefore must be emphasized when it comes to hierarchical systems.
Emphasis on the importance of the innovations
The improved messaging model of the company should be presented as an innovation that is designed to make Uber the utopian company it is striving to become. It should be emphasized that these innovations are made not only in the name of the convenience of both customers and employees, but in general in the name of embodying the vision of a better future.
Clients and employees should be aware that in Uber they have a transparent and open financial system in which the receipt of benefits depends on them. The openness of the financial system is currently an area of economics that attracts the attention of researchers (Barbu et al., 2018). Such a freer and more transparent form of exchange, including the careful choice and wishes of the client, is extremely promising in our time.
Corporate Social Responsibility
The concept of localized mobility proposed above also helps to reduce toxic gases in the atmosphere while minimizing movement. Modern people live in an era when the trends of globalization are gradually beginning to lose their relevance, in particular in connection with the pandemic (Hitt et al., 2013). Therefore, it is very important to maintain the same level of professional support at the micro and macro level. Minimizing travel also underestimates pollutant emissions.
The main trends that are already gradually coming into the life of Uber are: greening the company, reducing waste, installing sustainable hybrid vehicles and promoting environmental awareness. It is really important for Uber as a multinational corporation to ensure that these developments are implemented equally or nearly equally in all countries, regardless of their level of development.
The use and emphasized promotion of greener transport could attract the attention of not only new customers but also green companies. By securing financial infusions from large environmental companies, Uber would be able to achieve zero carbon emissions even earlier than planned in their mission.
The logistics of travel and its improvement seem to be a key element in the rebirth of the company. Only by creating a sufficiently accurate and well-functioning algorithm will the company be able to equally regulate the work of all its employees at the national and even global level. However, if you do not involve professional software developers in this phase of development, any project from the above can result in large financial losses.
References
Barbu, C. M. et al. (2018). From ownership to access: How the sharing economy is changing the consumer behavior. Amfiteatru Economic, vol. 48, no. 20, pp. 373-387.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic management: Concepts and cases: Competiveness and globalization (10th ed.). Mason, OH: South-Western Cengage Learning.
Munn, L. (2017). I am a driver-partner. Work Organisation, Labour & Globalisation, vol. 11, no. 2, pp. 7-20.