All Uber products are entirely digital, allowing the company to reduce costs. However, in this case, an ethical dilemma arises in providing services to clients. The moral dilemma is that a company faces a consumer privacy issue and cannot protect its data while protecting consumer safety is a crucial requirement. The receipt of customer data must be carried out to satisfy their concerns about the company’s confidentiality. Also, the ethical dilemma lies in the ethics of drivers, which the company does not control. Uber needs to strengthen its privacy policy as “several well-publicized scandals resulted in public outrage about deception, fraud, and distrust in business” (Ferrell et al., 2019, p. 3). Drivers must be responsible for the safety of passengers during the trip and for ensuring that the car takes the client to the specified place on time.
Since Uber’s business strategy is entirely based on independent drivers, it can face many challenges. The company needs to take care of driver issues and challenges. Uber must control the driver’s qualification and whether he needs any clarification on how to use the Uber app, accept a customer, how efficiently he should use cards, etc. Uber must maintain perfect trust in the Drivers’ mindset as they are entirely independent. Customer satisfaction is also another factor when it comes to Uber’s business model. Uber must hire drivers in a very reliable and dignified way towards customers. Moreover, Uber must clarify any doubts, refunds, or any clarifications about the company to create a better connection between customers and Uber.
This type of Uber business faces many challenges in connection with lawsuits. As the owners are entirely different, and if something happens on the delivery or end side, Uber may not take this responsibility since it will be the fault of the end supplier, not Uber. This business model will benefit other companies if it meets all government regulations and customer satisfaction.
References
Ferrell, O. C., Fraedrich, J. & Ferrell, L. (2019). Business ethics. Ethical decision-making and cases. (12th ed.). Cengage.