Uber Technologies is a taxi technology company that has been
established globally. It was founded in the year 2009 by Travis Kalanick and
Garrett Camp. It is headquartered in San Francisco and is currently operating
in about 632 cities across the world. It is a privately owned company and its
major business operations are Transportation and Delivery services. The company
uses smartphone technology to connect the passengers with the drivers.
Uber’s operation in India is extended to over 29 cities
including Bangalore, Chennai, Delhi, etc. It was successful in acquiring a
large customer base in its Indian market, until it started facing threats from
its new competitors who slowly crept into the market.
Issues faced by Uber in
Uber is facing a tough competition in
India against its rival competitor Ola. Uber which had a good market share of
about 51% is slowly losing its customers. Ola’s new and attractive schemes such
as ‘Ola Money’, ‘Ola Auto’ etc. is adding on to Uber’s problems.
Analysis of the Issue
Internal Analysis refers to the
review or understanding of a Business’s key competencies and drawbacks to help
the business in improving itself to achieve its organizational goals and
There are various tools to measure a
company’s internal environment and one among them is SWOT. SWOT is the
abbreviation of Strengths, Weakness, Opportunity and Threats. Through SWOT
analysis, all these 4 dimensions of a Company are reviewed and analysed.
Ø Global Presence
has spread its business operations around the globe. It has wider reach to its
global customers when compared to other competitors. At present, Uber is
operating in around 632 cities of 50 different countries located across the
Ø Brand Value
good brand value worldwide. More number of investors are interested in parking
their funds with Uber due to their high valuation of their brand. At present,
Uber’s business is valued at about $69 Billion.
Ø Dependency on HR
highly depends upon its manpower which is nothing but its drivers. It cannot
cater to its customers without the complete co-operation of its drivers.
Ø Dependence on Technology and Internet
is operated through technology driven app that runs with the use of Internet.
Any discrepancy in the internet connectivity will affect its business
Ø Catering only to Tech Savvy Society
is unable to reach to the other part of the society that is not very much
connected with the Technological world. It may also find difficulty in entering
into countries that have weaker and poor internet facilities.
are trying to get more digitalised. This trend is further increasing with the
initiatives of the Government to become digitalised.
Ø Increasing Income levels
income levels of people are rising constantly over a period of time. Such
trends can be seen mostly in cities and since Uber majorly operates in cities,
it adds on to its advantage.
are the major and most important threat to any business including Uber. In
India, Uber faces serious completion from Ola which is slowly taking up the
customers of Uber.
Ø Easy Entry Market
cab service industry is an industry where the entry barriers are very low. This
allows new competitors to easily enter and pose a threat to Uber.
External Analysis is the analysis of
the various trends and events that occur in the external environment which may
affect and impact the business. These external events or factors are not easily
controllable by the business.
This is one of the most popular tool
used to understand the external environment of a Business. PEST refers to the
Political, Economical, Social and Technological factors that affect Business
regarding minimum wages, employee benefits etc. affect the Uber’s policy on
remuneration to its drivers. Legislations regarding the license to provide taxi
services is also a major factor. At present, Kolkata is the only city that has
stressed upon having license to operate business.
Income levels of the people residing in cities is one of the major economic factors
that affect Uber. Unemployment which is a serious issue faced by India is being
reduced to some extent with Uber extending employment opportunities.
in transportation can be seen as a social factor.
such as Uber cannot be looked into without the background. Uber runs its
business by highly depending on the technology. New discoveries in technology
can help Uber in improving and developing its business process or model.
Difference between Internal and
The Internal analysis of Uber helped in understanding the
controllable factors that affects Uber’s operation in India. Internal analysis
is more crucial as it helps the company to plan suitable strategies to improve
the business model. On the other hand, external analysis helps the Company to
have a clear understanding as to in what background, environment or conditions
will the Business activities be carried on.