March 30, 2020
E-business Uber

E-business Uber


the development of Internet technology leads to many new economic theories, such as sharing economy. Uber, as a new Internet-based company, was founded in 2009 by Garrett Camp and Travis Kalanick and now is estimated to have 110 million worldwide users it could be interesting to see how Uber is changing the traditional taxi industry. this video describes the business model of Uber, critically discusses the impact of Internet technology on Uber compared with the traditional taxi industry, and analyses the opportunities and challenges Uber’s drastic surge in popularity and number of daily users in recent years is influenced by its strong business model that fulfils the needs of its key stakeholder groups such as drivers and passengers Applying with this business model framework, In the key partners segment, Uber’s platform facilitates the service provision of its registered drivers who are responsible for financing their own vehicles and hence reduces financial burden and capital risks for Uber. Rather than funding the platform solely by the founders, many rounds of funding from large investors such as SoftBank, Morgan Stanley and Goldman Sachs helps uber to fundraise global extensions acquisition of domestic platforms in foreign markets and to develop cutting edge functionality, apps and algorithms in their service platforms Uber’s business model thrives off significant level of control from a range of resources, gaining substantial volumes of customer data to analyse and understand customer trends, continuously recruiting drivers to nurture and grow under a network effect between passengers and drivers inclusion of CRM and CSR programmes in recent year to promote cultural diversity via its Uber HUE program and support for female rights under the Women of Uber program has become an essential part of Uber’s business model the application of internet technologies such as data information sharing, GIS and GPS positioning has improved the efficiency and accuracy of the transportation service Unlike traditional taxis service customers can get access to drivers in much more flexible time and place and drivers can arrange their own driving routes more reasonably through their smartphone. The application of online payment by using smartphones also simplifies the payment process and potentially guarantees the property security of both sides. No one’s personal information is absolutely safe. This means that Uber may need to spend more time and money on checking and maintaining data security, which is less emphasis in the traditional taxi aera Uber does not have mandatory central control capability for every driver, therefore it forms an open, flat and equal organization under the background of the Internet, which is called de-centralization Without overstaffed management structure, the company’s management cost will undoubtedly remain at a lower level. Internet technology has created many opportunities and challenges for existing businesses and start-ups that have a direct relationship with consumers Uber is building a shared economic platform by using big data, cloud computing and provides efficient services. Uber is also dealing with the high transaction cost and information asymmetry which usually shows in traditional business model, and creating a service model that makes both supply and demand equal docking. on the basis of the existing platform, Uber has also launched UberX, UberPOOL, UberEATS and other services to create more scenarios to meet the diverse needs of consumers Uber is trying to attract more users to ensure its competitiveness in the market, and it would be a valuable strategy. The new business model may not only contradict existing customs, laws and business rules, but also be subjected to competition from existing monopolists which give the company a lot of pressure and threat The Internet can enhance the relationship between companies and customers, but if not handled properly, technology can also bring greater negative impacts As one of the pioneers, Uber provides a new development method for the future enterprises. Thanks for watching

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