Business Improvement Strategy in Uber Company
Uber Company is a leading giant in the transport sector with its operations utilized in more than 70 countries and covers above 400 cities in the world. The company has recorded high growth in terms of being introduced into new countries and cities globally. However, after carrying out a SWOT analysis on the uber company, it has been evident that the ride offering giant is facing various challenges of regulation and management. These challenges include; lack of employer-employee relationship, the uncontrolled process of operation, operational risks due to high competition, low profits, and the most significant challenge being management failure. This paper provides action plans to address the problems highlighted as a way of improving the uber company.
The uber company’s central role in providing a connection between drivers and passengers and this has resulted in a lack of employer-employee relationship because the company treats drivers like independent contractors instead of employees (Amato, 2016). Lack of this relation has yielded to irresponsible drivers, lack of engagement laws, and unobligated services. The Uber Company should change its operating system and register all the drivers and their cars as their employees. Moreover, the company should set engagement laws which should govern their drivers in their day to day operations. These strategies will uphold responsibility, improved services, and will obligate their drivers to abide by the set engagement laws.
Increased operational risks that result from elevating competition from other transport companies are a threat to the company. Government oppositions and increasing cases of protests act as barriers to the operations of the Uber drivers, which lowers their daily performance leading to low profits recorded by the company. Therefore, the uber company should employ their technology in creating more awareness of their services and even grant offers to news customers to outdo their competitors. The company should introduce and participate in community social programs for peacekeeping to help in minimizing protests, which compromise their operations, resulting in low profits (Amato, 2016). The uber management control panel should strategize of deploying their drivers in the riots free zones to ensure operational progress even during protests or oppositions.
Low profitability and lack of efficient operational processes are other main challenges facing the uber company. Due to a lack of policies that obligate their employees to respond, there have been increasing cases of unethical behaviors of uber drivers like robbery and sexual assault on their customers (Nakhratova, Zotova, Stepanov, & Dusenko, 2017). Such cases have tarnished the company’s name in the public domain. Hence many customers are afraid to use uber services, and it has even limited the company’s access to recruiting VIP clients due to safety concerns. It dramatically impacts on profits the company earns daily. To minimize and eradicate these cases, the company ought to supervise and monitor its employees using technology and also outline misconduct punishments like suspending contracts or fining their employees for misconduct.
Poor management is the greatest challenge facing the uber company today. The administration has elicited toxic leadership in managing the company, discrimination, and ineffective recruitment of workers. The toxic management generates a hostile working environment, linking it to all the other challenges which the company is facing. Therefore, there is an urgent need for the company’s management to be reviewed and its functions regulated by an oversight committee (Madsen, 2016). Moreover, the company should uphold transparency in its operations by responding to resolving internal matters and client claims without discrimination. Uber technology should also be adjusted to solve any signs of discrimination in the selection criteria for their clients.
The highlighted action plans and the solutions to the various challenges addressed by the SWOT analysis on the uber technologies will improve the operations and efficiency of the company upon implementation (Phadermrod, Crowder, & Wills, 2019). Moreover, the application of these plans will help in reducing the negative publicity of the uber company, reduce the number of unhappy customers, and increase the efficiency of services offered by the company. These factors will collectively boost growth in the company’s operations, therefore, increasing its profit margins.
References
Di Amato, A. (2016). Uber and the sharing economy. Italian LJ, 2, 177.
Madsen, D. Ø. (2016). SWOT analysis: a management fashion perspective. International Journal of Business Research, 16(1), 39-56.
Nakhratova, E. E., Ilina, I. Y., Zotova, A. I., Stepanov, M. S., & Dusenko, S. V. (2017). Modern peculiarities of SWOT analysis when taking management decisions by Russian TOP managers. International Journal of Applied Business and Economic Research, 15(8), 187-194.
Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-performance analysis based SWOT analysis. International Journal of Information Management, 44, 194-203.