In: Business and Management

Submitted By tvilela
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One result of Uber’s strategy has been a rise of number of people that decided to take a “taxi” (uber in this case) because of the decline in the price charged for that, which is related to the increase in the suppliers of this type of transportation (no barrier to entry anymore). In other words, Uber has created a new market (new consumers and new drivers). Therefore, in my opinion, it is not accurate to say that Uber has only created a competitive advantage related to the taxi industry, since it has created a new market in some sense.
Uber’s organizational design created a workplace revolution that changed the roles that taxi drivers used to have. The technological feature (a simple app) allowed the drivers to become their own bosses. As Professor Malone preview in his book “The Future of Work”, Uber is part of these new types of decentralized organizations that will reap the scale and knowledge efficiencies of large organizations while enabling the freedom, flexibility, and human values that drive smaller firms.

2. Uber Competitive Advantages relative to TAXI:
a. In user Experience:
i. No cash Exchange ii. The user can then rate the driver (and the driver can also rate the user) iii. “Guarantee” Supply since Uber’s platform uses algorithms and “heat maps” to estimate how many potential users may be in an area
b. In driver Experience:
i. “Guarantee” Demand because of the “heat maps” ii. Flexible working hours iii. Can earn more money by being a Uber’s driver iv. Low barrier-to-entry to start (no need of licenses or medallions)

3. Uber Competitive Disadvantages relative to TAXI:
a. In user Experience:
i. Surge Pricing, which depending on the day/area can make the ride super expensive
b. In driver Experience:
i. Uber drivers do not have traditional liability insurance like taxi drivers

4. Controversy around Regulation and Uber’s approach:…...

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