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    IB Uber

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    The document discusses Uber's business model and strategy of launching services globally from the start without seeking regulatory approval first. While this strategy was initially successful in the US by circumventing regulations, it has faced difficulties in other countries and cities where local governments have banned Uber or imposed restrictions in response. The strategy also raises long term sustainability issues as governments may move to regulate the industry and ensure compliance with existing rules around transportation services.

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    IB Uber

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    74 views2 pages
    The document discusses Uber's business model and strategy of launching services globally from the start without seeking regulatory approval first. While this strategy was initially successful in the US by circumventing regulations, it has faced difficulties in other countries and cities where local governments have banned Uber or imposed restrictions in response. The strategy also raises long term sustainability issues as governments may move to regulate the industry and ensure compliance with existing rules around transportation services.

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    The document discusses Uber's business model and strategy of launching services globally from the start without seeking regulatory approval first. While this strategy was initially successful in the US by circumventing regulations, it has faced difficulties in other countries and cities where local governments have banned Uber or imposed restrictions in response. The strategy also raises long term sustainability issues as governments may move to regulate the industry and ensure compliance with existing rules around transportation services.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    74 views2 pages

    IB Uber

    Uploaded by

    An
    The document discusses Uber's business model and strategy of launching services globally from the start without seeking regulatory approval first. While this strategy was initially successful in the US by circumventing regulations, it has faced difficulties in other countries and cities where local governments have banned Uber or imposed restrictions in response. The strategy also raises long term sustainability issues as governments may move to regulate the industry and ensure compliance with existing rules around transportation services.

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    of 2

    International Business – Closing Case:

    UBER: GOING GLOBAL FROM DAY ONE

    1. Question 1: The possibility of application of Uber’s business model


    Answer:

    Along with the development of technology trend 4.0, the innovative way Uber using technology
    to engage with people to provide service is reasonably attractive not only domestically but also
    globally. It totally satisfies people by many aspects. Firstly, in term of customers, in the
    comparison to traditional taxi, the prices of Uber’s service are probably cheaper while Uber also
    serves the same type of utilities as the traditional one. Secondly, due to a function that
    customers can somewhat see the personal profile of their drivers, they may partly feel safe and
    reliable. Thirdly, in the regard with the drivers, all people can be an Uber driver, even though
    they have not met the requirements based on the government policies yet that apparently
    satisfies the demand of jobs and reduces the unemployment rate in the country. Consequently,
    Uber’s bold strategy, which launched the service first and then deregulate later, made a
    breakthrough that removed all the policy barriers that many companies had encountered in
    advance to be profitable. Once Uber can get over those barriers, the other industry all over the
    world can also do that too. To sum up, this kind of business model which satisfies not only
    customers’ demand but also drivers’ needs is now extremely popular and seemed to
    continuously develop in long-term. For instance, India and China have many entrepreneurs
    using smart apps and the same business model as Uber are appealing many attractions.
    Therefore, the business model of Uber can possibly applied in other industries in all over the
    world such as medical and education.

    2. Question 2: The difficulties of Uber when applying the strategy


    Answer:

    Even though the strategy deregulated the rules is literally successful in America, many cities in
    the globe reacted negatively to Uber’s strategy. For example, the administration of Vancouver of
    Canada responded to the unapproved section of Uber by forbidding it out-right. So did the
    neighborhood experts in Brussels of Belgium, Delhi of India and a host of different urban
    communities around the world. Moreover, the Paris legislature has endeavored to constrain
    Uber by forcing a few limitations that make it harder for Uber to work together here. To entangle
    matters, Uber drivers in Paris have unionized that they can't do in the United States because of
    their status as self employed entities. They went on strikes when Uber attempted to bring down
    admissions. Comparative challenges by Uber drivers have happened in different urban
    communities. Although Uber's business model is groundbreaking, it is not flexible enough to fit
    in with other social and political backgrounds. Particularly, in Vietnam, when the country is in
    transition between the new and the old society, as soon as the appearance of smart taxi like

    This study source was downloaded by 100000849874265 from CourseHero.com on 12-12-2022 03:05:56 GMT -06:00

    https://www.coursehero.com/file/36010471/IB-Uberdocx/
    Uber or Grab (the same online platform as Uber), they have been absorbed and developed
    quite rapidly, however, the laws and conditions have not yet fully controlled it that results in
    controversy between traditional taxi and innovative taxi. Moreover, a thousand of taxi drivers
    fortunately felt down on the job. Thousands of people flocked to buy new cars to keep up with
    the trend that caused severe traffic congestion. Consequently, Uber need a flexible solution to
    deal with this difficulty.

    3. Question 3: Uber’s approach in long-run


    Answer:

    It cannot deny that Uber’s strategy has been very successful, however, it would just in short-run,
    not in long-run because this success was built by breaking the laws. To look deeper, the original
    purposes of The United States’ regulations of taxis are to raise the demand of other public
    transportation beside taxis, to control movement blockage, to guarantee the riders' security, to
    guarantee the reasonable costs and to ensure a sensible rate of come back to the cabbies.
    However, these rules were broken by Uber. As a result, the government might take an action as
    soon as possible to control this service and maintain these purposes stated above. For example
    of the situations of Uber in Vancouver, Brussels and Delhi, after witnessing the change brought
    by Uber, they made policies forbidding Uber altogether from working in their locale. Therefore,
    the business approach of Uber is impossible in the long-run.

    This study source was downloaded by 100000849874265 from CourseHero.com on 12-12-2022 03:05:56 GMT -06:00

    https://www.coursehero.com/file/36010471/IB-Uberdocx/
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