Case Study 5

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Apr 3, 2024

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Duncan 1 Tyron Duncan BA 616 Case Study 5 Campbellsville University November 15, 2022
Duncan 2 Uber Case Study Uber is a ride-hailing service that operates in the app-based peer-to-peer sharing economy, which presents several ethical concerns. Among these is the designation of drivers as independent contractors, which has an impact on their eligibility for benefits such as health insurance and the minimum wage. Given that drivers frequently have unstable jobs, fair pay and employment security are particularly essential. Uber's surge pricing algorithm has drawn flak for being opaque and perhaps exploitative during times of high demand. Drivers' chances and means of subsistence may be impacted by the biased rating system for both drivers and passengers (Daniele, 2015). With worries about harassment, car safety, and background checks, safety and accountability are also crucial. Uber has been involved in issues about data breaches, highlighting the ongoing difficulty of data privacy. The way rivals are treated creates moral questions, and staying in conformity with regulations is a constant struggle. Given worries about discrimination based on racial, gender, or socioeconomic background, service accessibility is essential. Ride-sharing services have the potential to have a large negative environmental impact, increasing pollution and traffic in cities. The emergence of ride-sharing platforms may have adverse economic effects on conventional taxi services and other transportation-related sectors, which may result in employment reductions. Uber has completely changed the transportation sector with its innovative business model and marketing approach (Page, 2022). The business, however, is exposed to a number of risks and difficulties, such as those related to regulation, law, driver relations, market saturation, consumer trust, safety concerns, technological difficulties, economic downturns, public and regulatory perception, difficulties with international expansion, and reliance on independent contractors.
Duncan 3 Imposing limitations on municipal and government authorities, suing drivers, rivals, and regulatory organizations, and keeping cordial relationships with drivers are examples of regulatory problems. Legal disputes can affect one's finances and reputation. Driver relations are important because strikes, demonstrations, or other forms of unrest can cause operational disruptions and damage to the company's brand. Technological difficulties that impact the user experience and harm the brand include cybersecurity risks and system disruptions. Economic downturns may cause consumers to spend less on luxuries, which would affect Uber's earnings. Uber's operations and financial sustainability may also be impacted by how the public views the company's business practices, the difficulties it has expanding internationally, and shifts in public opinion toward ride-sharing and the gig economy. Uber has to prioritize aggressive regulatory engagement, continuous innovation, open communication, investments in safety and technology, and attending to the concerns of both drivers and passengers in order to mitigate these risks. Ride-sharing industry regulation is a complicated and hotly contested subject. By implementing safety standards, fostering fair competition, addressing labor rights, guaranteeing data privacy, and promoting market stability, it may safeguard consumers. Regulations can also address issues that have an influence on society, such environmental problems and transportation congestion. On the other hand, excessive regulation may hinder creativity and adaptability, reduce customer options, and necessitate localization. It may also hinder employment prospects and economic development linked to the gig economy (Clark, 2021). To safeguard employees without hindering economic growth, a balance is required. Furthermore, an overabundance of
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Duncan 4 rules may result in bureaucratic inefficiencies that hinder corporate operations and may raise expenses for both customers and service providers. The difficulty is striking the correct balance that permits innovation and economic expansion while upholding fair competition, worker rights, and consumer protection. In order to design and modify rules that satisfy the changing demands of the market, this frequently entails constant communication between regulators, industry players, and the general public.
Duncan 5 References Clark, M. (2021, April 19). Because uber is so popular and the business model is being expanded to other industries should there be regulation to develop compliance with standards to protect competitors and consumers? archives . Course Researchers. https://courseresearchers.com/tag/because-uber-is-so-popular-and-the-business-model-is- being-expanded-to-other-industries-should-there-be-regulation-to-develop-compliance- with-standards-to-protect-competitors-and-consumers/ Daniele, D. (2015, October 9). The “Uber” Rise of peer-to-peer sharing . Social Media Law Bulletin. https://www.socialmedialawbulletin.com/2015/01/the-uber-rise-of-peer-to-peer- sharing/ Page, V. (2022, December 5). 4 challenges uber will face in the next years . Investopedia. https://www.investopedia.com/articles/investing/072215/4-challenges-uber-will-face-next- years.asp