Concept explainers
Videos
Uber and the Sharing Economy
First there was Zipcar and BikeShare, where customers could conveniently rent a vehicle or bike near their home or place of work; then came Airbnb, Uber, and Snapgoods, where ordinary people could use their assets (homes, cars, household goods) to bring in extra cash. Now a full-blown sharing economy exists that supplies income to providers and new functionality to users (e.g., Dogvacy, TaskRabbit, Getaround, Lyft, LendingClub, Fon, and Turo).
Take Uber, for example, with its easy-to-use apps, quick service, and aff ordable prices. Uber acts as a broker, connecting people who need rides with people who can provide them. Add cool cars (UberBLACK and UberLUX), larger vehicles (UberSUV and UberHAUL), ride sharing (UberPOOL), and new modes of transportation (UberTAXI and UberCOPTER). Look for new logistical opportunities to deliver packages (UberRUSH), groceries (UberFRESH), and restaurant meals (UberEATS). Use Uber data to recommend services or activities, send messages or predict behavior, and when technology allows, send out an autonomous vehicle coordinated to a customer’s daily
Innovations such as shared services are transforming industries. It may seem simple for a company like Uber to establish an online marketplace where providers and customers match needs, but it can actually be quite complex. Companies that run this type of business are data- and technology-driven, and they are constantly looking for ways to use data to improve their services or gain a competitive edge. Operating in 330 cities and 59 countries, Uber’s one million active drivers transport millions of customers each day. Uber maintains a vast database on its drivers, wherever they are located, so that passengers can be matched quickly with available drivers. Data about passenger preferences is collected, too, for future use. And both the driver and the passenger can submit reviews of the service encounter.
Fares are calculated automatically, using GPS, street data and, of course, Uber’s own algorithms that make adjustments based on trip time (because time, not distance, drives fares) and other factors. “Surge pricing” kicks in during busy or difficult times to incentivize drivers to become active. Sometimes the results are extreme, as when one passenger paid $137 a mile on New Year’s Eve in New York City, or when a Washington, DC, passenger paid $640 for a $50 trip during a snowstorm. New York City has since negotiated a cap on surge pricing during inclement weather at 3.5 times the normal rate. In the meantime, Uber has applied for a patent on its special surge-pricing model.
Compare Uber and Airbnb. What kind of support (and tools) does each company give to its providers? What is different about the types of customers, service, company culture, and expectations for service?
Want to see the full answer?
Check out a sample textbook solution
Chapter 5 Solutions
Operations and Supply Chain Management 9th edition
Additional Business Textbook Solutions
MARKETING:REAL PEOPLE,REAL CHOICES
Principles Of Taxation For Business And Investment Planning 2020 Edition
Intermediate Accounting (2nd Edition)
Financial Accounting: Tools for Business Decision Making, 8th Edition
Operations Management
Fundamentals of Management (10th Edition)
- I am not sure if this is correct, because 8 cannot go directly to 10.arrow_forwardA practical application in real life to the Critical Path Method is the construction of a bridge with references, give a detailed essay on the stages involved in constructing a bridgearrow_forwardPlease assist in writing a complete reasearch project of the following title: Title of research: Study on the impact of Technology in the Work Place.arrow_forward
- Intuition is both an emotional experience and a nonconscious analytic process. One problem, however, is that not all emotions signaling that there is a problem or opportunity represent intuition. Please in your Personal opinion how we would know if our “gut feelings” are intuition or not, and if not intuition, suggest what might be causing them.arrow_forwardA coworker suggests that the company where you both work would be much more effective if there were no organizational politics. Please in your personal and detailed opinion, What would you say to this person in reply?arrow_forwardWhat is a bottleneck? Would you try to reduce a bottleneck? Why or why not? Please provide a referencearrow_forward
- Your firm has been the auditor of Caribild Products, a listed company, for a number of years. The engagement partner has asked you to describe the matters you would consider when planning the audit for the year ended 31January 2022. During recent visit to the company you obtained the following information: (a) The management accounts for the 10 months to 30 November 2021 show a revenue of $260 million and profit before tax of $8 million. Assume sales and profits accrue evenly throughout the year. In the year ended 31 January 2021 Caribild Products had sales of $220 million and profit before tax of $16 million. (b) The company installed a new computerised inventory control system which has operated from 1 June 2021. As the inventory control system records inventory movements and current inventory quantities, the company is proposing: (i) To use the inventory quantities on the computer to value the inventory at the year-end (ii) Not to carry out an inventory count at the year-end (c)…arrow_forwardDevelop and implement a complex and scientific project for an organisation of your choice. please include report include the following: Introduction Background research to the project The 5 basic phases in the project management process Project Initiation Project Planning Project Execution Project Monitoring and Controlling Project Closing Conclusionarrow_forwardNot use ai pleasearrow_forward
- Sam's Pet Hotel operates 51 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $11.00 per bag. The following information is available about these bags: > Demand 95 bags/week > Order cost $52.00/order > Annual holding cost = 25 percent of cost > Desired cycle-service level = 80 percent >Lead time 4 weeks (24 working days) > Standard deviation of weekly demand = 15 bags > Current on-hand inventory is 320 bags, with no open orders or backorders. a. Suppose that the weekly demand forecast of 95 bags is incorrect and actual demand averages only 75 bags per week. How much higher will total costs be, owing to the distorted EOQ caused by this forecast error? The costs will be $ higher owing to the error in EOQ. (Enter your response rounded to two decimal places.)arrow_forwardSam's Pet Hotel operates 50 weeks per year, 6 days per week, and uses a continuous review inventory system. It purchases kitty litter for $10.50 per bag. The following information is available about these bags: > Demand = 95 bags/week > Order cost = $55.00/order > Annual holding cost = 35 percent of cost > Desired cycle-service level = 80 percent > Lead time = 4 weeks (24 working days) > Standard deviation of weekly demand = 15 bags > Current on-hand inventory is 320 bags, with no open orders or backorders. a. Suppose that the weekly demand forecast of 95 bags is incorrect and actual demand averages only 75 bags per week. How much higher will total costs be, owing to the distorted EOQ caused by this forecast error? The costs will be $ 10.64 higher owing to the error in EOQ. (Enter your response rounded to two decimal places.) b. Suppose that actual demand is 75 bags but that ordering costs are cut to only $13.00 by using the internet to automate order placing. However, the buyer does…arrow_forwardBUS-660 Topic 4: Intege... W Midterm Exam - BUS-66... webassign.net b Answered: The binding c... × W Topic 4 Assignment - BU... how to get more chegg... b My Questions | bartleby + macbook screenshot - G... C Consider the following m... As discussed in Section 8.3, the Markowitz model uses the variance of the portfolio as the measure of risk. However, variance includes deviations both below and above the mean return. Semivariance includes only deviations below the mean and is considered by many to be a better measure of risk. (a) Develop a model that minimizes semivariance for the Hauck Financial data given in the file HauckData with a required return of 10%. Assume that the five planning scenarios in the Hauck Financial Services model are equally likely to occur. Hint: Modify model (8.10)-(8.19). Define a variable d for each 5 - scenario and let d≥ Ŕ – R¸ with d¸ ≥ 0. Then make the objective function: Min 1 5 Σας Let Min s.t. 15 FS = proportion of portfolio invested in the foreign…arrow_forward
MarketingMarketingISBN:9780357033791Author:Pride, William MPublisher:South Western Educational Publishing
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,