Question
Uber Technology, Inc., commonly known as Uber, is an American Mobility as a service provider based in San Francisco, with operations in over 900 metropolitan
Uber Technology, Inc., commonly known as Uber, is an American Mobility as a service provider based in San Francisco, with operations in over 900 metropolitan areas worldwide. Its services include ride-hailing, food delivery (Uber Eats and postmates), package delivery, couriers, freight transportation, electric bicycle and motorized scooter rental via a partnership with Lime, and ferry transport in partnership with local operators. Uber does not own any vehicles; Instead, it receives a 25% commission from each booking. Fares are quoted to the customer in advance but vary using a dynamic pricing model based on the local supply and demand at the time of the booking.
In the second quarter of 2021, Uber had 101 million monthly active users worldwide. In the United States, Uber has a 68% market share for ride-sharing and a 26% market share for food delivery. Uber has been so prominent in the sharing economy that commoditization of service industries using computing platforms has been referred to as ubersation, and several startups have described their offerings as "uber for X".
Like similar companies, uber has been criticized for the treatment of its drivers as gig workers and independent contractors, disruption of taxicab businesses, and an increase in traffic congestion. The company has been criticized for various unethical practices and for ignoring local regulations.
As Director of Strategy, outlines a clear analysis for uber based on porter's Five-Forces framework, the case above and any other information you have. The analysis must involve:
- Threat of New Entrants
- Bargaining Power of Suppliers
- Bargaining power of buyers
- Threat from substitute Products
- Rivalry among the existing players
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