1

Title Page

Chapter 8 Case: Uber-Riding the Gig Economy

Prepared for

Samsul Islam, MGMT 1120

Section: O03

Northern Alberta Institute of Technology

Edmonton, Alberta

Prepared By

Karanveer Singh Gill

Student ID: 200561753

Date of Submission: 02/01/2024

 2

Table of Contents

• Introduction ------------------------------------------------------------------------ 3

• Question 1 ------------------------------------------------------------------------ 4

• Planning Process to Uber’s development------------------------------------- 6

• Question 2 ------------------------------------------------------------------------ 9

• Strategic, Tactical and Functional plans ------------------------------------- 9

• Question 3 ------------------------------------------------------------------------ 9

• Planning tools that uber might use to overcome the risks ----------------- 10

• Question 4 ------------------------------------------------------------------------ 10

• How might Uber use Fig. 8.5 to work with municipalities----------------- 12

• Conclusion ---------------------------------------------------------------------- 13

• References ---------------------------------------------------------------------- 14
 3

Introduction Uber Riding the Gig Economy

Uber is a globally recognized technology company, and it has brought a significant

revolution in the transportation industry using “Gig” economy model. After its foundation in 2009,

Uber revolutionized the way people use services and challenged the traditional way of taxi industry

and made it more convenient and accessible for customers to use it.

Founded by Travis Kalanick and Garrett Camp, Uber put a significant impact on Taxi

industry and make it more affordable and convenient, the company’s innovative business model

advantages the gig economy and connecting riders with drivers through a user-friendly mobile app

which is quite easy to use, and the interference of app is extremely attractive and decent.

After introducing the mobile app of Uber, it disrupted the traditional taxi industry in many

ways such as with the few taps on mobile user can book a ride very easily and track their ride live

and arrival dimensionally, pricing Uber introduce a different pricing system that adjust fares based

on supply and demand.

One of the main factors of “gig” economy of Uber is instead of full-time work Uber provide

contracts to their employes that they can work according their willing and use their own vehicle

supply rides to users who book taxis. It also provides flexible earning methods; employees can

make their own schedule and decide how much time they can work and generate income using

their own assets like private cars. (Uber , 2016)

 4

Question 1

Using examples from the text case, apply the five steps of the Planning Process to Uber’s

development of its app-driven online cab service.

Certainly, let's delve into how Uber's development of its app-driven online cab service aligns

with the specified planning process steps:

1. Defining the Objectives:

Uber was established with the primary objective of transforming the transportation

industry by providing a taxi service that was user-friendly, dependable, and accessible on

demand through the utilization of a smartphone application that was simple to operate. The

provision of uninterrupted rides, the reduction of wait times, and the overall improvement of

accessibility to public transportation were some of the things that were offered.

2. Determine Where You Stand Vis-à-vis Objectives:

The transportation sector is now experiencing a number of issues, some of which include

the inconvenient nature of traditional taxi services, lengthy waiting periods, and restricted

accessibility limits. Uber uncovered these challenges after conducting an inquiry into the current

status of the transportation industry. The beginning of the process that would eventually result in

the development of a solution was marked by the discovery of these problems.

3. Develop Premises Regarding Future Conditions:

 5

Uber was able to anticipate the increase in the number of individuals using smartphones

as well as the rising reliance on technology for doing ordinary tasks. It was something that the

company predicted would happen in the future that consumers would choose the convenience of

using a smartphone app to seek transportation services. This was something that the business

anticipated would happen. This idea served as the driving concept for the development of a

business that is powered by applications like apps. (Officials, 2018)

4. Analysis of Alternatives and Making a Plan:

The research was carried out by Uber, a company, into a variety of alternative options,

which included a wide range of business models and technological solutions. The concept that

was selected involves the development of a powerful mobile application that would act as a

conduit for communication between passengers and drivers in the context of transportation.

Several features, including real-time tracking, cashless payments, and a rating management

system, have been added into the program with the purpose of ensuring a high level of service

quality. These features are only some of the elements that have been included.

5. Implement the Plan and Evaluate Results:

Uber's app-based taxi service was implemented in a number of locations, which involved

the deployment of technology and the hiring of drivers. These cities were chosen for the

implementation of the service. Throughout the process of putting the service into operation, Uber

carried out continuous assessments of the results. Key Performance Indicators (KPIs) were

tracked as part of this approach. Some of the KPIs that were examined were rider satisfaction,

driver engagement, wait times, and overall market share. Through the utilization of data
 6

analytics, the business was able to get a deeper understanding of the preferences and actions of

consumers (Uber Officials, 2018)

As a result of its ongoing review process, Uber was able to make judgments based on

data, improve its service, and discover answers to new difficulties as they emerged. In the

process of developing the app-driven service in an iterative manner, feedback mechanisms like

as customer evaluations and driver ratings played a significant role. Due to the fact that the

service was regularly improved, this was the situation.

Question 2

Using examples from the text case, outline the Strategic, Tactical, and Functional plans

Uber has concerning its new self-driving car program. Show at least one plus and one

minus within each of the plans.

Uber's Self-Driving Car Program:

1. Strategic Plans:

Strategic plans are usually centered on the company as a whole or on a significant part of the

organization.

Plus:
 7

Advantages: The process of defining a holistic vision for the incorporation of self-driving

technology into Uber's services, with the purpose of ensuring alignment with the long-term

objectives of the firm.

Opportunities: Therefore, Uber is able to establish itself as a pioneer in the field of autonomous

transportation and acquire a competitive advantage as a result.

Minus:

Challenges: The process of developing a strategy that is both coherent and adaptable in order to

handle the complexities of regulatory environments, technology breakthroughs, and changing

market dynamics.

2. Tactical Plans:

Plus:

Advantages: Operationalizes the strategic goals, providing a roadmap for the actual deployment

of self-driving vehicles.

Opportunities: Allows Uber to address specific challenges such as testing protocols, safety

measures, and integration into existing ride-hailing services.

Minus:

Challenges: Execution risks, potential unforeseen technical challenges, and the need for

continuous adaptation to technological advancements.

3. Functional Plans
 8

Plus:

Production Plan: Efficient manufacturing or acquisition of self-driving vehicles.

Financial Plan: Budgeting and financial projections for sustainability.

Facilities Plan: Infrastructure planning for maintenance and storage of self-driving cars.

Logistics Plan: Effective deployment, relocation, and maintenance strategies.

Marketing Plan: Successful introduction and promotion of the self-driving service.

Human Resource Plan: Adequate workforce planning, skill development, and training.

Minus:

Production Plan: Dependency on external suppliers, potential manufacturing challenges.

Financial Plan: Budget constraints, uncertainties in the cost of technology.

Facilities Plan: Real estate and infrastructure investments, potential zoning issues.

Logistics Plan: Operational challenges in maintaining a fleet of self-driving cars.

Marketing Plan: Public skepticism or resistance to self-driving technology.

Human Resource Plan: Recruitment challenges for specialized roles, potential resistance from

existing workforce.

In conclusion, the strategic, tactical, and functional strategies that Uber has developed

offer a thorough foundation for the company's initiative to develop autonomous vehicles. A

number of problems, including legislative complications, technological risks, and public

 9

acceptability, are possible obstacles that Uber will need to overcome in order to successfully

deploy its self-driving vehicle project. Despite the fact that these plans provide a multitude of

benefits, Uber will need to overcome these challenges. To ensure the success of the project, it

will be essential to have a flexible and adaptable mindset. (Uber Technologies Inc., 2020)

Question 3

What planning tools might Uber use to deal with two of these risks Uber has faced

with its online cab business model.

Plans often deviate from the intended course. In chapter 8, a case highlights five

significant risks for the world. To address two of these risks that Uber has encountered in its

online cab business model, Uber can employ various planning tools. For instance, they can use

risk assessment techniques to identify and evaluate potential risks. Additionally, they can utilize

contingency planning to develop alternative strategies and actions to mitigate the impact of these

risks. By employing these planning tools, Uber can effectively manage and navigate the

challenges posed by these identified risks in their online cab business model.
 10

• Economic risks: Economic risks encompass numerous factors such as economic

downturns, inflation, and unpredictable fuel prices. These factors have the potential to

impact the demand for ride-sharing services like Uber.

• Regulatory risks: Regulatory risks refer to the potential impact of evolving laws and

regulations on ride-sharing services. These risks involve changes in licensing, safety

standards, and insurance obligations that can affect the operations of ride-sharing

platforms like Uber.

Question 4

How might Uber use Fig. 8.5 to work with municipalities and provinces to create the

infrastructure and legislation needed to achieve its self-driving car goals? Use examples

from your case

1. Jointly Plan:

Setting Objectives and Standards:

 11

When it comes to the technology behind self-driving cars, Uber works along with local

authorities to set shared goals. These goals include safety requirements, traffic management, and

urban planning concerns.

Choosing Actions:*

In collaboration with local governments and provincial governments, Uber is determining

the particular steps that must be taken in order to incorporate autonomous vehicles into the

current transportation system. As part of this process, pilot initiatives, regulatory frameworks,

and public awareness campaigns could be implemented.

2. Individually Act:

Performing Tasks:

Specific duties are taken on by Uber depending on activities that have been collectively

planned. It is possible that this will involve the creation and testing of technology for

autonomous driving, the verification of compliance with local rules, and the implementation of

any necessary adjustments to the application.

Providing Support:

Sharing their expertise, offering information on the benefits and safety of the technology,

and assisting in the development of educational programs for the benefit of the general public are

all examples of the ways in which Uber provides support to local authorities.

3. Jointly Control:

Reviewing Results:
 12

The outcomes of the programs involving self-driving cars are studied jointly by Uber and

the authorities in the respective communities. This involves doing an analysis of data pertaining

to safety records, public reception, and the overall influence on the ecology of transportation

transport.

Discussing Implications:

In order to evaluate the consequences of the findings, there are talks that are held

together. In order to do this, it is necessary to address any issues or concerns that have surfaced,

to refine methods, and to adapt to the ever-changing world of self-driving technology.

Renewing Cycle:

Uber and the local authorities have come to the conclusion that it is necessary to repeat

the cycle of planning and action in light of the new information that has been gathered. It is

probable that this will involve rewriting norms, revising objectives, and introducing new

initiatives in order to continuously improve the integration of self-driving cars into the

transportation network. This aims to make the integration of these vehicles more seamless.

By aligning goals through jointly planning, individually acting, and jointly controlling,

Uber and local entities can create a collaborative framework that fosters the development and

implementation of self-driving car infrastructure and legislation. This approach helps build a

cohesive strategy that considers the needs and perspectives of both Uber and the municipalities

or provinces involved.
 13

Conclusion:

In conclusion, Uber has taken a strategic approach to the development of its self-driving

car program that includes close collaboration with local governments and provinces. To

overcome obstacles and harmonize goals, the company has used a cycle of joint planning,

individual action, and joint control. This approach facilitates the seamless integration of

autonomous vehicles into urban transportation systems by empowering Uber and local

authorities to effectively address infrastructure and legislative needs. This collaboration seeks to

guarantee the adoption and success of self-driving technology, which will benefit the business

and the communities it serves via ongoing assessment and modification.

 14

References

Officials, U. (2018, september 6). Uber Blog. Retrieved from Uber.com: https://www.uber.com/en-

CA/blog/forecasting-introduction/

Uber . (2016). Uber in the economy . Retrieved from Uber.com: https://www.uber.com/newsroom/uber-

in-the-economy/

Uber Officials. (2018, july 5). Uber Blogs. Retrieved from Uber.com: https://www.uber.com/en-

CA/blog/transforming-financial-forecasting-machine-learning/

Wikipedia (24 January 2024) Uber

https://en.wikipedia.org/wiki/Uber

Uber Technologies Inc. (2024).

https://www.uber.com/ca/en/

Uber Technologies Inc. (2024). Introducing Uber's Self-Driving Car Program. Uber Newsroom.

https://www.uber.com/newsroom/self-driving-car-program

Uber Technologies, Inc. (2022). Climate Assessment and Performance Report. Retrieved from

www.uber.com
 15

Margherita, A., & Heikkilä, M. (2021). Business continuity in the COVID-19 emergency: A

framework of actions undertaken by world-leading companies. Business horizons, 64(5), 683-

695. https://www.sciencedirect.com/science/article/pii/S0007681321000227

Nandakumar, R. (2021). Pros and Cons of Self Driving Vans-A Real Life Motorway Case Study

Analysis from Great Britain. https://www.researchsquare.com/article/rs-375141/latest.pdf

Schermerhorn Jr, J. R., Bachrach, D. G., & Wright, B. (2020). Management. John Wiley & Sons.

https://eprints.qut.edu.au/115645/14/Schermerhorn%2B-%2BMANAGEMENT_6TH_ASIA-

PACIFIC_EDITION_----_%28Front_Matter%29.pdf

van de Ven, M. R., Machado, P. L., Athanasopoulou, A., Aysolmaz, B., &Türetken, O. (2022).

Key performance indicators for business models: a review of literature. In 30th European

Conference on Information Systems (ECIS 2022): New Horizons in Digitally United Societies

(p. 126). AIS Electronic Library.

https://research.tue.nl/files/201742813/ecis22a_sub1714_cam_i7.pdf