Block 1- Case 1

Authors
Pim van Gelder - 500778354
Abdullah Bal - 500783328
Priyesh Jagroep -
Class: IB1M
Date: 27-11-2017
Lecturer: Burcu Kör
Course: Introduction to management
Title: Case assignment 1 Uber
Class: IB1M
Date: 03-10-2017
Educational institution: Hogeschool van Amsterdam
Course: Introduction to management
Lecturer: Burcu Kör
Uber analysis

UBER was founded by Garret Camp and Travis Kalanick in 2009. UBER was originally meant
to be a private car service for executives. However, UBER ended up being a transportation
service that provides convenient, cheap, and safe services to customers around the world.
UBER created a new way of transporting people by using technology to bring passengers and
drivers together. Since 2010, UBER has been growing tremendously. Even though, UBER has
accomplished great success worldwide, they continue to struggle with their loss of cash. The
company’s pursuit of growth is largely the reason behind its rapid cash burn. This article will
be analyzing Uber’s possibilities to slow its rate of cash burn, to continue their growth and
become profitable.

Q2: Explain why “Systems Thinking’’ with its circles of causality is an important management
perspective to Uber?

Q3: What are the developments in the General Environment and the Task Environment of
Uber?

On political base, UBER have faced some problems with laws and regulations. UBER did not
have any clear regulations. It was difficult to pinpoint insurance lie in — if there is an
accident, is the Uber driver at fault, or the company itself? (Frue, 2017). Also, UBER faces
much criticism, bans and attempted bans in locations worldwide. For example, UBER was
banned in Austin, Texas, because they did not follow the same rules as taxi companies.
(Craggs, 2017). When UBER started in 2009, they completely dominated the industry.
However, due the amount of criticism and bans UBER is getting nowadays, competition
started to grow. Because of the ease of use, customers choose UBER frequently. It almost
does not require any communication to make an appointment. As a result, popularity
increases, which also led to price increases in major cities. If UBER continues to provide
more accessibility, the more people will use its services rather than its competitors. UBER
improved their services with their own app. Customers were able to make an appointment
through the app. This app is incredibly important to them. UBER cannot function if the app
goes down or suffers difficulties. In 2014, UBER decided to expand their market offering by
launching UBEReats, which is the same concept as the taxi UBER. Customers can order
through the UBEReats app food form every restaurant nearby, which will be delivered to their
home by an UBER delivery driver.