Problem diagnosis | Management homework help

Problem Diagnosis: Topics Is mainly Uber (taxi service) and also Uber (eats)  

A SWOT analysis: identify strengths and weaknesses of the business in light of its opportunities and threats, and then assess how these strengths and weaknesses have contributed to the firm’s problems. Only part needs to be done is weaknesses and threats. 

Strengths: (example)
Uber (Rides):
One of Uber’s main revenue stream is through its ridesharing services that contains Uber transit, Uber health, Uber freight and Uber business. It has lower competition as it targets a “selective taxi market to a wider range of willing participants” (Martin et. al., 2019, p.159). Aside from the company’s rider range of participants, it also allows flexible work times for employees. One of its service, UberPOP “enabled non-professionals to drive customers in their free time (e.g. after theirregular working hours or during weekends) to boost their personal finances” (Martin et. al., 2019, p.159).

Uber’s delivery services are more competitive in its service prices than taxi services. In 2015, the estimated UberX, a ride service, “created $6.8 billion of consumer surplus” (Hall & Price, 2018) while the estimated NY taxi industry only generated $257 million is annual consumer surplus (Beales, 2016). The consumer surplus for Uber is much higher than the taxi industry which is a strong indicator that majority of the consumers that choose to use ride services prefer Uber over taxi. The incentive is also better for the Uber drivers because of the surge pricing as it indirectly encourages the drivers to be in the market “for the possibility of gaining higher fares than regular ones”(Martin et. al., 2019, p.159).

The cashless payment method is an advantage to Uber as it is very convenient for the company, drivers and consumers. The fare fees that Uber withholds is around “20–25% where the remainder is then transferred to the driver’s bank account” (Martin et. al., 2019, p.159).

Weaknesses (needs to be done): Mainly focus on Uber (rides) also talk about Uber (eats),%243.13%20billion%20in%20Q3%202020. Mention the labor cost cuts 

Threats: (needs to be done): Mainly focus on Uber (rides) also talk about Uber (eats)

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