Essay Sample on Uber's IT Transformation

Paper Type:  Essay
Pages:  6
Wordcount:  1616 Words
Date:  2023-03-26

Uber's Information Technology Transformations

AbstractIn the turn of the 21st Century, competition redefined the business environment such that, large firms are forced to adapt to the ever-evolving business factors to rapidly grow and hold an upper hand over their competitors. The major cause of this competition is information technology. Organizations are striving to transform their businesses by applying technology in innovating new ideas and products to open up new opportunities and also to protect themselves from the external threats emerging each day. This article will focus on Uber's transformation of its business operations through information technology systems in a view to outsmart its competitors. More information about the organization will be accessed through its website. An overview of the numerous technological innovations that have been fronted by Walmart's executives will be expounded. Uber's management team has acknowledged information technology because it promotes competitive advantage, facilitates a conducive working experience of all their working staff, and transform the shopping experiences Uber's customers.

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Present-day retail business is characterized by competition and diverse consumer expectations. Uber holds an upper hand over competitors and maintain the existing customer base, managers and the entire corporate staff of retail businesses are obligated to innovate and ensure that the company they run is always successful. For this reason, most executive group has adopted the modern business model of incorporating information technology in running vital activities within the business. Uber's executives have not been left behind in this regard. They have spearheaded one of the most vibrant information technological transformation of the modern era. Information technological transformations have been aimed at streamlining all sectors of the company (mainly workforce and consumer related-divisions). To begin with, Uber has transformed the consumers' transportation experience by making it easier, affordable, convenient, and reliable through the use of essential information technological changes. Additionally, the use of robots as one of IT modification has ensured that the work output by their workforce is efficient and fast. The impacts of such digital transformations done in retail businesses remain under-researched and hence not wholly understood by all stakeholders related to the industry.

The essence of this article is to understand how information technology transformations done in modern times, has remodelled the retail sector by examining the already existent example advanced by Uber. The relevance of the topic is facilitating a source of information for the executive group of major retailing business to acknowledge the benefits attributed to information technological transformations. For the consumers and the general public, the topic is highly relevant in making them conversant with the current technological advancements present in retail and transport businesses. It also provides information on how well to interact with these technological evolutions. Because Information technology development is becoming a mainstay in the retail businesses today, it is imperative for all stakeholders associated with the sector to understand the topic wholly and understand the implications associated with this advancement.

Literature Review

In the two decades of the 21st Century, the retail business sector has experienced turbulent varying business factors caused by consumer expectations and business competition. In ancient times, the retail industry was usually characterized by competition in the form of price wars or product and region selection (Hanninen, Smedlund, and Mitronen, 2018,153). Nowadays, to be competitive, retail businesses like Uber have been forced to recalibrate their model of business that leans towards better service provision to their customers. In light of this development, technological innovations have been incorporated in developing vital services and concepts that help in achieving consumer satisfaction in an easier and more cost-efficient manner.

Recent studies done by economists show the positive impacts associated with the adoption of information technology advancements in retail businesses. For example, Barsauskas, Sarapovas, and Cvilikas (2008), in their report, posits that e-commerce transformation promotes business efficiency. Other scholars show that information technology transformation facilitates shopping convenience, reliability, and as well as foster consumer experience satisfaction because the retailing channels provided through technological advancements are diverse as shown by scholars like Weill and Woerner (2015) in their article.

Although technological growth has shown such great promise, emerging retailing businesses sustaining competition with technologically advanced competitors, remain a formidable hurdle. Numerous scholars have documented how retail business incumbents have struggled to deal with the impacts associated with emerging technological changes. As Henfridsson, Mathiassen, and Svahn (2014) shows how a company like Kodak massively failed when trying to match the technological innovativeness of their already technologically established frontrunners.

In this paper, I focus on expounding on the information technological innovations undertaken by Uber in recent times and discuss the implications associated with these advancements. Uber is a private multinational business organization operating all forms of retailing via running private transportation in 86 countries worldwide (, 2020). It operates in over 903 cities in the 86 countries, and it has over 110 million users globally (, 2020). Furthermore, customers are afforded the luxury of online booking of taxis which are cheaper than other forms of taxis transportation.

Uber is the largest transportation retailer in the whole world based on revenue, where Fortune Global 500 reported it to have revenue above $3.81billion in the 2019 fiscal year (Feiner, 2019). Uber's US operations contribute most in its revenue accumulation, with approximately sixty-five per cent of the revenues generated from the US market. Its annual operating budget is increasing each year due to operation expansion, where Uber 2019 annual guidance fee was increased to $250 million, hence providing the solution to the EBITDA loss worth $2.8 billion (Feiner, 2019). Uber also expects to start making positive cashflows by twenty-one because it has installed technology measures to monitor its drivers.

Analysis and Discussion

Uber in a view to ward off competition from other online taxis companies like Amazon and Lyft is integrating and adopting new technologies through technological innovations that are facilitating the irreproachable transportation shopping experience for the customers via e-commerce software applications. Uber's main Corporate Mission is "to bring transportation for everyone, everywhere" (, 2020). Formulation of information technological transformations embraced by the company's organizational structure is facilitating operational efficiency, therefore, enabling Uber to fulfil its corporate mission. In addition to that, Uber's recruitment of technology employees is top-notch and gradually expanding. Relevant technology partners are being integrated to provide any needed technology. Moreover, technology adoption is being closely screened by the technology team led by the chief technology officer, Mr.Thuan Pham. The screening ensures that the technology adopted is the viable one and that is sufficiently developed to meet the needs of the company.

Uber's business transformation through technology is an intensive strategy aimed at maintaining growth, sustain competitive advantage, and promote efficient and reliable operation. Technology transformation involves the use of research and development (R & D) and the Advanced Technology Group (ATG). R&D and ATG enable uber to introduce new products and services to the market or to improve the quality needed. Uber spent $487 million in 2018 at its R&D centre to develop flying and self -drive a car (Korosec, 2019). Uber's R&D also gears on customer convenience, efficiency, and reliability. One of the latest technological transformations introduced by Uber was the automation of its cars through the installation of artificially intelligent robots in the eVTOLS, commonly referred to as flying cars. The robots were introduced in 2018 to help in accuracy and customer affairs improvement (Korosec, 2019). It was also aimed at expenditure management since the wages were swelling at an alarming rate. Also, revenues lost due to human interruptions like rests and day-offs was projected to be eliminated.

Uber developed several artificial intelligent machines and rolled them into its Singapore drivers and other drivers in busy cities. The hyper-efficient shelf scanning robot helps in solving the biggest customer complaints that mainly relates to unavailable uber cars in some destinations. The auto- applications collect misplaced cars and direct them incorrect potential destinations, and ensures that that price tags quoted during the booking are similar to the ones paid when the client reaches their destination. The autonomous vehicles are also expected to boost safety and promote ride effectiveness as well as lowering the fares charges for clients (Korosec, 2019). Increasing safety means that Uber will reduce its costs on the compensation of clients, vehicles and drivers due to increased accidents.

Every business has to implement online experience or else they will miss out on the opportunities arising as a result of e-commerce. Uber has acknowledged the need to transform customer experience digitally and has opened up e-commerce retailing on most of the items they offer as one of its technology changes. Uber's e-commerce transformation commitment can be witnessed by its acquisition of successful online affiliates like uber. Lux, UberXL, and Uber Black, among others Additionally, in a move to make digital customer experience reliable and efficient, Walmart has partnered with Uber eats, bikes and Jump scooters. Besides, other digital transformations of e-commerce aimed at holding a competitive advantage over other online retailers like Amazon and Lyft has been implemented.

These transformations include; the use of endless aisle system in their physical stores, the use of Uber's prime system, and the use of machine learning robots to fast-track inventory prediction. Uber's endless aisle system is a kiosk located in its physical stores, where a customer can order products online when that specific product is not offered in that store. This system ensures that a customer is not annoyed about a failed shopping trip, and it also guarantees that Uber doesn't miss out on the business opportunity to its competitors. The Uber prime system integrates digital and physical shopping operations. The system is aimed at offering discounts to online customers who opt to pick up their online ordered products personally. Discounts are offered to the customers collecting their items in-store and when booking for rides to specific destinations. This transformation is attracti...

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