Uber PESTLE Analysis Paper Example

Introduction

Uber Compaby is an American international worldwide service provider for transportation established in 2009 by Garret Camp and Travis Kalanick, with the idea it is likely to ride with the push of a button (Pelzera, Frenken, & Boon, 2019). The company provides a channel where consumers can contact the drivers in their locality for a taxi service.

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Uber PESTLE Analysis

The PESTLE analysis is a tactical tool used to assess these external factors and their influence on the organization's business model, growth curve, and its business case and market plan (Hsieh, 2019).

Political and Legal Factors

Uber Company began operation in 2009 (Newcomer, 2019). According to the government policies then, there was vagueness, if the business model fell in the service, IT or taxi sector (Sherman, 2018). The company was influenced by political and legal questions like whether minimum wage policy would be adopted, whether rules and regulations should be the same for Uber and other companies, whether the drivers should hold a driving license among other questions (Smith, 2018)

Economic Factors

Uber's economic model depends on sharing economy between the organization and motorists, creating plenty employment opportunities for the drivers who had no medium of finding their customers. The model has also overcome the charging issues with traditional taxi companies (The Conversation, 2019).

Social Factors

Uber services are internationally accepted and recognized. Customers opt for the company cabs due to their reasonably lower fares and quality services (Tophan, 2019). Additionally, Uber social image is also influenced by motorist's professional ethics and competitor's marketing plan. Uber users share their travelling experiences on social media which encourage new users to choose it.

Technology Factors

Technology has been fundamental for Uber both internally and externally- internally since the organization uses outstanding technology in its mobile application and externally, since the progression in technology aided the company obtains new users.

Environment factors

Uber Company has taken up environmental friendly initiatives in numerous forms such as UberPool- reduction in traffic congestion by carpooling and UberGreen- using electric cars to reduce pollution.

References

Hsieh, B. (2019). Year in Review: 2018 highlights from Uber Open Source. Retrieved from https://eng.uber.com/uber-open-source-2018/

Pelzera, P., Frenken, K., & Boon, W. (2019). Institutional entrepreneurship in the platform economy: How Uber tried (and failed) to change the Dutch taxi law. Environmental Innovation and Societal Transitions, 2(1), 112-121.

Newcomer, E. (2019, February 15). Uber Revenue Growth Slows, Losses Persist as 2019 IPO Draws Near. Retrieved from https://www.bloomberg.com/news/articles/2019-02-15/uber-results-show-revenue-growth-slows-amid-persistent-losses

Sherman, L. (2018, July 18). Is Uber For Everything A Good Thing? Retrieved from https://www.forbes.com/sites/lensherman/2018/07/17/is-uber-for-everything-a-good-thing/#3ace71d510ef

Smith, Y. (2018, December 10). Uber Is Headed for a Crash. Retrieved from http://nymag.com/intelligencer/2018/12/will-uber-survive-the-next-decade.html

The Conversation. (2019). Work in the 'gig economy': one-night stand or a meaningful relationship? Retrieved from https://theconversation.com/work-in-the-gig-economy-one-night-stand-or-a-meaningful-relationship-111047

Tophan, G. (2019, February 26). Uber survives legal challenge brought by London cabbies. Retrieved from https://www.theguardian.com/technology/2019/feb/26/uber-survives-legal-challenge-london-black-cab-drivers