SWOT analysisfor UBER There are manyreasons why the users love Uber. Consumers describe it as Fast, Effective and Efficient along with Cheap, Convenient andEasy which makes it so popular andused. However,Uber has faced a lot of problems. Uber has legal problems in alot of countries and has regular protests from the national taxi companies andsome Uber drivers themselves.Strengths andweaknesses as we already know are internal factors. Uber has control over them.Opportunities and weaknesses are the external factors in the SWOT analysis.
Uber does not have any control over them. However, it must take measures toexploit opportunities and avoid the threats. Below, we provided the SWOTanalysis of Uber. Strengths:As we all know Uber is a well-knownand established brand. The bad media does not influence the brand that is whythe customers still love and use Uber.The company is providing to the customers a highstandard service; it can be even seen as a luxury service in some countries.
Uber is seen as themiddleman. The company has no full-time drivers, which means that the companyhas no responsibility towards them. Moreover it is really convenient for the Drivers themselves, because they can work flexible hours andschedule their work as they wish. That is why Uber has an unlimited amount ofvehicles and offers more efficient services then its competition.Actually one of Uber’sbiggest strengths is that it doesn’t have big competition in general.Additionally the company offers lots of different services such as Uber Pool, Uber Eats,Uber Black.
The cost is transparent. So Uber cannotovercharge like regular taxi companies, which makes it more trust wordy andpreferred by people. The cashless payment system is applied; therefore customers spend evenless by taking an Uber and also the company always gives records about theorder and charges first before ordering the service and after that via email,when the service have been performed.Lastly, Uber offers lowerprices compared to national taxi companies, which makes it more preferable. Weaknesses: The idea can be really easily imitated andthey cannot stop that, because you cannot plagiase an idea- which is one of thebiggest weaknesses in Uber’s internal factors.One thing that we can see as a weakness is the fact that the brand doesn’t create loyalty to itself, but to its deals.Which can be very tricky, because if a competitor enters the market with lowerprices then Uber, they will have to lower the prices even more, which means bigloses for the company and the drivers. We can make a connection to theoperating vehicle costs, which are very high.
Thought the drives don’t earn alot of money. With a situation like the one described above Uber will easilyloose drivers and cars, which will increase the estimated time of arrival andwill be unsatisfying for the consumers. There are also some privacy concerns regarding Uber and the factthat it records where customer gets the car from and where it goes- it is veryeasy to take personal data.
Also talking about privacy and safety Uber does notdo extensive background checks on driver, which can be very dangerous. Theyactually stopped operating in Austin, Texas because of that. Lastlylets mention the Price surging which can go up to 5times the price in given moments. For example:o 2X surge whenphone battery goes below 20%o 3X surge whenit starts raining in Mumbai or snowing in New York Cityo 4X surge whenit goes below 8%o 5X surge ifyou enter a hospital in the “Where to” box. Opportunities:When customers are notsatisfied with taxi services, they usually turn to Uber. Also Uber operates in suburban areaswhere cabs usually don’t operate, therefore this gives Uber a bigger market.
An opportunity for the company is to enter and adapt to newmarkets, putting lower prices then the usual cab prices. For example India hasa very big market and the people are not satisfied with the taxi industry. Another big opportunity for Uber is to add additional serviceslike dropping kids to school or back home.
They can reach a big marketconstructed by working parents. What will be also good for the environment will be if Uber sets uplaws about using less polluting cars and also add cheaper electric cars. Theycan maybe create it as a new service called Uber Green. This will also attractmore customers.Additionallyif there is a rise in the number of Uber drivers,that will reduce the Estimated Time of Arrival and will increase the demand forthe service. Threats:One of the biggest threats for Uber are the legal regulationsin a lot of European countries. Uber has already been banned from severalcountries for various reasons.In addirtion, drivers aren’t satisfied with the low-marginprofit, which discourage future drivers from joining Uber.
This, and increasingcompetition will ultimately decrease prices, which will result very badly forUber. As it was mentioned new drivers wouldn’t want to work for the company, itwill leave Uber with less drivers and therefore worse service and unsatisfiedclients. Its statistically proven that the numbers of fraud and scandalsare rapidly increasing and that is damaging the brands reputation. Lastly,future Self-driving cars are being created. When theyare launched this will seriously damage Uber’s services, because they will beno longer needed. On one side, thereis no doubt that the customers love Uber, because it is fast, cheap andefficient.
But on the other side, governments and drivers often hate Uber,because of the legal issues and the unfair competition to national taxicompanies. To maintainits popularity between the customers, the company charges very little for therides. This is why the drivers do not have a high-profit margin.Bad media issomething, which Uber should work on. Though Uber future is unpredictable withGoogle Cars coming. Uber should maintain its strengths.
It should address theweaknesses found in the SWOT analysis. The aim should be to turn weaknessesinto strength. The team must work and exploit the opportunities and avoid theweaknesses.