There are many
reasons why the users love Uber. Consumers describe it as Fast, Effective and Efficient along with Cheap, Convenient and
Easy which makes it so popular and
used. However,Uber has faced a lot of problems. Uber has legal problems in a
lot of countries and has regular protests from the national taxi companies and
some Uber drivers themselves.
weaknesses 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 to
exploit opportunities and avoid the threats. Below, we provided the SWOT
analysis of Uber.
As we all know Uber is a well-known
and established brand. The bad media does not influence the brand that is why
the customers still love and use Uber.
The company is providing to the customers a high
standard service; it can be even seen as a luxury service in some countries.
Uber is seen as the
middleman. The company has no full-time drivers, which means that the company
has no responsibility towards them.
Moreover it is really convenient for the Drivers themselves, because they can work flexible hours and
schedule their work as they wish. That is why Uber has an unlimited amount of
vehicles and offers more efficient services then its competition.
Actually one of Uber’s
biggest 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,
The cost is transparent. So Uber cannot
overcharge like regular taxi companies, which makes it more trust wordy and
preferred by people. The cashless payment system is applied; therefore customers spend even
less by taking an Uber and also the company always gives records about the
order and charges first before ordering the service and after that via email,
when the service have been performed.
Lastly, Uber offers lower
prices compared to national taxi companies, which makes it more preferable.
The idea can be really easily imitated and
they cannot stop that, because you cannot plagiase an idea- which is one of the
biggest 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 lower
prices then Uber, they will have to lower the prices even more, which means big
loses for the company and the drivers. We can make a connection to the
operating vehicle costs, which are very high. Thought the drives don’t earn a
lot of money. With a situation like the one described above Uber will easily
loose drivers and cars, which will increase the estimated time of arrival and
will be unsatisfying for the consumers.
There are also some privacy concerns regarding Uber and the fact
that it records where customer gets the car from and where it goes- it is very
easy to take personal data. Also talking about privacy and safety Uber does not
do extensive background checks on driver, which can be very dangerous. They
actually stopped operating in Austin, Texas because of that. Lastly
lets mention the Price surging which can go up to 5
times the price in given moments. For example:
o 2X surge when
phone battery goes below 20%
o 3X surge when
it starts raining in Mumbai or snowing in New York City
o 4X surge when
it goes below 8%
o 5X surge if
you enter a hospital in the “Where to” box.
When customers are not
satisfied with taxi services, they usually turn to Uber. Also Uber operates in suburban areas
where cabs usually don’t operate, therefore this gives Uber a bigger market.
An opportunity for the company is to enter and adapt to new
markets, putting lower prices then the usual cab prices. For example India has
a very big market and the people are not satisfied with the taxi industry.
Another big opportunity for Uber is to add additional services
like dropping kids to school or back home. They can reach a big market
constructed by working parents.
What will be also good for the environment will be if Uber sets up
laws about using less polluting cars and also add cheaper electric cars. They
can maybe create it as a new service called Uber Green. This will also attract
if there is a rise in the number of Uber drivers,
that will reduce the Estimated Time of Arrival and will increase the demand for
One of the biggest threats for Uber are the legal regulations
in a lot of European countries. Uber has already been banned from several
countries for various reasons.
In addirtion, drivers aren’t satisfied with the low-margin
profit, which discourage future drivers from joining Uber. This, and increasing
competition will ultimately decrease prices, which will result very badly for
Uber. As it was mentioned new drivers wouldn’t want to work for the company, it
will leave Uber with less drivers and therefore worse service and unsatisfied
Its statistically proven that the numbers of fraud and scandals
are rapidly increasing and that is damaging the brands reputation. Lastly,
future Self-driving cars are being created. When they
are launched this will seriously damage Uber’s services, because they will be
no longer needed.
On one side, there
is no doubt that the customers love Uber, because it is fast, cheap and
efficient. But on the other side, governments and drivers often hate Uber,
because of the legal issues and the unfair competition to national taxi
its popularity between the customers, the company charges very little for the
rides. This is why the drivers do not have a high-profit margin.
Bad media is
something, which Uber should work on. Though Uber future is unpredictable with
Google Cars coming. Uber should maintain its strengths. It should address the
weaknesses found in the SWOT analysis. The aim should be to turn weaknesses
into strength. The team must work and exploit the opportunities and avoid the