- Uber is an app that connects passengers and drivers, allowing passengers to easily find and request rides. It has disrupted the taxi industry since its launch in 2009. - Early problems Uber aimed to address included the difficulty of finding taxis and lack of available cabs. However, Uber faced issues with regulations, surge pricing complaints, insurance coverage, and driver safety/background checks. - To address these challenges, Uber worked to change regulations, increase transparency on pricing, expand insurance policies, and strengthen driver screening. However, ongoing concerns around privacy, legal compliance, and competition remain open issues.

1. E-BUSINESS SYSTEM
THE QUEST FOR LEGITIMACY IN DIGITAL
DISRUPTION: THE CASE OF UBER (A)
CASE - 1
SUBMITTED BY:-
GUNJAN GUJRAL
501704072

2. INTRODUCTION(1/4)
• Uber, an app for smartphones users to easily find the
taxis and develop a connecting network of
passengers and drivers
• Uber has disrupted the entire taxi industry very
effectively by introducing a smartphone-enabled
app.
• Uber by 2016 was listed in Fortune 500 and also
completed 2 billion rides within 7 years of its
launching.
• The main funders of it are Google Ventures, Morgan
Stanley, Microsoft etc.

3. • Issue and Solutions by founders, Travis Kalanick and Garett
Camp before Uber was launched and post it’s launching:-
INTRODUCTION(2/4)
Problems
Difficulties of finding a
taxi in Paris
Observed taxi shortage
severe problem in cities
Not increasing rate of
Medallions issued with the
increase of the population
growth
Increase in dissatisfaction of
customers due to lack of cabs on
street
Solutions
With introduction of Uber there
was a rise in the price of a
medallion from 1.32 billion to
650,000
The customers were satisfied with
convenience and promptness
offered by Uber
Transportation was reliable as
running water and accessibility to
everyone

4. INTRODUCTION(3/4)
Download the
Uber App
Create an
Account and
enter the credit
card no.
Select the type of
uber service
desired, app reveals
the drivers nearby
Agree to the
estimated fares
shown
Can also contact
driver via phone
or text
Once ride
completed, drives
push a button of
end of ride.
The fare is
automatically
deducted from
customer’s account
An email is
reciept by
customer
• Process followed by Customer for a ride of Uber

5. INTRODUCTION(4/4)
• Process followed by Drivers for a ride of Uber
Customer’s
request is
received
Drivers
contacted via
app
Drivers can
reject or accept
request based
on location or
customer’s
rating
Once request is
accepted,
drivers may
contact
customers via
phone or text
Drivers can also
check the high
user demand
using heat maps
At the end of
the trip, driver
is required to
press the end
the ride button

6. ISSUES FACED BY UBER(1/6)
Issues in Uber’s Business Model
“Surge Pricing” and Other Fare-Related Issues
Insurance Coverage
Safety and Driver Background Check
Privacy

7. ISSUES FACED BY UBER(2/6)
Uber’s Business
Model
• Laws banning or limiting the
no. of Uber drivers
• Fingerprinting required in
Miami jurisdiction
• Not complying local licensing
rules
• Airport drop-offs were
prohibited
Solutions
• Won battle of banning by
reaching out to it’s customers
• Customer’s sent mails, twitted
personally to the jurisdiction
of different states
• Uber remover “taxi” from it’s
name as it was not a taxi
business so adhering to taxi
licensing rules was ruled out
later

8. Surge Pricing
Fare determined by the duration and
distance of the trip
Raising the price more than 1.2 times the
normal fare
Surge pricing automatically activates
whenever demands exceed
Uber keeps 20% of total fare as commission
and drivers keeps the remaining
Solutions
The price was later shown not only for
distance and duration alone
The price included tolls, traffic and surge
prior to customer’s request for pickup
Useful for customers during the time of
surge pricing
Drivers time online was further broken-
down into 3 significant components
ISSUES FACED BY UBER(3/6)

9. Insurance Coverage
The uber was not giving insurance
coverage during the period-1
Period-1 is defined as when driver
has the uber app open but not
received a booking or accepted a pick
Solutions
Uber purchased an insurance to
provide primary third party liability
insurance
This insurance was issued that were
accepted even during the period-1
ISSUES FACED BY UBER(4/6)

10. Safetyanddriver
backgroundcheck
•1.Drivers
commenting lewd
•2.DrunkDrivers
•3.High Speed chase
•4.Non-Proffesional
Drivers on road
Solutions
1.Rules were introduced
2.Diver had to be at least
21 years old
3.Must possess a personal
license
4.Personal auto-insurance
5.Vehicle legally authorized
to drive
ISSUES FACED BY UBER(5/6)

11. Privacy
• Customer’s credit card and personal details are captured in uber
platform
• Users resisted to share their information, credit card or their name
• Troubling in customers’ privacy was reported
Solutions
• Uber hired a data privacy expert and a law firm to seek
recommendations
• New privacy policies were shorte, simplified and explainable
• Users will be able to choose whether to share the data with Uber
ISSUES FACED BY UBER(6/6)

12. SWOT ANALYSIS
Strengths
• cashless payment system is used, Uber can track
and choose highly rated drivers
• The prices are lower compared to traditional taxi
operators
• It has a high standard of service, verified drivers
and cars. Uber Black users enjoy very high
standard of service
• Operational cost is quite low.
Weaknesses
• The idea can be easily copied
• The relationship between Uber and the
drivers is ethically questionable
• There are privacy concerns within the
application itself with it’s users
Threats
• Legal regulations in different countries
• Problem with local jurisdictions
• Increasing competition will ultimately decrease
prices
• As new markets and drivers are joining, fraud
and scandals are also increasing.
Opportunities
• Can go in new markets in different countries
• It can exploit new and big markets in countries
like India where taxi services are inconvenient
and expensive
• Additional services like transporting older
patients to hospital, transporting children to
school and transporting pets to the vet can be
offered

13. RECOMMENDATIONS(1/2)
• The aggressive “Move fast and Break things” approach to growth should
not be followed by Uber
• As Uber has already established its as a well-known brand, it’s branding
can get effected with one wrong step
• While expanding itself in other countries, Uber should learn about all
the laws and regulations of the market
• The privacy concerns should be disclosed in front of passengers more
transparently

14. • The surge of prices should be set in a limit of demand
• Proper training and background check in all parts of worlds should
be done
• More expansion in business can be done by introducing new
product line or entering in a new market
• Allow users put in for a reservation hours or days in advance, and
let drivers commit to pick up a reservation.
RECOMMENDATIONS(2/2)