Trent Kalanick's quote summarizes Uber's original goal of providing on-demand transportation with the push of a button. However, Uber now faces strategic issues as both a business and sharing economy platform. As a business, Uber leverages its technology and labor cost advantages but also faces weaknesses from lawsuits and regulations. As a sharing economy platform, Uber benefits communities but avoids some taxes and responsibilities of traditional transportation providers. Rivals increasingly challenge Uber's model on various fronts.

1. “We just wanted to push a button and get a ride. That’s all it was about”
-Trent Kalanick

2. BUSINESS MODEL & CUSTOMER VALUE PROPOSITION
Strengths
• Labor based cost advantage: Less liability of drivers, unionization &
employee benefits
• Lifestyle: Services catering to upper class customers
• Sharing economy: Strengthen communities, decreased barrier of entries
& environmental impact
• Technology: Providing platforms for connections between drivers and
riders
• Profits: Non payment of minimum wages, car registration fees & surge
pricing
Weakness
• Labor based cost advantage: Law suits from competitors
• Lifestyle: Pool of average earning customers avoided
• Sharing economy: Avoidance of tax payments, insurance &
government regulations
• Technology: Non availability of licenses and registered drivers when
compared with cab services
• Profits: Decreased due to regulations and smaller rivalries

3. Bargaining power of suppliers:
• Surge pricing according to demand and supply
• Minimum pricing and margins for drivers
• Non payment of taxes & car registration fees,
avoiding insurance and following government
regulations
• Drivers classified as contractors to get labor based
cost advantage
• Less liability of drivers hence free from unions and
need not provide benefits to drivers
Bargaining power of buyers:
• Fall in the price of medallion benefiting the drivers
• Splitting cost and cashless transaction for customers
• Work permits obtained due to consumer demands
• Drivers accept & cancel bookings during surge prices
• Common rules and regulations for sharing economy
• As drivers were independent contractors they were not limited
to just uber
Threat of new entrants
• Relaunch of “Curb” providing entertainment and
payment services in green & yellow taxis
• “Lyft” based in San Francisco the most significant
competitor nationally along with “Didi Kuaidi” in
China & “Olacabs” from India
• Other smaller rivals like HopSkipDrive,
CareDrivers, Zum, Fasten etc.
• Other ridesharing apps like Fare, Fasten, Wingz,
zTrip, RideAustin & InstaRyde
Threat Of Substitutes
• China & India proposed a draft forcing ridesharing apps to
operate more like taxi fleets
• “Lyft” offered multiple levels of service such as “Lyft Line”,
“Lyft Plus” etc.
• Surging Price difference between Lyft and Uber was about 4
times different
• Difference in ride experience with Uber providing business
feel and Lyft providing “buddy” feel
• Had to suspend operations in Austin due to stringent
regulations to create fair playing field with traditional taxis

4. Rivalry among existing competition
• “Operation SLOG” used by Uber for poaching competitor (Lyft) drivers
• Canceling rides by creating fake accounts from both Uber & Lyft
• Olacabs creating fake accounts and fraudulent ride requests to block
competition
• Uber’s International rivals joining forces such as “Olacabs” & “Didi Kuaidi”
with the ability to book and pay within each others apps

5. Strategic Issues Facing Uber ??????

6. THANK YOU