UBER

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Industry

Uber is in the Transport (delivery) industry. It’s an innovation for the use of technology for the market utilized by the taxi industry. The specific section is the ridesharing companies making transport service arrangement using a smartphone within a very short time. The transport industry operates on a short-term agreement between the customer and the vehicle owners for the transport service to customer’s destination. Rideshare industry is less regulated, and the taxi industry has severe restrictions enabling the sector to flourish. The main players in the industry are Uber, Lyft, and Sidecar (Wallsten, 2015, 1). The sector is formed through the growth of the sharing economy. A sharing economy enhances the interaction of customers and service providers in a peer to peer marketplace facilitated by the internet. The industry critics complain of an unfair market advantage over the regulated competitors the taxi drivers (Feeney, and companies Uber, 2015, 2). The Rideshare has grown from the use of disruptive strategies by providing a unique design that enhances customer utility and value (Jenk, 2015, 2).

The use of technology enhances improvement of services and engages customer support. The threat the industry has established in the transport (delivery) field is so significant with the incumbent on legal redress to overcome the competitive threat. In summary, the industry thrives on three major principles: The companies define themselves as technology other than transport firms. Second, the drivers are classified as contractors other than employees and finally the drivers’ willingness associated to assume the burden of the risks related to the services (Isaac, 2014, 3). An analysis of the industry shows a potential to increase the revenue rapidly through high demand for the services (Libert, Wind, and Fenley, 2014, 5). The different companies within the industry have differed in the pricing mechanisms, the mobile app, the coverage areas and the customer support for the services. The vehicle types and the relationship between the company and the Contracts drivers also determine the internal competitive advantage.

General Environment

Political and Legal

Hardly day pay passes without increased pressure to the policymakers’ deliberations on the policies to safeguard the traditional tax drivers (Ioannides, 2018, 2). Rideshare industry (sharing economy) is welcome in some cities in the US and not in others. According to Hong and Lee (2018, 1), the political competition affects the government regulatory response. A significant level of political competition has been found to reduce the powers of the market incumbent. The industry has been considered by the policymakers as beneficial to the public while threatening the interest of the market incumbents. According to Isaac (2014, 7), the industry is politically favored by regulatory inter-consistency placing the companies in a legal void…