INTERNATIONAL BUSINESS SCHOOL

MANAGING IT FOR BUSINESS (MBSA 1113)

INDIVIDUAL ASSIGNMENT

NAME: YAP CHOON MING

MATRIC NO.: MBS151030
SECTION: 02 (WEEKEND JB)
SUBMISSION DATE: 12th June 2016

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 1) How does Uber combine the advantage of mobile app technology with analytics to
optimize private transportation service offering for its customers?

User allows users to download Uber app into their respective mobile phones. Users can register
login username and password with credit card details. Users can book a private car via this mobile app.
Then Uber will locate any surrounding driver and connect the driver to the user. Uber will help to
shorten the waiting time by using the app. Uber is using GPS to let both parties (connected driver and
connected passenger) to know the locations of both. Uber will calculate the estimated pickup time for
the user, usually it is less than 15 minutes. Once passenger boards the Uber car, Uber app will calculate
the best route (less traffic jam and shorter route) to allow the driver to follow. Besides that it is
cashless payment, because credit card is used to pay for Uber transport.

Besides that, the programmers of Uber have designed Uber app with some analytic algorithms.
First is the demand/ supply algorithm, it will display the movement of all Uber drivers cars in the
selected area. It shows the demand of Uber cars in the heat map format on the geographical map.
Besides that, it has another algorithm; this will help to adjust the Uber price automatically if situation
where Uber demand is higher than Uber supply.

2) What kind of business model innovation has Uber achieved, as observed from the case
study?

a) Uber company motto is showing their effort to breakthrough conventional business modal
of those conventional taxi companies. Its motto is Uber: everyones private driver. It
means that Uber does not own any car; the Uber drivers are using their respective private
cars to fetch passengers.

b) Nowadays, there is dramatically increasing trend that more people are looking for private
transportation than buying own car. Ubers strategy is providing instant private
transportation service provider via mobile app.

c) Uber is able to customize its private transportation service app based on the topology of the
city.

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3) Are we right in concluding that the Uber case is an example of collaborative co-creation
and delivery of service?
Co-creation and collaborative economy is known as sharing economy. It means the sharing and
trading of goods and services between customers via online.
Yes. Uber is an example of collaborative co-creation service.
Collaborative cocreation in terms of Uber = Uber drivers share out their own private transport
to become Uber car, while Uber shares out its technology to allow Uber drivers to drive as Uber
car to make money.

4) Does Ubers business strategy qualify as a blue ocean strategy?

Yes, Uber business strategy is qualified as a blue ocean strategy while normal conventional taxi
companies business strategy is considered as red ocean strategy. Blue ocean strategy is defined
to create market space which is not contested, create & capture new demand. Therefore Uber
business strategy is analyzed by using Blue Ocean strategys methodology, namely: Eliminate-
Reduce-Raise-Create Grid.
a) Eliminate = the conventional method to hail car / taxi from road side / taxi stand is
eliminated. Besides that metered fare method by using metering hardware & printer is
eliminated too, therefore the expensive cost of installing these metering hardware and
printer is eliminated too.
b) Reduce = It will reduce the transportation price that everyone pay, because taxi fare is more
expensive than the Uber fare. In city like Kuala Lumpur, the need of looking for private
transports is increasing, so Uber will help to reduce the need of searching for private
transport for the short distance rides. In big cities like Kuala Lumpur, the parking fees and
toll fees and petrol fees are so expensive, it will help to reduce their monthly transportation
cost by commuting with Uber.
c) Raise = Uber rules & regulations require Uber drivers car age to be less than 7 years old.
Therefore Uber drivers cars are more new than taxis. This will raise comfort level and
customer service level by providing better private transportation service to consumer.

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 d) Create = Uber creates opportunities to those who are looking for part time jobs by driving as
part time drivers.

5) What are the critical issues related to (a) regulation and (b) business ethics that Uber is
facing and how should the company address these challenges?

a) Regulation issues
The lawmakers in various cities oppose to Uber, because they think that Uber was
compromising passenger safety by not strictly regulating insurance, inspections, and
driver background check.
Lawsuits in California in December 2014 alleged that Uber misled its customers
about its business and safety practices.
Lawsuit in Oregon in December 2014 accused Uber not complying with local
licensing rules.
Uber was accused with non-compliance with country specific licensing laws , so
Uber was banned in Germany in Sep 2014, Netherlands, Spain in December 2014,
Thailand, Toronto Canada, and South Korea.
Uber was banned at almost all major airports in the US. They are not allowed to pick
up passengers from the airports.
In France in 2014, Uber was imposed with 100,000 euros fine.
Even though they are banned, but they still continued to operate. Uber drivers met
up with their clients at less conspicuous locations to avoid fines, penalties. Uber
drivers asked passengers to sit in the front seat and load their own luggage.

b) Business Ethnic issues

a. Sexual assault and rape cases were reported in Delhi, Seattle and Washington DC.
b. Uber tried to promote its Uber services by matching attractive pretty female drivers
to male passengers.
c. The Uber tried to intimidate the journalists. Uber tried to track the journalist.
d. Uber tried to influence few law regulators in US to block the legislation (which
requires stronger driver background checks).

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 e. Uber did sabotage the competitor Lyfts fund raising campaign and hired away a
Lyft executive.

6) How in your opinion should Uber address its competitive situation (a) globally and (b) in
India?
a) In order to address the competition globally
Brand the product
Launch different Uber products, such as food delivery or other delivery service.
Localization = hire local people to run the operation in other countries.
Enhancing user experience = Uber uses data to analyze user behaviors (age group,
what product consumers like it, what time they ride). Word of mouth is the best
method to promote Uber after passengers are satisfied with Uber service.

b) In order to address the competition in India, especially with the competitor Ola
Uber has raised a lot of funds from Venture Capital companies. Uber can use this
money in India for advertisement, marketing, promotions to make Indian peoples to
use its app.
Uber can offer incentives to drivers, and discounted fares to riders.
In order to compete with Ola, Ola services can accept cash, while Uber can not
accept cash ( only credit card), so Uber must localize its service with cash payment
as alternative payment method.

7) How can it use emergent technologies to strengthen its competitive situation both globally
and in India?

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The CEO of Uber envisions Uber as an instant gratification service. This service will give
people what they need, when they need it, whether thats a ride or some other delivery. It is
instant delivery service that Uber drivers can offer via app. The service they have launched in
US is UberRush , it will provide any delivery service within short distance.

Uber in every country should expand its Uber services into less urban cities. In suburban cities,
Uber can operate very well where the suburban cities did not make sense to have many taxis.

There are few areas the Uber should try to promote to public to use its Uber services:
1) Rent car alternative
2) A couples night out = to avoid driving after drink
3) Transporting kids
4) Transporting the older parents.
5) Supplement for mass transit = just in case miss the trains.