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Uber E-Commerce Business Model

Sep 24,21

Uber E-Commerce Business Model

Question:

Draw an ER Diagram for Uber e-commerce business model. Describe Advantages and Disadvantages for customer in Uber’s business model.

Answer:

Introduction

Uber Technologies Inc. (“Uber”) represents an America based technology company, and the company’s services comprises ride-hailing, package delivery, food delivery, freight transportation, couriers, and along with partnership with a company named, Lime, rental services for motorised scooter and electric bicycle is offered (Uber, 2021). The operations of Uber span more than ~900 metropolitan areas globally and continues to increase. Uber as part of its business operations determines fees as well terms in which the drivers shall transport riders. The company at present takes 25 per cent in share of every fare offered by the partners of Uber. Uber employs a model of dynamic pricing wherein the fares shall fluctuate on the basis of local trends for supply /demand in specific time in which service is sought (Uber, 2021). Customers shall be quoted with fares on an advance basis.

E-Commerce Business Model of Uber

E-commerce refers to electronic commerce and the same shall be applicable to specific business which shall use information transference across internet. The model that is optimal shall be need for e-commerce which shall aid in establishing right fit in accordance to brand image as well as in addition aids in alignment of the right company culture (Bashir et al., 2016). Various models for e-commerce models are available and these include business-to-business (“B2B”), business-to-consumer (“B2C”), consumer-to-consumer (“C2C”) and many others. The specific model which is applies for Uber is the C2C model. The same encompasses four different phases, and includes: [1] pre-sales activities, [2] sales execution, [3] post-sales activities, and [4] customer care (Bashir et al., 2016).

The ER diagram specific to the model of e-commerce business concerning Uber is presented below,

Figure 1 – Uber E-commerce Business Model: ER Diagram

Uber shall benefit from the stated model on account of the same helping to make market presence as well as offers an online-based catalogue (Bashir et al., 2016). Ordering online, payments as well as delivery shall in addition be designed using the model. Customer profiling as well as affiliated services shall in addition be provided. The overall revenues which are generated by way of payments which shall be made by customers using booking of rides to travel from one location to the other (Bashir et al., 2016).

Social computing is a crucial element of business model of Uber and the same shall refer to specific technology which shall make use of elements concerning interactive and collaborative nature within human behaviours (Yun et al., 2020). The contexts of digital social shall be created with aid of information systems as well as social behaviours. Web 2.0 represents an environment which has been used at Uber to ensure effective connectivity as well as community entailing users with aid of relevant information technology tools. The model of social shopping at Uber shall be used with respect to varied purposes akin to service sales, strategic marketing, Human Resources, and Customer Relationship Management (“CRM”) (Yun et al., 2020). These shall be utilised for selling as well as booking the rides, offering coupons to customers as part of an effective market strategy, as well as provide innovative offers for attracting a greater number of customers as well as ensuring collaborative form of consumption.

The services which has been provided by Uber can be noted to be beneficial to an extreme with respect to specific environment. The benefits in this context include the following: [1] easy booking experienced by customers for purposes of commuting from a specific location to other, [2] the responses for customers complaints shall be undertaken in real-time, prompt and digital manner using social media and other mediums (Yun et al., 2020), [3] the expectations at the level of customers could be met easily with aid of the Uber application, [4] it shall be easier for searching cab as well as booking the same, [5] the application can be noted to be easier for using, and [6] Navigation as well as accessibility represent two of the key features which shall come handy in using the Uber application (Yun et al., 2020).

Uber can be noted to compete in a market wherein people shall prefer the vehicles owned by them rather than on relying over public modes for transportation (Yun et al., 2020). There can be significant forms of barriers for getting an entry to market as well as in addition there shall be similar form of applications which have been emerging in markets which offer similar forms of services. The concerned suppliers can be noted to be increasing as well as customers shall get increased options for choosing from, and hence, Uber shall find it challenging for establishing strong place at market place (Yun et al., 2020). The advantage which shall come with the same shall be easier usage as well access ensuring ubiquitous services availability.

Customers in the Business Model of Uber: Advantages

The key advantages in this context include the following: [1] the business model shall enable booking tasks as well as payments for being undertaken using online medium. Customers shall in an easy manner use the mobile devices akin to mobile phones, tablets, etc. for booking rides as well as making payments with respect to the same, [2] The services shall be available to the customers in all forms of tones in terms of services being available all through, and [3] there shall in addition be increased speed in service delivery with just few minutes needed for locating the cab as well as booking the same (Di Amato, 2016).

Customers in the Business Model of Uber: Disadvantages

The key disadvantages in this context include the following: [1] customers shall face problems pertaining to payment security on account of the overall application being dependent the an online mode for service, [2] privacy concerning the customer information shall in addition represents a concern area, [3] There continues to be rapid changes in technology which is used and could result in resistance with respect to terms concerning user acceptance, and [4] There shall be risks akin to data loss, unauthorized access into information as well as attacks from malicious software targeting the mobile application of Uber (Smith, 2016).

Conclusion

Amongst the various business drivers, Uber can be noted to be focussing on buyer related factors as well as technology developments. The buyer factors akin to user choices as well as user preferences, cost, and availability shall represent key factors which shall be utilised by Uber for providing excellent services for its users. Preferences in terms of cab type/ model, choice on the drivers as well as payment mode choices shall be provided to users of Uber. The services offered shall be available on a 24×7 basis. In addition, technology developments has been followed at Uber which translate into the quality of service offered by their mobile application, scope of services and other various service development. Uber has made the application and service to be used varied different mobile devices, operating system platforms and other such diverse technology contexts. Online payments as well as delivery shall in addition are made to be available for users in many different manner ensuring satisfaction by the customers.

References

Bashir, M., Yousaf, A., & Verma, R. (2016). Disruptive business model innovation: How a tech firm is changing the traditional taxi service industry. Indian Journal of Marketing, 46(4), 49-59.

Di Amato, A. (2016). Uber and the sharing economy. Italian LJ, 2, 177.

Smith, J. W. (2016). The Uber-all economy of the future. The Independent Review, 20(3), 383-390.

Uber. (2021). Uber. Retrieved from:
https://www.uber.com/in/en/about/

Yun, J. J., Zhao, X., Wu, J., Yi, J. C., Park, K., & Jung, W. (2020). Business model, open innovation, and sustainability in car sharing industry—Comparing three economies. Sustainability, 12(5), 1883.