uber case analysis

INTERNSHALA BUSINESS CASE CONTEST

ON

SUBMITTED BY-

ARINDAM CHOWDHURYPGDM (MARKETING)BIMTECH, GREATER NOIDA

KEY FACTOR FOR UBER’S SUCCESS:• Uber depends on its driver partners for supply.• Driver engagement is an important factor as it gets the most from its driver partners and for driver partners to get rewarded for their high engagement and loyalty. • The more drivers are motivated to drive on Uber platform, the more it helps Uber in terms of having a reliable supply for riders at any point in time. This ties back to the vision of Uber, “Providing

transportation for everyone and everywhere as reliable as running water”.

EMPLOYEE TREATMENT IN UBER: Uber hires private drivers on the basis of –

• Skills & Experience• Checking Personal Profile (Driving license & Criminal Record, if any)

They work independently Organization’s behaviour with employee depends on review by customer

–• Bonus for positive reviews• Strict Action for negative reviews

Fig: Number of Active Driver-Partners in United States Each Month

REASONS FOR INCREASE IN ACTIVE DRIVER PARTNERS: Most drivers don’t schedule themselves, they drive when they have time.

Flexibility is a big motivating factor.

People are using the app both as drivers and passengers.

• 88% started driving with Uber because it fits their life well, not because it was their only option.

• More than 1 in 4 drivers take Uber (as a passenger) at least once a month.

Increasingly, people do not talk about “becoming an Uber driver-partner.” It’s a much simpler decision – do I want to make money using my car?

• 50% drive fewer than 10 hours per week on average; 40% say when they drive, it just depends what else is on their schedule, 38% set an earnings goal, 16% drive a set amount of time.

Flexibility to drive Extra Income Drive with Assurance

ISSUES:

Low Pay

Driver Saturation

Feeling Expendable

Inadequate Support

• Over the past year and a half, rates have been cut by 30-50%, which has forced a lot of older and more experienced drivers to look for other opportunities.

• More drivers are out on the roads during big social events which just aren’t anywhere near as profitable as they used to be. I suspect there are a lot more ‘weekend warriors’ who only come out when it’s busy. Uber Pool also mean less available rides for drivers.

• Drivers are complaining for customer support, insurance, driver safety, tipping, etc., and Uber has taken a “my way or the highway” approach with its drivers making them feel expendable.

• One of the most common problems, new drivers face is that they feel like they’re alone when they’re getting started. Unlike a regular job, there are no

co-workers that drivers can ask questions to or figure out how to do this or that leaving them to figure things out for themselves and hence frustrating them.

SOLUTION TO THE ISSUES:Execution and implementation of a Comprehensive Engagement Strategy which focuses on the following four factors:

• People have a deep desire to feel they're succeeding and that their talents and capabilities are being used in a way that makes a difference to the business.

• What Uber can do is whenever a driver reaches its milestones (e.g. 100 trips) within a stipulated time, he/she may be rewarded with discounts on service bills and some deals on foods and beverages from particular shops.

“PLEASE REFER TO THE NOTES FOR FURTHER EXPLANANTION”

• A communication process should be structured to inform, emphasize and reaffirm to employees that their workplace contributions are having an impact.

• Properly done, communication with staff will provide you with the insights you need in order to know how your employees feel about working for your business.

• What Uber can do is have a transparent business system and follow the above to see a positive change within their employees.


• True loyalty is not an enforced requirement but an earned response.

• It’s like a give and take situation. When you demonstrate loyalty to your employees, they'll reciprocate with commitment and loyalty to your business.

• People don't begin their employment with you as loyal employees, but will develop gradually.

• What Uber can do is, they should encourage their employees for

their success and contributions to the company which in turn will form a loyalty.


• While this may seem odd at first but think about it: People want to work for a winner.

• Take the time to identify and inform your clients and your employees about your unique competitive advantage.

• May be the product is similar to others in the marketplace, but the service can be what distinguishes you.

• Uber being a global platform operating in more than 527 cities has a

competitive edge over other companies.

• Together, these four elements can provide a company with a retention strategy capable of producing amazing results.

• The key is to make sure the company has integrated all four elements into a strategy for retaining employees that's grounded in a genuine commitment to serving its customers and employees well over the long haul.


CONCLUSION:

MEASURING THE EFFECTIVENESS OF THE PROGRAM:

• A meta-analysis research (a statistical technique that pools multiple studies) can be conducted.

• By conducting this research regularly over time and increasing the number of work units analysed, we can get a cutting edge of how well employee engagement predicts key performance outcomes.

• We can conduct this research on the basis of eight iterates:

customer ratings profitability productivity turnover safety incidents shrinkage (theft) absenteeism patient safety incidents quality (defects)


According to a survey conducted previously by some companies following was the result:

-70%

-60%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

-37% -25% -65% -28% -48% -41% -41% 10% 21%

22%

Work units in the top quartile in the employee engagement outperform bottom quartile-units by 10% on customer ratings, 21% in productivity, and 22% in profitability. Work units in the top quartile also saw significantly lower absenteeism(37%), turnover(-25% in higher-turnover organizations and -65% in lower-turnover organizations), and shrinkage(28%), and fewer safety incidents(48%), patient safety incidents(41%), and quality defects(41%).

EMPLOYEE ENGAGEMENT AFFECTS KEY BUSINESS OUTCOMES

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