Uber E-Commerce Business Model

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

 

ER Diagram Uber

ER Diagram

Data Flow Diagram

Data Flow Diagram

Uber e-commerce business model

E-commerce stands for electronic commerce is a term that applies to a business that uses transfer of information across the internet ("What is Ecommerce?", 2016). A correct model is required for e-commerce that helps in establishment of right fit as per the brand image and also aids in the alignment of correct company culture ("What are the eCommerce business models?", 2012). There are a number of e-commerce models such as Business-to-Business (B2B), Business-to-Consumer (B2C), Consumer-to-Consumer (C2C) and several more. The model that applies to Uber is B2C. It involves four phases as:

• Pre-sales
• Sales execution
• Sales Execution
• Post-Sales

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Uber benefits from this model as it helps in making the market presence and provides an online catalog. Online ordering, payment and delivery are also designed through this model. Customer profiling and service are also provided. The revenues are generated through the payments that are made by the customers through booking of the rides for travelling from one area to another.

Advantages for customers in Uber’s business model

• The business model enables the booking and payments to be done through online mode. Customers can easily make use of their mobile devices such as mobile phones and tablets to book a ride and make the payment for the same.
• The services are available for the customer at all times that is the services are available all throughout.
• There is also increased delivery speed that is all it takes is a few minutes to locate a cab and book the same.

Disadvantages for customer in Uber’s business model

• Customers face the problem of payment security as the entire application is based on the online mode of service.
• Privacy of information is also an area of concern for the customers.
• There is a rapid change in technology that is used which may lead to resistance in terms of user acceptance.
• There are risks such as loss of data, unauthorized access of information and attack of malicious software on the mobile app.

Social Shopping Models

Social Computing refers to the technology that makes use of collaborative and interactive aspect of the human behavior. Digital social context is created with the help of social behavior and information systems (Social Computing: Concepts, 2016).

Web 2.0 is the environment that is used by Uber for connectivity and community of the users with the help of information technology. Social shopping model in Uber is used for several purposes such as Sales, Marketing, Customer Relationship Management and Human Resources. These are used to sell and book the rides, provides coupons to the customers for better market strategy and innovative offers to attract more customers and collaborative consumption as well.

Uber’s service for environment

The services that are offered by Uber are extremely beneficial for the environment. These benefits are as listed below:

• Easy booking to the customer for commuting from one place to another
• The responses to the customers complaints are quick as there is social and public involvement involved in the usage of the application
• The expectations of the customers can be easily met with the help of this application
• It is easy to search a cab and book the same
• The application is easy to use
• Navigation and accessibility are the two features that come handy with this application

Competitive Market

Uber is competing in the market where people prefer their own vehicles instead of relying on the public modes of transports such as buses and cycles.

There are significant barriers to get an entry in the market and also there are similar applications that are emerging in the market that offer similar services. The suppliers are increasing and the customers get more options to choose from and thus, Uber finds it a little challenging to establish a different place in the market. The advantage that it comes with is that it is easy to use and access as well with services available at all times.

Since there are some substitutes that provide rides and cabs to book for commuting from one place to another and significant competition as well, there are models available in the market to develop a competitive business strategy.

Porter’s Competitive Forces Model

• Competitive rivalry is a force that is low to enter in the market since the services that are offered by Uber are unique in nature as these are completely based on the online mode of delivery and payments.
• New entrants in the market also play a role that is low in terms of the force that is required to develop a competitive strategy. It does not possess a significant barrier as Uber has unique services and features as well.
• The supplier force play a significant role since the numbers of suppliers is increasing at a rapid pace (Resources et al., 2014).
• The buyer factors such as choices and preferences of the users and cost and availability of the service is of utmost importance ("Porter's Five Forces: Assessing the Balance of Power in a Business Situation", 2016).
• Technology developments are the forces that are high in terms of the changes and innovations that take place on a frequent basis at present (Competition, 2015).

Strategies to competitive advantage

The five forces suggested by Porter play an important role in developing the business strategy and gain a competitive advantage. Out of the five forces, Uber is practicing buyer factors and technology developments ("Porter's Model of Industry Rivalry (Five Forces) | Business | tutor2u", 2016). Buyer factors such as choice and preferences of the users, cost and availability are the major factors that are used by Uber to provide excellent services to the users. The preferences such as type of cab, choice of drivers and payment modes are provided to the users. The services are available for at all times at the 24x7 basis ("michael porter's five forces competition theory model", 2016).

Technology developments are also seriously followed by Uber as the mobile application is available for accessing Uber that can be accessed through several mobile devices such as Smartphones and tablets and is developed for operating systems such as Android and iOS that are primarily used by the customers. Online payments and delivery are also made available to the user which are preferred by the users and are also in trend as per the latest technological advancements. 

References

Competition, P. (2015). Porter's Five Forces: Analyzing the Competition. Business News Daily. Retrieved 22 May 2016.

michael porter's five forces competition theory model. (2016). Businessballs.com. Retrieved 22 May 2016.

Porter's Five Forces: Assessing the Balance of Power in a Business Situation. (2016). Mindtools.com. Retrieved 22 May 2016.

Porter's Model of Industry Rivalry (Five Forces) | Business | tutor2u. (2016). Tutor2u.net. Retrieved 22 May 2016.

Resources, H., insights, I., quotes, I., hubs, S., tips, C., & Training, E. et al. (2014). Porter's Five Forces Model | Strategy framework. Cleverism.