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Uber: Political And Legal Environment

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Question:

Discuss about the Uber for Political and Legal Environment.

 

Answer:

Introduction:

For customers, UBER means taxi. On the other hand drivers considered this as the service that recommends them. the mobile technology supports this business by providing the app for the company that helps the customers to know about the driver details, the time limit in which the cab reaches to them and the money their need to pay for their ride (Cannon and Summers, 2014). For drivers, this app acts as the mediator that helps them to get the ride and to earn. This app facilitates the user to transact the money online with internet support. UBER is the platform that facilitates the drivers to have the opportunity for better earnings. In this process of associating with UBER proper steps need to be followed by the company and the driver. The driver needs to get his background check done before using the services of UBER. The driver needs to have their own car which needs to be insured. It has been identified that many drivers are using this service for earning their income. As far as the app is considered, it is very easy to use. The app also provides the customer as well as the driver to rate each other after the ride. The company is going very fast in expansion. It has expanded its business in around 58 countries and earning high profits everywhere (Rogers, 2015). This company or business is the epitome of innovation as the business has used the old business with new approach. There is no innovation in the services as it is just like other taxi services but their process that has been used to conduct the business is very innovative in nature.

 

PESTLE Analysis:

Pestle

Definitions

UBER

Political

Decision affect by developments in the political and legal environment.

The government interfere in the taxi industry business as every car running on the roads required licence from the government as well as the driver driving the cars. The minimum wage low for this industry is also discussed by the government which needs to be considered.

Economic

Whether the service or product are locally produced or imported goods and services.

as the economy of the country and the private sector increases, the requirement for transport increases and thus enhances the earnings of this industry

Social

Is there social approval? Do socialites acknowledge the benefits of this service or product?

The biggest social factor that affects the taxi industry and the companies like UBER is the population of the country. More the population of the country more is requirement for transportation (Cramer and Krueger, 2016). Another factor is urbanization. This industry is very useful in urban areas.

Technological

The most dramatic force, the factor of the company’s growth rate in social media, websites and online resources.

Technology is directly related to UBER. This is because the app used by this company to associate the driver and the customers is the results of technology only. The change in technology requires the company to make changes in their application as well.

Environmental

If the natural environment is being damaged by the industries activities

It is major concern now a day. This is because more vehicles on the road generate more pollution and thus sharing the rides is option that helps to reduce this threat of environment (Rempel, 2014).

Legal

The impact of laws, regulations and legislations.

The added effect of the car fumes on the eco system can be recognised as carbon dioxide emissions that have been linked to climate change and global warming.

 

 

References:

Cannon, S. and Summers, L.H., 2014. How Uber and the sharing economy can win over regulators. Harvard business review, 13, pp.1-4.

Cramer, J. and Krueger, A.B., 2016. Disruptive change in the taxi business: The case of Uber. The American Economic Review, 106(5), pp.177-182.

Rempel, J., 2014. A Review of Uber, the Growing Alternative to Traditional Taxi Service.

Rogers, B., 2015. The social costs of Uber. U. Chi. L. Rev. Dialogue, 82, p.85.

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