UBER SWOT Analysis Analyzes, Uber is a highly-tech business that was established in the year 2009. It is a fantastic way to connect the world of transportation with technology through its ride-sharing application. In 2014, the company was named the most valued venture-backed company. Uber was able to offer its services in more than 200 cities across 53 countries in 2014. Uber has a value of more than US 40 billion. This means its value is greater than the total U.S. taxi and limousine industry. It is predicted that the company will earn annual revenues of $10 billion by the year 2015.
Did You Know?
Uber currently operates in 173 countries across the globe and it has more than 110 million users worldwide.
In 2009, Uber was founded as Uber cab by Garrett Camp, a computer programmer and the co-founder of StumbleUpon, and Travis Kalanick, who sold his Red Swoosh startup for $19 million in 2007. After Camp and his friends spent $800 hiring a private driver, he wanted to find a way to reduce the cost of direct transportation.
This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct a SWOT analysis by UBER.
UBER At A Glance – UBER SWOT Analysis
Company: Uber Technologies, Inc.
Founders: Travis Kalanick | Garrett Camp
Year of establishment: March 2009, San Francisco, California, United States
CEO: Dara Khosrowshahi
Headquarters: San Francisco, California, United States
Employees (Dec 2020): 28,900
Ticker Symbol: UBER
Annual Revenue (Dec 2020): US$21.9 Billion
Profit net income (Dec 2020): US$3.93 Billion
Products & Services: A ride-hailing service | Uber Eats | Uber Freight | UberX | UberXL |UberSELECT | UberBLACK | UberSUV.
Company Website: www.uber.com
Top UBER Competitors
Competitors: Housejoy | Narchie | Kandua | Mutlubiev | Helpr | Premend | Mr Right | Bro4u | Homvery | UrbanPro | Timesaverz | HomeTriangle
UBER SWOT Analysis – SWOT Analysis Of UBER
SWOT Analysis Of UBER analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With UBER SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about UBER SWOT Analysis. Below Is The Detailed SWOT Analysis Of UBER.
UBER Strengths – UBER SWOT Analysis
- It is a brand that is well-known.
- It provides a high level of service, certified drivers and vehicles. Uber Black customers benefit from a very high quality of service.
- It has an unlimited number of vehicles. Regular Taxi regulations do not apply to Uber.
- Uber does not have full-time drivers. Since it doesn’t hire drivers, it does not have any obligations to employees.
- Operating costs are quite low. Since it is based on driver-to-customer communication, a dispatcher is not required.
- There isn’t much competition. One of the biggest competitors is Lyft.
- Since cashless payments are utilized, Uber can track and pick high-rated drivers. Uber also has other benefits including the ability to rent a car and keeping track of expenditure.
- Dual rating system increases the trust factor and ensures safety.
- The system is suitable for drivers. They can choose to work from home and can even be an employee on a part-time basis. Drivers may also refuse to work with unwanted customers.
- The costs are lower when in comparison to traditional taxi drivers.
- Uber is valued at a high price. Uber. Many are eager to invest in it.
UBER Weaknesses – UBER SWOT Analysis
- The concept can easily be duplicated. It is impossible to stop competitors from offering the same product.
- This relationship among Uber and drivers is ethically unsound. The relationship is not real. Therefore, it is assumed that the loyalties to Uber as well as its driver is not high.
- Furthermore, Uber as well as its customers are not bonds. The incentive to stay with Uber is not high.
- The costs of operating vehicles are extremely expensive. However, drivers don’t earn as much.
- Very Unpredictable Business Model.
- There are privacy issues. Uber notes where the customer takes his taxi. The company also notes where the driver takes it.
UBER Opportunities – UBER SWOT Analysis
- Customers are usually dissatisfied by traditional taxi services due to the high cost and lengthy waiting times.
- It is able to tap into huge and new markets in countries such as India that taxis are unreliable and costly.
- Are you able to tap into the growing market in suburbs in which taxi services aren’t accessible.
- Increase in the numbers of Uber drivers will decrease the Estimated time of arrival. This makes Uber more popular. The company will generate more money and the drivers will benefit too.
- Uber can boost the value. This could make it more attractive to investors. In the end, Uber will have more cash to continue operating.
- Electric cars that are less expensive can be utilized. It can lower costs and improve the driver’s profit margin.
- Other services such as transporting elderly patients to hospitals, transporting children to school or transporting pet animals to the vet may be provided.
UBER Threats – UBER SWOT Analysis
- Drivers aren’t thrilled with the poor profit margins. This could result in negative publicity. This may deter newly hired drivers to join Uber.
- New laws in nations like Germany are expected to ban Uber to operate.
- Local authorities’ problems can cause penalties. They can also get poor reputation.
- The increased competition will eventually lower prices. This will deter drivers from joining startups market. This could lead to the losing customers. Uber’s revenues will fall.
- As new drivers and markets are being added the ranks, scandals and fraud are growing. It’s damaging to the image of the brand.
- Self-driving cars, e.g. Google Cars, will eliminate the requirement for Uber.
- Overvaluation could lead to overinvestment in places in which there isn’t space for businesses of a similar nature.
UBER SWOT Analysis Overview Template
This is the SWOT report that UBER has done. Please let us know if you have additional suggestions to add.
Let us know What do you think? Did you find the article interesting?
Write about your experiences and thoughts in the comments below.