Uber: Risks To Overcome to Be Successful

Subject: Management
Pages: 1
Words: 304
Reading time:
2 min
Study level: College

Risks to overcome to be successful

Drivers: If Uber increases its profit share deductions, the number of disgruntled drivers could skyrocket. Drivers may be required to carry healthcare insurance as a result of recent legislation mandating it.

Competitors: Uber’s business model is comparable to that of Lyft and Ola, an Indian ride-hailing service. More ride-for-hire businesses may arise in addition to the normal competition from taxis, limousines, rental vehicle firms, air transport, railways, and city and chartered buses. Customers have low switching costs, and ride-sharing firms have lower costs than other sectors.

Customer base: Increasing demand for ride-hailing services is a continuing or future problem that needs a focus on safety improvements and prices that are cost/benefit to both passengers and drivers.

Technology: Customers are hesitant to download apps, and credit card information has been stolen from some online businesses. Uber’s database security system could be improved to reduce the possibility of financial or personal account information being compromised.

Customer satisfaction: There have been reports of long lines, inexperienced drivers, sexual harassment, pricing, and service issues.

Key ethical issue – Corporate governance

Employees are less likely to make unethical judgments as a result of the creation of institutional systems of responsibility, supervision, and control, for example, in the case of Lyft and financial or personal account information being compromised.

Moral philosophy – Deontology

Refers to moral ideologies that prioritize an individual’s rights and the intentions behind certain conduct over the consequences of that behavior. It can be used to resolve corporate governance since each person knows their rights and responsibilities.

Conclusion

Individualized character development is unlikely to result in more ethical commercial judgments in the future. People will make better judgments if they are equipped with intellectual abilities that allow them to grasp and overcome the complicated ethical quandaries that they encounter in complex business environments.

References

White, T. “Character development and business ethics education,” in Fulfilling our obligation: perspectives on teaching business ethics, ed. Sheb L. True, Linda Ferrell, and O.C. Ferrell (Kennesaw, GA: Kennesaw State University Press, 2005), 165.

Andrews, M., Kacmar, M., & Kacmar, C. The interactive effects of behavioral integrity and procedural justice on employee job tension. Journal of Business Ethics 126, 3 (2015): 371–379.

Reidenbach, R. & Robin, D. “Toward the development of a multidimensional scale for improving evaluations of business ethics,” Journal of Business Ethics 9, no. 8 (1980): 639–653.

Frankena, W., Ethics (Englewood Cliffs, NJ: Prentice-Hall, 1963).

Harris, C. Applying Moral Theories (Belmont, CA: Wadsworth, 1986), 127–128.