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Uber had pioneered the growth and delivery of modern ridesharing services by leveraging the explosive growth of technology, GPS navigation, and smartphones. Ridesharing services had expanded across the world, growing rapidly in the United States, China, India, Europe, and Southeast Asia. Even as these services expanded and gained popularity, however, the pickup experience for drivers and riders did not always meet the expectations of either party. Pickups were complicated by traffic congestion, faulty GPS signals, and crowded pickup venues. Flawed pickups resulted in rider dissatisfaction and in lost revenues for drivers. Uber had identified the pickup experience as a top strategic priority, and a team at Uber, led by group product manager Birju Shah, was tasked with designing an automated solution to improve the pickup experience. This involved three steps. First, the team needed to analyze the pickup experience for various rider personas to identify problems at different stages in the pickup process. Next, it needed to create a model for predicting the best rider location for a pickup. The team also needed to develop a quantitative metric that would determine the quality of the pickup experience. These models and metrics would be used as inputs for a machine learning.

This case uses Uber Technologies Inc. to engage students in a serious conversation about how a firm both affects its stakeholders and is affected by its stakeholders as well as the role of strategic leadership in the amount of emphasis placed on ethical practices. Uber represents a visible high-growth startup that has received considerable positive and negative attention in the media; however, few people know of the extent of its aggressive management approach. Much of the publicity about Uber is both a direct consequence of and a direct consequence for stakeholder relationships. Students are asked to analyze Uber’s approach and offer suggestions for moving forward.

This case was created using secondary data sources. The issues for Uber that led the authors to write this case were not very flattering to Uber, and therefore, the authors decided to use secondary sources. Since Uber and many of its direct competitors were private companies, the authors collected as much financial data as the authors could from publicly available sources. Also, due to the contentious nature of some of the managerial tactics used within Uber, the use of secondary data sources was warranted.

This case was crafted with senior undergraduate students in strategic management as the primary audience, but is also relevant for MBA-level strategy courses as well. This case touches upon core content in the vast majority of undergraduate strategic management courses with a special emphasis on two concepts underrepresented in most strategic management textbooks, stakeholder theory and ethical decision making.

The purpose of this paper is to experiment a dynamic performance management (DPM) approach to explore and assess the business dynamics of digital ride-hailing platforms with a focus on both supply and demand sides, and related interplays.

The research adopts the DPM framework supported by simulation-based experimentations for developing a systemic case interpretation of Uber Inc. and its specific business complexity.

The emerging scenario analysis reveals that changes in the commission percentage for drivers and cutting prices for customers (car hailers) by competitors have significant impacts on the car-hailing industry.

DPM and associated simulation-based analysis of the ride-hailing business may provide significant managerial decision insights and a ground base research in a relatively less-explored field within the strategic management domain.

Uber China is a strategy pricing case that examines the role of customer acquisition tactics and brand positioning in entering the tantalizingly large Chinese market. The case adopts the perspective of an outside observer looking at Uber's efforts to compete in China from its entry in 2013 to its exit through its acquisition by Didi Chuxing, the highly dominant industry leader in China's ride-sharing market. After laying out the market opportunity, consumer and competitive landscape, and the various acquisition-related moves of Uber and the other major players, the case asks students to conduct a postmortem on Uber's failure in China. Specifically, they must consider what drew Uber to the opportunity in China and what it might have done differently in terms of positioning and customer acquisition to compete more effectively. First and foremost a pricing-related discussion, the case illustrates the relationship between pricing and acquisition tactics and brand positioning and the use of both in market entry and penetration.

Consumers’ intentions to participate in the sharing economy have received much attention from researchers in recent times. However, little attention has been paid to consumers’ actual participation in the sharing economy. The purpose of this paper is to examine the factors that drive customers in Ghana to use Uber.

The authors used surveys as the research design. There were 500 participants who were users of Uber. Data were collected through self-administered questionnaires.

The findings of this study show that trust, customer return on investment and search convenience are the key factors that contribute to riders’ usage of Uber service. Furthermore, this study shows that consumers’ need for prestige and social connection do not play a significant role in consumers’ (riders’) usage of Uber services.

Studies investigating consumers’ participation in the sharing economy from an emerging economy context using the social exchange theory is limited. This study identifies elements of the economic and socio-emotional dimensions of the social exchange theory and the strength of their impact on people’s participation in the sharing economy.

The purpose of this paper is to analyze why people have become suppliers in the sharing economy (SE) as Uber drivers in a developing country.

From a background on SE, car sharing and gig economy, the authors carried out a qualitative research. The analysis was based on 20 semi-structured interviews conducted with Uber drivers, and on the authors’ participant observation as Uber drivers and passengers in the third largest Brazilian city, Belo Horizonte.

Empirical evidence shows that becoming an Uber driver is more a matter of solving unemployment on a more permanent way rather than a search for a temporary and flexible work to supplement income. Although there are benefits related to flexibility, income and social interactions, negative externalities identified herein lead to the conclusion that the overall work relations and conditions are negative.

Much in the literature of the SE is focused on understanding consumer behavior; this research, on the contrary, is focused on understanding producers, which indicates an incipient perspective. The contributions of this paper show that the SE merges into different distributive decentralized means of production that are seeing as profit/income generated from shareable assets.

The learning outcomes are as follows: to gain insight into the importance of location, in terms of spatial and temporal context and the capability of leadership to tune into and strategically adapt to context; to understand and explain the sharing economy and explain how the Uber business model fits into this new way of doing business; to evaluate how Uber South Africa has adapted its business model in the period of the COVID-19 crisis and discuss the nature of the business model innovations that is has made; and to understand business model for sustainability and how it differs from the general understanding of business models.

On 15 May 2020, Alon Lits, General Manager of Uber Africa was considering his dilemma of adapting their business model to the demands of COVID-19, without losing their core business model as a multi-sided technology platform business. Uber was asking their riders to stay home to ensure social distancing during the lockdown, rather than booking a ride with Uber. The question was how they could support their driver partners, while they were discouraging riders to make use of Uber. Uber had taken initiatives to create additional revenue streams for drivers. The case highlights how Alon Lits and his executive team prioritised the health and well-being of their Uber community and quickly adapted their technology to meet the evolving needs during the COVID-19 pandemic. They customised their offerings to the different needs in the seven Sub-Saharan Africa (SSA) countries in which they operated. Uber supported businesses by using the Uber-X sedan vehicles to deliver necessities like food, medicine and parcels to the frontline and poor communities. Uber globally offered their drivers in quarantine 14 days of financial assistance. Serving communities also involved offering free rides to women and children who were victims of domestic violence to get them to a safe space. The multi-sided platform technology business had to consciously adapt, to the “next normal” as the COVID-19 era evolved.

The case is most suitable for Post-Graduate Master’s level courses, MBA, MPhil in Corporate Strategy.

Teaching Notes are available for educators only.

CSS: 11 Strategy.

Using the lens of Uber’s digital workers in Paris, the purpose of this paper is to investigate how the trust-building mechanism is constructed between a digital platform and its digital workers in a foreign market entry.

This is a case study based on empirical data from in-depth interviews with 35 Uber drivers. A cross-disciplinary literature framework from mainly international business and internet geography theory and a reflexive qualitative methodology are applied.

Results show that the relationship between the digital platform and the digital workers is characterized by mistrust and suffers from decreasing commitment levels soon after market entry. Uber mitigates its mistrust via control and scarce mechanisms. The digital drivers’ “illusionary freedom”, a state in which they feel they can log on and log off at any time, enables the digital platform to gradually lower its commitment. The authors find that the mistrust does not seem to hamper the digital platform’s business performance.

The paper mainly covers the digital workers’ perspective and the case of Uber’s market entry in Paris.

This paper implies that digitally conveyed control seems to come at the cost of lowered human trust. Given the pace at which digital control systems are permeating society, this could eventually lower the whole societal trust level.

The authors criticize incumbent international business theory for not being sufficiently able to explain a contemporary digital business logic and the authors challenge the general assumption that successful internationalization is built through trust. The authors contribute with the conceptualization of a new technical market entry mode for digital platforms – “digitally controlled proxies”.

Competing in Emerging Markets; Internationalization of Service Firms; Global Marketing.

Senior undergraduate or graduate students in business schools.

Uber first entered the South Korean taxi hailing service in Seoul in September 2013. In March 2015, the company shut down its operations after being charged for operating an illegal service. However, in January 2016, Uber decided to re-launch Uber’s premium service, UberBLACK after working with the city government. Given the country’s unique characteristics, was the decision to re-enter the market justifiable? Would Uber’s new strategies including partnering with a local company be sufficient? How could Uber gain more market share against its local powerful competitors?

Outcomes This case allows students to understand the challenges of internationalizing services of a global company in an emerging market that has strong national cultures and domestic preferences. The students will learn how to analyze the country and industry external environment as well as internal resources and capabilities to formulate the appropriate market entry strategies and to effectively implement them. The students will also learn the critical role of host country government and how to manage its relationship, the first- and second-mover advantages/disadvantages and the sustainability of innovative business models.

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 11: Strategy