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INT 700 SNHU Uber Case Introduction

Question Description

Module Seven:

Uber Case Introduction

The rise of the sharing economy challenges every industry where there are underutilized assets and the

need for cost sharing.

Although sharing economies have been around for thousands of years, advances

in communication and information sharing technologies have enabled new business models based on

asset sharing to spread easily and rapidly.

However, the sharing economy introduces

a dynamic friction

between the traditional understanding of profitability along an industry’s value chain and the new

valuation placed on its products and services by newly empowered consumers.

At inception, Uber first introduced a patented technology p

latform to allow consumers to easily share

access to a wide variety of vehicles and other mobility devices, while simultaneously

giving asset

owners

an additional source of income. Originally

,

Uber consumers paid a premium for the service, but over

time b

u

siness units also targeted low

price alternatives, which allowed

the company to lead the US ride

sharing markets at all price points. The company responded by opening its strategic policy to pursue

becoming a leader in other areas of the sharing economy as

well, such as health care (UberHealth) and

elder care (UberAssist).

U

.S. firms looking to bring sharing

economy business models, like Uber, have encountered intermittent

large

scale success, especially on foreign soil. It seems that sharing economies wor

k well at smaller

scales

,

but introducing them to regional or global markets introduced institutional and industry barriers

unique to each market. Uber’s success also attrac

ted competitors both in the United States and in major

foreign markets

such as the

EU, China, and India. As Uber grew, so did industry resistance to its unique

advantages over foreign companies who felt unfairly constrained by industry regulations, unionized

labor, and other structural challenges limiting their pricing and flexibility.

M

oreove

r, Uber found that

many foreign

market consumers were less open to the premise of the sharing economy. While Uber

may have been very clear on its business model, competencies, an

d strategic approach in the United

States

, it struggles to understand th

e benefits and challenges of extending the sharing economy

internationally. Can you help them?

Case Study Guidelines and Rubric

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