Instructions A Case Analysis of Uber Uber is a ride-sharing service started in 2009. If you are not familiar with Uber, you can learn more about the services it provides at Uber.com. Construct an nine

Modernized ride-sharing techniques are technologically controlled, and real-time ride-sharing forms the primary aspect of this segment. Q.A.). Analyze the market before Uber's entry. Describe the inefficiency Uber exploited. The antiquity of ride-sharing across the sharing economy dates to around 1942. In this era, the U.S. government advocated for ride-sharing in workstations intending to save rubber during the deadly world war two. Similarly, the 1 2 1 3 4 1 2 2 5 2 11/18/2020 Originality Report https://online.columbiasouthern.edu/webapps/mdb-sa-bb_bb60/originalityReport/ultra?attemptId=d3457dcf-c276-4d78-ae91-ccf8d6d997c0&course_id … 2/8 gasoline and oil crisis experienced in the early 19th century stimulated the urge for ride-sharing (Wallsten, 2015). Stakeholders in the current sharing economy introduced a new aspect (E-bay), whereby consumers could purchase or sell commodities globally (Wallsten, 2015). Technically, E-bay manifested the first move to connect sellers and buyers without necessarily having to deal with middle-men. Before Uber Inc. set its operations in the sharing economy, Airbnb had dominated the industry and played a vital role in enhancing the easy booking of cottages (Wallsten, 2015). Since Airbnb came into the limelight around 2008, the firm managed to defy the accommodation industry, monopolized. The firm modified home share competences as a system of lodging (Wallsten, 2015). With such practices, it was somewhat easy for Airbnb to grow over the years tremendously. Stereotypically, the sharing economy defines the deploying of technology-oriented replicas intended to exploit the utilization of available scarce resources. Various sectors and aspects such as transport docket, finance accommodation, and investment models form a significant part of the sharing economy. As compared to the traditional system of synchronizing exchanges, the sharing economy tends to be more self-regulated and flexible. With the introduction of the sharing economy across the world, consumers have enjoyed multiple benefits of buying, consuming, and reusing daily essential products (Wallsten, 2015). On the other hand, the present ride-sharing economy has been unconditionally reformed by the evolution of information and communication expertise, digital electronic money, smartphone usage, and geographical position classifications. Identifying a market gap in the urban transport sector in 2009 paved the way for Uber Inc. in 2009 (Wallsten, 2015). Initially, urban transport was reserved by regular system operations, which were slow, inflexible, and inefficient. Similarly, Uber explored the existing technology by generating online applications that connect drivers and clients via the use of smartphones and geographical positioning systems. Q.B.). Explain Uber's surge pricing in the context of shifts in supply and demand. In the last years, ride-sharing services in both urban and suburban regions across the world have grown exponentially. The introduction of ride-sharing services such as Lyft ad Uber to the market has lured multiple individuals to shift from existing traditional means of transport (Schor, 2016). With such high demand, Uber has been forced to adopt an interesting payment scheme. Besides paying the drivers basing on the distance covered, operating charge rates of the escapades are also considered (Wallsten, 2015). Surge pricing sets the base for determining the fare of any given trip. Depending on the number of clients and precise season, the charges tend to vary; thus, it becomes somewhat tricky to provide specific rates. Uber charges varying rates depending on the demand. On ordinary occasions, the rates may remain constant for all possible clients; however, there are chances of the ratings to upsurge in busy periods when demand rises. 1 2 6 7 2 5 Therefore, the firm incorporates a surge pricing algorithm to effectively balance the level of demand and supply (Schor, 2016). Fundamentally, the surge algorithm is dispersed as a series multiplier, which proliferates the average fare as a means of stemming the possible price. Levels of price surging, which are analyzed via the matrix, depend on the demand-supply disparity and the chauffeur's contiguity to the booking commuter (Schor, 2016). However, deploying a surge pricing approach to balance supply and demand by Uber Inc. has diverse cons. There is a possibility of clients seeking other travel options in the event they realize that enacted prices are exceptional. In addition, drivers who realize their location have less demand may be tempted to shift into high demand regions. Q.C.). Evaluate Uber's surge pricing in the context of price discrimination. Most blue-chip firms uphold the philosophy of price discrimination. These companies tend to sell products and services at two varying prices as a result of existing factors. Uber Inc. upholds such concepts in that prices are charged depending on the clients' location (Schor, 2016). Besides, clients are charged unique prices depending on the customer’s willingness to pay and allocative efficiency. In order to protect the prevailing price volatility, Uber deploys a dynamic pricing approach with the pricing meant to vary depending on the demand available. On the other hand, the firm Uber charges most of its clients depending on what they forecast the client is individually able to part with. Q.D.). Apply the concepts of economies of scale and economies of scope to Uber's business model. The perception of economies of scope primarily concentrates on the regular costs involved in the production of several merchandises. In contrast, economies of scale primarily emphasize cost advantages that arise when given commodities are manufactured in bulky quantities (Posen, 2015). The manufacturing of corresponding items and services that don’t focus on critical competencies tends to create a cost advantage. Though Uber Company is an international frontline in the ride-sharing occupational and service delivery, it also offers other corresponding amenities such as ride-hailing, food delivery, and micro-mobility systems pigeonholed by bikes scooters (Wallsten, 2015). These related services provide a market share of approximately twenty-eight percent in the sharing economy, thus enhancing the present robust ride-sharing Uber economy (Posen, 2015).

The upsurge in the merchandise and services offered by a corporation results in a cost advantage labelled as economies of scale due to the decrease in the marginal cost of production. For quite some time, Uber Inc. has witnessed a rise in the number of chauffeurs willing to join with the giant firm. Thus, the company has been able to increase the number of available partners, thus increasing possible service outputs (Posen, 2015). The increase in the number of drivers in Uber Inc. provides a cost-benefit to the firm. The firm has thrived in crafting an international scale economy that has stemmed in reduced organizational costs, transactional costs as well as increased scale economies. One notable aspect of Uber is the fact that the firm has managed to maintain its business structure by capturing a wide variety of user-base. Q.E.). Apply the concepts of game theory to Uber’s market. Before Uber Incorporation ventured into the ride-sharing occupational, the market was primarily controlled by autocratic taxi providers. In several megalopoleis across the universe, the industry was fundamentally oligopolistic, with just a few firms providing correlated medallion entrenchments to willing motorists for absorption. Before Uber Inc. entered the market, the market characteristics encompassed high entry barriers (Katz, 2015). Nonetheless, Uber’s entry into the market signifies a typical illustration of the game of theories. Flexibility, convenience, effectiveness, low prices, and time minimization brought by Uber re-shaped the industry, giving users various platforms to choose from. Before the entrance of Uber Inc. and the monopolistic aspect of the overall economy, taxi amenities pricing was relatively high past the usual reasonable range (Katz, 2015). Uber agreed to take prices undercut, forcing other firms to adopt the technique to attract potential clients. With such practices, the fringe cost of service delivery is being attained in the recent past. The Uber approach to moderate the price as a means of extorting a widespread portion of the market can predominantly be sculpted via games of theory in the setting of the exploitative completion in the economy (Wallsten, 2015). As oligopolistic firms controlled the taxi industry, Uber's entrance focused on cutting the cost to take charge of prevailing market shares and collaboratively arriving on actual prices to share the market (Katz, 2015). The action of other firms essentially presets a move by one corporation. Furthermore, Uber Inc.'s entry into the market has virtually reduced all feasible barriers to nearly none, compelling initial service providers to eliminate some restrictions and protocols so as to remain competitive. 1 2 5 2 5 2 2 5 2 1 2 2 Q.F.). Assess Uber's potential for international expansion and potential trade policy issues. Uber is one notable firm that has provided loftier solutions that meet clients' needs in the ride-sharing economy. Over the past years, Uber has managed to expand its services to over sixty nations across the globe, thus attributing to the high market capitalization of forty-one billion U.S. dollars (Posen, 2015). The firm has deployed a less pricing strategy as compared to its competitors, thus managing to maneuver in the existing market niches around the universe. Considering the current competition in the ride-sharing economy, there is a need for Uber to capitalize on the existing market gaps. In this case, Uber Inc. ought to base its operations by leveraging on actual phenomena comprising tourism-based 5 6 11/18/2020 Originality Report https://online.columbiasouthern.edu/webapps/mdb-sa-bb_bb60/originalityReport/ultra?attemptId=d3457dcf-c276-4d78-ae91-ccf8d6d997c0&course_id … 3/8 Source Matches  (48) Student paper 100 % Student paper 100 % Student paper 100 % Student paper 100 % activities, sports, weather conditions, and nightlife escapades (Posen, 2015). Such activities provide a likely scenario suitable for uber amenities hence providing latent ground for growth. Nevertheless, there is a need for Uber Inc. management to establish precise plans and models in the vent they want to venture in different regions situated along with varying jurisdictions in the domain. Each area inevitably tends to have diverse regulations, statutory predicaments, and topologies; thus, additional research on how to face such prevailing challenges ought to be done (Posen, 2015). Considering the high rate of flexibility, efficiency, adoption, and modernization present within Uber Company, the firm stands a high chance for growth in various parts of the world. Uber has also capitalized on venturing into new multinational frontlines such as food delivery and ride-hailing services to catalyze its expansion in new regions. The expansion plan is, however, not swift as multiple factors are slowing down the process. The firm is currently facing several technical, legal, trade policy, and regulatory obstacles (Edelman & Geradin, 2015). Stakeholders in the broader taxi industry illuminate that Uber’s lack of exposure to regulation that encompasses licensing necessities acts as the primary factors creating unfair metrics for the company (Wallsten, 2015). Besides, the chauffeurs are not necessarily workers of Uber; thus, the firm is not accountable for whatever may arise in the course of operations. On the other hand, some governments across the world argue that Uber offers an unfair trade environment, thus prohibiting the use of Uber services within their jurisdiction (Edelman & Geradin, 2015). With such claims, multiple jurisdictions are on the move to enact trade policies that control the sharing economy market. As a firm, Uber faces several issues that encompass insurance coverage policies, lack of liability, and compensation and safety policies. There are also speculations that Uber may face taxation charges soon. Q.G.). Explain the incentive pay model Uber uses and how it affects the principal-agent problem. Across the domain, the effort for firms to offer appreciation to their workforces has elicited significant interests. The principal-agent delinquent, as commonly labelled, entails the ability of employers (principal) to scheme an appreciativeness model to stun the swerving interests of employees (agent), thus luring the agents to act in accordance with the firm's claim (Posen, 2015). Nonetheless, in Uber’s scenario, drivers tend to enjoy a significant control of where and when to drive. There is a significant misunderstanding between the firm and its drivers with such privileges since the driver’s incentives relate to the company. Such prevailing confrontations have led to the filing of lawsuits by drivers as they seek to amend the regulations to allow them to enjoy the benefits of tips from clients (Edelman & Geradin, 2015). Such crises have forced Uber Inc. to develop one-time incentive payments models that reward all chauffeurs who have accomplished a specific number of excursions. Moreover, motorists who have completed a substantial number of at least 2500 trips have the right to own Uber Inc. shares. Q.H.). Discuss any asymmetric information issues with Uber's business model. Digital market sharing offers an extensive assortment of amenities that considers aspects such as flexibility, real-time monitoring, transparency, and a reduced cost for providing services (Posen, 2015). Predominantly incorporating Uber stands, which are technologically and digitally controlled via algorithms, has provided a malleable model of employment in its structure (Wallsten, 2015). Therefore, such advancements have paved the way for building new forms of monitoring, surveillance, and control, thus creating irregular information and employee empowerment (Wallsten, 2015). The incorporation of CSRs, GPS, car detection, and monitoring algorithms have replaced initial managerial supervision as modern technology is encoded with software that enhances automatic detection, rating, and evaluation of drivers (Wallsten, 2015). However, aspects of remote control resulting from drivers tend to create power asymmetries between Uber Inc. 2 2 8 5 2 6 5 2 and its drivers. References Edelman, B. G., & Geradin, D. (2015). Efficiencies and regulatory shortcuts: How should we regulate companies like Airbnb and Uber? Stan. Tech. L. Rev., 19, 293. Katz, V. (2015). Regulating the sharing economy. Berkeley Technology Law Journal, 30(4), 1067-1126. Posen, H. A. (2015). Ridesharing in the sharing economy Uber. Iowa L. Rev., 101, 405. Schor, J. (2016). Debating the sharing economy. Journal of Self-Governance and Management Economics, 4(3), 7-22. Wallsten, S. (2015). The competitive effects of the sharing economy: how is Uber changing taxis? Technology Policy Institute, 22, 1-21. 9 10 1 1 1 1 1 1 11 1 1 Student paper ANALYSIS OF UBER BUSINESS MODEL 1 Original source ANALYSIS OF UBER BUSINESS MODEL 1 2 Student paper ANALYSIS OF UBER BUSINESS MODEL 10 Original source ANALYSIS OF UBER BUSINESS MODEL 10 1 Student paper Analysis of Uber Business Model Original source ANALYSIS OF UBER BUSINESS MODEL 3 Student paper Columbia Southern University Original source Columbia Southern University 11/18/2020 Originality Report https://online.columbiasouthern.edu/webapps/mdb-sa-bb_bb60/originalityReport/ultra?attemptId=d3457dcf-c276-4d78-ae91-ccf8d6d997c0&course_id … 4/8 Student paper 63 % Student paper 100 % Student paper 65 % Student paper 75 % Student paper 100 % Student paper 70 % Student paper 68 % Student paper 63 % Student paper 70 % 4 Student paper 11/18/2020 Original source 11/7/2020 1 Student paper Analysis of Uber Business Model Original source ANALYSIS OF UBER BUSINESS MODEL 2 Student paper Moreover, the cosmopolitan ride-hailing incorporation with a global frontline entails a micro-motion structure branded by scooters and bikes (Wallsten, 2015). Original source Furthermore, the multinational ride- hailing company with a global frontier has a micro-motion system characterized by bikes and scooters (Wallsten, 2015) 2 Student paper Carpooling seems to be the most prominent ride-sharing method in that it involves sharing of a motor vehicle for logistics purposes with a slip-up on the general cost incurred. Original source Carpooling is the most prominent form of ride-sharing as it involves the sharing of a vehicle for transportation with a slip on the cost incurred 5 Student paper Analyze the market before Uber's entry.

Describe the inefficiency Uber exploited. Original source Analyze the market before Uber’s entry Describe the inefficiency Uber exploited 2 Student paper Similarly, the gasoline and oil crisis experienced in the early 19th century stimulated the urge for ride-sharing (Wallsten, 2015). Stakeholders in the current sharing economy introduced a new aspect (E-bay), whereby consumers could purchase or sell commodities globally (Wallsten, 2015). Original source More so, in the early 19th century, the oil and gasoline crisis experienced led to the encouragement of ride-sharing (Wallsten, 2015) The introduction of E-bay in 1995 introduced a new dynamic in the sharing economy as people could buy and purchase or sell products worldwide (Wallsten, 2015) 1 Student paper Before Uber Inc. Original source Therefore, Uber Inc 2 Student paper Various sectors and aspects such as transport docket, finance accommodation, and investment models form a significant part of the sharing economy. Original source The sharing economy includes several facets and sectors, including transport, finance accommodation, and several investment models 6 Student paper As compared to the traditional system of synchronizing exchanges, the sharing economy tends to be more self-regulated and flexible. Original source The sharing economy is more flexible and self-regulated as compared to the traditional coordination approaches 11/18/2020 Originality Report https://online.columbiasouthern.edu/webapps/mdb-sa-bb_bb60/originalityReport/ultra?attemptId=d3457dcf-c276-4d78-ae91-ccf8d6d997c0&course_id … 5/8 res 67 % Student paper 72 % Student paper 100 % Student paper 65 % Student paper 65 % Student paper 100 % Student paper 65 % Student paper 100 % 7 Student paper in 2009 (Wallsten, 2015). Original source Wallsten, S., 2015 2 Student paper Initially, urban transport was reserved by regular system operations, which were slow, inflexible, and inefficient. Original source Initially, urban transport was earmarked by the traditional system of operation, which was inefficient, slow, and inflexible 5 Student paper Explain Uber's surge pricing in the context of shifts in supply and demand. Original source Explain Uber’s surge pricing in the context of shifts in supply and demand 1 Student paper Therefore, the firm incorporates a surge pricing algorithm to effectively balance the level of demand and supply (Schor, 2016). Original source In the assessment of price, the Uber utilizes the surge “pricing algorithm as a means to equilibrate and balance the level of demand to available supply” (Schor, 2016) 2 Student paper However, deploying a surge pricing approach to balance supply and demand by Uber Inc. Original source The use of surge pricing as a means to balance supply and demand by Uber has several effects 5 Student paper Evaluate Uber's surge pricing in the context of price discrimination. Original source Evaluate Uber’s surge pricing in the context of price discrimination 2 Student paper In order to protect the prevailing price volatility, Uber deploys a dynamic pricing approach with the pricing meant to vary depending on the demand available. Original source Essentially, to protect its price surging activities, Uber masks it under the dynamic pricing with pricing meant to shift depending on demand available 5 Student paper Apply the concepts of economies of scale and economies of scope to Uber's business model. Original source Apply the concepts of economies of scale and economies of scope to Uber’s business model 11/18/2020 Originality Report https://online.columbiasouthern.edu/webapps/mdb-sa-bb_bb60/originalityReport/ultra?attemptId=d3457dcf-c276-4d78-ae91-ccf8d6d997c0&course_id … 6/8 Student paper 69 % Student paper 63 % Student paper 100 % Student paper 63 % Student paper 66 % Student paper 63 % Student paper 62 % 2 Student paper Though Uber Company is an international frontline in the ride-sharing occupational and service delivery, it also offers other corresponding amenities such as ride-hailing, food delivery, and micro-mobility systems pigeonholed by bikes scooters (Wallsten, 2015). These related services provide a market share of approximately twenty-eight percent in the sharing economy, thus enhancing the present robust ride-sharing Uber economy (Posen, 2015). The upsurge in the merchandise and services offered by a corporation results in a cost advantage labelled as economies of scale due to the decrease in the marginal cost of production. Original source Although Uber Company is a multinational frontier in its ride-sharing business and service provision, it also provides other complementary services such as food delivery, ride-hailing, and a micro-mobility system characterized by bikes and scooters (Wallsten, 2015) These complementary services offer a market share of about 28% in the sharing economy, boosting the already bolstering ride-sharing Uber economy (Posen, 2015) The increase in the goods or services offered or goods produced by an organization results in a cost advantage termed as economies of scale due to the decrease in the marginal cost of production 2 Student paper Thus, the company has been able to increase the number of available partners, thus increasing possible service outputs (Posen, 2015). Original source This, in turn, has increased the number of available partners, hence increasing possible service output (Posen, 2015) 5 Student paper Apply the concepts of game theory to Uber’s market. Original source Apply the concepts of game theory to Uber’s market 2 Student paper In several megalopoleis across the universe, the industry was fundamentally oligopolistic, with just a few firms providing correlated medallion entrenchments to willing motorists for absorption. Original source In several metropolia around the world, the industry was basically oligopolistic, with only a few companies providing medallion related entrenchments to willing drivers for absorption 1 Student paper Before Uber Inc. entered the market, the market characteristics encompassed high entry barriers (Katz, 2015). Original source Therefore, Uber Inc Before the introduction of Uber, the oligopolistic market characteristics involve high-entry barriers (Katz, 2015) 2 Student paper and the monopolistic aspect of the overall economy, taxi amenities pricing was relatively high past the usual reasonable range (Katz, 2015). Original source Before the entry of Uber and due to the monopolistic nature of the economy, taxi service pricing was very high beyond the usual competitive range (Katz, 2015) 2 Student paper Furthermore, Uber Inc.'s entry into the market has virtually reduced all feasible barriers to nearly none, compelling initial service providers to eliminate some restrictions and protocols so as to remain competitive. Original source Furthermore, the entry of Uber into the market has practically reduced all probable barriers to almost none forcing pre-existing service providers to remove some boundaries and regulations as a means to remain competitive and viable 11/18/2020 Originality Report https://online.columbiasouthern.edu/webapps/mdb-sa-bb_bb60/originalityReport/ultra?attemptId=d3457dcf-c276-4d78-ae91-ccf8d6d997c0&course_id … 7/8 Student paper 100 % Student paper 74 % Student paper 71 % Student paper 65 % Student paper 69 % Student paper 100 % Student paper 68 % Student paper 64 % Student paper 100 % 5 Student paper Assess Uber's potential for international expansion and potential trade policy issues. Original source Assess Uber’s potential for international expansion and potential trade policy issues 6 Student paper In this case, Uber Inc. Original source In this light, Uber Inc 2 Student paper The firm is currently facing several technical, legal, trade policy, and regulatory obstacles (Edelman & Geradin, 2015). Original source However, in its expansion plan, Uber faces several legal, technical, regulatory, and trade policy obstacles (Edelman & Geradin, 2015) 2 Student paper On the other hand, some governments across the world argue that Uber offers an unfair trade environment, thus prohibiting the use of Uber services within their jurisdiction (Edelman & Geradin, 2015). With such claims, multiple jurisdictions are on the move to enact trade policies that control the sharing economy market. Original source As a result, some economies around the world are banning the use of Uber services as they postulate that Uber offers an unfair trade environment (Edelman & Geradin, 2015) Several jurisdictions, however, are enacting trade policies to control the market of the sharing economy 8 Student paper As a firm, Uber faces several issues that encompass insurance coverage policies, lack of liability, and compensation and safety policies. Original source Uber encounters several issues such as compensation and safety policies, absence of liability, lack of enough insurance coverage, and lack of protection 5 Student paper Explain the incentive pay model Uber uses and how it affects the principal- agent problem. Original source Explain the incentive pay model Uber uses and how it affects the principal- agent problem 2 Student paper Nonetheless, in Uber’s scenario, drivers tend to enjoy a significant control of where and when to drive. Original source Nevertheless, in Uber's case, scenario drivers have a lot of control of when and where to drive 6 Student paper Such crises have forced Uber Inc. Original source This forced Uber Inc 5 Student paper Discuss any asymmetric information issues with Uber's business model. Original source Discuss any asymmetric information issues with Uber’s business model 11/18/2020 Originality Report https://online.columbiasouthern.edu/webapps/mdb-sa-bb_bb60/originalityReport/ultra?attemptId=d3457dcf-c276-4d78-ae91-ccf8d6d997c0&course_id … 8/8 Student paper 66 % Student paper 100 % gigeconomyresources 100 % Student paper 100 % Student paper 100 % Student paper 100 % Student paper 100 % Student paper 100 % Student paper 100 % wepapers 100 % Student paper 100 % 2 Student paper Digital market sharing offers an extensive assortment of amenities that considers aspects such as flexibility, real- time monitoring, transparency, and a reduced cost for providing services (Posen, 2015). Predominantly incorporating Uber stands, which are technologically and digitally controlled via algorithms, has provided a malleable model of employment in its structure (Wallsten, 2015). Original source Digital market sharing provides a wide variety of services with an enhancement of transparency, flexibility, real-time monitoring, and reduced cost for offering services (Posen, 2015) Primarily the use of Uber platforms, which are digitally and technologically controlled through algorithms, has set in a flexible mode of employment within its system (Wallsten, 2015) 9 Student paper G., & Geradin, D. Original source G., & Geradin, D 10 Student paper Efficiencies and regulatory shortcuts: Original source “Efficiencies and Regulatory Shortcuts 1 Student paper How should we regulate companies like Airbnb and Uber? Original source How should we regulate companies like Airbnb and Uber 1 Student paper Rev., 19, 293. Original source Rev., 19, 293 1 Student paper Regulating the sharing economy.

Berkeley Technology Law Journal, 30(4), 1067-1126. Original source Regulating the sharing economy Berkeley Technology Law Journal, 30(4), 1067-1126 1 Student paper Ridesharing in the sharing economy Uber. Original source Ridesharing in the sharing economy Uber 1 Student paper Rev., 101, 405. Original source Rev., 101, 405 1 Student paper Debating the sharing economy. Journal of Self-Governance and Management Economics, 4(3), 7-22. Original source Debating the sharing economy Journal of Self-Governance and Management Economics, 4(3), 7-22 11 Student paper The competitive effects of the sharing economy: how is Uber changing taxis? Original source The Competitive Effects of the Sharing Economy How is Uber Changing Taxis 1 Student paper Technology Policy Institute, 22, 1-21. Original source Technology Policy Institute, 22, 1-21