Question

Detail External Environmental Analysis on Uber (Outside of the organization) Economic, Social, Political, Technological, Natural

300 words

Answer 1

The PESTEL analysis of Uber (outside of the prganization):

Not many can deny the fact that although Uber is a company that creates headlines day in and day out for multiple reasons - be it good or bad but their presence in the market is quite remarkable. Even when the prices rises or soar, Uber still stays competitive against taxis. Also the consumers enjoy using the app and booking the rides and they may even choose it over public transportation because of the experience. That's how Uber ticks all of its boxes for the customers giving them the taxi experience that no company could have given before.

Political Factors for Uber:

Some of the political factors affecting businesses are:

- Government stability

- Bureaucracy

- Levels of corruption

- Impact of economic decisions such as fuel price.

Before Uber, there was no other similar taxi app and hence they lacked competition and also the strict regulations for such a uniques service. While some governments have responded positively towards the new modern business model, others demand strict adherence to the rules and regulations making no difference between Uber and regular taxi companies. As a result, Uber has been banned in a number of countries.

Hence there are major political impacts that Uber needs to take into account.

Economic Factors for Uber:

Economic factors affecting businesses mainly includes:

- Inflation rate

- Interest rate

- Cost of labor

- Changing tax rates

Thus change in any of these factor has positive effect on Uber.

Also Uber’s business mode has created additional income opportunities for many people whereas also taking away jobs from local taxi drivers. Thus the impact is huge in a normal person's day to day life.

Social factors for Uber:

Customers of Uber has access to multiple channels to connect.

Raising an appointment from home to pick up and drop to a destination has never been so easy using the app/smartphones. Add that with the cheap prices compared to taxis.

Also as the consumers travel, they post about their experience on social media pages. Thus for Uber social factors can impact positively as well as negatively.

Technological factors for Uber:

As discussed in the social aspect, experiences by customers can be shared instantly and it can make or break the company in multiple ways. This is surely due to the advanced technology which can have a positive as well as a negative impact.

Technology has positively made the customer experiences smoother as they can make appointments through the app. An estimate for the ride cost can appear in the app and they pay for the ride up front through the app.

Thus the companies heart remains the technology and hence it must ensure everything is working fine for 24 hrs a day,

Natura/Environmental factors for Uber:

Uber’s effect on the environment is ever shifting. Many believe it increases traffic congestion and fuel usage. Also with the recent debate on climate change due to fossil fuels, these factors are more important than ever.