Name: Phan Vân Anh

Student ID: 11170374

Class: Advanced Finance 59B

HOMEWORK 1

1. Uber is a mobile-based application that caters for customers’ need of fast

transportation. It provides the service by enabling customers to connect with
the nearest car drivers to hail a fast ride to their destinations. It has been
focusing on the markets of metropolitan cities globally and has reached the
number of 600 cities in more than 80 countries. Uber’s business model can
be applied in other industries from transportation to fashion globally through
technology. Today is the era of 4.0 technology, on the streets we can see that
everybody has a smartphone connects to 4G or Wifi on their hands and
enterprises should take advantage of this wonderful technology. Companies
can use 4.0 technology, artificial intelligence in order to create services that
lowers the cost to the minimum with the simplest acts and at the same time
achieves the best performances.
2. The answer is obviously a yes, banning Uber from operating is a mistake.
The founders of Uber said that the reason why they came up with the model
of Uber is because they were incapable of grabbing a taxi on a snowy winter
night in Paris. They realized the reality of transportation in not only Paris but
also other metropolitan cities. The establishment of Uber is the solution the
the citizens’ every day trauma. Not only does Uber cater for the citizens’
daily needs but it also helps visitors a lot when travelling to a new city/
country. Some taxi drivers even charge visitors unreasonable prices because
visitors are not local to the city and it is much fairer when using Uber
 because it has an algorithm that sets prices accordingly with the travel
distances.
3. This business approach of Uber can not be viable globally in the long run. If
the company is prohibited by the government, this will exerts adverse
impacts on both the customers and Uber. Many governments have stated that
Uber has evaded many tax laws because they do not claim themselves to be
a taxi company. If this problem continues, government can tax Uber more
highly, which increases the transport fare of the customers when they use
Uber, which alleviates the operations of Uber and can make the company
suffer from profit decrease.