1) Perform External Environmental analysis to understand the general environment facing Uber.

How will the firm be affected by factors? (10 m)

Political Factors
- Endless controversies
Uber faced controversy where at the initial development, Uber did not come up with a clear
regulation. There was a difficulty to pinpoint the insurance lie if there were an accident to
happen, is it the driver or the company fault. Besides that, there were political discussions
about minimum wage laws in the taxi industry and whether Uber was being abide by these
regulations. The government demands commercial licenses where Uber has to provide that
documentation.
Economic Factors
- Uber operates in the sharing economy based. Which means that the economy is based on
sharing physical or intellectual resources. In this case, Uber hires drivers to respond to
customer and drive them to a location where it is cheaper than taxi and more convenient to
book the ride.
Social Factors
- Easy availability
Customers of Uber enjoy the easy to access platform. Booking a ride with desired pick-up
time is convenient by just using the application on smartphones which requires no
communication but just by pressing a button. The cheap price that charged by Uber has led
to Uber’s growth in all over North America region. Hence, due to the ease to use, customers
often choose Uber. Therefore, the more accessibility provided by Uber, the more people
will use Uber service rather than taxi or public transportation.
Technological Factors
- Customers make booking through the app where an estimate for the cost of the ride appears
depends on factors such as drop-off location, traffic and weather. The drivers on duty will
respond and pick up the customers to drive them to their desired destination. The app is
crucial for Uber to operate this is because it could not function if the app experience
difficulties. Therefore, the company must ensure that everything is working, reliable and
ready to go.
Environmental Factors
- Questionable response
Uber’s effect on the environment is constantly evolving. Many people believe that
environmental factors increase the traffic congestion and the usage of fuel. Many people
use Uber instead of public transportation. Analysts have to compare Uber fuel usage to
public and own transportation to further analyze Uber’s environmental impact as many
different factors may contribute to the final number.