Impacts of new competitor(DIDI) on UBER in Australia in 2019

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Table of Contents

Problem statement:..............................................................................................................................4
Research aim, objectives and scope of the study:...............................................................................5
Research questions:.........................................................................................................................5
Search terms-...................................................................................................................................5
Methodology, sources of secondary data and data analysis...............................................................5
Merged articles and reference list:.......................................................................................................5
References............................................................................................................................................7

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Problem statement: This paper provides an analysis of the impact of increasing competition
in the taxi industry and specially, the impact due inclusion of Chinese taxi service provider
DIDI on the overall performance of Uber in Australia. This assessment will focus on the
strategic factors causing impact and its extent on the business performance of Uber in the taxi
industry as well as impact on the share market. Since the beginning of DIDI in in February
2019 in Australia, it has reported to be very successful in attracting the existing customers
and drivers who were associated with Uber since long time. Thus, it becomes necessary to
further investigate the success factors which favoured DIDI and the impacts caused by this on
the overall performance of Uber in Australian market. For instance, while both Uber and
DIDI offered comparable service features covering various low-to high-end market segments,
Uber's discrepancies between its strategic focus on the premium high-end segment and
service activities have found to be a mistake. On the other side, DIDI has more effectively
run its company by offering a broad variety of services and correctly leveraging the two-side
market.

Research aim, objectives and scope of the study:

The main objective for conducting this research is to identify the impact of increasing
competitors on the business performance of Uber in Australian market. This study will
further help in:
 Developing conclusion on why most of the drivers and customers associated with
Uber since long time are shifting towards DIDI.
 Understanding the business model followed by DIDI in order to provide more
lucrative and safe rides to the customer.
 This study will further help in analysing both impact and the extent by which DIDI
has impacted the business performance, brand image, share market of Uber since its
launching in Australia.
Research questions:
1. What are the main impacts of DIDI on UBER?
2. Why is most of UBER drivers and customers preferred DIDI over Uber since its
launching in July 2019 in Australia?
3. What are recommendations for UBER?
4. What are the impacts in share market of UBER and DIDI?
Search terms- Uber, DIDI, Profit, Sharing economy
Methodology, sources of secondary data and data analysis

Secondary research methodology will be followed because this research methodology is

much more cost-effective than primary research as it uses existing data, unlike primary
research where data is collected by organizations or businesses first-hand or where they can
employ a third party to collect data on their behalf. and I have used quantitative approach for
the analysis of secondary data collected. Annual turn-over, profit, share price are some of the
secondary data needed for the aforementioned purpose. All the data required for the
aforementioned purpose will be extracted from authenticate sources including annual reports,
stock and share exchange, peer reviewed journals and articles etc.

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Merged articles and reference list:

With a particular end objective of being a winning competitor in Australia, Uber should
update distinct processes, such as DIDI, to pick up piece from the general sector to its
competitors (Boutueil & Aguilera, 2018). Some of them are: Uber should collaborate with
neighbouring government and neighbourhood organisations through joint efforts or company
understandings. Uber requires to better understand the interest in transportation methods in
the neighbourhood. This can cause the real mixture to be added to more administrations or
products (Dosen & Rosolen, 2016). For example, it can include minimized city vehicles in
large urban populations and cruisers in country areas with shoddy fees, or it can be extended
to another measure like conveyance authorities like FedEx, but with personal cars. More
interest in marketing and advances to gain consideration and commitment from customers
(Cohen, 2018). Uber can also improve open assistance through this procedure and decrease
the general population's adverse concerns about conceivable future problems with controllers
(Chu, 2015). This last point is one of the main reasons Uber's global development scheme has
inconveniences. Uber requires to update creative methods to improve profitability in the taxi
service industry, bearing in mind the ultimate objective of achieving a decent operation in
that country, as it has put enormous sum assets into operations to pick up perceptibility within
customers, which for the moment being lead to a decrease in general profits (Smith &
McCormick, 2019). In order to understand this problem, they need to find an all-around
adapted methodology that allows them to collect pieces of the general sector and customer
awareness from one view and then increase their net income again (Chen et al., 2018).

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References

 Boutueil, V., & Aguiléra, A. (2018). Impacts and Challenges for Developing

Countries. Urban Mobility and the Smartphone: Transportation, Travel Behavior and

Public Policy, 169.

 Chen, X., Zheng, H., Wang, Z., & Chen, X. (2018). Exploring impacts of on-demand

ridesplitting on mobility via real-world ridesourcing data and

questionnaires. Transportation, 1-21.

 Chu, Y. (2015). Is ride-sharing really as novel as it claims-Understanding Uber and its

supply-side impacts in New Zealand.

 Cohen, T. (2018). Being ready for the next Uber: can local government reinvent

itself?. European Transport Research Review, 10(2), 57.

 Dosen, I., & Rosolen, H. (2016). Uber and ridesharing.

 Smith, N. C., & McCormick, E. (2019). Uber and the Ethics of Sharing: Exploring the

Societal Promises and Responsibilities of the Sharing Economy. In Managing

Sustainable Business(pp. 575-607). Springer, Dordrecht.

 https://www.abc.net.au/news/2018-06-25/ride-sharing-shofer-taxify-gocatch-shebah-

uber-ola-didi/9905360

 https://www.finder.com.au/uber-vs-didi

 https://www.smh.com.au/business/workplace/when-i-first-started-the-money-was-

very-good-ride-share-drivers-feeling-the-squeeze-20181022-p50b90.html

 https://www.theverge.com/2019/4/1/18290630/uber-sued-sexual-assault-driver-dc-

lawsuit

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