PROJECT REPORT

Submitted by:
 Sana Rizvi (180765)
 Hammad Ali (180811)
 Akbar Khan (181889)
 Usman Aftab (180759)
 Table of Contents

Executive Summary .................................................................................... 2

Introduction .................................................................................................. 3
Case Synopsis ............................................................................................. 4
UBER: A Short Introduction ...................................................................... 6
UBER’s Services in Washington DC ........................................................ 6
Regulatory Challenges faced by Uber ...................................................... 7
Advantages and disadvantages of the technology ................................. 8
UBER Model ................................................................................................ 9
Growth and experience of Uber in Washington DC .............................. 10
Alternatives/Recommended Solutions .................................................... 12

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 Executive Summary

Any kind of research is the basis of collecting the information required.

Research may be defined as “the systematic design, collection, analysis
and reporting of data relevant to a specific marketing situation facing an
organization. We were asked to do a case study analysis and identify the
problems which were faced by the company and to recommend solutions.
The case study given to us was “Uber: 21st Century Technology Confronts
20th Century Regulation. Below in the report we will discuss about the
company and everything about it which was mentioned in the case.
Including the problems we identified, the corrective and related solutions for
them.

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 Introduction

This report would look at:

 Case Synopsis
 Introduction of Uber
 Uber’s service of limousine in Washington DC
 Regulatory challenges faced by Uber
 Advantages and disadvantages of the technology
 Uber Model
 Growth and experience of Uber in Washington DC
 Alternatives/Recommended solutions

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 Case Synopsis

The case covers how Uber confronted proposed guidelines in Washington

DC that forced limitations on its service. Uber offered a support that permits
clients to acquire a limousine utilizing their cell phone. Their administration
appeared to be down to earth and appealing to clients as a result of its
brisk accessibility comfort (security, great fix, and wonderful experience),
facilitated installment technique (charge counting tip straightforwardly
charged to the client's MasterCard) and wide inclusion zone (different
cities). Uber's administrations didn't just end up being gainful to clients yet
in addition to the limousine drivers and organizations from multiple points of
view.

The issue anyway was that Uber's activity was a blend of taxi and
limousine administration and the guidelines for each varied as far as: how
the traveler contacts the specialist, pays the charge structure and other
conceivably applicable guidelines. These distinctions in guidelines among
taxi and limousines set Uber in a difficult administrative hazy area.

Uber didn't look for preapproval from administrative organizations when

entering city after city it depended on its previous licenses of its built up
taking an interest in limousine administrators (since it didn't possess its own
vehicles) and notwithstanding all the difficulties confronted and the elective
transportation benefits that were prospering Uber developed quickly. There
has been a proposition expected to be presented the following day which
would put a base admission for every outing. Despite the fact that the
proposal least coordinated, Uber's present least charges would be kept by
it from offering lower-valued administrations to all. Uber is in a position

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where it needs to react to the administrative issues. Should the CEO,
accept the new guideline restrict it and remain in an indistinct legitimate
status or should be attempt to convince the gathering to change the bill in
offering lower-cost administrations to clients, this all remained well to be
discussed.

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 UBER: A Short Introduction

Uber Technologies Inc. Generally known as Uber, is an American global

ride-hailing organization offering services that incorporate ridesharing, ride
administration hailing, food conveyance (Uber Eats), and a micro mobility
framework with electric bicycles and bikes. The organization is situated in
San Francisco and operates in more than 785 metropolitan regions
worldwide.

UBER’s Services in Washington DC

Uber started its operations in 2010, Washington DC and provided the

service of Limo which could be used by the customers using mobile
phones. Limo would arrive in few minutes and charge of the journey would
be credited by billing card. Though it was pricier then taxi on the other hand
it was affordable than the standard limo services.

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 Regulatory Challenges faced by Uber

The Model of Uber was not similar to taxicab nor to limousines regulatory
regime .Uber partially had aspects of a taxicab and partially had aspects of
a limousine, fares were determined on the basis of time and distance.
Smartphones were used in order to call the Uber car. Uber cars were
operated by licensed limousine drivers and companies, Uber’s fares varied
depending on the demand.

Uber didn't seek preapproval from regulatory agencies before entering into
a city it used its preexisting licenses In 2010 Uber introduced its service in
San Francisco as UberCab. On 20th of October San Francisco metro
transit authority issued a case against the Uber Company. They sued Uber
on the basis that ubercab was operating just like a taxicab but without a taxi
license, the case ended up in Uber getting a $5000 fine and 90 days in jail,
in response Uber dropped "Cab" from its name and made no other
changes and continued its operations. By 2012 Uber was operating in 16
cities. Uber also tried to start its operations in Las Vegas but state laws
required Uber to have a minimum 1 hour charge of $40 regardless of the
length of the trip. These laws were not reliable for Uber so it didn't start its
operations in Las Vegas in 2012.

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 Advantages and disadvantages of the
technology

 Poor car conditions of local taxicabs:

Unpleasant, poorly maintained and unsafe rides. Whereas the car
conditions of UBER were much better and appealing to the
customers.

 Difficulty in finding rides:

It was very difficult to find many rides in one locality. Whereas in
UBER aspect is was easy to find a ride or accessing locations of their
cars if they were nearby through smartphones.

 Rejection by cab drivers:

Usually the taxicab riders avoided many areas where there are fewer
customers and refused or rejected to take a ride to a location from
where they wouldn’t be able to find a return ride.

 Limousine are expensive:

The limo services are very expensive and usually unavailable on
short notice.

 Need of Local transport:

Many people for instance are out of town visitors and are usually
without cars and they need cheap local transport for travelling.

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 UBER Model

1. Uber introduced mobile application for its customers to book a ride.

2. Car is at your doorstep via mobile phone and would arrive in few
minutes.
3. Fares were nominal and were directly charged to credit card.
4. There was no fear of carrying cash as payments could be done by credit
card also.
5. An email receipt would be sent after the ride would be completed.
6. Fare was according to time and distance calculated by the application’s
GPS system.
7. Uber didn't have any car of its own but relied on many limousine drivers.
8. Uber used its sophisticated data analysis to decide place for the drover
to wait.
9. During busy times fares would increase to balance the supply and
demand.
10. Fare paid would be divided between driver and UBER with 80 share
of the driver.
11. Uber was very advantageous for its drivers as the customer would
have to pay the fare by all means as Uber had their credit card
information. This safeguarded the drivers job and payment
12. There was a cross rating system to rate each other (customer/ driver)
as misbehaving could suspend either of the two's account.
13. Uber would make more money for the drivers who shifted from
taxicab to Uber.

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 Growth and experience of Uber in Washington
DC

UBER launched its services in Washington DC in December 2011. The

Standard fare of up to 4 seating had been $7.00. Many residents who did
not own a car took advantage of this service. Due its low fare Uber had
become immensely popular in the locals who preferred UBER rather than
some other taxicab. By July 2012 Washington DC had become UBER’s
third largest market.

This growth had been largely due to the low and pathetic quality of other
taxicab services. The other taxicabs were often dirty and in poor repairing
conditions which would usually create an unpleasant effect on the
passengers. Almost all of the cabs were cash based i.e. accepted fare only
in cash and there were very low cabs who accepted credit cards, due to
which people dependent on credit card service found it uncomforting to find
a cab which accepted credit card.

The DC city council did a survey and found out that 69% of the
respondents agreed on the fact that the taxi service in DC was far worse
than the other American cities. This also led to an increase in the goodwill
of UBER.

Some residents complained that it was difficult for them to find a ride if they
wanted to travel somewhere far because the drivers wouldn’t be getting a
return fare due to which the drivers often refused to let the people ride.

There would be several other reasons why drivers wouldn’t take a ride i.e.
due to racial issues or sometimes if a driver didn’t like the fare to pick up e
would turn on the taxicabs light of “in service”.

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However drivers of UBER couldn’t do the either of these things mentioned
above as in their agreement with the company it was obligatory for them to
pick up the fare and as UBER had all the information of the rider i.e. their
name, credit card number and also of driver, so they would know when a
fare was not completed and which UBER driver refused to pick up the fare
and that concerned driver would be dismissed completely from UBER’s
network.

Due to its immense demand in market UBER violated some of its

regulations. On January 6, 2016 the D.C Taxicab commission called upon
UBER claiming that their car which was licensed as a limousine was
operating as a taxicab, hence violating several regulations.

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 Alternatives/Recommended Solutions

1. UBER should have sought help from officials. Doing this would have
helped UBER gained a better understanding of the legal structure in
the transport industry. Also these experienced officials would know
the market to its depth and would have good connections with the
legal authorities which would have saved UBER from facing this
dilemma. Also this neglected behavior of UBER paved a way for any
new innovation of the smart phone based car service to enter in the
transportation industry legally after learning the mistakes of UBER.

2. Uber should have gained a better understanding of regulations. In

this way UBER could have merged with the other licensed and legally
working companies of taxi and limousine and could also conduct its
services legally with their help.

3. It should not oppose the legislation but persuade the council to

provide them with some flexibility in offering low cost services to
customers since they weren’t allowed to do that anymore due to
violations conducted by them. Because accepting these new
regulations wasn’t also the better option as it was putting limit on the
fare they charged their customers, so in order to gain their the major
competitive advantage they shouldn’t oppose or ignore the
legislation, they should persuade the council to adjust the bill in order
to continue their service as it was before.

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