1.

Describe how Uber’s business model works and the role technology has played in its
success. What are the arguments in favor of banning these types of businesses? What are the
arguments in favor of defending them? (Learning Objective 3) (AACSB:Communication; Use of
IT; Reflective Thinking).

Uber’s business model is predicated on connecting passengers to drivers simply. It

differentiated itself from the normal taxi service. Uber’s business model enclosed the drive,
passenger, fare, and also the app. Anyone with a license and an automobile when the age of
twenty one can become a driver. The app also provides passengers with an estimated fare.
Uber split their profit between the corporate and drivers. Passengers connect with the driving
force through the app and pay through their mastercard online before hopping in the vehicle and
passengers can rate their driver after the ride is complete. The Uber app is easy, responsive,
and accessible. Passengers will associate Uber with a click on their phone, and can be ready to
track wherever the automobile is with the constitutional GPS within the app. Safety is a very
important advantage for drivers operating with Uber. The passengers have registered their
identities and their mastercard numbers on the app. they're not random strangers on the road..
The arguments for prohibiting these kinds of businesses are the security issue, take business
off from taxi drivers, and in some countries it violates the regulation. Ubers workers are not
guaranteed a minimum wage, Uber drivers say they struggle to earn money once Uber takes its
cut. They also look after most of the prices related to the service, like fuel, maintenance, and
repairs.

2. Describe examples of two other businesses based on the sharing economy model and create
a new business idea based on this concept. (Learning Objective 3) (AACSB: Communication;
Reflective Thinking)

Airbnb may be a prime example of a world company that creates the sharing economy
attainable. Just in case you’ve never used it, the platform permits people to create cash by
dealing out unused area or property. Thanks to the Airbnb sharing economy individual hosts
have developed valuable entrepreneurial skills, increasing their information relating to client
service and selling. A variety of those Airbnb hosts even have no previous expertise within the
cordial reception business in the slightest degree and these recently non heritable skills and
information empower them to participate in any business as these skills are crucial in each
business.