Sustainable Marketing
Uber
Final Report
Group 1
Boro Jasmine Tarun 2201012
Lalith Ranjan 2301105
Praveen Kumar 2301044
Rhea Tess Johny 2301364
Babitha Raju 2301013
Sarthak Bhushan 2301369
1. Overview of the firm
Uber is a global company that provides a platform which connects riders with drivers. It is
headquartered in San Francisco and provides its service through an app based system. It has
expanded its portfolio by incorporating Uber Eats, Uber Freights and JUMP which offers electric
scooters. Uber has played a major role in transforming the goals of urban transportation while
collaborating with government agencies and local organizations.
Uber is also a firm that gives utmost importance to sustainability. It aims to achieve net zero
emissions by 2040 by adopting more EV vehicles and by also reducing the number of vehicles
through shared riding which would reduce the traffic and carbon emissions. The ESG report of
Uber also emphasizes the fact that it has been incorporating sustainable practices into its global
operations.
2. Market Situation
The mobility sector is now more inclined to sustainable practices. Greenhouse gas emission
reduction has become a major goal and the customers also prefer sustainable solutions which
has pressurized the companies to adopt greener practices. Players are now moving towards
electric and hybrid vehicles to remain competitive in the current landscape. The challenge is that
they must consider the affordability and efficiency of operations as well while adopting the new
age technologies.
Uber is trying to navigate the challenges by:
● Partnering with EV manufacturers and charging infrastructure providers to make it
affordable and more efficient.
● Uber Green program which provides incentives to the drivers if they opt for rides with low
emission.
● Incorporating public transportation which would reduce the use of single occupancy
vehicles.
3. Current Sustainability Strategies
SDG 7: Affordable and Clean Energy
EV Adoption: Uber is promoting renewable energy in transport by switching to electric vehicles
through partnerships with manufacturers and charging infrastructure providers such as BP and
Shell. Investments in charging stations in strategic operational locations make EVs more
accessible and useful for drivers.
Driver Incentives: Uber’s attempt to reduce commission on fares and provide financial
incentives to drivers to motivate them to switch to EV.
SDG 11: Sustainable Cities and Communities
Uber Pool: This encourages shared rides, helping reduce traffic and emissions within cities by
keeping fewer cars on the road.
Micro Mobility Options: Uber allows e-bikes and e-scooters through its JUMP brand to facilitate
short-distance travel sustainably.
Public Infrastructure Integration: The presence of public transportation in the application
encourages multimodal and sustainable transportation networks through reduced dependency
on single-occupancy vehicles.
SDG 12: Responsible Consumption and Production
UberEats Packaging: It supports responsible consumption through partnerships with restaurants
to limit the use of single-use plastics and encourage biodegradable alternatives.
Donation: This way, customers can help support green initiatives by finding features such as in-
app donation options that foster a sense of shared responsibility.
SDG 13: Climate Action
Net Zero: Uber is the leader in fighting climate change by committing to 100% zero-emissions
rides by 2040.
ESG Reporting: Through this, there is transparency and accountability regarding the activity
being done globally to reduce carbon emissions.
4. Gaps and Opportunities
High Costs of EVs Slowing Driver Adoption
Despite financial incentives and perks, many drivers find it difficult to switch to electric cars
(EVs) due to their high upfront cost.
● Leasing: For drivers unable to pay the upfront fees, Uber might provide flexible lease or
financing alternatives, increasing access to EVs.
● Collaboration: Additional partnerships with EV manufacturers may result in Uber drivers
receiving lower prices, which would lower the cost of EVs.
● Pre-owned: Provide incentives to drivers who buy old EVs, as this may be a more cost-
effective way for many to get started.
Limited Charging Stations Hindering Widespread Adoption
The usefulness and convenience of EVs for Uber drivers are restricted by a lack of adequate
charging infrastructure, particularly in strategic operational locations.
● Network Expansion: Uber can quickly develop charging infrastructure in places with
limited availability by collaborating with companies, governments, and charging
providers.
● Leverage Existing infrastructure: To make it easier for drivers to find and access
charging stations, Uber might further integrate its platform with current charging
networks.
Variability in Sustainability Efforts Across Countries
The degree of dedication and implementation of Uber's sustainability activities varies by area
due to differences in legislative frameworks, infrastructure accessibility, and cultural
perspectives on sustainability.
● Policy Advocacy: Uber may collaborate with regional administrations to support laws that
encourage the switch to electric vehicles, enhance the infrastructure for charging, and
provide incentives for environmentally friendly transportation.
● Global Practices: Uber may create a framework of sustainable best practices that are
regionally specific, guaranteeing that local operations complement global sustainability
objectives.
5. Need For Nudging
Uber needs to be steered towards sustainability for various reasons, including the negative
environmental effects it’s having, as the US Environmental Protection Agency report states that
transportation-related greenhouse gas (GHG) emissions makes up about 28% of all U.S.
greenhouse gas emissions. It continues to be the biggest contributor to GHG emissions in the
US. Between 1990 and 2022, the transport sector's GHG emissions has increased more than
that of any other sectors.
Here, Uber can fulfill its pledge to have all of its cars be emission-free by 2040 and give its
consumers some gentle nudges to be part of it.
Because customers are growing more conscious and favoring more sustainable practices, there
is also a need to push Uber in the direction of sustainability in order to close the gap between
supply and demand. Since consumers are willing to pay a 9.7% sustainability premium despite
concerns about inflation and the cost of living, there will be a significant increase in demand for
sustainable commutes. Uber should act quickly to close this gap and supply the required
amount.
Aside from these apparent justifications, Uber must also adhere to certain legal requirements if
it plans to keep using its present fleet of cars. Strict carbon emission regulations are being
adopted by all countries worldwide. For instance, by 2025, the European Union mandates that
CO2 emissions per car be reduced by 15%, with an average of 95 grams per km.
6. Recommended sustainable marketing strategies and ethical concerns
In the current business environment, ethical marketing approaches are crucial to establishing
trust, long-term relationships, and addressing an increasingly eco-conscious and socially aware
consumer base. Nonetheless, these efforts must be done in such a manner that avoids
greenwashing and meets the true standards of real corporate values. The recommended
approaches and some key considerations for ethical action in sustainable marketing are
highlighted below.
● Uber can increase its environmental and social influence by several activities. Uber can
encourage new energy vehicles through subsidies and advertisements, especially to
overcome issues like a low range, in order to make its service sustainable. This is the
same process that helped reduce emissions and operational costs for buses in
Shenzhen and the World Bank's Green Bus program across 189 countries.
● Uber can also promote environmental donations by having a pop-up feature on its app,
which will allow passengers to donate $1 toward green initiatives. Donors may be
rewarded with eco-friendly rewards, and this can be transparent, customer choice, and
environmentally responsible.
● To address privacy and spam issues, Uber should facilitate users to personalize
communication preferences and ensure secure platforms protecting data and boosting
employee productivity.
● Lastly, adopting flexible work arrangements for employees with exceptional
circumstances, such as caregiving or health issues, ensures inclusivity and maintains
efficiency without compromising productivity. Together, these actions align business
growth with environmental and social values.
Ethical concerns:
Uber treats drivers as independent contractors rather than as employees. In classic companies,
employers provide wages and welfare facilities but share the burden with staff workers. Uber,
however, tries to stay away from responsibilities at times while making huge revenues.
Justice-based ethics points out the unfairness, as drivers are the least advantaged group who
have not received adequate benefits and protections. Drivers usually bear medical costs from
accidents because they don't have formal contracts. Protests like those in May 2019 show
frustration over low wages and poor conditions. While Uber claims to be a platform, substantial
commissions and reliance on the independent contractor model have generated controversy.
While Uber do offer flexibility to drivers, it does not excuse its avoidance of labor costs and
responsibilities, making the practices unethical
Source: https://www.epa.gov/transportation-air-pollution-and-climate-change/carbon-pollution-
transportation?
https://www.uber.com/us/en/about/sustainability/?
Source: https://www.pwc.com/gx/en/news-room/press-releases/2024/pwc-2024-voice-of-
consumer-survey.html?
Source: https://www.eea.europa.eu/en/analysis/indicators/co2-performance-of-new-
passenger#:~:text=For%20the%20years%202020%2D2024,2022%20to%2015.5%25%20in
%202023.
