Business Case Study: Uber As A Transportation Network Company

Uber is a transportation network company that allows its customers to submit trip requests through its mobile app. It has grown rapidly since its start in March 2009, and is now available in over 60 countries and 404 cities. It is looking to branch out into services other then just taxi like services including: food and package delivery; and new technologies such as self driving cars. According to recent fundraising efforts, Uber is currently valued at $62.5 Billion.
Governments, taxi companies and their employees have challenged the legality of Uber’s business practices. They have received significant criticism concerning the safety of its use, considering their drivers as contractors rather than employees, the sabotage of competitors that

Uber emphasizes the benefits of this model, stating that their employees are able to work when and where they want; and get paid by the rides they actually complete – enticing millennial drivers with the freedom of work hours and perceived autonomy. Although it seems that this model would be in the driver’s best interest – a closer look reveals that this actually puts the drivers at a disadvantage while benefiting Uber. By classifying drivers as contactors, Uber is not liable for the typical benefits and protections of their employees, forgoing payroll expenses such as workers’ compensation, unemployment and Social Security; and operating expenses such as fuel vehicle costs, car insurance, and maintenance. Uber states that they are able to dodge these usual costs because their drivers are not the typical employees, being that they set their own hours, where they can work, and use their own

Uber advertises themselves as a safe ride home, for example: an alternative to drunk driving, or walking home while intoxicated. Although they will fall back on their explanations that I explained above, I believe that corporate knows that even though they are giving fair warning before their purchases, these people are making decisions under the influence and desperate. When booking a hotel room, a plane ride or a rental car, customers are usually buying these sober, in advance and able to make rational