Uber share fees to be profitable. Uber must also

Uber is a ride-sharing company that depends on customers
using their smartphone app to have an Uber driver in the surrounding area to
take them from point A to point B.  Uber competes
in the transportation and technology industry, which are both very competitive.
Both industries rely on a strong economy and limited political interference to
grow and be profitable.  Uber faces many economic and political
challenges like rising gas prices, government regulation, and low unemployment
rates. Uber needs more drivers to expand their
footprint and with the lowest unemployment rate in years, means fewer people
are looking for a job, like driving for Uber. 
As gas prices rise, Uber must adjust ride share fees to be
profitable.  Uber must also fend off regulation and
licensing attempts from local and state agencies, both of which cost
money.  “All societies have laws and regulations that affect business
operations, although the extent of government intervention varies across
nations” (Parnell, 2016, p.45). Uber does business in multiple nations
across the world, and each nation has their own sets of laws and regulations
they must follow.  “Economic forces significantly influence business operations,
including growth or decline in gross domestic product and increases or
decreases in economic indicators, such as inflation, interest rates and
exchange rates” (Parnell, 2016, p.55).  If a nation’s economy is weak or
stagnate, this can impact Uber’s ability to grow its footprint in
that country, along with being profitable.

Politicians from both party’s, Republican and
Democrat, face mounting pressure from their political donors to either ease
regulations on their industry or enact new ones to handicap their competition.
“In recent years, governments have extended licensing requirements well beyond
the traditional boundaries” (Blevins, 2017, p.1). The only way to fight
government intrusion is with public relations campaigns as most people hate significant
big brother intrusion and with paying lobbyists to grease the palms of the
politicians not to enact such regulations.  Both of these recommendations
cost money and time but would give Uber the best chance at success.

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Doing business in a weak economy is very challenging
for companies, primarily a company like Uber who
is a global company.  Although our economy is humming along here, there
are other economies in the world where Uber does
business that is struggling.  To attract drivers in a stagnate economy; Uber
would need to look at subsidizing some of the drivers costs.  These
actions would be the case also in large metropolitan cities like San Francisco
and New York here in the U.S. where the cost of living is very high. “In
chanting their demands, the protesting drivers demanded that Uber
stabilize their wages and take responsibility for some of the risks and
liabilities of driving” (Dubal, 2017, p.130).  To appease
their drivers and pay them a living wage, I would recommend Uber
establish a merit-based pay scale based on their industry, along with bonuses
for accident-free driving.   I would establish Uber hubs
in struggling economies that would provide vehicles to people who want to drive
for Uber, but cannot afford a vehicle. “Uber
lacks the scale/network economies needed to rapidly achieve profitability in a
competitive market” (Horan, 2017, p.36).  Although Uber
needs market domination to be financially profitable, I believe that if they
follow my recommendations, they could ultimately force cab companies out of
business, absorb many of their drivers to work for them.  These actions
would slowly, but, inevitably over time, establish market dominance for Uber
regardless of the economic times.