PR strategy exercise - Uber research report: PESTLE analysis.

Uber, the Silicon Valley start-up, is a privately held transportation app founded back in 2009 (Ub

er, 2020). Originally designed under the name “Uber Cab,” the firm has become one of the world’s most successful recent start-ups (Ojo, 2017). Being the largest taxi company in the world, existing in over 700 cities, 84 countries, and continuously growing (Thelen, 2018). The validation of $62.5 billion makes Uber the most valuable start-up in the world (Ojo,2017). For a company that is nothing but thriving, I am interested in exploring how the organisation operates and continuous growth. Throughout this research report, I will be analysing Uber as an organisation through a PESTLE analysis.

P-Political

Uber is frequently in the news, featuring in endless controversies with a sprawling international presence, it provides a discussion into the politics of the taxi industry. Having a varied response from many countries and cities, it becomes difficult to navigate the positive and negative political opinions of Uber, with many welcoming the company and others outright rejection and legal bans taking place (Thelen, 2018).

A huge area for political concern is Uber’s UK tax avoidance. Taking advantage of the gap within the UK’s tax rules, to avoid incurring sales tax on the booking fees it charged taxi drivers in Britain (CNBC, 2017). By the organisation treating its 40,000 UK drivers as separate businesses making each ‘too small’ to register for value-added tax (VAT). With competitors' fares including a 20 percent VAT on booking fees, Uber exploits the UK’s tax system saving 1,000 pounds a year for each of its UK drivers (Bergin, 2017), as well as attracting more custom due to lower fares.

The political uproar is bound to occur from competing services. In 2015, 250 taxis and 25 digital billboards across London were daubed with posters protesting Uber Tax eversion (BBC, 2015). Despite this ongoing issue in the UK, consumers continue to utilize the Uber app due to the affordability and convenience in contrast to opposing cab firms.

E-Economic

Uber's financial success is arguably due to the worldwide usage of the taxi firm. The advantages of

this are mass employment around the globe, creating a mass income for the organisation. Operating within a ‘sharing economy’ based on sharing resources such as hired drivers, customers, and locations all through the scheduled appointment (Frue, 2017). The flexibility and adaptability of the job role attract drivers to the job for both full-time and part-time roles. Due to the convenience of the role, it encourages an extensive amount of employment, with 40,000 UK drivers alone and 3 million worldwide (Uber, 2020). It is unarguable that Uber does not create jobs.

Arguably, is Uber's digital disruption causing the loss of many jobs within the competing taxi sector. With the convenience of ordering, tracking, riding, and paying for your ride all in one place and an upfront charge before you ride, consumers are drawn to modernised platforms. Ultimately causing ‘old’ forms, such as hailing a cab, to die out. However, there is an argument that it is encouraging local cab companies to invest in their own apps and building online profiles. This creates somewhat of local competition for Uber, with users who want to help their local economy over mass money-making organisations. For Uber, however, this is small scale and creates a minor impact on their global scale of operations.

S- Social

Similarly, to Uber’s economic success its social successes also arise from the accessibility of the app and the simple ‘all in one place’ design (Uber, 2020). However, the simple functionality of the organisation’s app could be the reason for many of the social implications Uber faces.

Uber has been in the press frequently, being held accountable for incidents regarding their safety. In London alone, between February 2015 to February 2017, there were 48 physical attacks involving Uber (Hall, 2019) and a further 3,000 sexual assaults in 2018 (Paul, 2019). After releasing these shocking safety reports released by Uber themselves, it required action on how they intended to ensure further passenger safety for its riders. A crucial aspect of retaining customers and their licencing in many cities worldwide.

Uber installed the ‘Share My Trip’ feature, allowing users to select up to 5 contacts to be notified whenever you take a trip, further adding an emergency button. Adding all these steps can instantly reduce some of the potential safety threats to Uber, but not all. With Tony West, Uber's Chief legal officer stating, “Uber is a reflection of the society it serves” (Conger, 2019). Arguably, Ub

er choosing to be transparent about sexual assaults, murders, and crash fatalities could be a strategic plan to gain trust from its consumers and be prepared for the bad press with action plans in place.

T- Technology

With Uber being a technology-based service, with everything running through an app for both drivers and riders, technology is a huge aspect of Uber's organisation. The features of the app previously discussed, are all crucial in the app’s functionality and usage. This digitalisation of the taxi industry; taking away ‘hailing cab’ aspects to app bookings, cash payments to all online card pre-paid rides. Arguably, all have contributed to enhancing the taxi industry, causing digital disruption (Geissinger, 2018).

As Uber continues to grow and remain current and ahead of competing organisations, it must too develop technologically to advance further. Simply, beginning with app updates but further the ‘car’ industry. A huge development of Uber’s engagement is ‘self-driving cars.’ In 2018 Uber began developing its first self-driving vehicles in collaboration with Volvo, with their ultimate goal to become the “one-stop-shop for the movement of people and local commerce around the world” according to Khosrowshahi (O’Kane, 2019). However, back in May 2018 one of Uber's early prototypes, the self-driving car struck and killed a pedestrian. This came about due to the automated Uber not having the “capability to classify an object as a pedestrian unless near a crosswalk” (McCausland, 2019). T

his oversight caused large repercussions for the organisation such as a loss of ‘trust’ in the organisation also placing the self-driving developments on hold for 8 months. Keeping current with the technologies surrounding Uber is crucial in it retaining customers in the ever-changing landscape of a digital world. But every action must be taken with care to ensure the safety of the public and the face of the brand.

L- Legal

The legal obligations of Uber in terms of licensing, are constantly being questioned and argued by Councils and Governments. A current example of this is Uber’s licencing in London. Once again Uber is battling to keep its London licence, after the Public Transport Network argued it was not “fit and proper” to hold the licence (BBC, 2019). This sparked further reports of “Greyball” – software that takes users GPS, Social media, credit cards, and other data to pinpoint targets, ultimately “banning” users from the app, unknowingly to them. (Sulleyman. 2017). Uber is constantly faced with legal issues regarding licencing, recruitment, safety, tax… the list goes on. This continuous release of negative press creates issues for the organisation, such as customer retention. If the public see an organisation as unethical, unsafe, and with a lo

ss of control, it may cause them to seek an alternative source. It is arguable, that due to the functionality and ease of use Uber creates, consumers will continue to use and engage with the platform as a main source of transport over competing organisations. But is Uber frequently relying on conviviality to prosper, with competing businesses developing apps and catching up in a digital world, is this a wise move for the organisation.

E-Environmental

Uber has a strong positioning and outlook in terms of being environmental. With their aim to create fewer emissions, due to more people taking Ubers therefore reducing cars on the road. To become a ‘fully zero-emission platform by 2040, with 100% of rides taking place in zero-emission vehicles” (Khosrowshahi, 2020). Arguably, many believe that Uber increases traffic, congestion, and fuel usage however, studies have proved Uber has not added to the existing congestion (Li, Hong, Zhang, 2016). Uber’s environmental stance is one of the positives of a fuel operating platform that can face many criticisms. However, as we enter a time where climate change is on the front of many minds, change and adaptability are more than ever, pressing. This causes Uber to be under pressure to meet their zero-emission goals, to stay current with climate change activism.

Overall, it is clear Uber is an extremely successful, thriving company that shows no signs of slowing down its global operations. Despite being under criticism in the press, environmentally, and legally, the brand continues to progress and gain custom. As the organisation develops the technology and actions of the company, there is hope that their public image will improve and be a success.