A Case Analysis of Uber

by | Mar 10, 2023 | economics

 

Uber is a ride-sharing service started in 2009. If you are not familiar with Uber, you can learn more about the services it provides at Uber.com.
Construct an eight-page analysis of Uber using the following criteria.
 Analyze the market before Uber’s entry. Describe the inefficiency Uber exploited.
 Explain Uber’s surge pricing in the context of shifts in supply and demand.
 Evaluate Uber’s surge pricing in the context of price discrimination.
 Apply the concepts of economies of scale and economies of scope to Uber’s business model.
 Apply the concepts of game theory to Uber’s market.
 Assess Uber’s potential for international expansion and potential trade policy issues.
 Explain the incentive pay model Uber uses and how it affects the principal-agent problem.
 Discuss any asymmetric information issues with Uber’s business model.

Sample solution

Dante Alighieri played a critical role in the literature world through his poem Divine Comedy that was written in the 14th century. The poem contains Inferno, Purgatorio, and Paradiso. The Inferno is a description of the nine circles of torment that are found on the earth. It depicts the realms of the people that have gone against the spiritual values and who, instead, have chosen bestial appetite, violence, or fraud and malice. The nine circles of hell are limbo, lust, gluttony, greed and wrath. Others are heresy, violence, fraud, and treachery. The purpose of this paper is to examine the Dante’s Inferno in the perspective of its portrayal of God’s image and the justification of hell. 

In this epic poem, God is portrayed as a super being guilty of multiple weaknesses including being egotistic, unjust, and hypocritical. Dante, in this poem, depicts God as being more human than divine by challenging God’s omnipotence. Additionally, the manner in which Dante describes Hell is in full contradiction to the morals of God as written in the Bible. When god arranges Hell to flatter Himself, He commits egotism, a sin that is common among human beings (Cheney, 2016). The weakness is depicted in Limbo and on the Gate of Hell where, for instance, God sends those who do not worship Him to Hell. This implies that failure to worship Him is a sin.


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God is also depicted as lacking justice in His actions thus removing the godly image. The injustice is portrayed by the manner in which the sodomites and opportunists are treated. The opportunists are subjected to banner chasing in their lives after death followed by being stung by insects and maggots. They are known to having done neither good nor bad during their lifetimes and, therefore, justice could have demanded that they be granted a neutral punishment having lived a neutral life. The sodomites are also punished unfairly by God when Brunetto Lattini is condemned to hell despite being a good leader (Babor, T. F., McGovern, T., & Robaina, K. (2017). While he commited sodomy, God chooses to ignore all the other good deeds that Brunetto did.

Finally, God is also portrayed as being hypocritical in His actions, a sin that further diminishes His godliness and makes Him more human. A case in point is when God condemns the sin of egotism and goes ahead to commit it repeatedly. Proverbs 29:23 states that “arrogance will bring your downfall, but if you are humble, you will be respected.” When Slattery condemns Dante’s human state as being weak, doubtful, and limited, he is proving God’s hypocrisy because He is also human (Verdicchio, 2015). The actions of God in Hell as portrayed by Dante are inconsistent with the Biblical literature. Both Dante and God are prone to making mistakes, something common among human beings thus making God more human.

To wrap it up, Dante portrays God is more human since He commits the same sins that humans commit: egotism, hypocrisy, and injustice. Hell is justified as being a destination for victims of the mistakes committed by God. The Hell is presented as being a totally different place as compared to what is written about it in the Bible. As a result, reading through the text gives an image of God who is prone to the very mistakes common to humans thus ripping Him off His lofty status of divine and, instead, making Him a mere human. Whether or not Dante did it intentionally is subject to debate but one thing is clear in the poem: the misconstrued notion of God is revealed to future generations.

 

References

Babor, T. F., McGovern, T., & Robaina, K. (2017). Dante’s inferno: Seven deadly sins in scientific publishing and how to avoid them. Addiction Science: A Guide for the Perplexed, 267.

Cheney, L. D. G. (2016). Illustrations for Dante’s Inferno: A Comparative Study of Sandro Botticelli, Giovanni Stradano, and Federico Zuccaro. Cultural and Religious Studies, 4(8), 487.

Verdicchio, M. (2015). Irony and Desire in Dante’s” Inferno” 27. Italica, 285-297.

Sample Solution

Uber is a revolutionary ride-hailing service that has disrupted the transportation industry since its launch in 2009. By exploiting an inefficient market, creating innovative pricing strategies, utilizing economies of scale and scope, applying game theory to foster competition, offering incentives for drivers, and managing asymmetric information issues Uber has created an immensely successful business model. In this paper we will address each of these topics in turn as we analyze Uber’s success.

Sample Solution

Uber is a revolutionary ride-hailing service that has disrupted the transportation industry since its launch in 2009. By exploiting an inefficient market, creating innovative pricing strategies, utilizing economies of scale and scope, applying game theory to foster competition, offering incentives for drivers, and managing asymmetric information issues Uber has created an immensely successful business model. In this paper we will address each of these topics in turn as we analyze Uber’s success.

The market before Uber’s entry was highly inefficient due to limited access to transportation services. People often had difficulty finding a taxi or reliable form of transport during peak hours or at remote locations. Further compounding the issue was that taxis typically had stringent rules governing rates and rides available outside city limits which made it difficult for customers to find the desired product. Uber identified this major inefficiency and exploited it by introducing a convenient means of booking both city and long distance rides through their app platform with dynamic fares based on supply and demand principles.

Uber’s surge pricing strategy works on basic principles of shifts in supply and demand wherein prices increase when there is higher demand than normal paired with decreased supply resulting from fewer drivers being available at that time period. This kindles healthy competition amongst riders who are willing to pay extra for faster pickup times while also incentivizing more drivers onto the road so as not to lose out on those high value customers looking for instant gratification. This price discrimination based approach ensures that those riders who need instantaneous services pay up whereas others wait until surge prices drop again allowing them to avail discounted rates when there is increased availability of rides due to higher driver presence on the roads at a given time period

Applying economic theories like economies of scale and scope further aids in understanding how uber’s business model has been successful over time. Economies of scale refer to cost advantages enjoyed by companies due to large volumes being serviced from one single platform leading lower costs per ride/transaction handled through bulk purchases & fixed costs being spread across larger revenues making operations cheaper overall thus providing savings which can then be passed down as discounts/incentives back onto end users leading towards increased satisfaction & more sales over time . Similarly , economiesof scope refer to cost advantages generated because multiple products (or features)are offered together from one central platform suchasubergiving access tobothcityandlongdistancesservicesononeplatformthereby reducing customer search costs&managementspendingresultingindevoidingneedtohavemultipleresourcesfor each activity thereby saving additional money per transaction processed .
This allowsubertoofferdiscountsandincentivestopassengerswhocanbeneftfromthelargervolumeofservicesavailableonasingleportalreducingcostsdealers& passengers alike while keeping overall profits steady within acceptable margins .

Game theory can also be applied here where competitive forces result into positive outcomes benefitting both parties involved instead of destructive zero sum patterns where only one party gains whilst other losses out entirely . Intuitively speaking , if we consider two competing companies A & B with similar offerings then conventional wisdom would suggest focus should go towards either lowering prices drastically (in order toprocuremorecustomers)orincreasingqualitysignicantly(incontrasttopricesbeingofferedbyrival). However , game theory proposesa different option altogether whereby both businesses agree ontostartprovidingbetterqualityproductsatlowerpriceswhichinturnresultsinincreaseddemandallowingbothcompaniesenjoy protable returns insteadofadversarialrelationshipwhereinonlyonecompanybenefitswhilstother loosesoutentirely . We can clearly see howthisallowsUbertotargethighvalueclientswithbetter offerswhilesimultaneouslyattractinglowervalueclientsbasedonsmallerdiscountedpackages.

Incentive pay models play an important role in mitigating principal agent problems relatedtoinformationasymmetrybetweendriverandpassengerduetobigdataaccessprovidedthrough Ubersplatformforsmartdecisionmakingregardingtripallocationsetcguringintothedailyearningsfordriversbasedupontheirperformancevizacarriedoutridesperhourcompletionratioetc.

Finally , Ubersmarketisalsocharacterizedbyinformationasymmetryproblemsduetotheinexperiencedriversextensivebackgroundcheckingprocesseslackofinstantanswersganancedthroughusebigdatainitiativesandalsoaccurateinformationbeinggivenrelatedtodriversaverageratingsgurativeimpactonfuturebookingsetccreatingopportunitiesfordishonest behavior by unlicensed operators . To tackle these issues uber must employ adequate mechanisms suchasveriedbackgroundchecksregularmonitoringinsurancecoverageignedcontractsetcaimedinkeepingundesirableindividualsatbaywhilstensuringthat legitimateparticulareducetheimbalanceoftradeinthiscompetitivelandscape.

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