Uber Technology





Themain theme of the article is the existence of Uber technology, whichis a U.S international online network company based in San Francisco,California. The technology has shown rapid growth since itsintroduction.

Externalenvironmental factors

However,it have been faced with many challenges especially, the externalones like, legal requirements and political interference. Since itsintroduction, the company has been challenged in a court of law bytaxi unions, which fear competition, hindering its entry into themarket. For example, there was a protest by taxi union in Vancouver,which deferred the company’s entry into the market. The Economicsegment also challenges the growth of Uber. Cities that arerecovering from economic recession will have their residentspreferring cheaper modes of transport like public transportabandoning Uber.

Importantof the technology

Despitethe challenges facing the Uber technology, it is accompanied by thevarious benefits that include it enables individuals who would haveused their cars for personal use drive only, to drive a payingcustomer and hence being economically viable. If the Uber technologyis combined with other incentives and left freely to compete in themarket, with the established economies, the Uber technology will posea challenge to other economies hence forcing them to improve thequality of the services.


Oneof the internal factors that Uber has to deal with is the constantconflicts it encounters with its drivers as far as contracts areconcerned. The drivers are not permanently employed by the company,hence resulting to commotion regarding service. Uber lacks bargainingpower due to the high supply of drivers thus reducing variety ofservices to the customers. To cope with a large number of entry, thecompany should try to improve the type of services thereby attractingmore customers.


Initially,the company had to overcome the issue of regulation. This is becausewhen it started it did not bother going to the regulatory agencies tobe permitted to operate. However, with time, the regulators caught upwith it and it had to explain why it should not be regulated likelivery and taxi cabs. This forced the company to change its name fromUbercab to Uber in order to avoid being implicated as a livery ortaxi business.

Entryto the market

Uberbeing an internet dependent service does not have much legalrequirement to operate, but it has to acquire the necessary documentsfrom the government. However, some taxis unions have criticized itfor offering unnecessary competition. Also, the government is unableto control the business because it is conducted through the internet.


Theprimary aim of Uber in the present market is to grow continuallyinternationally and offer services to many cities as possibleenabling riders and drivers to connect.