8. PESTLE Analysis Uber has been in the news frequently. It is seen as the economist’s dream. The company has many legal problems and banning, but it continues to grow rapidly. Here is the PESTLE analysis for Uber. 8.1 Political factorsUber is quite the controversial company. When the company was created they didn’t have clear regulations – for example with the insurance. If there is a car accident, who is responsible: the company or the Uber driver himself. They are constantly facing legal problems globally. (see Legal Factors – 8.5)Furthermore, they struggle with the law about minimum wage for taxi drivers.8.2 Economic factorsUber operates in the sharing economy, meaning its economy is based on sharing physical or intellectual resources.Uber grows rapidly but it has been banned from several countries for having an unfair competition against regular taxi companies and not obeying the law. People are studying whether this type of economy brings new career opportunities or takes them away from existing positions (Uber vs. traditional taxi driving). Or bringing in new opportunities but for lower pay.8.3 Social factorsOne of the things that makes Uber so loved is the easy availability. Customers have to choose a place and pick-up time using their mobiles. The cheaper price is enticing to many, which has led to the explosion of Uber’s growth all over North America.With the increase in popularity, there was a raise in prices in the big cities but the easy use remains attractive.8.4 Technological factorsUber spread mainly through social media, because of customers. Consumers were searching for cheaper transport and Uber provided it.The app is incredibly important to Uber. The company cannot function without it. They must ensure everything is working and reliable to operate.8.5 Legal factorsAs previously mentioned, Uber has faced criticism, bans and attempted bans in locations worldwide.Some examples: Europe, Bulgaria- unfair trade practices, Denmark- taxi meters are mandatory, therefore Uber had to leave the market. Italy- constitute unfair competition, Hungary – illegal dispatcher services, Finland, France and Spain- advertising, The Netherlands- driving licenses.America-In Austin, Texas Uber withdrew when they had to fingerprint and background check all of the drivers. Uber was also banned in Alaska and Vancouver.In Asia it was banned in China and Taiwan and in Australia in the North.The company must follow technical usage laws, copyright laws, labor and employee safety laws. Moreover they have to work out the minimum wage problems and straighten up the insurance policy.8.6 Environmental factorsMany people tend to believe that Uber actually pollutes and increase congestion and fuel usage but studies have shown that it hasn’t. In addition people tend to use Uber instead of public transport and personal vehicles. Moreover, one of the reasons why Uber Pool was created was to decrease traffic and together with Uber Green reduce polluting the environment.9. SWOT Analysis Consumers describe Uber service as Fast, Effective and Efficient along with Cheap, Convenient and Easy which makes it increasingly popular and builds a strong brand-loyalty. However, Uber has faced many legal issues in several countries and has regular protests from the national taxi companies and even Uber drivers.9.1 StrengthsUber is a well-known and established brand. The bad media does not influence the brand loyalty of the customers. The company is providing the customers a high standard service which in some cases is even considered luxurious.Uber is the middleman. The company has no full-time drivers, which means that it has no responsibility towards them.Moreover it is convenient for the drivers themselves: they can work flexible hours and schedule their work accordingly. That is why Uber has a greater amount of vehicles and offers more efficient services than its competitors.Actually one of Uber’s biggest strengths is that it doesn’t have big competition in general. Additionally the company offers several different services such as Uber Pool, Uber Eats, Uber Black.The cost is transparent. So Uber cannot overcharge like regular taxi companies, which makes it more trustworthy and preferred by people. The cashless payment system allows customers to spend less by taking an Uber and provides records of payments before and after the service.Lastly, Uber offers lower prices compared to some national taxi services, making it preferable. 9.2 Weaknesses The concept can be easily imitated by competitors due to patent laws allowing for an idea to be copied which is one of the biggest weaknesses in Uber’s internal factors.Another weakness is the fact that the brand isn’t loyal to itself, but to its deals. This can be tricky because if a competitor enters the market with lower prices than Uber, they will have to face a price war, leading to more losses for the company. This can be connected to the operating vehicle costs, which are very high. Because the drives don’t earn a lot Uber will easily lose drivers, which will increase the waiting time and will be unsatisfying for the consumers. There are also some privacy concerns regarding Uber and the fact that it records where customer order the car and the destination. Furthermore, Uber does not do extensive background checks on driver, which can be dangerous. They stopped operating in Austin, Texas due to this. Lastly, the price surging can go up to 5 times the price in given moments (see Appendix 10).9.3 OpportunitiesWhen customers are not satisfied with taxi services, they usually turn to Uber. Additionally, Uber operates in suburban areas where cabs don’t necessarily operate, therefore Uber has a bigger market.An opportunity for the company is to enter new markets, setting lower prices than the usual taxis. For example India has a large market and people are not satisfied with the taxi industry.Another opportunity for Uber is additional services such as school drop-offs, expanding the market to working parents.Another opportunity for Uber to reach potential customers who value eco-friendliness is by pursuing the Uber Green service further. Additionally if there is a rise in the number of drivers, Estimated Time of Arrival will decrease and will increase the demand. 9.4 ThreatsOne of the biggest threats for Uber are the legal regulations established in many European countries which has lead to its banishment for various reasons.Secondly, drivers aren’t satisfied with the low-margin profit, which discourages future drivers from joining. This, and increasing competition will ultimately decrease prices.The lack of new drivers will lead to an insufficient supply, therefore worse service and unsatisfied clients.Furthermore, the number of frauds and scandals are rapidly increasing which is damaging the brand’s image. Lastly, when self-driving cars enter the market, Uber’s services will be severely impacted due to the the trivialness of drivers.On one hand, the company’s brand loyalty is extremely strong; customers love Uber as they consider it fast, cheap and efficient. On the other hand, governments and drivers are often displeased with Uber because of the legal issues and the unfair competition to national taxi companies.To maintain its popularity amongst the customers, the company charges very little for rides which causes drivers to have a low-profit margin.Negative media reports also represent a factor Uber management should focus on; though Uber’s future is unpredictable with Google Cars developing, Uber should maintain its strengths. Addressing the weaknesses found in the SWOT analysis to turn weaknesses into strengths and exploit the opportunities will be beneficial.