Question.2056 - Summary: Ihis analysis will be performed using the case located here. Your submission should include each ot the tonowing components: Current Performance: Provide an overview of the firm's current and recent performance in its competit ve markets. This includes a general analysis of the company 's financialperformance and compet tive posit on. Mission and Objectives:Describe the firm's mission and major objectives and analyze their appropriateness and fit with the firm's strategy. Corporate Governance: Analyze the composition,strategic orientat on, and direction of the firm's Board of Directors and analyze the composit on, strategic orientat on, and direction of the firm's top management team.
Answer Below:
Case study Current performance Uber is one of the prominent companies in the gig economy across the world. It has expanded in the developing economies like in China and has grown its revenue streams considerably after suffering huge losses during the pandemic lockdowns. Revenue of the company has grown by 14 percent in the year 2023 in contrast to the last year up to 9.2 billion dollars. It also generated income from its operations worth 326 billion dollars. The increase in revenue and profit is attributed to the robust demand, cost discipline across business segments and new growth initiatives. These outcomes translated into courier engagement and strong driver with 6 million drivers and couriers gaining a record 15.1 billion dollar during the second quarter of 2023. It is due to the relentless focus of the team and platform on the profitable growth showcasing record profitability and nearly one billion dollars of free cash flow. Uber has a strong competitive strategy for thriving into the business. However, this model of business has been copied soon and many competitors have emerged in US and across the world. in US, Uber faces major competition from Lyft, Via, Wingz, Curb and Zum. Across the world it faces competition from companies like Ola in India, Bolt in Europe, Gett in different countries, Cabify in Latin-America, Didi Chuxing in China, Uxlon in Ukraine, Grab in Singapore and Gojel in Indonesia.Uber is a market leader due to its innovative strategies for targeting customers. It has dominated the global market space of ride-hailing. It has registered a market share of 25% in 2022 and it was chased by Lyft in the US market (Statista, December 19, 2023). However, it has been leading the market since its inception and giving tough fight to taxi and other forms of car-pooling services. Mission and objectives Uber has since its inception set a mission to provide reliable transportation to the customers. It has aimed to make transportation as free flowing as water so that people are able to move to different places in lesser cost. The vision statement of the company is to develop opportunities of car-pooling services across the world and make transportation easier and comfortable for everyone at a less cost. Objectives The objective of the company is to provide services which are available everywhere in abundance irrespective of the geographical presence and location of the customers. It also reflects their aim of providing consistent and continuous services to the customers so as to gain positive customer satisfaction each time their services are used. Its objective is to provide services to the customers which are above the traditional transportation services. It is aimed to bring a positive impact on the society to ensure that its services are seen as reliable and people are able to move safely from one destination to another (Pereira, June 25, 2023). Apart from a customer focus, it also focuses on maintaining diversity and inclusion in its workplace for providing fair working environment to all. It also works to leave a positive impact on the society by engaging in social responsibility activities. One of the major objectives of the company is to give a safe and reliable journey to its customers. It lets its customer rate the rider on its app and this allows the company to find the lower performing workers (Athey et al., 2019). The lower performing riders are booted from the system and hence, the company is able to boost its performance and generate higher customer satisfaction level. Corporate governance Corporate governance of the company is detailing a board of directors which believes that the company has to be transparent in its operations. It has to be accountable to its stockholders and has to maintain good culture and show good corporate governance practices. It has a certificate of incorporation, charters and bylaws of the standing committee which directs the overall functioning of the board in the different market where ever it has its operations. Ethics and integrity are integral component of the corporate governance structure and it is not mandated by the corporate directive of policy. The corporate governance structure of the company is developed to be a working structure of the effective policy, decision-making and principled actions at the management and the board level. There is appropriate level of monitoring of performance and legal and ethical compliance for ensuring that longer-term value for the company’s stockholders is created. It is expected by the company that the values and integrity of the directors and the senior management are effective in safeguarding the company’s corporate governance. The composition of the board is of 8-14 members. It has nominating and governance committee which are responsible for periodically evaluating the larger and smaller number of directors. CEO and chairperson of the company are separate positions. They must be independent and their roles and responsibilities are determined by the NYSE rules. The strategic direction of the company in the next three years is of progressive expansion in different markets of the world (Ogbo&Nwaobasi, 2021). The company is prioritizing growth in market share through different means for gaining profitability and for developing newer streams of revenue. The company has moved to different countries and has maintained a lower cost strategy to target the customers who have no money to buy cars. This has allowed the company to establish in new markets. Therefore, the corporate governance of the company has been working to achieve the mission and objectives of the company. References Athey, S., Castillo, J. C., & Chandar, B. (2019). Service quality in the gig Economy: Empirical evidence about driving quality at Uber. Available at SSRN. Ogbo, A. I., &Nwaobasi, R. O. (2021). Uber Strategies and Competitiveness of Taxi Business in Areas of Operations in Nigeria. Bullion, 45(3), 74-95. Pereira, D. (June 25, 2023). Uber Mission and Vision Statement. Available at https://businessmodelanalyst.com/uber-mission-and-vision-statement/#:~:text=Uber's%20mission%20statement%2C%20%E2%80%9CTransportation%20as,accessible%20and%20dependable%20for%20all. Statista. (December 19, 2023). Leading ride-hailing and taxi operators worldwide as of November 2022, by market share. Available at https://www.statista.com/statistics/1156066/leading-ride-hailing-operators-worldwide-by-market-share/More Articles From Business Law
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