Uber: Driving Communications

Uber: Driving Communications

Introduction

Uber’s revolutionary business model has created controversy due to a lack of public understanding regarding its pricing and employment strategies. This compromises Uber’s three key success factors: reasonable prices, reliable service, and robust reputation. You, as the Chief Executive Officer, must take immediate action to address the growing public dissent to ensure the future growth and expansion of Uber.

Recommendations

To increase public understanding and approval of Uber’s pricing and employment process, we suggest you take the following steps:

• Release a public blog post acknowledging these issues and exhibiting an action plan
• Create online FAQ pages and offline informational posters outlining pricing and hiring strategies
• Standardize the hiring procedure of drivers in all Uber locations
• Implement mandatory annual customer service workshops for all Uber drivers
• Re-design the Uber app to include a pre-ride price estimate and a running meter function

These recommendations address the concerns of various stakeholders such as, but not limited to, customers, local government, drivers, and the Uber management team.

Issue Identification

Uber employs a surge pricing model to ensure reliability in connecting drivers with riders. In periods where demand exceeds supply, Uber applies a price multiplier to encourage more drivers to enter the roads. However, many customers are unaware of this pricing model, and are often surprised by the fare at the end of their ride. This creates dissatisfaction and frustration, and compromised the key success factor of having reasonable pricing.

The hiring process on Uber drivers is very straightforward, and includes a background check subject to the requirements of the local government. However, recent allegations of the illegal activities of drivers have eroded public trust in Uber’s services. This negatively impacts Uber’s reputation of providing reliable services, thus deterring the business of potential customers.

Benefits

Previously, Uber has rarely communicated to the public regarding its operations. A blog post acknowledging these issues will project a positive image of responsibility and accountability. Outlining future plans will also provide the public with confidence in your focus and direction as a growing business. Online FAQ pages and offline informational posters provides greater transparency to customers regarding Uber’s operations. This establishes a foundation for building trust between your business and clients, and reduces customer confusion and frustration. These mediums limit communications to one side, reducing the risk of receiving further allegations and accusations. By standardizing the hiring procedure of drivers in all Uber locations, you reduce your company’s reliance on the diligence of the local government for background checks. More stringent requirements can be imposed, and the process is now scalable for Uber’s expansion into other geographical locations. Drivers are the face of Uber, and largely influence customer experiences. Mandatory customer service workshops will keep drivers informed of Uber’s operations and train them in the correct manner in which to interact with customers. Finally, Uber’s mobile application provides a convenient platform for customer interaction. A pre-ride price estimate and running meter function will provide customers with clarity regarding their fare, preventing any unpleasant surprises at the end of their ride.