Uber’s Legal Problem in Thailand
Autor: Đinh Viết Tuấn Anh • March 18, 2016 • Case Study • 933 Words (4 Pages) • 787 Views
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UBER’S LEGAL PROBLEM IN THAILAND
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RMIT International University Vietnam
Bachelor of Commerce Program
Assignment Cover Page
Subject Code: | BUSM3311 |
Subject Name: | International Business |
Location & Campus (SGS or HN) where you study: | RMIT Vietnam |
Title of Assignment: | Uber’s legal problem in Thailand |
Student name: | Dinh Viet Tuan Anh |
Student Number: | S3516558 |
Teachers Name: | Daniel Burns |
Group Number: | 1 |
Assignment due date: | 27/7/2015 |
Date of Submission:
| 25/7/2015 |
Number of pages including this one: | 4 |
Word Count:
| 754 |
According to Bloomberg (2015), Uber is a private company that provides a smartphone application that helps people who need a ride to find a car drivers. The company was established in 2009 and it is currently quite popular in more than 150 major cities around the world (Tuoitrenews 2014). Uber provides people a chance to travel in a luxury car with a low fee and it is also convenient when people can grab a car just by some acts on their smartphone (Tuoitrenews 2014). With its own strengths, Uber want to provide its service in Thailand – a potential market in order to expand its market. However, Uber has experienced a legal problem in there that leads to its failure in expanding the market. This essay will analyse the issue that the company has faced and relate it with the theory of internationalizing.
According to Dunning’s reasons for internationalizing business (Dunning 1993), the motive for Uber’s entrance to Thai market is that Thailand is a fast developing country with huge amount of potential customers (market – seeking motive). Moreover, the number of credit cards has increased significantly from 2.1 million in 2000 to 18.2 million in 2013, and the number of debit cards has also increased from 2.2 million in 2000 to 44.8 million in 2013 (Euromonitor 2014). Because Uber’s payment method is via credit cards and debit cards, therefore the increase in number of credit cards and debit cards in Thailand is an economic factor that is the advantage for Uber. In addition, the percentage of households in possession of mobile phone is 95.1% in 2013 (Euromonitor 2014), this is a social factor of Thailand that makes it becomes a potential market of the companny because Uber connects drivers and passengers through a smartphone application (Bloomberg 2015). Because of positive signals from economic and political factor, Uber entered Thai market by using global strategy (Ghoshal 1993) that provides Thai customers with the service that is the same in the home country.
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