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Uber Changing The Way The World Moves Case Solution

Solution Id Length Case Author Case Publisher
2039 468 Words (3 Pages) Youngme Moon Harvard Business School : 316101
This solution includes: A Word File A Word File

Uber's surge pricing policy follows a simple demand and supply mechanism, which is why it would be justified. The surge pricing kicks in during rush hours, or when there are not enough drivers to meet the demands of customers. I agree with Uber's surge policy, mainly because Uber is transparent about its additional charges and informs the customer and gives him a choice whether to accept the charges or not.

Case Analysis for Uber Changing The Way The World Moves Case Solution

Exploitative pricing is essentially charging a higher price when consumers have little or no choice. Uber may face customer backlash due to this as it becomes more expensive than normal taxis. However, it is providing a private car-hailing service, which is its USP, and can be used to defend its policy. 

A2. It is pertinent for Uber to establish diplomatic relationships and to adopt a policy that takes legal entities on board to prevent legal issues in the future while entering new markets. This is important because every country has a different legal set-up, and if it hasn’t gotten into trouble right now, it doesn’t guarantee the same safety in the future.

A3. Uber is offering convenience to its consumers, ass one consumer rightly pointed out that it is much easier to travel throughout New York City, using the application. The basic function is to get a car at the click of a button, with transparency in pricing. With additional products like UberPOOL, it has been able to gain more popularity by making transportation more affordable.

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