SWOT Analysis of Uber Taxi Company

Subject: Business
Type: Profile Essay
Pages: 3
Word count: 990
Topics: SWOT analysis, Entrepreneurship, Management, Marketing


This essay seeks to conduct a SWOT analysis of the Uber Taxi Company. The analysis is meant to identify potential areas that need improvement. Recommendations will, therefore, be made to assist the management team to transform the company. The SWOT analysis is presented in the table below.  

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  • Customer satisfaction is highly rated because of the 24/7 availability of the management. This has made the company well recognized worldwide.
  • Uber offers dynamic pricing based on demand and supply. Depending on the location and time of the journey, this helps make maximum profit.
  • It is adaptive and fits in every market situation. This helps increase the branches thus increased business opportunities. 
  • The cashless payment is meant to promote accountability and integration of information technology.

  • Drivers’ remuneration is low; this kills their morale.
  • Uber highly depends on the internet and business is likely to be hampered when the internet experiences downtime.
  • Uber only takes care of the techno-savvy customers. This locks out other potential clients thus reduced income.
  • The executives are reported to be very arrogant. This taints the image of the company.

  • There is a large unorganized market in transport. Uber can take advantage to exploit this market for maximum returns.
  • Increased internet access and penetration can be maximized to reach a wider customer base among the techno-savvy persons.
  • A majority of people are increasingly using disposable income for convenience reasons. Uber can attract them to hire their taxi services.
  • Alternate services like the Uber chopper and electric cars can be devised to take the business a notch higher thus a competitive advantage.

    • The government policies are quite strict and unclear. This has waged war with the drivers who are forced to say whether Uber is an IT company or a taxi business.
  • The unorganized taxi market can revolt against the company. This can compromise the daily operation of the business.
  • There is growing competition from other taxi companies. Uber, therefore, has to devise up-to-date methods of satisfying the needs of the customers.
  • The drivers are unhappy with their remuneration. They can, therefore, quit any time. This will disorient the Uber Company.

How the SWOT Analysis assists Uber Management to Solve Issues in the Company

From the above SWOT table, the management teams of Uber Company can solve various issues in a number of ways. According to Grant (2016), SWOT analysis is an important tool used to identify potential areas that need remedial actions in a business. In the case of the Uber Company, it is possible to come up with ways of motivating the drivers so that they give their best to the company. As Grant (2016) stresses, SWOT analysis reveals morale, leadership and commitment gaps in an organization. This tool is therefore useful in addressing the poor remuneration and low morale among the drivers who give the company its brand image.

The SWOT analysis of the Uber Company can be used to solve the arrogance of the executive managers of the company. As Chan et al. (2016) argue, marketing is such an important aspect of businesses that come out through SWOT analysis. Therefore, a company can conduct performance reviews and attitude counseling to advise the executives on how their relationship with the clients affects the image of the taxi company. Joseph and Wawire (2015) contend that SWOT can enable a business to review the consequences of unprofessional conduct with arrogant employees thus improving the image of the business. This idea can be borrowed by Uber to solve its internal problems.

Another problem Uber can solve using the SWOT analysis is the constant war with the legal institutions in the nation. It is clear that Uber management is fought by the local authorities for lack of clarity on whether the business is a taxi company or an IT Business. Grant (2016) advises that SWOT reveals certain strategic planning and company profile issues that need to be urgently addressed for smooth operation. Through this tool, Uber can constitute a team to restructure the company profile and description of the services so that no ambiguities arise in the business. This can clear issues that make the government fight the business.

Recommendations to Uber Management Team 

Based on the SWOT analysis above, this essay makes a number of recommendations. First, Uber should conduct through comparative remuneration research with competitor companies in order to satisfy the needs of its drivers. According to Newbert (2008), a well-organized brand can improve its image if comparative remuneration studies are conducted. Uber should, therefore, improve the welfare of the drivers in order to keep their motivations high. Secondly, scheduled pick-ups would greatly work for the company. It is true that most users often get picked in just a few minutes. 

This essay recommends that those clients who go to meetings, the airport, and other places can book in advance for a longer time thus increasing access and maximization of profits. Scheduled bookings should, therefore, be encouraged. Closely linked to this is the solution to the over-reliance on the internet. Chen et al. (2011) warn that the internet can be a real let down especially due to downtime. If Uber allows for scheduled bookings, it can take care of all groups irrespective of internet access thus accessing a wider customer base. Finally, the stiff competition by companies such as Lyft can be tackled through reduction of prices. This is a sure way to beat the competitors. 


This essay has conducted a SWOT analysis of Uber Taxi Company. It comes out that Uber enjoys a competitive advantage due to a well-established brand in the transport industry. However, certain issues need to be addressed in order to improve the welfare of the drivers. If the company addresses legal, pricing and management issues, it will be sure to favorably compete with the rest in the market. Uber should seriously consider these recommendations for improved image and better terms of business operation.

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  1. Chan, J. W., Chang, V. L., Lau, W. K., Law, L. K., & Lei, C. J. (2016). Taxi App Market Analysis in Hong Kong. Journal of Economics, Business and Management, 4(3).
  2. Chen, C. Y., Shih, B. Y., Chen, Z. S., & Chen, T. H. (2011). The exploration of internet marketing strategy by search engine optimization: A critical review and comparison. African Journal of Business Management, 5(12), 4644-4649.
  3. Grant, R. M. (2016). Contemporary Strategy Analysis Text Only. John Wiley & Sons.
  4. Joseph, N. K., & Wawire, B. P. (2015). The Influence of Emotional Intelligence on Service Delivery. International Journal, 4(1).
  5. Newbert, S. L. (2008). Value, rareness, competitive advantage, and performance: a conceptual level empirical investigation of the resourcebased view of the firm. Strategic management journal, 29(7), 745-768.
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