Question

1. What are the ethical challenges that Uber faces in using app-based peer-to-peer sharing technology?
2. Describe Uber’s core market. Why is Uber targeting these groups in particular?
3. Why would consumers question Uber’s pricing strategy?

Answer 1

a) Uber has established its market in the world successfully. However, unfortunately, the customers in many developed and developing countries are currently facing ethical issues and concerns. Ethical challenges such as complaints regarding sexual harassment in the cab, and privacy issues while sharing the personal information have emerged recently. The consumers, especially the female audience, is facing the problems of sexual harassment and abuse. The drivers tend not to respect women. The managers in the company should take action against this type of behavior. The second concern or issue is privacy concerns about information like contact numbers. The drivers act negligently and share the customers' numbers with their friends or contact them by themselves. Hence, the company should curb these emerging issues.

b) The core target audience of Uber is the youth and working population. The youth is more tech-savvy than the older population, and the working people need to travel every day. These people find buying a car more expensive than booking a cab to their workplaces. Hence, the target market is simply the young population. It is also earning many gains from the right target audience.

c) Uber uses the strategy of surge pricing. Under this strategy, the company increases the prices to get more cars on the street, and when there are more cars on the streets, the prices fall. It is a type of discriminatory pricing policy. The company wants to ensure reliability in the minds of consumers in the busiest times.