Uber has been a very aggressive company when it comes to its marketing and operation strategies. The transportation network company (TNC) has managed to abolish any obstacle that has stood in its way in terms of legal authorities, competitors, transportation delays, and high demand, etc. Despite the fact that the company has experienced massive success in recent years due to its unique business model, the young company continues to face various obstacles in its operations and their growth.
The key problem that the company seems to be facing is that of the effect of aggressive opponents on its customer base. The company has challenged the status quo of transportation and traveling. As a result, the company faces repeated attacks on its business in the form of newspaper critiques, government pressure, and local cab community demands (Moon 7). Despite the fact that Uber is an international corporation, it has managed to antagonize the local governments and cab driving communities of nearly every other country. The company is infamous for employing tactics that are not prevalent in the transportation community. For instance, the company resorted to a surging price model, which raised the cost of its transportation services if there was a significant spike in the demand for transportation services at any given time of the day (Moon 8).
Regarding solutions to the issue in terms of consumer behavior, the company has already employed various tactics and achieved immense success due to the existence of a citizen-customer duality (Apostolidis 3). That is, as a citizen, the consumers will not be appreciative of the company’s aggressive business tactics, however, as a consumer, they will make decisions based on their personal preferences and economic incentives. Factors such as price, quality, brand name and popularity will all influence the customers’ decisions.
It is suggested that Uber should employ timely response strategies to any adverse publicity that it receives, in addition to the employment of more ethical and government compliant practices. Although negative publicity or negative corporate publicity does create an undesired or adverse effect on the consumer behavior regarding purchasing decisions, contingency plans and timely reaction by the company can significantly reduce the damage caused by the company (Sago and Hinnenkamp 69).
Uber can utilize this concept to its advantage. For instance, the surging prices model of the company received much criticism from the customers. It is suggested that the company should respond in a timely and effective manner to subdue to the anger of the customers. Due to the unique business structure, the drivers can also be considered customers of the company. These drivers continue to opt for the services to increase their income at their chosen working hours. The long wait for orders in the garage of a local cab company was not the desired manner in which the drivers wished to work (Moon 8). Therefore, the flocked towards the new company as well, due to the better working conditions, and the ability to be one’s boss. Regarding areas of improvement although the company observes aggressive marketing tactics needs to improve its ethical behavior to remain a customer favorite. Approval of the company by local authorities and cab community can give the company an opportunity to significantly boost its profits and operations, as doubtful and extremely doubtful customers will begin to trust the transport network company as well.
Conclusively, the company has done rather well despite the aggressive opposition to its unorthodox business ideas and practices. Consumers, however, continue to opt for the service, despite negative publicity, as long as it benefits them in terms of cost, efficiency, and practicality. Contrarily suggested, timely response, and increase in positive publicity for the company via the practice of ethical business behavior has the potential to affect consumer behavior rather positively and further increase the profits and operations of the company.
Works Cited
Apostolidis, Chrysostomos. Why We Keep Using Uber Despite Douchebag Behaviour. 24 November 2014. Web. 15 March 2016 <http://www.lifehacker.com.au/2014/11/why-we-keep-using-uber-despite-douchebag-behaviour/>.
Moon, Youngme. Uber: Changing The Way The World Moves. 1 November 2015. Web. 15 March 2016 <https://hbr.org/product/Uber--Changing-the-Way-th/an/316101-PDF-ENG>.
Sago, Brad and Craig Hinnenkamp. "The Impact of Significant Negative News on Consumer Behavior Towards Favorite Brands." Global Journal of Business Research 8.1 (2014): 65-72. Print
