Porter’ five force analysis of the organization
The Porter’s five force analysis for the Uber organization is as follows.
Power of Buyers
The price sensitivity among the consumers is increasing which is affecting the organization very much. These types of similar services increase the power of buyers. Large organizations can drop down the prices for the transportation.
Power of Existing Rivalries
The organization has the intense rivalry which helps in staying between the competitors in the market. The company is multiplying the variety of cars and services in national and international market and also in metropolitan areas. Lyft has nearly similar prices to that of Uber which is affecting the position of Uber in the market (Forbes, 2014).
Power of Suppliers
In Uber organization, drivers take 80% of the charge. The driver also uses their own equipment like car, insurance and license which helps Uber in saving various expenditures but the organization has to share a large percentage with the drivers. The signing up facility of the organization is very simple. Uber gives the mobile to the drivers. The mobile phone has the tracker which helps in finding the position of the vehicle and driver.
Power of bargain
The organization doesn’t provide the facility of bargaining with their customers. The company has fixed prices.
Various new brands are coming in the market with the objective of replacing the Uber organization with new strategy and planning.
Current position of Uber Transport
Uber transportation, as described above, has really shown a tremendous growth in the market in just five years. The current value of the organization is $40 billion and the estimated gain in 2015 is $10 billion. Currently, organization is working in more than 51 countries and 240 cities worldwide. Organization is spreading its market in rural areas also which has created new opportunities in the market for the organization (Lawrence, 2014).