Question

home / study / business / operations management / operations management questions and answers / Using The Case Analysis Below. Analyze The Case “Why Uber Can't Make Money” About 2400 ...

Your question has been answered

Let us know if you got a helpful answer. Rate this answer

Question: Using the Case analysis below. analyze the case “Why Uber Can't Make Money” about 2400 words in l...

Using the Case analysis below. analyze the case “Why Uber Can't Make Money”

about 2400 words in length

Last month, Uber reported a third-quarter loss of nearly $1.5 billion, bringing its 2017 year-to-date red ink to $3.2 billion. Losses of this magnitude are clearly not sustainable, and call for an explanation of why Uber has been unable to rein in ballooning costs and what it will need to do to survive, let alone prosper.

CASE ANALYSIS OUTLINE

Situational Analysis

            External Environmental Analysis (Outside of the organization)

Economic, Social, Political, Technological, Natural

           

Internal Environmental Analysis (Specific to the organization)

Market Analysis- Description of the market, Primary customers

Evaluation of Marketing Strategies

                        Product, Price, Distribution, Promotion

Evaluation of the other Functional Areas-

                        Finance, Production, Human Resources, Technology

Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis

State the Main Problems facing the business/organization

Development of Strategic Alternatives (2)

Evaluation of Strategic Alternatives (2)

Recommendation of the better Alternative

Implementation Techniques for Recommended Alternative (How, when,

            where, why).

Control Procedures to keep Recommended Alternative on course.

Answer 1

The money that Uber collects from fares isn’t enough to pay for its revenue and operating costs; therefore, Uber loses money each quarter. I have explained in detail below how this works.

By any measure, Uber’s seven-year entrepreneurial journey has been extraordinary. No venture has ever raised more capital, grown as fast, operated more globally, reached as lofty a valuation -- or lost as much money as Uber.

Last month, Uber reported a third-quarter loss of nearly $1.5 billion, bringing its 2017 year-to-date red ink to $3.2 billion. Losses of this magnitude are clearly not sustainable, and call for an explanation of why Uber has been unable to rein in ballooning costs and what it will need to do to survive, let alone prosper..