[Recommended]: INT 700 SNHU Uber Case Introduction

  Module Seven: Uber Case IntroductionThe rise of the sharing economy challenges every industry where there are underutilized assets and the need for cost sharing.Although sharing economies have been around for thousands of years, advances in communication and information sharing technologies have enabled new business models based on asset sharing to spread easily and rapidly.However, the sharing economy introducesa dynamic friction between the traditional understanding of profitability along an industry’s value chain and the new valuation placed on its products and services by newly empowered consumers.At inception, Uber first introduced a patented technology platform to allow consumers to easily share access to a wide variety of vehicles and other mobility devices, while simultaneouslygiving assetowners an additional source of income. Originally,Uber consumers paid a premium for the service, but over time business units also targeted low-price alternatives, which allowed the company to lead the US ride-sharing markets at all price points. The company responded by opening its strategic policy to pursue becoming a leader in other areas of the sharing economy aswell, such as health care (UberHealth) and elder care (UberAssist).U.S. firms looking to bring sharing-economy business models, like Uber, have encountered intermittent large-scale success, especially on foreign soil. It seems that sharing economies work well at smaller scales,but introducing them to regional or global markets introduced institutional and industry barriers unique to each market. Uber’s success also attracted competitors both in the United States and in major foreign marketssuch as the EU, China, and India. As Uber grew, so did industry resistance to its unique advantages over foreign companies who felt unfairly constrained by industry regulations, unionized labor, and other structural challenges limiting their pricing and flexibility.Moreover, Uber found that many foreign-market consumers were less open to the premise of the sharing economy. While Uber may have been very clear on its business model, competencies, and strategic approach in the United States, it struggles to understand the benefits and challenges of extending the sharing economy internationally. Can you help them?Case Study Guidelines and Rubric.

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