Unit viii | Management homework help

Founded in 2009 by Travis Kalanick, Uber provides transportation service in U.S., European, and Asian cities. In the year

2014, its gross revenues were $2.957 billion; net revenue after commissions and incentives, $495 million; cost of revenue,

$400 million; operating expenses, $661 million; for an EBIT of $565 million. The original Uber model of operations was for

the driver to use his or her own vehicle and offer services as and when they liked. The Uber webpage for drivers

DBA 7180, Managerial Economics and Business Theory 4

emphasizes that drivers can use their own car, set their own schedule, and get paid weekly. More recently, Uber has

arranged for drivers to rent cars to provide Uber services.

Uber clients book and pay for rides through the smartphone. As noted in Business Insider’s article by James Cook, after

each ride, the Uber client rates the driver on a scale from 1 to 5. If a driver’s rating falls below a particular level, Uber

discontinues her or him from offering the service. Uber also allows drivers to rate clients. In January 2015, Uber extended

fare cuts from the largest U.S. markets to 48 more cities. Uber asserted that the lower fares would benefit clients and

drivers because the higher demand would allow drivers’ incomes to increase. The higher demand makes the drivers more

efficient, so that they can get more trips every hour, which means more earnings for them.

By contrast with Uber, whose drivers provide service with private cars, the Chinese services, Didi Dache (backed by

Tencent) and Kuai Di Dache (backed by Alibaba) are smartphone-based applications to book taxis. In 2015, faced with

competition from Uber (backed by search engine Baidu), Didi Dache and Kuai Di Dache merged. Following the merger, they

continue to operate as separate services.

Based on the case above, answer the following questions:

To what extent do you think that any economic inefficiencies of the original Uber operating model may impact the

operational strategy and ultimately the success or failure of the firm?

Considering the abundance of consumer ethics-related concerns about Uber, do you think that the industry should be

further regulated? Based on the literature presented in this unit and your own research, do you think the current

regulations are fair?

Appraise the economic concepts of the operational strategy which may result in reduction in prices and resultantly lead

to increase in demand. Explain how to use this concept to calculate the change in revenue from a 1% cut in prices. In

Chicago, the reduction of fares by 23% led to 12% increase in revenue. What do these data imply about the concept of

regulations, mentioned above?

On a figure with dollars per hour on the vertical axis and hours of labor supplied on the horizontal axis, please sketch the

driver’s marginal benefit from providing labor. Note: If the driver supplies more hours, he or she raises the probability of

getting work, but at a diminishing rate.

Explain how a reduction in the fare affects the marginal benefit from providing labor. Consider both the direct effect of

the fare and the indirect effect (lower fare attracts more customers and raises the probability that the driver gets


From a driver’s viewpoint, what is the optimal quantity of labor to supply?

Intuitively, does an increase in earnings necessarily make drivers better off?

Your response must be a minimum of two pages in length. You should apply information from the literature review included

in the unit lesson as well as any other scholarly sources you find necessary for a total of at least two sources. All sources

used, including the textbook, must be cited and follow APA guidelines, and your paper should be formatted in APA style to

include a title and references page.

Get 20% Discount on This Paper
Pages (550 words)
Approximate price: -

Try it now!

Get 20% Discount on This Paper

We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Assignment Help has assembled a team of highly skilled writers with diverse experience in the online writing circles. Our aim is to become a one stop shop for all your Academic/ online writing. Check out below our amazing service!


Essay Writing Services

At Assignment Help, we prioritize on all aspects that creates a good grade such as impeccable grammar, proper structure, zero-plagiarism, and conformance to guidelines. The principal purpose of essay writing is to present the author's evaluation concerning a singular subject about which they have made. Since Professionalism is the mother of every success, try our team of experienced writers in helping you complete your essays and other assignments.


Admission Papers

You have been trying to join that prestigious institution you long yearned for, but the hurdle of an admission essay has become a stumbling block. We have your back, with our proven team that has gained invaluable experience over time, your chance of joining that institution is now! Just let us work on that essay.How do you write an admission essay? How do you begin the essay? For answers, try Quality Custom Writers Now!


Editing and Proofreading

Regardless of whether you're pleased with your composing abilities, it's never an impractical notion to have a second eye go through your work. The best editing services leaves no mistake untouched. We recognize the stuff needed to polish up a writing; as a component of our editing and proofreading, we'll change and refine your write up to guarantee it's amazing, and blunder free. Our group of expert editors will examine your work, giving an impeccable touch of English while ensuring your punctuation and sentence structures are top-notch.


Technical papers

We pride ourselves in having a team of clinical writers. The stringent and rigorous vetting process ensures that only the best persons for job. We hire qualified PhD and MA writers only. We equally offer our team of writers bonuses and incentives to motivate their working spirit in terms of delivering original, unique, and informative content. They are our resources drawn from diverse fields. Therefore your technical paper is in the right hands. Every paper is assessed and only the writers with the technical know-how in that field get to work on it.


College Essay Writing

If all along you have been looking for a trustworthy college essay service provider that provides superb academic papers at reasonable prices, then be glad that you search has ended with us. We are your best choice! Get high-quality college essay writing from our magnificent team of knowledgeable and dedicated writers right now!


Quality Assignment/Homework Help

We give the students premium quality assignments, without alarming them with plagiarism and referencing issues. We ensure that the assignments stick to the rules given by the tutors. We are specific about the deadlines you give us. We assure you that you will get your papers well in advance, knowing that you will review and return it if there are any changes, which should be incorporated.