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Uber: regulations and business ethics

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Page 1: Uber: regulations and business ethics

What are the critical issues related to regulation and business ethics that Uber is facing and how should the company address these challenges?

Since the foundation of the company Uber has been facing regulatory and business ethics issues in many countries.

The first and most pressing reason is a government regulation. Entering a new market, Uber did not pay attention to local regulations and began operating its service without waiting for permission. Management changed the company name received a warning the early stages, and then it has enough money to pay off.

Most regulations had been written without taking into account the development of modern technologies on which company operation was based. Receiving cease-and-desist orders, Uber typically ignored it declare that it is not a taxi business — it simply provided the software platform to connect town car chauffeurs and drivers.

Another problem was that the company put non-professional drivers on the road. While UberBlack drivers were commercially licensed professional drivers, uberX drivers were not. Riding uberX generally tended to save passengers 10% off the cost of a taxi, but staff recruitment criteria let them to put at the wheel 21 men obtained a personal license and auto insurance without any experience.

Critics also claimed that Uber’s surge pricing issues. Riders in various countries were against the concept and many demanded that their respective governments impose price controls on Uber and similar companies.

It also had a reputation for cutthroat competitive tactics. In one case, Uber was caught trying to slow down the service of one of its ride-sharing competitors by ordering and cancelling cars en masse (Uber later apologized for the tactic). The company was also known for attempting to poach drivers from other ride-sharing services by deploying its sales representatives to order rides and then try to convince the drivers to defect to Uber with offers of monetary bonuses and other incentives.