Impact of Operations Management In Transportation Industry A Study Of  Uber


Impact of Operations Management In Transportation Industry A Study Of  Uber

Chapter One/Introduction

Background to the study

Uber is a privately held company that was founded back in the year 2009, that is exactly 8 years before from present time and the company is headquartered in San Francisco which is in California located in US (, 2018). There are more than 633 cities around the world that are served by the company and the main services that it provides to the customers are transportation services as well as the food delivery services. There are more than 12000 employees that work under the company and as of 2016 last quarter; there total revenue amounted to US$ 6.5 billion. There are different prices at which the customers of the company can take a ride in Uber and there are four kind of pricing strategies that have been adopted by Uber which goes in the name of pool rides, that is the lowest pricing when an individual hires a cab and the person who hires this ride has to share his cab with another 2-3 persons. The second one is premium rides which are the highest in the category while the economy pricing is not much high and also not as low as pool rides (Ahluwalia, 2017). There is another pricing strategy that is followed by Uber and that is accessibility ride which is for the disabled people and they can communicate with the driver using sign languages.


There are a variety of departments at Uber which helps the organization to reach its objective and fulfill the expectations of the customers. The customers always looks forward to get the lowest price in the market for the rides they take and with the help of following a variety of approaches, the operations department of the organization helps in achievement of the objective and tries to provide the lowest price to the customers. The operations department always strives to reduce the price of rides with the help of reducing the cost of the organization and me being an employee of the operations department, it is also my duty to contribute towards making the organization operate in a price effective way. Uber is one of the fastest growing companies in the world and it is the aim of the operations department of Uber to contribute towards the rapid growth of the organization with the help of the operational activities (Dudley et al., 2017). The logistics and the operations roles of Uber are interconnected and the most significant task that is performed by the operations department is ensuring the supply in the market for their service is constant so that the satisfaction of the customers can be gained and the most important function that is to be performed by the operations department is analytics which will help them to use the data about the drivers in order to understand the driver behaviors with the passengers and design strategy how the communication between the driver and the passengers can be improved. Moreover, the operations department also designs the incentive plans for the drivers and also develop as well as optimizes the process. There are several other functions that the operations managers of the company perform which will unfold itself with the progress of the assignment.