What is Uber SWOT Analysis 2022?

Uber is a tech giant company. It is a transportation company. Uber is an app-based company that connects passengers with drivers, allowing them to request rides and pay for them. Moreover, the company provides peer-to-peer ridesharing, taxi cab, food delivery, and transportation services. In this article, we will discuss the Uber SWOT analysis, swot analysis of uber, uber analysis, and the internal environment of uber.

An overview of Uber SWOT analysis

Its headquarter is in San Francisco, California. It now operates in 785 metropolitan regions worldwide. The company has about 110 million users worldwide. Access is available through the company’s website or mobile app, however.

Uber SWOT analysis has had an enormous impact on the economy since its launch. However, the company continued to grow and became mainstream despite all the negative comments and reviews. Currently, Uber has many opportunities to introduce new features to create a competitive advantage over competitors. Every business has certain strengths and weaknesses. We will approach them as we discuss Uber’s business structure.

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Uber SWOT analysis

Here will firstly discuss strengths, secondly, weaknesses, thirdly opportunities and last threats. Read below the swot analysis of Uber:

Uber Strengths

  • Largest Ride Sharing Technology:

Uber has established itself as the world’s largest car-sharing service. It is one of the first carpooling apps, operating worldwide. By 2020, Uber is present in more than 93 countries and over 900 cities. Besides, Uber has 103 million monthly users served by a total of 5 million drivers.

  • Strong Brand Recognition:

Uber has maintained strong brand recognition in more than 50 countries. It has surpassed GM, Honda, and Ford in terms of brand value framework. Furthermore, with the integration of new technological features, it is expected to improve its services in the coming years. In 2020, Uber’s valuation is $75 billion.

  • Low Fixed Investment:

This is also an element in Uber swot analysis. Due to its low fixed investment (low operating costs), Uber can operate in more cities through its communicative network. The company continues to grow at a rapid pace since there is no fixed infrastructure or investment in place.

  • Dynamic Pricing Strategy:

Uber is consistent with its dynamic pricing strategy. It is in “high demand.” The “higher price” policy has proven to be beneficial to drivers and the industry. A decent wage is earned by the driver at night, during inclement weather, and on public holidays.

  • Adaptive Nature:

Uber’s adaptability is widely recognized around the world. He was able to mix and integrate with nationalities and cultures from all over the world. This has given Uber swot analysis trust. Recognized for intelligent marketing. For instance, it engages with its customers on social networks. Uber keeps customers informed about offers, promotions, and all the latest news via Facebook, Twitter, and Instagram. The company also deals with customer complaints through social media channels. However, these social media channels are great for customer retention and quick feedback.

  • Low Prices

Uber offers low rates compared to traditional taxis. The biggest difference between taxis and Uber is that taxis charge by miles (when traveling) and by minutes (when not moving). On the other hand, Uber charges per minute and per mile for travel and idling. Such a pricing policy has become increasingly popular. Plus, Uber is cheaper than Lyft  swot and SideCar in 20 major US cities. However, other variables affect the final price of a trip. These include geographic location, distance traveled, price increases, cancellation fees, and other trip-specific additions. Low prices always attract customers that include uber swot analysis.

  • Customer to Driver Interaction

The enterprise version of Uber is good for a patron to motivate force interaction. Furthermore, Uber has created a scoring machine that facilitates clients’ fees for their traveling revel in addition to the motive force. This scoring machine facilitates perceive the satisfactory drivers and video display units and the overall performance of the drivers.

Uber Weaknesses

  • Multiple Scandals

Over the past few years, Uber has been the subject of numerous scandals and controversies. For that Uber’s brand has received negative coverage. In 2017, Uber became embroiled in controversy when Susan Fowler, an engineer at the company, published her account of sexual harassment she experienced while working there.

Dara Khosrowshahi, the former head of Expedia, will be taking over as CEO after Travis Kalanick steps down.

  • Substantial Losses:

Uber has been losing money since 2009. To compete with other ride-hailing companies like Lyft, the company started offering incentives to its drivers and discounts for its passengers. These efforts haven’t worked well enough to turn around Uber’s financial situation. As 2015 came to an end, Uber lost $2.75 billion, according to reports.

  • Dependency on the workforce:

Uber’s over-reliance on the workforce and the Internet hasn’t been good for the company. The behaviour of the drivers is unpredictable and damages the image of the company. More than 103 Uber drivers in the US have been accused of sexual harassment and abuse, which paints a bad picture of the company’s culture. This is also an crucial aspect in Uber swot analysis uber.

  • Public Backlash

In September 2013, Uber faced a severe public backlash after its surge pricing caused an increase in fares during Hurricane Sandy. This led the company to change its policies.

  • Exploitative Business Model:

Uber has been criticized for misclassifying its employees as independent contractors, thus denying them access to certain employment rights. As a result, many states have begun to pass legislation requiring companies like Uber to reclassify their workers as employees.

  • Poor Working Condition

Most companies invest heavily to support employees. On the other side, Uber’s Drivers are mostly on their own, which expose them to security risks. Additionally, they need to pay several costs like insurance, repairs, or gas.

Uber Opportunities

Here are uber opportunities under uber swot analysis:

  • Accountability and Performance:

Customers are no longer impressed with the disorganized taxi services that have passed through the market. This represents a lucrative opportunity for Uber. It can improve by providing its services based on accountability and performance. By monitoring driver performance, the company can determine the best. Additionally, Uber was able to address the numerous cases of sexual misconduct reported against multiple Uber drivers.

  • Utilize Digitalization:

The world has become increasingly digital. People prefer a connected world that is easy to access through their smartphones. The company should invest in uber eats and grow its customer base. There are countries and regions where Uber does not operate, like China and Denmark. These regions need to be expanded to accommodate the global growth of Uber. This is also an important aspect in Uber SWOT analysis.

More Uber opportunities under Uber SWOT analysis

  • Driverless Technology and other services:

Its platform already allows drivers to receive payments through an Uber app. It also provides riders with a convenient service, allowing them to request rides via text message, phone call, or app. Uber’s goal is to become ubiquitous, meaning that everyone should have access to a ride at any time. To achieve this goal, Uber plans to expand beyond its current focus on urban areas.

  • Strengthen Delivery Services

Uber Technologies operates online food delivery platform. It allows customers to order food from restaurants using the Uber mobile application. In addition to food delivery, UberEats also offers restaurant reservations, customer reviews, and other features.

  • Expand through Acquisitions

Uber recently acquired Routematch, a transportation software provider. The acquisition allows Uber to expand its public transit service. It also acquired Postmates for $2.65 billion to expand its Uber Eats food delivery service and offer everyday products.

Uber Threats

Read here Uber’s threats under Uber swot analysis.

  • Customer and Employee Retention

With increased competition, retaining customers and employees can be a challenge for Uber. Any financial incentive from a competitor is enough to steal their customers and employees.

  • Lawsuits:

About 300,000 Uber drivers have filed a lawsuit against the company over its minimum wage policy. These were resolved amicably. However, the incidents were enough to threaten and damage Uber’s public image.

  • Increasing Competitors:

Subsequently, Uber has faced competition from Lyft and other transportation service providers like Ola in India. These competitors have taken a lot of market share away from Uber.

  • Stringent Regulations:

In 2017, several US states were looking at the employment status of tens if not hundreds of thousands of gig workers, including those working as independent contractors for companies like Uber. In California, regulators decided that all drivers should be considered employees, providing them with employee benefits. As a result, Uber may cease to exist.

  • Employees’ Strikes:

Just like every provider company, Uber relies closely on its massive workforce. A strike can floor its operations and have an effect on the lowest line. In June 2020, greater than one thousand meal transport drivers in Brazil participated in a strike to call for higher operating conditions.


This was all about Uber SWOT analysis. The SWOT analysis shows the strengths, weaknesses, and opportunities of the biggest transportation company. Its future seems bright because of its ability to expand globally. However, there are still many challenges to overcome before Uber becomes a household name.

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