6 Jun 2022

370

Uber Goods Delivery Service

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Academic level: College

Paper type: Essay (Any Type)

Words: 389

Pages: 1

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Uber has revolutionized the transport industry. It has made it possible for individuals to conveniently hail taxis. Despite the tremendous growth that the company has experienced, it faces some challenges. For example, the authorities in London refused to renew the company’s license (Topham, 2017). This means that the firm will be unable to continue operating in the city. This challenge underscores the need for Uber to identify new avenues. The goods delivery industry is rather young and uncongested. Uber should consider entering this industry.

Pricing is one of the factors that influence the performance of a firm. A company should ensure that the price that it charges for its products or service is high enough to allow for significant profits without depressing demand. Three main categories of pricing decisions have been developed. The first category is value-based. Essentially, this category challenges firms to ensure that the price of their products deliver value to the customer (Macdivitt &Wilkinson, 2011). As it delivers goods to customers, Uber should ensure that the price that it charges offer customers value for their money. When the value-based pricing strategy is used, firms seek to ensure that the needs of customers are met.

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Cost-based and competition based are the other categories of pricing strategies. Basically, the cost-based strategy sees firms consider the cost of production when determining the price (Price & Ferrell, 2016). Uber could consider such factors as the cost of paying its drivers and obtaining licenses as it sets the price for its goods delivery service. The costs that the company incurs will serve as the price floor. As the name suggests, the competition-based pricing strategy focuses on the competition (Price & Ferrell, 2016). This strategy involves examining the prices that the competitors charge. Such companies as Amazon and UPS are among the key players in the goods delivery industry. If it is to survive in this industry, Uber needs to consider the prices that these companies charge. To attract customers, the company may need to charge below the prices of the competitors.

In conclusion, the troubles that Uber faces are unlikely to go away. It is for this reason that the company should seriously considering entering new waters. It should invest in the goods delivery industry. The three pricing categories described above should form the basis of the pricing decisions that the company makes. Uber should consider the cost of production, the need to deliver value to its customers and the prices that the competitors charge for their services.

References

Macdivitt, H. & Wilkinson, M. (2011). Value-Based Pricing: Drive Sales and Boost your 

Bottom Line by Creating, Communicating and Capturing Customer Value. New York:

McGraw Hill Professional.

Price, W. M. & Ferrell, O. C. (2016). Foundations of Marketing. Boston: Cengage.

Topham, G. (2017). Uber Launches Appeal against Loss of London License. Retrieved 13 th 

October 2017 from https://www.theguardian.com/technology/2017/oct/13/uber-appeal-london-licence-tfl 

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StudyBounty. (2023, September 14). Uber Goods Delivery Service.
https://studybounty.com/uber-goods-delivery-service-essay

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