Uber has been having cash flow problems for some time; however, in 2017 it was hit the hardest. Kelleher (2017) suggests that the company loses 2 billion every year. Some of the woes that the company faced in 2017 include the #Delete Uber Campaign and the sexual harassment allegations against its drivers. As such, the company has been sued many times, thus, heightening its cash flow problems.
Conversely, Uber managed to handle the situation well by undertaking various measures. Firstly, the change of its top management was marked by the removal of the CEO in August 2017. The change was deemed to deliver positive results to the company. Secondly, the company engaged in brand image marketing by training drivers to appeal goodwill from the clients (Zhuo, 2015). Thirdly, the company introduced different cab models to cater to everyone, thus, enhancing its customer satisfaction. Uber also provided their riders with privacy by letting the riders control their data. Lastly, uber also learned to value its drivers. This was by increasing the drivers’ commission rate and creating better employee relations.
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The Uber Company has implemented the following ways to avoid future cash flow problems. First of all, the company reduced driver downtime. This was done by creating driver working shifts so that while they are working the app tells them immediately where their next pickup is after doing a drop-off. The other approach taken is the permission of scheduled pickups ( Kubal, 2015). As a result, this makes it easier for their customers to make early bookings for business trips and also for personal matters when needed. Uber has also customized the experience when riding in their cabs, thus, creating a better experience and comfort for their customers.
In my opinion, Uber managed to handle the situation well primarily by changing the management which came with new ideas for the company. Consequently, when the company improved its brand image; and this made their customers more contented when requesting for their services. Lastly, the training offered to the drivers on how to handle customers created trust between customers and the drivers. These approaches would ensure that the company does not face another cash flow problem.
References
Kelleher, K. (2017, August 24 ).Uber is still burning cash at a rate of $2 billion a year . Retrieved from https://venturebeat.com/2017/08/23/uber-is-still-burning-cash-at-a-rate- of-2-billion-a year.
Kubal, C. (2015, February 2). Five Ways to Improve Uber or Lyft (or Any Other Transportation Network Company). Retrieved from https://medium.com/@ckubal/five-ways-to-improve-uber-lyft-or-any-other-transportation-network-company-674c2871c22 .
Zhuo, T. (2015, February 11 ). What Uber Needs To Do To Fix Its Reputation? Retrieved from https://www.fastcompany.com/3042107/why-ubers-success-means-nothing-if-it-cant-fix-its-reputation
