Question

what do you think are the biggest risks that Uber is facing and how can the company counter those?

To ensure long-term success though, what do you think does Uber has to look into?

Answer 1

Answer: The following are the two risks that Uber faces are

1. Political risks: The business model of Uber is in many countries blamed to be designed for reducing the tax liabilities. The politicians in many countries have even campaigned for banning the services. Many governments now look sharing economy models like Uber as a source of tax evasion. Hence the company needs to bring more transparency in the business payments and follow the tax norms in the respective countries. The company needs to seriously work for improving its grey economy image of its business.
2. The expansion risk: Uber is expanding at the global level and this involves its own operational risks and economic risks. The company has to manage operations in different nations across the globe. This   makes operations complex at the global level. For this purpose the company should attempt to create uniform service standards that can help in reducing the operational risks. The management of the company also needs to develop its management strategies accordingly. The company should also use diversification strategy for reducing economic risks.

For the long term success the company needs to look into its business model and improve its negative image related with taxes and the customer service. The company should develop standard training programs so that the drivers can be trained in delivering better services to the customers.