SWOT Analysis for Uber | Full Details

In this short article, we are going to walk you through the major strengths, weaknesses, opportunities, threats and other internal factors that contribute to the success of Uber. So, if you’re looking for Uber SWOT analysis, stay tuned and read on.

Here is a summary for Uber’s SWOT analysis:

Topic Key Points
Uber’s Strengths
  • Largest ridesharing platform globally
  • Strong brand awareness and value
  • Low fixed costs and asset-light model
  • Dynamic pricing model
  • Adaptability to global markets
Uber’s Weaknesses
  • Increasing competition
  • Driver dissatisfaction
  • Dependence on drivers as main service agents
  • Negative publicity and controversies
Uber’s Opportunities
  • Leveraging dissatisfaction with traditional taxis
  • Opportunities in markets with poor transportation
  • Increasing number of drivers reduces wait times
  • Attracting further investment and funding
  • Using electric vehicles to reduce costs
Uber’s Threats
  • Retaining customers and drivers
  • Lawsuits from drivers
  • Increasing competition
  • Stringent regulations in some markets
  • Employee strikes


An Overview of Uber

There are several reasons why Uber is so popular and widely used by so many people. Using this method offers a more convenient, simpler, and less expensive method of getting to one’s desired place. However, the company also elicits a range of feelings from users. A few motorists, as well as the local authorities, are opposed to the company’s business model.

Due to these varied opinions, Uber has to make some improvements. Many people are worried that the company will take over the transportation industry in 2015.

A SWOT analysis looks like the best solution in this scenario. It will help you investigate the possibilities and risks the organization could face. Through this research, Uber’s strengths and weaknesses will also be identified.

There are no external influences to consider when determining one’s strengths and limitations. These components are within Uber’s control.

SWOT Analysis for Uber

Complete SWOT analysis of Uber

Uber’s Strengths

Largest Ride Sharing Technology

Uber has established itself as one of the largest companies in commuting services. Apart from this, it was among the first ridesharing applications to operate globally. According to our research, Uber will be accessible in over 105 countries and over 1050 cities, with 115 million monthly clients served by a network of over 7 million drivers across the globe.

Strong Brand Awareness

Over 50 countries have held a strong brand awareness for Uber. It has already surpassed General Motors, Ford, and Honda in terms of brand value foundation. It is anticipated that the inclusion of new technical elements would improve its operations in the years to come. In 2020, Uber is estimated to be worth $75 billion.

Low Fixed Expenditure

Uber works with little fixed investment (low operating costs) and has simply expanded its communication network to other cities. The company keeps growing quickly because it doesn’t have a fixed budget or plan.

Dynamic Pricing Method

Since then, Uber has maintained a consistent approach to price changes. Its philosophy of “Higher the Demand, Higher the Price” has been advantageous to its workers and business. Its employees earn a large income at night, during adverse weather, and on holidays.

Adaptive Nature

Uber’s adaptability is widely recognized around the globe. Its international presence has enabled it to adapt and blend with other cultures and nations. In turn, this has assisted Uber to gain credibility and trustworthiness.
It has been praised for its clever marketing. For instance, the firm uses social media to communicate with consumers.

Facebook, Twitter, and Instagram are utilized. Through its social media platforms, Uber informs its clients about discounts, promotions, and any updates. It also responds to client complaints via its social media platforms.

Uber’s Weaknesses

Increased Competition

Uber has faced a great deal of rivalry from local small businesses. There are no significant expenses associated with entering the ride-sharing business, since anybody with a platform, online payment skills, and marketing funds may enter the industry.

Right now, it is crystal clear that few of these competitors are cutting into Uber’s market share, lowering the company’s revenues and expansion potential.

Negative Drivers

Uber’s drivers throughout the world are becoming increasingly dissatisfied with their salaries. This is due to the fact that Uber does not routinely modify its pricing to match economic shifts. In some instances, drivers have been left with barely enough money to cover their operational expenses.

This is also as a result of Uber’s portion of the total sum charged for each ride. Some of these unhappy drivers look for ways to get around the Uber system or check out how much their competitors charge.

Dependence on Drivers

According to Uber’s business strategy, the major agents of Uber on the ground are its drivers. This is a risky method to leave your brand in the hands of individuals who may not be totally devoted to the company’s goal, and there are other reasons to be dissatisfied.
As a result, clients desiring greater interaction with Uber are limited to drivers alone. Their unpredictable conduct has made news for raising several problems against the firm.

Adverse Publicity

In recent years, the firm has been at the forefront of many controversies. This is damaging to the brand name, as many customers do not like to be associated with organizations seen negatively.

In the crisis that led to the resignation of Uber’s CEO, it was alleged that the company’s business culture was discriminating and racist. Because of this controversy, at least 500,000 Uber customers joined the #DeleteUber movement and closed their accounts.


  • Customers are frequently unsatisfied with traditional taxi services due to their high pricing and lengthy wait times. Uber seized this opportunity to render its best services to ensure the convenience of its clients.
  • In places like India, where taxi services are hard to use and expensive, the company can use this to offer more services and make more money.
  • An increase in the number of Uber drivers will decrease the ETA. This will automatically increase Uber’s popularity. The company will earn more income, and workers will also benefit.
  • If Uber can boost the company’s value, this may attract further investment. Hence, Uber will have additional operating funds.
  • The utilization of cheaper electric vehicles is another opportunity for Uber. It will minimize expenses and boost profitability for the driver.
  • Extra services, such as carrying elderly patients to the hospital, kids to school, and pets to the veterinarian, is another opportunity Uber can look into.

Uber’s Threats

Retaining Customers and Employees

Customer and staff retention might be a difficulty for Uber as the level of competition increases. Any financial offer from a competitor is enough to lure away customers and employees.


Approximately 300,000 Uber drivers have filed complaints against the firm because of its minimum pay policy. The claims reached a settlement, but they were enough to endanger and harm Uber’s brand image.

Increasing Competitors

Uber has been greatly impacted by competitors like Lyft as well as other commuting service providers.

Stringent Regulations

Many U.S. states are establishing employment laws for tens of thousands of gig workers, such as Uber’s drivers. In California, authorities concluded that all drivers must be categorized as workers. Offering benefit packages to all drivers might overwhelm or possibly crash Uber.

Employees’ Strikes

Uber, like any other service provider, relies heavily on its many employees. A strike can halt operational processes and impact profitability. In June of 2020, more than one thousand Brazilian food delivery drivers were involved in a strike to demand improved conditions for workers. If care is not taken, something like this may happen to Uber.


What challenges Uber facing?

Drivers’ status.
Risky International Expansion
Image result for Uber SWOT analysis
Risks Associated with Being an Uber Driver

What is Uber’s biggest issue?

The biggest problem may be that Uber doesn’t require its drivers to have the same licenses as professional taxi drivers, even though Uber drivers provide many of the same services as licensed taxi drivers.

Who is Uber competitor?

Zuum Transportation, HopSkipDrive, and Cabify are some of Uber’s main rivals.


Uber’s SWOT analysis reveals the company’s strengths, weaknesses, opportunities, and risks. Uber’s future seems bright. It is possible for Uber to succeed despite the negative press it has received by expanding globally and marketing effectively. Kindly drop a comment below to show your view about Uber.

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