Uber SWOT Analysis 2021

Uber SWOT Analysis 2021

Uber SWOT Analysis: Uber is a tech-savvy company that was established in the year 2009. It is a fantastic way to connect the transport industry and technology by utilizing its ride-sharing app. 

In 2014, the company was rated as the top valued venture-backed company. Uber provided its services in more than 200 cities across 53 countries as of 2014.

Uber can be valued at more than US 40 billion. That means that its worth is greater than the total U.S. taxi and limousine industry. It is anticipated that the company will earn annual revenues of $10 billion by the year 2015.

There are many reasons users are enthralled by Uber. It provides a convenient more efficient and cost-effective means of reaching a destination. 

Uber SWOT Analysis

However, the company evokes several opposing emotions as well. Local governments as well as traditional taxi drivers as well as a select group of Uber drivers are not happy with the business practices that Uber is engaged in.

Given these different opinions, Uber should make some modifications. There are many who question Uber’s capacity to dominate the transportation industry in 2015. 

A SWOT study might be the best alternative in this situation. It can help you understand the potential threats and opportunities that the company may face. It will also aid in discovering Uber’s strengths and weaknesses Uber is.

Weaknesses, as well as strengths, are internally derived variables. Uber is in control of these aspects. Potential and weakness are external factors that affect SWOT. 

Uber has no power over external factors. However, it has to be proactive in identifying opportunities and stay clear of dangers. In the following, I’ve provided this SWOT assessment for Uber.

Background of Uber

Company Name Uber Technologies Inc.
Industry Transportation
Founded March 2009
Founders Garrett Camp, Travis Kalanick
CEO Dara Khosrowshahi
Headquarter San Francisco, California, U.S.
Annual Revenue $11.139 Billion (FY 2020)
Website www.uber.com

Step by Step Guide to Uber SWOT Analysis

Strengths Of Uber

Uber SWOT Analysis

  • Market position – Uber dominates the ride-sharing market because they invented it. They enjoy a 77% market share in the US, completing approximately 40 million trips per month. Lyft, which is Uber’s main competitor, has just 10% of the market.
  • Convenience – a large part of Uber’s success has been due to its ability to make ride-sharing more convenient and cost-effective than hailing a taxi. A low-cost ride can be hailed with the simple push of a button in their app.
  • Diversification – although quick to find success in ride-sharing, Uber has not wasted any time diversifying its services. Food delivery (Uber Eats), rental cars (Uber Rent), and bikes (Uber Bikes) are some examples. Uber has also managed to effectively bundle many of these services together, increasing market share, revenue, and profits.
  • Technology – without a well-functioning app, Uber’s core business model would fail. Thus, the company boasts a strong technology department that works relentlessly to improve the Uber app experience for consumers.

Weakness of Uber 

Uber SWOT Analysis

  • It is not very successful in merging firms with different work cultures. In the past, while Uber has been successful in merging small businesses, it has had its fair share of failures to integrate firms with different work cultures.
  • Days inventory is higher compared to other companies – requiring Uber additional capital in order to fund investments into the business. This could affect the growth rate of Uber
  • Unprofessional in forecasting the demand for its products which leads to a greater chance of missing opportunities compared to its rivals. One reason behind the inventory levels of the days are higher in comparison to competitors is because Uber isn’t very adept in forecasting demand, and thus ends with a higher inventory, both within the company and through channels.
  • The amount of money invested in Research and Development is below the top performers in the field. Although Uber has spent more than the average on Industry Research and Development, it is unable to compete with the top companies in regards to technological innovation. Uber appears to be an established company that is looking to launching products based on proven characteristics that are available on the market.
  • It is time to invest more in the latest technologies. With the size of the expansion and the different regions, Uber is planning for expansion into Uber should invest more into technology to bring processes together across all departments. The investment currently in technology isn’t up to in line with the plans of the company.
  • Limited success outside of its core business. Uber is among the top companies in its field, it has had difficulties transitioning to other product lines in its current culture.
  • The ratio of profitability and Net Contribution percentage of Uber are less than the industry standard.

Opportunities Of Uber

Uber SWOT Analysis

  • Customers are usually dissatisfied with traditional taxi services due to the high cost and lengthy waiting times.
  • It is able to tap into the new and large markets in countries such as India in which taxis are difficult to access and costly.
  • Markets are growing in suburbs in which taxi services aren’t accessible.
  • The increase in the numbers of Uber drivers will lower the Estimated time of arrival. This makes Uber more popular. Uber will earn more money and the drivers will benefit also.
  • Uber could increase the value. It could attract more investors. In the end, Uber will be able to raise more funds to continue operating.
  • Electric vehicles that are cheaper are available. This will lower the cost and improve the driver’s profit margin.
  • Additional services , such as transporting older patients to the hospital, taking children to school, or transporting animals to the veterinarian could be provided.

Threats Of Uber

Uber SWOT Analysis

  • The biggest threat facing Uber is the ever-changing laws and regulations in every nation. One simple change to the law could prohibit Uber from operating across the entire country.
  • In the meantime, the traditional communities of taxis are pushing hard for the implementation of some kind of regulation. They aren’t able to be competitive with Uber in terms of price.
  • Dissatisfied drivers pose the biggest threat since they band together and bring lawsuits against the company. The result is financial loss and damage to the brand’s image simultaneously.
  • Now the competitive landscape is beginning to catch up. Drivers and riders are offered a wider selection of platforms to choose from that eventually reduces the cost of transportation. Uber is required to work hard to remain competitive and maintain an advantage over the other platforms.
  • The sudden surge in demand following the pandemic and the lockdowns in 2021 has revealed Uber to be in a bind for available drivers. This has meant that fair prices have increased significantly. In the end, customers are searching for alternatives to travel.
  • In the event that Proposition 22 won’t remain in force, Uber and other ride-sharing applications could be required to repay millions of dollars worth of sick leave, benefits, and other benefits. The drivers won’t be considered contractors, but instead as employees.


What is a USP analysis?

It is the Unique Selling Proposition or USP Analysis is an approach that is used to highlight the unique qualities of a product that is promoted to the company’s customers. Particularly, this analysis concentrates on the features that differentiate the company from its competitors.

What is Uber’s USP?

Uber’s USP that is unique to Uber is that it’s not like traditional taxi companies which are based on owning taxis and hiring taxi drivers, rather, it connects the user to a taxi driver, and receives a percentage of the cost.

What is the competitive advantage of Uber?

Another reason for Uber’s competitive edge (as mentioned in an earlier HBR.org report) maybe its omission of regulations. Uber employs noncommercial vehicles which means that its drivers do not have to pay for costly tax-related insurance, taxi medallions, and other expenses that offer Uber services with a competitive cost over traditional taxi companies.

What is the uber black?

Uber Black now accepts cars with other colors than black
Prior to this, only black vehicles could be entered into the category. The category is perceived as more luxurious, and as a result, offers more expensive races for users as well as greater rewards for drivers.

How many countries does Uber operate in?

Uber is available throughout more than 80 different countries across the globe. Uber is currently operating in more than 85 countries but there are a few tourist-friendly destinations in which Uber isn’t accessible.

Is Uber Eats successful?

The year 2020 was the time that Eats was a key component in keeping the business going, as Uber’s ride-hailing service saw fifty percent lower revenue than a year prior. Eats has increased revenue over its Mobility division since the end of Q2 2020, however, Uber believes that ride-hailing will surpass food delivery when a number of major countries return to normal.

What are Uber’s biggest markets?

What are the biggest markets for Uber around the world? Uber is able to process 22% of its mobility bookings gross within just five metropolitan areas: Chicago, Los Angeles, New York City, Sao Paulo, and London. In 2020, these five cities accounted for $5.85 billion in bookings total.

Who uses Uber the most?

Most Uber customers are between the ages of 16 and 34. period. However, 35% of users are older than 35. All income levels utilize Uber. But only a tiny portion of Uber customers are from rural areas.

What is Uber’s main goal?

Uber’s mission statement reads ” Transportation as reliable as running water, everywhere for everyone.” It is a clear way of saying that the mission statement focuses attention on the things that Uber is all about – providing its customers with exceptional services. The following elements are connected to this mission statement: Enhancing lives.


This review of the SWOT profile for Uber that is discussed within this piece has revealed its strengths as the primary strength of the brand, which stems out of its brand’s value as the most popular ride-sharing service, with low fixed investment and a dynamic pricing strategy.

its adaptability, cost-effectiveness, the ease of communication between the driver and the customer through the app, numerous features aside from the ride, and the numerous security measures Uber has, as a market leader worldwide with a focus on the customer and the flexibility of its business model.

Uber is aware of its flaws by having numerous dishonors, huge losses in revenue, dependence on the web and employees which is subject to public scrutiny, and also having a copycat business model. 

Uber sees a chance in many aspects of enhancing its efficiency, implementing complete digitization using driverless technology, entering into logistics, and establishing partnerships with the hospitality and tourism industry.

The risk is that of keeping employees and customers being sued, having huge competition, global problems, and data breaches.

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