What challenges does Uber face during Global expansion?

As stated in the weaknesses and threats sections in Uber’s SWOT analysis, the company faces
the following challenges:

Is Uber's vulnerable since is easy for others such as DIDI Kuaidi in china and ola in India
to imitate ?

Given the nature of the competitive environment, and particularly the threats and weaknesses
revealed by the SWOT analysis, it is an undeniable fact Uber is vulnerable. As a mater of fact,
Uber

Can uber overcome the challenges from foreign governments?

But in a Europe and in Asia, Uber’s arguments have been strongly contested. Unless Uber finds
new “hustling” strategies to continue eluding regulations, they will not overcome these
challenges. Uber will have to submit to regulation or exit markets.

Should it try to collaborate with these governments ? If so, how?

Uber should definitely try to collaborate with governments. This implies submitting to
regulations. Regarding the regulation of sharing economies, Barro (2018) indicates that
companies and lawmakers are speaking the same language, climbing down from extreme
positions, and doing better at finding compromises that grasp the benefits of business innovation
while limiting unintended costs imposed on communities.

seems to be the case with Hong Kong, who, as Povkin admits, has shown no interest in Uber’s
proposal to offer solutions for Hong Kong’s plans to become a smart city.

What are the pros and cons of doing so?

If collaboration implies submitting to regulations, it will have a definite impact on operational

costs for a Uber. Then, if the company passes the cost down to them, consumers and employees
(business associates or independent not contractors) will also be affected. While consumers
could pay higher fares, drivers could have to pay for special licensing and permits, buy more
insurance, and improve vehicle functioning and safety out of their own pockets. Uber would lose
some competitive advantage and profits of course as their cost approach those of competitors.

However, this would level-up the field, in terms of fair competition for taxi companies and other
public transportation providers who are subject to laws and regulations that Uber and similar
companies are not. Uber, who had been getting the lion’s share over these traditional companies,
would have to decide whether to make strategic alliances to absorb the higher costs, or exit the
market. As data shows, Uber’s new CEO leans toward abandoning leonine practices and
establishing partnerships.

What strategies should Uber Implement to expand globally?

Global strategic alliances, work partnerships

For western companies expanding to China, it is often critical to align with the right local business
partners. Local companies typically have a better handle on the cultural, economic, and political
environment, and can help foreign firms navigate the full set of risks they face (Salomon, 2916). This
premise seems to apply Uber global expansion to many countries comprising the Asia-Pacific global
region where the company has failed horribly.

One answer to Uber’s situation is the establishment Global Strategic Alliances. A global strategic
alliance is usually established when a company wishes to edge into a related business or new geographic
market, particularly one where the government prohibits imports in order to protect domestic industry
(Delaney, 2019).

Some revenue is better than no revenue. Firms are guided by the profit motive. Uber should implement
both, strategic retreats (exiting a market where it is losing and acquiring stocks in superior rival
companies) and strategic alliances (as defined above) in its efforts to continue to expand globally
particularly in countries where it has not been able to face monumental competition and rigid government
regulations. In fact, this is exactly what Dara Khosrowshahi, Uber’s new CEO is proposing to achieve in
Hong Kong, China (Yau, 2018 ), and in Japan (Kikuchi and Kanematsu,2018) abandoning what he calls
Uber’s toxic culture (Russell, n.d). In a Japan, according to Kikuchi and Kanematsu (2018), Uber’s CEO
Dara Khosrowshahi was on a mission to change Uber's image -- a scandal-filled, expansion-mongering
startup -- into that of a friendly company that is in Japan to help the country's taxi industry. Yao states that
Khosrowshahi has vowed to change Uber’s unruly behavior and to mend relations with the local taxi
industry in Hong Kong.

Consistent with this global strategic alliances, Horowitz (2017) posits that Uber announced a partnership
with Howa Taxi, an operator of taxi fleets across Bangkok, to add its more than 5,000 cabs to Uber’s
existing fleet of vehicles so that users in the city will hail a Howa cab using the UberTaxi option on the
app and pay online. Similar alliances are forming in other markets as Uber intends to survive in the Asia-
Pacific region.

Barro, J. (2018). Governments are getting better at regulating the 'sharing economy'
https://www.businessinsider.com/governments-regulating-sharing-economy-uber-scooters-2018-8

Delaney, L. (2019). Advantages and Disadvantages of Global Strategic Alliances. Retrieved from
https://www.thebalancesmb.com/global-strategic-alliances-advantages-and-disadvantages-1953552

Horwitz, J. (2017). After years of battling against city taxis, Uber is embracing them in Asia
https://qz.com/1153795/uber-asia-after-years-of-battling-against-city-taxis-uber-is-embracing-them/

Kikuchi, T. & Kanematsu, Y., (2018). Uber turns over a new leaf in Asia.
https://asia.nikkei.com/Business/Multinationals-in-Asia/Uber-turns-over-a-new-leaf-in-Asia
Russell, (n.d.). Uber’s new Asia chief wants to work with governments and taxi firms not against
https://techcrunch.com/2017/11/11/uber-takes-a-different-approach-to-asia/

Solomon, R. (2016). Why Uber could’nt takeChina? Retrieved from

http://fortune.com/2016/08/07/uber-china-didi-chuxing/

Yau, C. (2018). Uber says it has changed its ways and is willing to partner with Hong Kong government to
help smart city plan. Retrieved from https://www.scmp.com/news/hong-
kong/transport/article/2171602/uber-says-it-has-changed-its-ways-and-willing-partner-hong

This is where Uber erred: It tried to tackle a risky and complex market alone. Partnering with a company
like Didi from the outset might have saved Uber some costly pain, and the embarrassment of having to
accept a role as junior partner in a Chinese company.

A ride-hailing battle in South-East Asia

Anthony Tan and Hooi Ling Tan, unrelated founders of Grab, a Singapore-based ride-hailing platform,
and Nadiem Makarim, founder of Go-Jek, an Indonesian scooter-ride startup, all graduated from
Harvard Business School in the same year.
https://www.economist.com/business/2018/09/29/a-ride-hailing-battle-in-south-east-asia