Can be considered different than many firms where

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can be considered different than many firms where they provide specialized products and  services. Customers in terms of Uber’s perspective is not simply just the riders, but we also have 
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to consider the drivers as part of Uber’s customer base. In terms of the riding customers, the  “lock-in” mechanism is mainly through loyalty, which is usually providing them with monetary  compensations such as free ride coupons. However, as discussed above, the riding customers are  free to use its competitors’ businesses with very high ease (changing apps in the phone).  Therefore, customer service seemed to have been the main differentiating factor in keeping  customer loyalty. These services may come in forms of direct contact with Uber, but it can also  come in forms of quality of vehicles and drivers that Uber matches the riders with. In terms of  the driving customers, Uber has instated several mechanisms to keep the drivers to work for  Uber. By notifying the drivers of the high demand areas and giving them driving bonuses for  delivering certain number of rides, Uber uses a “quest” system to prevent drivers from switching  over to its competitors’ platforms.  These fights to keep both the customer and drivers loyal to Uber has been a constant  struggle. Furthermore, due to recent allegations regarding sexual misconducts and changes in the executive levels such as Travis Kalanick going on leave, the current reputation of Uber has been  declining. With the harsher regulations in several countries making hard for Uber to expand  more extensively to other countries, we believe Uber needs a change.  In the following  discussion, we will discuss the rationale behind the support to further develop self-driving cars  and its potential benefits and impact.  Future Recommendations Uber has been lacking true specialization, and it has been slowly losing its market share  to rising competitors. Therefore, Uber needs to essentially find a way to either increase its 
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market share or profit. Since we have discussed the limitation in increasing market share –  competitors and regulation – we believe the best way to approach Uber’s future strategy is to  increase the profit margin. To do so, we can consider increasing the revenue or decreasing the  cost, but since the majority of the customer base is highly price-sensitive and the fact that Uber  does not have a strong enough market power to set the price, increasing the revenue seems to be  difficult. As a result, we believe cutting cost through restructuring Uber’s cost scheme is the  most efficient way to approach Uber’s problem. Currently, Uber only takes commission from the
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