Operations Management, 12e (Heizer/Render/Munson)
UBER TECHNOLOGIES, INC.
Company Videos
1. The market has decided that Uber and its immediate competi
tors are adding efficiency to our society. How is Uber providing
that efficiency?
First, some drivers (maybe most) may not require a wage that
equals those fully engaged in the “taxi” business. It truly could
be a supplemental income. . . . “I’m going that way anyhow
so let’s make a few dollars while on the way.” Similarly, the
capital investment cost approaches zero as the car is going that
direction anyhow. These are idle or underutilized resources.
From society’s perspective, Uber and its like competitors are
desirable because both idle or wasted labor and capital resources
are being utilized. At the same time, as a bonus, Uber is reduc
ing traffic and auto pollution while speeding up the transport of
individuals and local commerce.
As a competitor for the traditional taxi service, Uber seems
to be an enhancement in efficiency.
For those faculty who what to spend some time on the larger
productivity message, this case provides such an opportunity.
Uber, as Joseph Schumpeter would suggest, has developed a
disruptive technology (creative destruction, in a Schumpeterian
translation). Innovations such as this are exactly how economic
efficiency is enhanced. The traditional taxi services, with some
imagination, could have developed and adopted this technology,
but most were ensconced in their own regulatory cocoon. As is
often the case, it takes an outsider, such as Uber et al. to be crea
tive by putting unused resources to use and providing society
greater efficiency.
LO 1.6: Identify the critical variables in enhancing productivity
AACSB: Analytical thinking
2. Do you think the Uber model will work in the trucking
industry?
Perhaps a business model similar to Uber’s can be applied to the
trucking industry. An estimated 30% of trucking backhauls are
empty. However, the number of independent truckers or truckers
with the latitude to alter their route may be very small. And this
number must be a tiny fraction of independent automobile drivers.
So the ability to “Uberize” trucking may be very difficult. Utilizing
that idle 30%, if it can be done, is a huge benefit to society. We will
see.
LO 1.6: Identify the critical variables in enhancing productivity
AACSB: Analytical thinking
3. In what other areas/industries might the Uber model be used?
Perhaps the Uber model can be used for package delivery, docu
ments, and everything from flowers to groceries. Airbnb
(www.airbnb.com) is applying a similar model to short-term rent
als of rooms, apartments, and homes—competing with more tradi
tional bed and breakfast facilities and hotels.
LO 1.6: Identify the critical variables in enhancing productivity
AACSB: Analytical thinking
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Operations Management: Sustainability and Supply Chain Management, 12th Edition (Free Ebooks Download)
Jay Heizer, Texas Lutheran University
Barry Render, Graduate School of Business, Rollins College
Chuck Munson, Carson College of Business, Washington State University
Free Online Course Materials
1. Operations Management Ebooks - Free Downloads
2. Slides - 11th Edition - Free Downloads
3. Slides - 12nd Edition - Free Downloads
4. Full List of Videos Case Studies - Link
5. All articles about Operations Management
http://topten.edu.vn/mba-cases/94-mba-operation-management
6. Need any help with case study guides, email: ecomftu2012@gmail.com
Good Luck and Success!
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