Email Memo
Words: 550
Pages: 1
106
106
DownloadEmail Memo
To:
From:
Date:
Subject: Uber’s competitiveness and operational issues
Dear,
Following our previous meeting regarding the need to identify our competitors’ operations within the market, I have done intensive research on Uber and identified several scandals that have plagued the company in the recent past.
Uber is rife with employee-related crises denoted by the resignation of executive employees. Despite the mystery surrounding these departures, it is clear that Uber’s staff retention strategies wanting. Additionally, allegations were raised against their Chief Operations Officer regarding insensitive racial and gender-based comments. Clearly Uber has administratively failed to protect its employees.
Uber’s problems do not end with their employees; they spill over to their stakeholders. If given a chance, Uber’s drivers would defect to a competitor that offers friendlier terms. Fare reductions coupled with the high costs of maintaining their vehicles have left the drivers with meagre earnings, making them feel shortchanged. Uber has failed to incentivize their customers enough to make them want to stay with their company.
Recent research indicates that among 86% of ride-hailing app users aged 65 and above and 69% of millennials affirm that a company’s reputation influences them on which application to use. Therefore, with Uber’s failing reputation, Lyft has the chance to increase revenues through the following strategies:
Employee retention strategies: Lyft can adopt better employee retention strategies through inclusion, freedom from discrimination and work safety policies.
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Partner engagement strategies: Lyft should consider engaging drivers to understand better their problems and how best the company can resolve them. Upon getting the feedback, the company should implement the agreed changes, so that we operate a driver friendly company that draws in new drivers.
Establish and improve customer loyalty: It is clear that our customers are the driving force of the company. Therefore, each one of Lyft’s strategies should be modeled to ensure that the clientele is content.
So as to improve its market position, Lyft should take advantage of Uber’s situation, learn from its mistakes and adapt to serving the clients better. In line with this, I write to request for a meeting, subject to your convenience, to discuss this matter further. Thank you for your time.
Kind regards
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