HI, i need a speech in word document( about 850 words) for the slides 10,11,12and13, which is my part. Make sure to just cover only the slides which i have mentioned.
Sustainability issues at Uber [Name of University] [Name of Student] TABLE OF CONTENTS Source publishing the news item2 Summary of losses at Uber2 Relation of losses at Uber with sustainability3 Learnings and findings from losses at Uber and its relation with sustainability4 Future Predictions for Uber4 References6 Source publishing the news item The source that published the event of losses at Uber was Mail Online the website of Daily Mail newspaper in the UK. The website is considered as a reliable and authentic source covering different news and events that occur around the world. The website was launched in 2006 and is now the most visited website of the English language newspaper in the world. Moreover, more than 11.34 million visitors visit the website on a daily basis (Cawley, 2019). Summary of losses at Uber Uber suffered from a financial loss in the second quarter of 2019 and it is reported as the most major loss suffered by Uber which was caused because of an expensive initial public offering (Li, 2020). According to the study of Ortega (2019), the losses at Uber are considered tremendous and would be detrimental for any organisation and the spending is also set to decline in the future. Furthermore, the losses at Uber did not sit well with the investors and in the stock market Uber rushed down to 8 percent at that specific tenure. Furthermore, the CEO of Uber Dara Khosrowshahi told analysts that Uber is still committed to providing good quality services to the people and the organisation is also aiming to become profitable. Many analysts from wall-street suggested that the losses were inevitable and certain line items might have been disappointing. It is also estimated that the sustained improvement in the unit economics and better direction towards the path to profitability could attract more investors. Khosrowshahi, who was previously the head of online travel site Expedia, was hired to replace the co-founder of Uber Travis Kalanick, who submitted his resignation as CEO in 2017 (Ortega, 2019). Travis resigned because of disputes with the board over number of scandals which included allegations regarding toxic work culture. However, after the hiring of Khorsrowshahi Uber still faced number of company financial problems. The losses at Uber include the $1.3 billion stock-based compensation related to the IPO. Similarly, another $1.3 billion losses were 50% higher than before. The future for Uber is still uncertain because the stock of the company has dropped down to 30% since it went public. However, Uber also responded to this event by acquiring majority of stakes at the grocery delivering start-up known as cornershop which will allow the company to expand beyond the limits of ride sharing industry in the long-term. However, to achieve sustainability in the short-term the Uber has started a business of food delivery with huge marketing budgets. Possible Response to the Situation (Short and Long term) Khosrowshahi, who was previously the head of online travel site Expedia, was hired to replace the co-founder of Uber Travis Kalanick, who submitted his resignation as CEO in 2017 (Ortega, 2019). Travis resigned because of disputes with the board over number of scandals which included allegations regarding a toxic work culture. However, after the hiring of Khorsrowshahi Uber still faced number of company financial problems. The losses at Uber include the $1.3 billion stock-based compensation related to the IPO. Similarly, another $1.3 billion losses were 50% higher than before. The future for Uber is still uncertain because of the stock of the company has dropped down to 30% since it went public. However, Uber also responded to this event by acquiring majority of stakes at the grocery delivering start-up company known as cornershop which will allow the company to expand beyond the limits of ride sharing industry. However, to achieve sustainability in the short-term the Uber has started a business of food delivery with huge marketing budgets. Relation of losses at Uber with sustainability The losses at Uber also caused damage to the sustainability of the organisation such as the pending California legislation which would increase the driver costs for Uber and other ride sharing companies. This legislation could also be implemented in different states which would harm the sustainable business model of Uber (Čičin-Šain, 2020). Furthermore, the regulation might cause Uber to prove that the drivers of Uber are not their full-time employees. However, the CEO of Uber believes that it is not important for the company to reclassify its drivers (Epstein and Shelton, 2019). Furthermore, Uber would have to show that its drivers do not work directly under the firm and that they still work outside the premises of the organisation and are running their businesses similar to the services provided by Uber (Madrigal, 2018). The sustainability and reputation of Uber also got exposed because of the losses and the CEO had to clarify that the employees would receive expected benefits and healthcare including the certain rights that revolve around minimum wages. However, after the losses, Uber laid off more than 400 workers and one-third of their marketing department including more than 400 from its engineering department (Ortega, 2019). While the CEO is still trying to showcase the sustainability of the organisation by stating that contactors deserve more and the nature of independent working should change (Epstein and Shelton, 2019). Learnings and findings from losses at Uber and its relation with sustainability The competitive advantage in an organisation is often measured by profit share and the share of the company in the industry. Similarly, according to the study of Teece (2018) the competitive advantage cannot be attained if the industry or a company lacks profitability. Furthermore, the financial results and findings of Uber suggest that there might be no room for profits in the industry of ride-sharing. For instance, the company Lyft suffered losses of $900 million and Uber suffered damage towards its sustainability through losses of $3 billion (Alemi, Circella and Sperling, 2018). Moreover, the sustainability of Uber can get further affected because the industry has low obstacles to entry and the switching costs are also low on the supply and demand side with the drivers and consumers (Cornell and Damodaran, 2019). Furthermore, the losses at Uber highlight that sustainability is a major issue in the company because numerous other businesses are also offering the same services. According to the study of Smith (2016), the companies in the ride-sharing industry are always ready to compete by posting ads providing bonuses to drivers. Similarly, the market share of the company is also facing issues because of such heavy losses. By analysing the situation at Uber it can be seen that for any organisation to be successful it is important that a strong leadership should be present because the current CEO of the organisation lacks the ability to respond to such failures. Future Predictions for Uber The growth of Uber is slowing down and the costs are increasing at a rapid pace due to the number of competitors that are emerging progressively. However, the prediction for the future of Uber is rather unpredictable due to the rapidly changing dynamics of the industry (Horan, 2016). Working on different business strategies such as Uber Eats is a more sustainable strategy. Furthermore, the CEO of Uber persists that Uber is able to survive in this industry and highlighted the 26 percent year-on-year growth. Moreover, the study of Gibbings and Taylor (2019) discusses that the company might face cash limits and restrictions because currently, Uber has about $15 billion in cash therefore, the cash burn for Uber can become a tenacious problem (Munn, 2019). However, the study of Yablon (2019) suggests that Uber can still find its place in the market by creating further developing and acquiring more sustainable position. Conclusion The future of Uber is still under threat because of its decision making that are mostly undertaken at the board level. However, Uber is still competitive in the market and has the ability to retain its sustainability by focusing on its key resources such as technological hunt, brand image, cost structure and other promotional activities that it undertakes. Despite all this, Uber needs to focus on strong leadership because their current business model is not sustainable. Furthermore, due to ride competitive ride sharing market the future for Uber in the ride sharing industry is not sustainable. References Alemi, F., Circella, G. and Sperling, D., 2018. Adoption of Uber and Lyft, Factors Limiting and/or Encouraging Their Use and Impacts on Other Travel Modes among Millennials and Gen Xers in California (No. 18-06713). Cawley, A., 2019. Digital transitions: The evolving corporate frameworks of legacy newspaper publishers. Journalism Studies, 20(7), pp.1028-1049. Čičin-Šain, N., 2020. Taxing Uber. In Uber—Brave New Service or Unfair Competition (pp. 181-198). Springer, Cham. Cornell, B. and Damodaran, A., 2019. The Big Market Delusion: Valuation and Investment Implications. Available at SSRN 3501688. Epstein, M.J. and Shelton, R., 2019. WHEN THE CEO IS A BRILLIANT JERK. Strategic Finance, 101(3), pp.22-29. Gibbings, S.L. and Taylor, J., 2019. A Desirable Future: Uber as Image-Making in Winnipeg. Communication, Culture and Critique. Li, M., 2020. Uber Future Value Prediction Using Discounted Cash Flow Model. American Journal of Industrial and Business Management, 10(01), p.30. Madrigal, A.C., 2018. Million Uber Drivers Are About to Get a New Boss. Retrieved in April. Munn, L., 2019. Cash Burning Machine: Uber’s Logic of Planetary Expansion. tripleC: Communication, Capitalism & Critique. Open Access Journal for a Global Sustainable Information Society, 17(2), pp.185-201. Ortega, R., 2019. Uber Posts Record $5.2Billion Losses, 'But Is Absolutely Sustainable'. [online] Mail Online. Available at:
[Accessed 20 March 2020]. Teece, D.J., 2018. Business models and dynamic capabilities. Long Range Planning, 51(1), pp.40-49. Yablon, C.M., 2019. The Lawyer as Accomplice: Cannabis, Uber, Airbnb, and the Ethics of Advising Disruptive Businesses. Minn. L. Rev., 104, p.309. Sustainability Issues at Uber Dr. Frank Alafaci 1 Source publishing the news item Daily Mail UK (cont.) 2 2 Daily Mail UK Reliable Authentic Most visited website More than 11.34 million visitors daily 3 The source that published the event of losses at Uber was Mail Online the website of Daily Mail newspaper in the UK. The website is considered as a reliable and authentic source of different news and events that occur around the world. The website was launched in 2006 and is now the most visited website of English language newspaper in the world. Moreover, more than 11.34 million visitors visit the website on a daily basis (Cawley, 2019). 3 Summary of losses at Uber 4 4 Losses of $3 billion Stock market crash down to 8% Commitment towards quality Employee turnover Resignation of CEO