INSURING UBER’S APP-ON GAP-SOLUTION: Summary
The case discussion was based on an incident which occurred between an off duty Uber
driver and a family (pedestrian). In which the family of 3 got ran over by the driver, leaving one
member dead and two severely injured. Because of the prominence of the Uber company, it was
easy for the general public to point their fingers at the company and quickly blamed them for the
mishap. Even though Uber explain that the driver was off duty when the accident occurred, the
state was not hesitant in its steps to create a bill that would require Uber and other ride-hailing
companies to provide “commercial liability insurance from when the driver turned on the app to
when the customer got out of the car, thus filling the app-on gap” (Lawrence, James (15th Ed).
Questions; INSURING UBER’S APP-ON GAP-SOLUTION
1.Who Are Uber’s Relevant Market And Nonmarket Stakeholders In This Situation?
Uber’s relevant market stakeholders would be Uber’s employees and the people that
utilize Uber’s services. Whereas it’s non-market stakeholders would be the taxi companies and
other competitors, the government, the American insurance companies, and people that do not
support Uber (Lawrence, James (15th Ed).
2.What Are The Various Stakeholders’ Interests? Please Indicate If Each Stakeholder
Would Likely Support Or Oppose A Requirement That Uber Extend Its Insurance To
Cover The App-On Gap.
Uber employees will support the requirement because the law will decrease the amount
of risk that they previously had to take on and also lower their private insurance cost.
Uber customers will also support the requirement because in case of an accident, there
will be less of a hassle (run around) for victims to get their timely and proper coverage, rather than having to deal with multiple insurance companies that may be unwilling to pay the required
coverage fees to victims.
Taxi companies will support the requirement because such a law will reduce Uber’s
competitive advantage and create a level field where Uber and taxi companies will be paying a
form of commercial insurance.
Lastly, the government will also support the requirement because based on bans played
on Uber in many different states and cities, it shows that they are in full support.
As it pertains to stakeholders that would be against the requirement, Uber’s competitors
may fall into this bracket. This is because, if Uber is forces to provide an enhanced level of
insurance coverage to its users, this may also fall into effect for competitors. Meaning, other
companies that provide similar services to Uber will also have to upgrade their insurance
coverages (Lawrence, James (15th Ed).
3. What Sources Of Power Do The Relevant Stakeholders Have?
Uber employees have the power to form a union, strike against the company, or even quit
the job. Uber customers have the power to sue or file claims against company. The government
has the power to create laws that Uber must enact. The American insurance companies has the
power to support the laws made by the government (Lawrence, James (15th Ed).
4. Based On The Information You Have Draft A Stakeholder Map Of This Case Showing
Each Stakeholder’s Position On The Issue And Degree Of Salience. What Conclusions Can
You Draw From The Stakeholder Map? INSURING UBER’S APP-ON GAP-SOLUTION
By creating and reviewing their stakeholders map Uber can conclude that the American
insurance companies, the government and Uber’s customers have a higher support in the urge to close the app-on-gap; whereas Uber’s competitors have a low support in the urge to do so
(Lawrence, James (15th Ed).
5. What Do You Think Uber Should Do In Response To The Bill Introduced By Susan
Bonilla And Why?
Uber can work with smart car builders to create enhanced vehicle systems through the
use of added technology that can lower the risk of vehicular accidents.
They can work with different insurance companies to create a special type of coverage,
suitable enough to help victims in an accident without it weighing heavily one Uber’s employees.
Uber can also offer training to their employees on how to properly ensure the safety of
themselves and others when on/ off the job.
The company can also work with lawmakers to ensure fairness across the board
(Lawrence, James (15th Ed).
References
Lawrence, T. A.& James W. (15th Ed). Business and Society. Mc Graw Hill. https://www.mheducation.com/highered/category.10323.business-society.html?page=1&sortby=relevance&order=desc&bu=he