Swot And Pestle Analysis On Uber Afterpay

Organizations such as Uber and AfterPay are currently being featured in the media as a result of difficulties they are experiencing as an organization. The ethics, organizational culture, and management involved in Uber and AfterPay can be portrayed through the experience of the workforce and the customers

Executive Summary

Uber is a transport company that allows people to book their transport using an app on thr other hand Afterpay is company which finances a product for the customers and they can pay for it later in instalments and both of these are being featured in news because of some issues related to management customers and ethics. The issues the organizations are facing can additionally be analyzed through the impact of macroeconomic forces such as political, economic, sociocultural, technological, legal, and environmental factors. The organizations also have several strengths which will further enhance their opportunity in their national market, and weaknesses which can be detrimental to their future.

UBER

Uber is a transportation network company that allows customers to access transportation via smartphones. The company is being criticized for low wages towards its workforce.

The positions in the labor force tend to be temporary as is dependent on the contractor who hires workers independently. To note, as example “Driver Andrew, who also declined to give his surname, said he worked 60 to 70 hours a week but, after four years with the company, was finding himself earning about $700 a week, less than the minimum wage of $719.20 a week (1). The neglect of the workers is evident as with a rally that “struck May 8, the day Uber went public. Joined by unions in London and in Melbourne, Australia, drivers from at least 12 U.S. cities participated in the first globally coordinated protest against rideshare companies Uber and Lyft(2).”

Uber Australia: SWOT

opportunities are prevalent in the company as they have a system in which drivers are rated which aids to account for issues faced in the drivers task performance so the customer has the option of cancelling a ride .They also have strengths that appeal to the consumer such as a low fixed investment, and with that also comes a strong brand recognition. Weaknesses Uber faces is the multiple accounts of sexual misconduct, posing legal threats as with lawsuits and protests against the organization.

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Uber Australia: PESTLE

From a political standpoint, the Labor Party and Greens have been having a growing concern towards the effects of the gig economy on its workers as with fair work conditions and a decent wage. Laws that are being put into effect which may alter the success of Uber are the Sydney Lockout laws which have been introduced in 2014, as well as the change to a 24 hour public transportation system. The Lockout laws were created with the intention of decreasing alcohol fueled violence through the prohibition of going to night time entertainment centers such as clubs past 1:30 am. As told in The Guardian, Premier Berejiklian and the NSW committee informed that “We have always sought to strike a balance between limiting alcohol-related violence and maintaining a vibrant night-time economy,' and so the effects of the laws are to be examined in 2019 (3). Uber is also affected economically if there is an increase in fuel, forcing the company to raise workers wages. Additionally, there are issues the company might face at the sociocultural level as with being susceptible to going out of business if a better form of a driving-technology relationship comes to form, especially if it is an improved environmentally friendly public transport system.

AFTERPAY TOUCH LTD.

Afterpay makes online shopping more efficient if money is not readily available through installments. The company is criticized for leaving individuals in debt.

Afterpay is a company that offers pay in four equal installments every two weeks for eight weeks. Afterpay is facing criticism in the news and suspicion of anti-money laundering laws. Afterpay is being investigated and to be assisted with AUSTRAC in result of such complaints. The company is being accused of “pushing one-in-six young people into debts they cannot afford(4).” It has been reported that the company gets 24% of its money from late fees as reported in 2017-2018.

Afterpay: SWOT

Despite of the various factors that impact the management of Afterpay, it has several strengths such as a strong free cash flow. Despite the strong free cash flow being a sign of a prospering organization, Afterpay also demonstrates itself to being inefficient in terms of financial planning as evidenced by their current asset and liquid asset ratios. Opportunities are probable in the organization such as lowering the inflation rate enabling credit at a lower interest rate to the customers of Afterpay Touch Group Limited. Threats to the organization as an example would be a limit to what products or innovations Afterpay can put on the market as they must uphold the standards of the Paris Climate Agreement.

Afterpay: PESTLE

Afterpay is another organization whose management can be examined through various macroeconomic factors., Afterpay has risen the concern of political figures as in the senate. They have been criticized with anti-money laundering laws and are facing legal issues for putting its customers in a financial crisis. The company would have issues setting dates to court as they would have to consider averaging times for specific cases, as they work with pay in installments. Additionally to legal considerations that factor into its management, Afterpay is also being influenced by technological and sociocultural factors. Afterpay mostly caters to a younger audience as it works primarily online. This makes the company susceptible to inexperienced customers who are also facing the issues of economic factors in Australia, such as a growing inflation. Working mostly with the fashion industry, there are also environmental concerns regarding product innovation and what products are being put on the market. Being restricted to the Paris Climate Agreement, Afterpay is influenced by the need of ethical considerations which uphold environmental standards, as opposed to traditional methods in the fashion industry.