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Electronic Commerce in The Digital Era

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To develop a complete understanding of the subject of electronic commerce in the digital era, we will analyze the Uber company, first analyzing the e-business models, online platforms and social media channels that they have. Also, its application and website analyzing the internal components of the same and as with some suggestions could improve its platform and website quality and finally some strategies and tools for the best performance of the platform.

Company introduction

Uber is a platform founded in 2009 under the company Uber Cap, in order to solve a problem to people with respect to the mobility of the same and was so answering your question to how do you get a trip with the push of a button ?, the company developed an application for mobile phones and with usability through the internet to solve it and with just one click have a means of transport at the door of your house, easily, simply and safely. Currently Uber has different services such as Uber Eats (deliver food quickly and affordably) Uber Pool (users can share and divide the price of a journey) pay with cash (only in India at the moment), safer transport with driverless cars, Uber Freight (connects road transport companies and their drivers directly with carriers), Uber for Business (all in one solution that simplifies how your organization gets around), UberHealth (to facilitate the transportation of people who need permanent medical assistance or the help of a nurse) in addition to positioning themselves in 500 cities around the world in more than 24 countries with their additional products and services: UberX, UberBlack, UberMoto, UberGo, UberSelect, UberVip, UberBike and UberAuto. Uber’s main vision is to reduce congestion in cities by making more people consume fewer cars. That is why in the future they are seen with the largest transport company and they plan to launch Uber Elevate to carry out air transport.

Classification of E-Business

The online platform of Uber and its application is considered an e-business model mainly BUSINESS TO CONSUMER (B2C) because it is a commercial platform that offers different products and services to customers. The B2C model refers to commerce between 2 or more business includes retail transactions of product or services (Uber drivers) to individual shoppers (consumers, people who are looking for the service). In the case of Uber, the transaction process carried out on the platform is: Client orders his service or product (UberEats), obtains the information of his service (license plate, name of the driver, location and telephone) realizes the order (accepts the rate) and waits by following through your application the geographical location of your product or vehicle, once finalized, the payment is made through your credit card previously connected with the application. Uber has B2C characteristics since it has a digital platform or application for mobile phones where it offers a direct sale and online catalog in the case of restaurants. With this Uber offers an instant communication between the people that offer the service to their final consumers, a global access since it is an application that has coverage in more than 24 countries in 500 cities, personalization thanks to the fact that the service is unique for each client and greater availability since it is 24/7 every day of the week at any time.

Electronic business models

Uber’s B2C business model uses different platforms such as its website, application, Facebook, Instagram, Twitter and LinkedIn to promote its business, offer its products and its launches or news on the Internet. Uber has sales revenue models by offering on its Uber Eats platform various restaurants allied to its service, transaction fees since the company as such receives a commission based on the transactions made by the service offered in its different lines. Additionally, it has the online marketing business model since the sales generated from the website (UberEats) are from restaurants to customers, making the distribution more efficient. They also perform viral marketing by offering flyers with discount promotional codes in their first services or among current users by sharing a code so that each of them can share with their friends via Facebook, email or WhatsApp and offer them the first free trip for example. Finally Uber sends to its database constantly emails with news, new services or information of interest.

Benefits, limitations and impact of E-Business

Benefits:

  • Uber manages a cost-effective marketing since all your marketing efforts are to direct traffic to your website or application. They use different tactics of digital marketing between social networks, email, and offline marketing.
  • Flexible business hours: Uber has a schedule 24 hours a day, 7 days a week, your business never closes, and they break the time barriers through their application.
  • Eliminates geographic boundaries: Uber is a global company that is in more than 500 cities around the world, which allows having a global reach of its application.
  • Reduces transaction cost: Through the application, Uber reduces the cost per transaction because it requires less staff to complete your online transaction. It eliminates the need for a seller, in addition to a physical location.
  • Low overhead costs: Uber reduces the costs involved with the execution of a physical location, rent and public services, in addition to reducing the cost of employee payment since you do not need someone to manage your application or website.
  • Limitations:

  • Security and Integrity Issues: Each Uber user must enter their personal information including their credit card, computer hackers can collect this financial data and initiate identity theft. This prevents several countries from distrusting the use of this application. Uber must guarantee its customers the security of their personal data.
  • Momentary Intangibility: UberEats does not offer the customer a physical proximity to the food purchased until delivery.
  • Impact:

  • Supply chain: Uber has had an impact on the operational efficiency of its supply chain. The ability to share information in real time of the location of the service and the user, responds effectively to the needs and objectives of the company creating a perfect exchange of information and workflow.
  • Customer service: Uber through its communication 24/7 through the application improves the quality of customer service and responds to your needs or concerns in real time.

Major drivers of E-Business in digital age

Uber provides efficient and effective commercial transactions in addition to a global reach. It has as an additional advantage that users can compare prices (between different automobile services), personalize products and services and use through all their social networks a constant communication and publicity in addition to sharing relevant and contextualized information to the company. Additionally, an efficient transaction, a global reach and all the information of its products and services are carried out online.

E-Marketplaces mechanisms and tools used in Digital Age

E-markets components and participants

The company is conducting its activities online and interacts with its customers through internet. The customers of Uber enjoy the service by hiring it through the application or website of the company. The sellers of the service also provide fast and quick service and all the activities are done systematically, the transactions are done online. In back end their application facilitates tracking of the location of cab driver when customers book them for a ride. Intermediaries are the cab drivers who work for company and provide service to customers on behalf of Uber Company

Customer interaction mechanisms

To interact more number of customers Uber is providing many helpful incentives for customers on its official website. They offer free ride service for first time to people after they download their application and also sometimes the company gives discount codes on its official website for benefit of customers which enhance relation with them.

The role of different types of portals

Corporate portal: It refers to internal website of company that provides expertise information to employees and also access to selected public websites.

Publishing portal: Uber publishing is a powerful solution which is designed to evolve the way media and publishers do business. Uber Publisher allows publishers to control the way their content is been experienced.

Personal portal: A personal portal provides personalized capabilities to the visitors. Uber also provides feedback option to customers on its official website where people can give their personal reviews about the service.

Mobile portal: The portal is accessible through mobiles are known as mobile portal. Customers can hire Uber cabs online via mobile phones to their desired locations.

Voice portal: It is a portal accessed by telephone and cell phone. People can also use calling function to book a ride for themselves.

Knowledge portal: The knowledge or any kind of information related to Uber can be found on their official website and also payment terms and conditions are listed over there

The role of e-auctions

The auctions conducted over internet are known as e auctions. It is a platform where buyers and sellers can place bids for a selective product.

The benefits are:

  • People do not need to be physically present for doing the auction. They can do it online from anywhere.
  • It gives more opportunities as there are large numbers of auctions that can be found on internet and people can select best suits to them.
  • It also has some limitations:

  • Privacy concern can be an issue as when customer use Uber service they need to provide personal information including their bank details for payment.
  • Also there are some fake websites which post auctions that can loot money of people who get involve in them.

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Electronic Commerce In The Digital Era. (2019, April 26). GradesFixer. Retrieved December 6, 2021, from https://gradesfixer.com/free-essay-examples/electronic-commerce-in-the-digital-era/
“Electronic Commerce In The Digital Era.” GradesFixer, 26 Apr. 2019, gradesfixer.com/free-essay-examples/electronic-commerce-in-the-digital-era/
Electronic Commerce In The Digital Era. [online]. Available at: <https://gradesfixer.com/free-essay-examples/electronic-commerce-in-the-digital-era/> [Accessed 6 Dec. 2021].
Electronic Commerce In The Digital Era [Internet]. GradesFixer. 2019 Apr 26 [cited 2021 Dec 6]. Available from: https://gradesfixer.com/free-essay-examples/electronic-commerce-in-the-digital-era/
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