Uber High Turnover - Essay Sample

2021-08-25 06:10:56
4 pages
899 words
University/College: 
Vanderbilt University
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Essay
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Uber is an international taxi company with its headquarters in San Francisco, CA, United States. Uber operates in more than 600 cities spread across the world. Uber has a unique business model characterized by limited one-to-one contact with most of its drivers. Its drivers are not full-time employees and only work with the company with the aim of earning extra money, instead of a career. The company serves as a conduit between the drivers and clients (Rhatigan, 2018). Uber drivers have their own cars (taxis). However, they can also rent a car, which they then register with Uber. Uber was the first company to embrace the sharing economy. Because of being the pioneers in sharing economy, increased sharing economy that followed Ubers innovation has been referred to as Uberisation.

A decade since its inception, Uber has continued to record increased growth as well as increased revenues. However, the company faces problems that are likely to impact on its growth negatively. According to the Peterson (2017), Uber faces high employee turnover rate. On average, Uber employees spend an average of about one year three months in their jobs compared to Facebooks two years. According to Sherman (2017), Ubers low and declining pay have led to decreased driver satisfaction, thus resulting in increased turnover rates over the years. More specifically, McGee (2018) reported that only 4% of drivers who register to drive for Uber drive a year later. The high turn-over rate in Uber has been linked to two major factors. First, the company is receiving increased competition from rival companies such as Lyft. However, most of Uber drivers have blamed their exit from the company on poor remuneration. They have complained about low pay, especially for long trips.

There is evidence that Uber is not effectively using research studies to address its problems, chiefly driver retention and drivers remuneration problems (Rhatigan, 2018). Ubers susceptibility to high turnover rates is manifested by the percentage of drivers leaving the company within a year and on a monthly basis. According to (Rhatigan, 2018), 50% of the drivers quit the company within one year while 11% leave within a month. Secondly, Ubers business model aimed at offering services at lower prices than other taxi companies leave the drivers with little pay.

The company can address the challenges that it currently has through both secondary research and primary research. Secondary research sources include data that has already been published concerning a particular topic. These data can be quantitative or qualitative, historical or contemporary. I believe Uber can address the problem of driver turnover by first accepting that the problem exists. After that, the company should search for the solutions by using published primary peer-reviewed qualitative or quantitative journal articles on this topic. These articles can be freely accessed through academic databases such as Google Scholar. To search for articles in databases, one uses search terms that match the topic. For instance, to search for the solutions to high driver turn over, appropriate search terms may include: causes of high employee turnover and high turnover solutions. After retrieving relevant articles from academic databases, it is important to examine if the problem that the researchers sought to address are similar to its own (Ubers). If the issues that were addressed by the study are comparable, findings from such studies can be used by the company to address its own problems.

Apart from primary peer-reviewed qualitative or quantitative journal articles, Uber can address high driver turnover through the establishment of a research division within the company. The research division should be comprised of experts in research. The research division can then conduct its primary research on the topic and generate its own findings and recommendations for the company. One approach of carrying out this research is through the use of a questionnaire. For instance, the Companys researchers can explore the causes and ways of reducing the high turnover problem by using a valid and reliable turnover questionnaire. Similarly, drivers job satisfaction using a valid and reliable job satisfaction scale, which are distributed to the research participants (the drivers). Through data analysis, data collected can then be analyzed and interpreted. This type of research can be categorized as primary source of data because it provides firsthand evidence about the problem.

Ubers problems can also be addressed using secondary sources of information such as textbooks. For instance, the company can utilize human resource management books on topics such as employee motivation and turnover. Using theories of motivation, the company can address the problems facing the company. For example, if the cause of the problem is low salary, the company can use Hertzbergs Two-Factor Theory (hygiene factors) to address the problem. Lastly, the company can expand its research in future by involving consultancy firms in is research. Examples of these firms include Price Water Coopers. Because such firms have expertise in research, it can help the company to overcome the problem and shore up its balance sheet.

References

McGee, C. (2018). Only 4% of Uber drivers remain on the platform a year later, says report. Retrieved from https://www.cnbc.com/2017/04/20/only-4-percent-of-uber-drivers-remain-after-a-year-says-report.htmlPeter, B. (2017). Travis Kalanick lasted in his role for 6.5 years five times longer than the average Uber employee. Business Insider. Retrieved from http://www.businessinsider.com/employee-retention-rate-top-tech-companies-2017-8Rhatigan, C. (2018). What Uber teaches CEOs about employee satisfaction? Retrieved from https://www.tinypulse.com/blog/what-uber-teaches-ceos-about-employee-satisfactionSherman, L. (2017). Why can't Uber make money? Retrieved from https://www.forbes.com/sites/lensherman/2017/12/14/why-cant-uber-make-money/2/#273439694a24

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