The problems faced by the company:
Ever since the company has become popular, consumers now largely prefer to hire rides through their mobile app. It has rubbed the wrong shoulder with the already existing system of traditional cabs that were running in the cities.
The traditional taxi drivers unions and welfare associations have taken concerted actions and even organized a lot many strikes and tools down protest to use their muscle to stop Uber and other crowd taxis from plying on the roads. They also demand that if these taxis have to run alongside them then there should be a level playing field and they must also be subjected to follow the same rules and regulations that they are obliged to follow.
In Seoul, the government has taken strict cognizance of the displeasure of the taxi union and has even decided to declare Uber taxis as illegal to ride in the country. The government is also keen to use technology and develop a similar smart phone app to bring all the existing taxis to be operated using the latest touch service.
There are problems that the company is facing. On one hand the consumers welcome the change because this is what they deserve and it is value for their money and on the other hand they have stiff opposition from the traditional taxis and other governmental agencies. Still, Uber is unperturbed and growing strong internationally. Uber has a competitive advantage being the big corporate house that it is and therefore it is able to flex its muscle worldwide.
In the meantime, the customer has a jolly good ride, looking through Uber’s taxi window and whistling joyfully.