1. Apply the five steps of the Planning Process from Section 8.1 to Ubers development of its app-driven online cab service (note this is the overall service, not the app itself).

This is the planning process:

Define your objectivesIdentify desired outcomes or results in very specific ways. Know where you want to go; be specific enough that you will know you have arrived when you get there, or know how far off the mark you are at various points along the way.

Determine where you stand vis--vis objectivesEvaluate current accomplishments relative to the desired results. Know where you stand in reaching the objectives; know what strengths work in your favour and what weaknesses may hold you back.

Develop premises regarding future conditionsAnticipate future events. Generate alternative scenarios for what may happen; identify for each scenario things that may help or hinder progress toward your objectives.

Analyze alternatives and make a planList and evaluate possible actions. Choose the alternative most likely to accomplish your objectives; describe what must be done to follow the best course of action.

Implement the plan and evaluate resultsTake action and carefully measure your progress toward objectives. Follow through by doing what the plan requires; evaluate results, take corrective action, and revise plans as needed.

Case 8 Uber | Riding the Gig Economy In many ways, the gig economy has begun to revolutionize how people consume products and services. Companies such as Airbnb, for example, provide an online marketplace that connects would-be renters with people seeking accommodations and eliminates the middleman in 192 countries worldwide. Companies following a gig approach are growing in number and popularity, with more appearing every day. The list is huge and includesjust to name a fewLyft, which connects drivers with passengers; Turo, which connects rental cars with customers in need of a car; and OpenAirplane, RVshare, Sailo, Boatsetter, Parking Panda, Closet Collective, and Grubhub. We are seeing a revolution in the way the market functions or are we?

Perhaps the best known of the gig companies currently making big waves in the press and in the new economy is Uber. And it all started because no one would give them (Ubers founders) a ride. In 2008, Travis Kalanick and Garrett Camp were in Paris and couldnt get a cab. Their experience led to the development of an extremely convenient, relatively safe, and also rather inexpensive app-enabled online driver service. Founded in 2009 and currently operating in 63 countries and 700+ cities, Kalanick and Camps simple solutionUberhas become a cultural phenomenon. Uber connects customers in need of a ride with gig workers who pick them up. The model is simple and extremely streamlined. Uber provides the market and takes a cut of the proceeds. No cash is exchanged between drivers and passengers. Uber, whose app-enabled market has changed the way people think about transportation, handles everything.

Untraditional Financial Models Following in the path of other well-known new economy companies, Uber has continued to generate eye-popping revenuesestimates put Ubers revenues in excess of $11 billion in 2018its balance sheet is startling, but in the wrong way. Although these kinds of sales numbers are astonishing, particularly for a company that is only 10 years old, they have to be understood in light of the companys massive financial losses during the same period. Uber is estimated to have lost nearly $2.8 billion in fiscal 2019 (exact figures are difficult to calculate because, as a privately held company, Uber is not required to disclose its financials) yet hopes to become profitable by 2021. It is estimated that Uber spends $1.55 for every dollar in revenue it generates. So, although Uber generates huge annual sales numbers, it also spends a lot of money on drivers pay, incentives, and bonuses.

What Is Uber Really Doing? Uber is spending a substantial amount of money on technology. These investments, including the recent strategic purchase of Geometric Intelligencea start-up cofounded by academic researchers focused on making artificial intelligence (AI) systems that can navigate in the real worldperhaps hint at the companys longer-term strategic intent. This intent becomes more apparent when one considers that Ubers investments in AI coincide with the fact that they are currently running fleets of self-driving cars. These vehicles are operating on the streets of California and in the city of Pittsburgh, Pennsylvania, where Uber is actively and aggressively testing its AI assets. The city streets have essentially become a laboratory for Uber to road test the machinery of its long-term vision. Given these kinds of investments, does their long-term vision also include human drivers?

Whats the Long-Term Vision? Although some estimates put the number of drivers currently employed by Uber at upward of 150,000, the companys recent investments in AI, navigation technologies, and self-driving cars suggest that this particular gig employer may not be in it for the long term, at least as far as opportunities for human drivers are concerned. What do you think the new CEO of Uber, Dara Khosrowshahi, has in mind for the future of Uber? What role do you think he wants this emerging giant in the mass transit market to play moving forward? Do you think that investments in AI and self-driving cars are a good sign for future human employment with Uber? Why or why not? Is Uber the long-term answer for gig employees?