3 questions to be solved.
Each question 1full page or at least 3/4 of the pageCase study _ Group 1 and 3_MNGT4520_Fall202
On September 30, 2017, Alon Lits, general manager of Uber Technologies Inc. (Uber) for sub-Saharan Africa,
used his Uber application (app) to arrange a pickup from the airport to Uber’s offices in Nairobi, Kenya. The
Uber app indicated that a vehicle was two minutes away. As Lits watched the virtual car on the screen of his
smart phone, the driver-partner pulled up in front of him. He felt tangible excitement about the interface
between the real world and virtual reality. Lits was grateful that the driver-partner’s air-conditioned car offered
relief from the scorching heat and sticky humidity, allowing him to work while the driver skillfully
manoeuvred through highly congested traffic. When he arrived at Uber’s offices, Lits paid the driver-
partner in cash and appreciated the new feature—initiated in Kenya—which made cash payments available
Lits was considering how he could continue to improve Uber’s business model on the African continent.
While the cash payment option offered new business model opportunities in Africa and other emerging
markets (see Exhibit 1), Lits realized that it also presented challenges; for example, driver-partners had
fears about safety when they were transporting both potentially large amounts of cash and passengers at the
same time, and these fears had to be managed. The majority of Kenyans did not have credit cards and
mistrusted e-commerce, so without a non–credit card payment option, a large part of the population would
be excluded from using Uber. However, since the safety of its riders and driver-partners was important to
Uber, Lits realized that this was a priority. He considered how to utilize the company’s access to large
amounts of data on rider behaviour and driver patterns and routes in resolving this issue.
Lits was meeting with Uber’s general manager of East Africa, Loic Amado, who had studied finance at
Stellenbosch University in South Africa. Amado did not own a car and had not driven in three years; he
relied entirely on the Uber app to get around the city. Amado believed there were huge growth opportunities
for Uber in East Africa.
Nairobi was the second most congested city in the world, after Calcutta, and people in the city sat in traffic
for 40 days a year on average. Because the sharing-economy1 principle of sharing vehicles would decrease
the number of cars on the road, Uber offered highly congested cities a solution that came with a lower
carbon footprint and reduced pollution. Uber’s technology promised to help solve other safety issues; for
example, Uber’s communication manager for sub-Saharan Africa, Samantha Fuller, noted that the feature
that simultaneously displayed vehicle and driver details on users’ mobile phones contributed to the safety
of both riders and driver-partners. Uber’s founder, Travis Kalanick,2 had also stressed the importance of
the company’s technologica
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