UBER'S CASE STUDY. Uber’s pricing strategy. Business & Marketing (Case Study Sample)

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Uber’s pricing strategy
Market power for the case of Uber is on the side of Uber. The reason for why they have market power is the way they can fluctuate their prices with demand and despite this complaint, the customers are still willing to put up with the prices. The market power is seen with the different policies that Uber implements and makes the drivers go on strike. They complain about policies that affect them negatively. The market structure experienced by the sellers (drivers) takes the shape of an oligopolistic market (Bhuiyan 3). The market is dominated by few firms such as Uber; there are barriers to entry despite this being less than those in monopoly and the prices are differentiated. The setting of prices is affected by other drivers are told to set their prices. The Uber drivers experience a monopolistic market structure to some point. It is depicted by a large number of sellers where there are many drivers but enough to present a perfect competition with the introduction of contractors. There are free entry and exit for the drivers despite the challenges.