Research Paper: After Numerous Ethical Scandals

Research Paperessayafter Numerous Ethical Scandals And The Arrival O

Uber Technologies Inc. has faced significant ethical scandals over recent years, leading to a damaging public image. The company’s leadership has attempted to rehabilitate its reputation through strategic marketing and public relations initiatives under new management, including the appointment of a new CEO, Dara Khosrowshahi. This essay evaluates whether these efforts are likely to effectively restore Uber’s positive brand image, analyzes the reason behind its current favorability ratings equaling those of Lyft, and considers the potential risks associated with Uber’s expansion into the electronic scooter and rental markets.

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Effective communication strategies, including marketing and public relations (PR), play a critical role in shaping and restoring corporate reputation, especially after a crisis. In Uber’s case, rebranding efforts led by new leadership aim to distance the company from its past misconduct, including allegations related to sexual harassment, trade secret theft, and mistreatment of drivers and riders. The deployment of advertising campaigns highlighting Uber’s commitment to safety, diversity, and corporate responsibility is an essential step toward rebuilding consumer trust (Klein, 2019). According to a study by Hutton (2018), organizations that transparently address their crises and actively communicate their corrective measures tend to recover their reputation more quickly than those that do not. Therefore, Uber's investment in marketing and PR initiatives can be believed to positively influence public perception, provided these efforts are sustained, credible, and aligned with actual corporate practices.

However, the success of such reputation management also depends on the perceived authenticity of Uber’s message. While advertising communicates the company’s new direction, skepticism may persist among consumers regarding whether these efforts are merely superficial rebranding tactics or reflect genuine systemic change (Nguyen & Simkin, 2017). Moreover, research by Hutton (2018) suggests that consumers are increasingly scrutinizing corporate sincerity, especially in light of prior scandals. For this reason, public relations campaigns must be complemented by concrete actions—such as improved corporate governance, stricter safety protocols, and demonstrable efforts to support drivers and users—to truly restore a positive image. Without tangible change, marketing efforts risk being perceived as deceptive, which can further damage credibility and hinder reputation recovery.

Why do you think that Uber now has the same favorability rating, among consumers, as Lyft?

Several factors contribute to Uber’s current equivalent favorability ratings with Lyft. A primary reason is the company’s strategic emphasis on rebranding and the visible efforts made by new leadership to address past controversies. Since Dara Khosrowshahi took over, Uber has actively communicated its commitment to safety, accountability, and regulatory compliance through various advertising campaigns and public statements (Davis, 2019). This transparency helps shift public perception from viewing Uber solely as a scandal-ridden firm to portraying it as a responsible and responsive corporation, which aligns it more closely with Lyft’s perceived corporate image.

Additionally, market forces and competitive dynamics have played a role. The rise of Lyft as a formidable competitor has pushed Uber to adopt more consumer-friendly policies and marketing messages to maintain market share. Research indicates that consumers tend to rate brands more favorably when they perceive them as committed to social responsibility and safety—areas in which Lyft has historically positioned itself strongly (Morales & Burns, 2020). Consequently, Uber’s efforts to improve its corporate image have narrowed the perception gap between the two companies, leading to similar favorability ratings. This alignment suggests that consumers might view both brands as equally viable transportation options, reflecting a neutral stance towards corporate reputation that is influenced heavily by recent branding efforts.

As Uber goes into the electronic scooter/rental market, does this pose risks that could potentially damage its brand?

Uber’s expansion into the micro-mobility sector, including electric scooters and rental services, presents both opportunities and significant risks that could affect its brand image. While diversification can attract new consumer segments and reinforce Uber’s position as an innovative mobility provider, it also introduces operational challenges and safety concerns that could tarnish its reputation. For instance, safety incidents involving scooters have frequently been reported, raising questions about Uber’s commitment to rider and pedestrian safety (Schumer, 2021). Negative publicity stemming from accidents or regulatory scrutiny over scooter safety protocols could undermine efforts to repair Uber’s image, especially if these issues are perceived as neglect or incompetence.

Furthermore, entering a new market segment often entails regulatory and community resistance, which can damage brand perception if not managed carefully. For example, local governments may impose restrictions or bans on scooter operations due to safety or congestion concerns, leading to negative media coverage. If Uber is seen as disregarding regulatory compliance or community needs, such perceptions could reinforce existing skepticism rooted in its prior scandals. Additionally, brand consistency might suffer if Uber fails to integrate these new services seamlessly or if they are perceived as mere profit-driven ventures without genuine concern for rider safety and environmental impact (Harris, 2022). Thus, while the move into the electric scooter/rental market offers growth prospects, it also carries inherent risks that could threaten Uber’s long-term reputation if not strategically managed with transparency and a focus on safety and social responsibility.

References

  • Davis, S. (2019). Uber’s new branding strategy and its impact on public perception. Journal of Marketing Communications, 35(4), 481-496.
  • Harris, R. (2022). Micro-mobility and brand risk: An analysis of Uber’s scooter expansion. Transportation Journal, 61(2), 127-143.
  • Hutton, J. (2018). Crisis communication and reputation repair: The role of transparency and authenticity. Public Relations Review, 44(3), 366-375.
  • Klein, E. (2019). Rebuilding trust: How corporations use advertising to restore brand image. Marketing Strategies Journal, 24(1), 23-38.
  • Morales, A., & Burns, J. (2020). Consumer perceptions of ride-sharing companies: The influence of corporate social responsibility. Transportation Research Part F, 67, 146-157.
  • Nguyen, B., & Simkin, L. (2017). The dark side of the customer relationship: Negative consumer perceptions of corporate sincerity. Journal of Business Ethics, 141(4), 747-762.
  • Schumer, J. (2021). Safety challenges in micro-mobility: Uber’s scooter venture. Urban Mobility Review, 10(3), 205-220.

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