Ride Sharing: A Good Choice for Entrepreneurs?
This case explores the costs and benefits of being a ride share driver as either a full or part-time job. This case asks students to analyze and evaluate the costs and benefits of driving for a ride sharing company. Both the costs and benefits include quantitative and qualitative answers. Cost- benefit analysis is a primary business decision making tool. This case illustrates the economic theory of supply and demand. Uber, Lyft and similar companies have data that lets them see the supply and demand curve in real time. This is a fascinating 21st century phenomenon. Through surge pricing, Uber can adjust its prices in real time based on the supply and demand in a specific area of a city.
In completing this assignment, students should be able to:
1. Evaluate the revenue and costs for driving for a ride share company.
2. Construct and evaluate a SWOT analysis of ride share driving.
3. Create and assess a cost-volume-profit analysis for the business of a ride share driver.
4. Evaluate the tax considerations of being an employee versus an independent
contractor.