Investment Proposal Rough Draft

TO:                 Professor Clark Hansen, CEO, AMDP

FROM:           Steven Ashoori

DATE:           October 11, 2017

SUBJECT:    Investment Recommendation Memo: Uber

            I am writing this letter in line with your request of a recommendation memo regarding a company that demonstrates social responsibility and provides environmentally sustainable solutions to society’s pressing needs, in a profitable manner. After careful consideration of the facts that I have gathered in my research, I recommend UBER, a pioneer in the non-taxi driving rideshare service and transportation network business and a globally recognized brand. This memo provides the following information: our standards for investment, the background and financial track record of Uber, critical appraisals of Uber from industry sources, and reasons why we should invest in Uber.

The Standards of AMDP

Triple Bottom Line

The Triple Bottom Line is a business concept developed by John Elkington which measures sustainability and the performance of policies or projects. Sustainability and performance is measured in three fronts-people, planet, and profits.

Corporate Social Responsibility

Corporate Social Responsibility refers to a company’s drive to operate responsibly and address social and environmental issues. This could be achieved by environmental efforts, philanthropy, ethical labor practices, and volunteering.

Social Enterprise

A social enterprise is a revenue-generating business which also champions social, cultural, community economic, and environmental interests as part of the company’s core operations.

Carbon Footprint

Carbon footprint is an assessment tool that estimates an entity’s greenhouse gas emissions, which is a negative impact to the environment, in three areas; home energy, transportation, and waste. Carbon footprint calculators are available and they usually need information such as utility bills and rated fuel efficiency to make quick, rough estimates. It is important to reduce one’s carbon footprint in order to slow down the rate of global warming and build a sustainable environment for future generations to come.

Overview of UBER

            Uber was established in San Francisco, California in 2009 as UberCab. It began as a transportation network company which, in recent years, introduced non-taxi driving rideshare services into its business model. This was made possible by integrating mobile application to connect a vehicle for hire to its passengers/customers. Customers may book their ride by simply tapping a button from a dedicated app on their smart phone devices. The rates may vary according to several factors such as traffic and demand, and customers can track their ride using the mobile app. The company revolutionized the taxi business by maximizing customer convenience, safety, and ride accessibility. Apart from this, Uber presents career opportunities to a great number of employees worldwide. The company endeavors in providing their partners and customers with convenient and safe transportation and career opportunities.

Safer Rides, Safer Cities

One of the company’s main selling points is its customer and driver safety. The company allows its customers to stay in the safety of their homes while waiting for their ride. They claim to reduce cases of discrimination according to race, gender, or destination because booking a ride works by blindly matching vehicle and customer based on their proximity to each other. After the match, the driver’s profile is provided to the customer. Customers can also share their ETA and location to their friends and relations during the ride with the mobile app. Customer support is also provided to gather feedbacks and improve the service. Drivers, on the other hand, receive support such as in-app navigation. Since customers are required to make a profile, the drivers are assured of the identity of their passengers. The company also claims to curb incidents of drunk driving, citing a direct correlation of the rise in Uber use with a 6.5% decrease in drunk-driving accidents.

Environmental Impact

Uber provides ridesharing through UberPOOL which it claims to have saved 674,000 miles or 27 trips around the world each month in San Francisco alone. The decrease in travel miles means a drop-in fuel consumption and carbon dioxide emissions.