Detailed PESTEL Analysis of Uber

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1. Lead-in

PESTEL analysis is a detailed study of essential external factors influencing the company's growth. PESTEL Analysis considers the political, economic, social, technological, environmental, and legal factors that influence organizational development. It also helps the management to make proper decisions regarding any issues in the future. Uber PESTEL Analysis is studying the company while considering the crucial factors mentioned above so that the professionals can make better decisions for the firm's future. In this article, we will help you understand Uber PESTEL analysis and how you can use EdrawMax to create professional-looking analysis diagrams.

The Uber PESTEL Analysis is significant because it is a broad form of checking facts that can be directly or indirectly responsible for all the decisions made inside the company by the authorities. Once the companies get an idea of how these external factors (mainly 6) are responsible for influencing the company, they will have the key to making better decisions in the future for the company's growth and success.

2. About Uber

2.1 Introduction of Uber

Uber is an American company that is a part of the transportation and mobility as a service industry. At this age and time, Uber has become a crucial part of people's lives. It provides a variety of rides, and its customers can choose any of them based on their needs. The most popular among the varied rides provided by Uber is Uber X. Some of the alternatives of this service are Uber Comfort, Uber XL, and Uber Black. Uber in itself does not have the ownership of any vehicle. However, they receive an amount as a commission after each booking made via the software.

2.2 Overview of Uber

Company Name: Uber Technologies, Inc.
CEO: Uber Technologies, Inc.
Company Type: Public
Year Founded: March of 2009
Employees: 29,300 as of 2021
Annual Revenue: US$ 17.46 billion as of 2021
Founder: Garrett Camp and Travis Kalanick
Area Served: More or less around 72 countries and about 10,500 cities
Headquarters: San Francisco, California, USA
Operating Income: -US$ 3.83 billion as of 2021

3. Uber PESTEL Analysis

Political Factors:

The political factors that influence any company are the rules, regulations, and policies that the government of that particular country puts forth. Several factors come under the political factors like the foreign trade policies, tax rules, fiscal policies, and more. In addition to these, some other factors might directly affect the company. The political factors that have an impact on Uber are as follows:

  • Governments of different countries are about to implement the minimum wage law so that no employee faces this issue. Uber has to make sure that it pays its employees well. Otherwise, it might lose its commercial license, which will be bad for its brand reputation.
  • Uber has faced many charges in different countries based on its absence of legal permits for taxi cabs.
  • There is a vague idea about Uber's legal permits, and if ever one of the vehicles under the company gets into an accident, then the victim would not know whom to blame.
  • Political parties are asking to stop the ridesharing program as it is causing harm to the taxi service.

Economic Factors:

Supply and demand for a particular product from a specific company is the driving force of the whole business. Economic factors are the factors that deal with the supply-demand ratio of the company. Some economic conditions that directly and indirectly affect the economic factors are the inflation rate, economic growth, exchange rates, and interest rates. These factors determine the financial situation of the company. The economic factors that affect Uber's growth are as follows:

  • People are trying to manage their expenditure caused by sharing rides and the economy because there is an increase in living costs.
  • The economic recession due to the pandemic has resulted in Uber's revenue and profits going down by approximately 32%.
  • Its budget ride fairs compared to the conventional taxi service resulted in Uber's popularity.

Socio-cultural factors:

Consumers play a significant role in the whole demand-supply ratio that a company needs to maintain to have a proper revenue rate. To provide customers precisely what they want, a company must be well aware of their customer's preferences based on different points like trends, social events, cultural engagements, and more. Social factors are nothing but taking note of the socio-cultural background of the targeted market to gain sustainability and profit. Thus, a company should always know its potential customers and their demands. The social factors driving the Uber company are as follows:

  • At this point, the larger part of the population is going towards its elderly years. Thus, it would increase the need for transport services resulting in higher revenue for Uber.
  • The bigger the city, the more the prices for Uber rides compared to small towns.
  • Uber's social media marketing is pretty big, and it gets the opportunity to reach more customers in this way.
  • People feel more comfortable using their smartphones to book rides. It is where Uber excels and has to some extent monopoly over the market.

Technological factors:

With technological advancements in recent years, the present generation is massively dependent on fast technologies. To run a successful business, a company must be up-to-date with the latest technologies and have proper technical awareness. Only an advanced technological setup can gain a company the popularity it craves. The technological factors that heavily influence Uber are as follows:

  • Tech companies have given the option of self-driving technologies. So big car manufacturers are using this technology now in their cars. Thus, Uber can utilize the same to gain profitability.
  • There are many new and advanced features available in cars now. It includes tracking the ride online, pop-up messages, and more. Thus, this creativity can be helpful for the customers in various ways.

Environmental factors:

The environment is ours to take care of, and so, no matter what the business is, a company must always be aware of its environmental problems. A business should know how to use eco-friendly alternatives for everything, reusable resources, have a low carbon emission rate, and focus on sustainability. Every step that a firm takes should be based on environmentally friendly choices. The environmental factors influencing Uber are as follows:

  • As the demand for Uber rides increases, Uber has increased the number of vehicles running on the road. If this continues, this excess number of cars will cause many problems like an increase in traffic, pollution, carbon emission, fuel consumption, and more.
  • Uber has launched something new to save our environment. It is called the Green Uber, which runs on electricity, and is an excellent step towards environmental conservation.

Legal factors:

Maintaining the legal side of society is mandatory if you want to have a good reputation in the industry. The legal factors are nothing but the laws of that particular country or area where the company is doing its business. Abiding by the legal laws like the labor laws, discrimination laws, laws based on health and safety, and most significant consumer laws is very necessary. Hence, the legal factors which affect Uber are as follows:

  • Uber went through many legal battles to ensure that the company treats its drivers like permanent employees.
  • Uber has a past of not taking care of their customer database. So, they need to work harder to provide security to their customers.

4. How to Do a PESTEL Analysis in EdrawMax

  • Step - 1: Preparation
  • If you are using the offline version of EdrawMax, open the tool in your system. If you wish to access remote files, head to and log in using your registered email address. If this is your first time using the tool, you can register with your personal or professional email address. Go to 'Marketing' diagrams under Business diagram type and click on 'PEST Analysis.'

    How to Do a PESTEL Analysis in EdrawMax
  • Step - 2: Template Selection
  • EdrawMax has thousands of free templates. Head to the Template section on the left and type 'PESTEL Analysis' to see all the pre-built PESTEL Analysis templates like Netflix PESTEL Analysis, Amazon PESTEL Analysis, IKEA PESTEL Analysis, and more. Check the template that resonates closely with your business model. Click on 'Use Immediately' to import the template's contents to the EdrawMax canvas. You can start customizing the PESTEL analysis diagram as per your requirements. If you want to draw the PESTEL analysis diagram from scratch, you can click '+.' It will open up the user-friendly canvas of EdrawMax that has several features that ease your efforts in making PESTEL analysis diagrams.

    How to Do a PESTEL Analysis in EdrawMax
  • Step - 3: Add Textual Information
  • PESTEL Analysis diagram requires you to add Political, Economic, Sociological, Technological, Legal, and Environmental content so that the reader will understand what influences an organization. Use the PEST symbols from the left side and add the content to your PESTEL analysis diagram.

    How to Do a PESTEL Analysis in EdrawMax
  • Step - 4: Customize
  • EdrawMax gives you ample options to customize your PESTEL Analysis diagram. From changing the background to adding content, you can customize the diagram in any way you desire. In addition to this, you can go ahead and change the background color, modify the text, add hyperlinks, add multiple pages, add images, and even add vector-enabled texts to your PESTEL analysis diagram.

    How to Do a PESTEL Analysis in EdrawMax
  • Step - 5: Export & Share
  • Once satisfied with your PESTEL Analysis diagram, you can export it into multiple formats, including Microsoft, JPEG, PNG, Visio, HTML, and more. EdrawMax lets you share your PESTEL Analysis diagram on social media platforms, like Facebook, Twitter, Line, etc.

    How to Do a PESTEL Analysis in EdrawMax
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5. Key Takeaways

In this article, Uber PESTEL Analysis shows all the crucial external factors influencing the company, like political, economic, social, technological, environmental, and legal. The detailed discussion helps understand the company better and determine the strategies for the organizational benefits.

EdrawMax Online is considered the best free SWOT analysis diagram creator in 2022 for various reasons. The free version of EdrawMax offers some amazing features that get you started with SWOT analysis diagram making. As a registered EdrawMax user, you can access the template community that offers user-generated templates. In this free SWOT analysis diagram creator, you can publish your SWOT analysis diagrams to inspire other beginners and professionals. Download EdrawMax today and start working on different diagrams.


  1. NerdySeal. 2022. Pestle analysis of uber - 821 Words - NerdySeal., [online] Available at: (Accessed 18 August 2022).

  2. Research-Methodology. 2022. Uber PESTEL Analysis: a brief overview - Research-Methodology., [online] Available at: (Accessed 18 August 2022).

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