How to adjust to our activities following Uber ruling?
Continue as is - Risk noncompliance. Continue delivery service based on new ruling.
Change delivery model?
Convert drivers to employees. Change the distribution model. Discontinue delivery service.
Reduce risk of running at a loss, reduce service to users and shops, reduce coverage area of potential clients, accept significant sunk costs (Chance of profitability High).
What are the options.
Run delivery service at a loss. Look to make the delivery service profitable.
Cost absorbed by other areas of the business. Potential for the activity to strengthen the brand and be considered a loss leader. (Chance of profitability 0).
What are the options.
Increase costs to consumer/shop owner to make profitable. Reduce no. of delivery drivers.
Does the price elasticity of the service mean this is financially beneficial.
No (Medium probability. Yes (Medium probability).
Service remains profitable. Potential for longer term impacts and brand reputation (Chance of profitability High).
Service runs at a loss. Need to reevaluate options. Potential negative impact on brand. (Chance of profitability Low).
Is increased waiting time ok?
No (Medium Probability. Yes (Medium Probability).
Operate at an increased waiting time (Chance of profitability Medium).
Need to improve the efficiency of drivers by route planning, change the way the order process works etc (Chance of profitability Low).
What options are there?
Outsource delivery to 3rd party. Establish new direct to consumer option (e.g. stall at busy stations, pay retailers to extend hours of operation). Use different method of transport.
Remove the need to manage a driver network, would lose direct control of quality and may cost more to operate (Chance of profitability Low).
Students on skateboards, drones, dog walkers, volunteers, driverless vehicles - All would require significant set up costs and likely interruption to service (Chance of profitability Low).
Unproven model so adds risk. Potentially reaches large number of customers with less staff (Chance of profitability Medium).
What are the possible outcomes?
Ruling overturned (Low Probability). Proved to be non-compliant (High Probability).
Continue as is (Chance of profitability High).
Can we absorb penalties.
No (Medium Probability). Yes (Medium Probability).
Need to cover heavy fines, legal action, brand damage and cost of changing driver status within the business (Chance of profitability Low).
Seek outside investment or go into liquidation (Chance of profitability 0).