Reference no: EM133653748

Drivers who partnered with Uber had the flexibility to drive when and as much as they wished. They could also make a decent living; the median annual income for its full-time drivers in San Francisco, for example, was about $74,000. But they also assumed risk. In the event of an accident, Uber instructed its drivers to submit a claim to their personal insurance carrier first. If it was denied, Uber's backup commercial liability insurance would go into effect, but only after the driver had been summoned by a customer or had one in the vehicle.Traditional taxicab companies did not welcome competition from Uber. Cabdrivers in many cities across the world protested the entry of Uber into their markets, conducting strikes and "rolling rallies" charging Uber with unfair practices. Uber drivers did not have to comply with many of the rules that applied to taxicabs, such as those requiring commercial driver's licenses, regular mechanical inspections, and commercial liability insurance.Governments at city, state, and national levels had become involved, with some imposing restrictions and others even banning Uber outright.In the wake of the 6-year-old's death in San Francisco, California legislator Susan Bonilla introduced a bill that would require Uber and other ride-hailing companies to provide commercial liability insurance from when the driver turned on the app to when the customer got out of the car, thus filling the app-on gap.The American Insurance Association, representing insurance companies, supported the legislation, saying that personal auto policies should not be expected to cover ride-hailing drivers once they signaled availability. "This is not someone commuting to work or going to the grocery store or stopping to pick their children up from school," a spokesperson said.The family of the girl killed on New Year's Eve also supported Bonilla's bill, as did consumer attorneys and the California App-Based Drivers Association.But others lined up in opposition. Uber and other ride-hailing companies strenuously objected to the bill, as did trade associations representing high-technology and Internet-based firms, apparently concerned about increases in their costs of doing business. The bill, said an Uber spokesperson, was "an example of what happens when special interest groups dis-tract lawmakers from the best interests of consumers and small businesses.

QUESTIONS

1. Who are Uber's relevant market and non market stakeholders in this situation?

2. What are the various stakeholders' interests? Please indicate if each stakeholder would likely support, or oppose, a requirement that Uber extend its insurance to cover the app-on gap.

3. What sources of power do the relevant stakeholders have?

4. Based on the information you have, draw a stakeholder map of this case showing each stakeholder's position on the issue, its degree of power, and likely coalitions. What conclusions can you draw from the stakeholder map