IT6506 · e-Business Technologies · Topic 3

Summary Q&A
eBusiness Applications

Concise questions and summarised answers covering all key concepts from Sections 3.1–3.4. Tap a question to reveal the answer.

Questions: 5
Sections: 3.1 – 3.4
Level: Year 3 / Semester 6
01
Ride-Hailing & Surge Pricing
Compare Uber and PickMe, and explain how Uber's Surge Pricing balances supply and demand.
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Summary Answer

Uber (global, launched 2010; Sri Lanka 2015) and PickMe (Sri Lanka, launched 2015) are both ride-hailing apps that connect passengers with drivers through a smartphone interface. Their key differences are:

  • Uber uses separate apps for rides and food delivery; PickMe combines rides, food, market, rentals, flash delivery, and trucks into one single app.
  • PickMe supports pre-booking; Uber is primarily immediate booking.
  • PickMe offers a wider range of vehicle types suited to the Sri Lankan market (tuk, mini, car, van, truck).

Value Propositions — to passengers: lower wait time, lower price, ease of access, safety. To drivers: flexible hours, extra income, ability to choose rides.

Uber's revenue comes from ride commissions, Surge Pricing premiums, and premium tiers. Costs are mainly infrastructure and salaries.

Surge Pricing: When demand exceeds supply, an algorithm multiplies the standard fare. Higher prices deter low-priority passengers and attract more drivers — closing the gap between supply and demand. The Ariana Grande concert (NYC, March 2015) proved it works: driver supply rose 200%, completion rate stayed stable, and wait times barely increased. The New Year's Eve 2015 surge outage proved the opposite — without surge, drivers stayed home, completion rates crashed below 25%, and wait times spiked.
02
Online Food Ordering
How do UberEats and PickMe Food work, and what made UberEats successful?
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Summary Answer

Online food ordering lets customers place food orders via an app or website and have them delivered. Payment can be online, cash-on-delivery, or card-on-delivery.

UberEats process: Customer orders → restaurant accepts and prepares → UberEats rider collects → rider delivers to doorstep → customer tracks in real time.

Why UberEats succeeded:

  • Reused Uber's existing GPS routing, payment systems, and driver network — no need to build from scratch.
  • Already had a large loyal customer base and driver pool at launch.
  • Consumers are willing to pay a delivery fee for the convenience of doorstep meals.
PickMe Food's key differentiator: Unlike UberEats (a separate app), PickMe Food is built into the same app as rides, market, and deliveries — giving Sri Lankan users a single unified platform with no need to switch between apps.
03
Online Education & Moodle
Classify online distance learning types and evaluate the benefits, challenges, and role of Moodle as an LMS.
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Summary Answer

Online education is teaching and learning conducted over the internet where students and instructors are geographically separated. Related terms include e-learning, blended learning, virtual learning, and distance education. COVID-19 forced mass adoption via Moodle, Zoom, and Microsoft Teams.

Kaplan & Haenlein Classification (by time & scale):

  • MOOC — Asynchronous, unlimited students, distance. Open access; certificates cost extra.
  • SPOC — Asynchronous, limited students, distance. Competitive entry; may charge tuition.
  • SMOC — Synchronous, unlimited students, distance. All students online at the same time (live streaming).
  • SSOC — Synchronous, limited students, distance. Small real-time cohort, like an online seminar.

Benefits: Schedule flexibility, reduced costs, geographic freedom, wider programme choice, improved technical skills.

Challenges: Requires self-discipline, high dropout rates, social isolation, screen time increase, technology dependency.

Moodle (Modular Object-Oriented Dynamic Learning Environment) is a free, open-source LMS founded by Martin Dougiamas (v1.0: August 2002). It supports Assignments, Quizzes, Forums, Glossaries, Lessons, SCORM packages, and Surveys — replicating classroom interaction in a digital environment for universities, schools, and enterprises worldwide.
04
Online Banking
What is online banking? Evaluate its advantages and disadvantages, and explain why cybersecurity is central to its adoption.
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Summary Answer

Online banking (Internet Banking / Web Banking) allows users to conduct financial transactions over the internet — virtually replicating all physical branch services digitally. Sri Lankan examples: People's Bank, Sampath Bank, Commercial Bank (ComBank Digital).

Key services: Fund transfers, bill payments, account opening, loan applications, credit card management, and real-time transaction alerts.

Advantages:

  • Convenience: Available 24/7 from anywhere; no queuing.
  • Speed: Intra-bank transfers are near-instant.
  • Easy monitoring: Real-time transaction history and SMS alerts.
  • Cost savings: Saves time and travel for customers; reduces operational costs for banks.

Disadvantages:

  • Confusing for elderly or non-technical users.
  • Cannot withdraw physical cash online.
  • Vulnerable to phishing, hacking, and malware.
  • Unavailable during internet outages or system maintenance.
Trust & Cybersecurity: Online banking must implement multi-factor authentication (OTP/SMS), end-to-end encryption, CAPTCHA, and session timeouts. Without perceived security, customers will not adopt digital banking — making cybersecurity inseparable from eBusiness strategy in the banking sector.
05
Integrated / Essay
What common factors drive the success of eBusiness apps like Uber, UberEats, PickMe, Moodle, and Zoom? How did COVID-19 accelerate eBusiness growth?
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Summary Answer

Five common success factors across all Topic 3 eBusiness applications:

  • Solving a real need: Every app addressed genuine customer friction — waiting for taxis, cold food, distance from classrooms, bank queue times.
  • Leveraging existing infrastructure: UberEats reused Uber's drivers, GPS, and payments; PickMe Food reused PickMe's rider network; Moodle built on open-source.
  • Network effects: More users on one side attract more on the other (more passengers → more drivers → shorter waits → more passengers).
  • Ease of use: Zoom's low data usage and simple interface made it accessible to teachers and students globally. PickMe's single app reduces friction.
  • Trust and safety mechanisms: Driver ratings, real-time GPS sharing, MFA, encryption — all build the trust needed for adoption.
COVID-19 as a Catalyst: The pandemic was a forced, compressed digitalisation event. Education moved entirely to Zoom and Moodle. Food delivery surged as dining rooms closed. Online banking accelerated as branch visits were restricted. It proved that digital resilience — the ability to serve customers regardless of physical disruption — is a core strategic advantage, not just a convenience add-on.