Professional Documents
Culture Documents
Business models for other ride sharing companies such as Ola Cabs (http://www.slideshare.net/Funk97/presentations) and for different types of ride sharing such
as multi-passenger ride sharing (http://www.slideshare.net/Funk97/presentations) can be found on my slide share accounts.
Agenda
1. Background of taxi services and real-time ridesharing
2. What does Uber Technologies Inc do?
3. Value Proposition
4. Customers and Market
5. Value Capture
6. Competition
7. Strategic Control
8. Uber, an issue?
9. Improvements & Alternatives
10. Q&A
Ride Sharing:
Neighbor, Colleague, Carpool, etc…
No
Source of image: http://marketrealist.com/analysis/stock-analysis/technology/internet/charts/?featured_post=70133&featured_chart=70136
Request for
ride Notification of
the request
- Indicates navigation
App - Estimates fare &
- Pay the ride
- Give feedback time
GPS
1 http://www.digitaltrends.com/mobile/more-uber-cars-yellow-taxis-nyc/
2 http://techcrunch.com/2015/01/22/uber-study/
1 http://www.reuters.com/article/2014/12/16/us-uber-privacy-idUSKBN0JU2DT20141216
2 http://blog.uber.com/passenger-destinations, http://blog.uber.com/2012/11/12/uberdata-mapping-a-citys-flow-using-ubers-ridership-data/
Source for both images: http://www.wired.com/2011/04/app-stars-uber/
UBER TECHNOLOGIES INC. 12
Value Proposition – Surge Pricing: Patent Pending
US 2013/0246207A1 (pending grant)
System and Method for Dynamically Adjusting Prices
for Services
“Through these two mechanisms, the company is able Price adjusted relative to a fixed
price i.e. using a multiplier
to (a) increase supply, (b) assure reliability, a key tenet
of the company, and (c) maximize the number of
completed rides.” – Bill Gurley, Uber investor and
board member
Source of image: Patent No: US 2013/0246207A1 by Uber Technologies Inc, System and Method for Dynamically Adjusting Prices for Services
$10
Normal Fare
$10
Fare Increases
$15
$15
Fare Decreases
$10
$$$ Commission
Passenger Uber Driver
CUSTOMER PARTNERS
Paying for the service (transportation) Complementary Service Provider, NOT customer
Total TaxiMarket
135 million rides
~$1.9 Bn
Smartphone
Applications
Real-time
Taxis
Ridesharing
Requirements Requirements
No professional taxi license required Professional taxi license / “medallion”
Require your own vehicle
Income Income
Flexible timing – part time work Full time work (i.e cover daily rental work)
Surge pricing may provide higher hourly wages Fixed surcharges
Expenses Expenses
Petrol Fixed rental fees for taxi to be paid
Personal insurance License fees as a taxi driver to be paid
Maintenance of personal vehicle
Differences
Surge Pricing: no cap (except for “abnormal disruption
of the market” – more on that later)
Prime Time: 200% price surge i.e. cap of 3x fare
NYE 2014: 400% increase i.e. cap of 5x fare
$2.50
$2.00
COST
$1.50
$1.00
$0.50
$0.00
4
RATING
0
Advance Law & Hiring Method Cashless Fare Sharing Driver’s Go-to Market User Ride
Booking Regulation (User Payment Flexibility Car Flexibility Experience Information
Friendliness)
Uber Taxi Lyft
Barrier to entry
Patent applications
If granted, Uber will be the only company in this line of business to
have related patents
But most patents refer to business methods
Network Effects
Customer
Partner
Retain
& Gain
New
Customers
Drivers
• Price promotions
Partner rewards program • Partnerships with
• Vehicle Financing local establishments
• Health Care Incentives e.g. restaurants,
• etc shops
Issues Solutions
• Driver/Passenger information, GPS following rides
Trust and Safety issues
• Panic Button
• Alleged (sexual) assaults
• Alleged Kidnapping • Background checks, identification of new
technologies
• Metromile’s Uber Car Insurance
Legal issues • Insurance Coverage for UberX
• Insurance coverage for accidents
• App’s terms and conditions
• Regulatory laws – Illegal taxi operation?
• Conforming to the laws
Surge Pricing • Cap on fares for certain events
Issues Solutions
Source of image: http://www.taxi-deutschland.net/images/presse/Infografik_Uber-legal-issues_EN_v12_RGB_2015-02-06_final.jpg, used under the CC BY-SA 4.0 Intl Licence
Issues Solutions
min rate
A 1km ride will cost you USD 650
Capped surge pricing from Jan 2015 for “abnormal disruption of the market” events
“If Uber puts surge pricing into effect during an abnormal disruption of the market, Uber will not set the price for
any transportation option above a multiple of the base fare to the determined…based on the prices set by Uber for
tih.ee. sIfaim
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the market. To determine the price cap for naotrrm anaslpfa orretaftoiornsuocphtieovneinntsa. city and surrounding area, Uber shall first
identify the three highest prices it set, on different days…Price cap shall be the next highest price that was set for
the same transportation option …not including the days on which the three highest prices were set.”
UberCARGO
UberRUSH
UberPOOL
Uber Business
Reliable ride for your employees
Extra
Insurance Uber Mobile App Protection
Driver/Rider
Coverage
Preference
DRIVERS PASSENGERS
UberAdvertising
Advertisements on the app and within the car
Advertising revenue
Uber Next
Predict the need of a ride based on data, schedule, etc
Source of image: Patent No: US 2013/0246207A1 by Uber Technologies Inc, System and Method for Dynamically Adjusting Prices for Services