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Uber Teamb 171202140604 PDF
Uber Teamb 171202140604 PDF
Strategic Management
INTRODUCTION
• Transportation network company operating Uber Car transportation and
food delivery mobile apps
• Headquarters in San Francisco, USA
• Founded in 2009 by Garrett Camp and Travis Kalanick (CEO)
• Operating in 570 cities worldwide
• Revenue : 20 billion USD (2016)
• Number of employees: 6700
• Follows dynamic pricing
• Provides services as UberX, UberPOOL, UberLUX, UberGO, UberEATS,
UberRUSH, self driving cars and helicopter service
• International expansion in 2011. Launched their services in India in the
year 2013
BUSINESS PROPOSITION
• UBER has no fleet of its own. Different from other taxi services as it
connects the licensed drivers and the customers
• Drivers (Car Owners) join UBER and get access to driver’s app
• UBER charges 20% Commission on fare and driver gets rest of 80%
• Dynamic pricing helps UBER to charge premiums
FUNDING MECHANISM
• Started in 2009, Travis Kalanick sold their startup “Red Swoosh” for USD 19
Million which helped in the initial capital
• The rest of the money was raised via a series of private equity fundings totaling
USD 8.2 Billion as of 2016
Additional
$37M by $258M by
$1.2B by $1B from
$11M led by Goldman Google $1B by
Black Rock, Times
Benchmark Sachs, Ventures Microsoft,
capital
Google Internet,
Menlo and TPG Bennett
ventures Foundation
Ventures Growth
Capital
TAXI SERVICE INDUSTRY BEFORE UBER
Threat of New Entrants
Threat of Substitutes
Threat of New Entrants
Barriers to Entry : LOW
• Low protection from new firms
• New entrants can start with less
capital initially
• Virtually zero switching cost
Threat of Substitutes
High
BCG MATRIX
OPPORTUNITIES THREATS
•Self driving and flying taxis
may yield unending possibilities •Low Entry Barriers
•Uber’s Garage services can generate large •Rising Competition
sums of revenues •Customer retention and brand
•More drivers will reduce the estimated time of switching
arrival. •Future is unclear due to lack of
•Increasing demand for Used cars regulations
•Poor public transport •Conflicts with local authorities
•Government require •Population density is
•High disposable Income growing
commercial licenses
•Growing corporate sector •People follow fast paced
•Political discussion about
minimum wage laws for •Price sensitivity decreases lifestyle
taxi industry •Increasing demand for
•Tax issue transportation in Urban
areas
UberEATS Allows food delivery by Uber UberGO available in India for a ride in
Drivers in 71 cities hatchback
UberRUSH- Courier package delivery in NYC, UberTAXI allows booking of licensed taxi
SF and Chicago through UBER with additional booking fee
• On Sep 2016, Uber launched its first self-driving car service in Pittsburgh and San
Francisco in Dec. 2016
• In July 2014, Uber launched Helicopter service in NYC
• In 2016, same urban transportation with flying vehicles in Sao Paulo
• On Apr 2017, Uber announced to launch a new patent purchase program named UP3 to
facilitate patent purchase
CUSTOMER SEGMENT
1. Early Adopters
• Tech-Savvy users
• Smartphone users
• Customer who values time
• User with limited spending powers
2. Special Category
• Uber for Kids- A special service dedicated to parents who wants their kids
to reach home from schools
• Uber for senior citizens- Special service for senior citizens with huge
concessions. It make for up to 30% to 40% of total rides in many cities
VALUE PROPOSITION
CUSTOMERS DRIVERS
• Minimum waiting time • Additional source of income
• Price less than normal fares • Part time work option and
• Cashless rides and can track flexi timings
location using GPS and ETA • Drivers get paid to be online
even without cab request