Marketing Management

Submitted By: Akhila Gopakumar

21RM905

Answer 1:

In 2015 China became the largest commuter market in the world, and the car
ownership was also low in China, taxi supply was also low there. The taxi
drivers were not paid enough even during the rush hours because of which taxi
drivers stopped taking short rides which forced the urban commuters to travel
by bus, trains, bicycles etc. They were finding it really difficult to travel by these
modes of transportation as it was not comfortable and hampered their
personal space. All these factors lead Uber to believe that they will be able to
succeed China offering share rides and online taxi services.
Answer 2:

Uber launched UberBlack brand that provided luxury services to its customers.
Uber China partnered with local taxi companies to sidestep regulatory issues,
which exceeded the normal taxi fare for similar distances. Consumers were not
really impressed with UberBlack as the prices were high and there were many
complaints regarding the same. Uber China reduced its prices on UberX and
introduced “People’s Uber” in 2014 to provide services to the passengers at a
lower price. Uber connected passengers with drivers but didn’t not receive a
portion of driver’s earnings.
Uber China faced competition Didi Chuxing and Yidao which together had 89%
of the ride hailing market. To compete with them Uber started giving
subsidized rides for both riders and passengers. Like giving offers for first time
users, which obviously attracted many passengers and drivers but many
started creating fake accounts for getting the offers, which initiated a price war
with its competitors. While offering such benefits to both its customers and
drivers, to compete with its rivals uber failed to take into account the fraud
activities that might happen.
Answer 3

Uber was really famous for providing online taxi service and share rides. Uber
had the early mover advantage, but instead of focusing on that, they were
providing services for which the passengers had to pay a higher price. By the
time they realised and reduced the price by introducing People’s Uber, other
players emerged in the market and took away the market share.
They were not focusing on their customers, as there were many complaints
that their price is really high.Uber’s main competition in China was Didi
Chuxing and Yidao. Uber focused on providing luxury services to its customer
by increasing the price instead of providing basic taxi service at reasonable
price which was the need of the people. Uber should have tried to understand
their customer wants and People’s Uber should have been introduced before
introducing Uber Black. When Uber understood that they are losing customers
due to high price they tried to bring in many offers for their drivers and
passengers which also failed as many where using fake accounts to avail those
offers.
Uber completely ignored their competitors initially. The lack of market
knowledge backfired Uber China in the long run. With the emergence of more
and more online taxi service in the Chinese market, the competition was really
high which lead to a price wars between the rivals.
Answer 4

 Didi can make use of Uber China platform to provide the customers
more services like rent a car, Moto services ie two wheeler pick and drop
services
 Didi can make use of Uber Chinese resources to expand their business
 Didi can make use of Uber name to attract foreign customers as Uber is
a globally known name, hence will be easier to attract them
 Didi can provide services like Uber outstation, where people can take
taxi services for a day if they are going to some faraway places
 Didi can provide some package with discounts especially to tourists, like
booking a taxi for a particular period and the driver can take them
around.
 Making available the option of self-drive cars , and providing facility of
picking it up from one point and dropping the car at another point , so
that it will be easy for customers especially tourists to travel from one
place to another at their own convenience