CASE ANALYSIS

UBER : CHANGING THE WAT WORLD MOVES

PR E S E NTAT I O N B Y –
PR AT I K MI S H RA
P U RV I K AT I YA R
SAL ONI GU PTA
R UPIK A T RI PAT H I
SHIVENDU SINHA
T A B I S H S H I VA N I
SRITAM PRATIHARI
RACHITA BEHARA
AAKRITI VERMA
V I N AY N AYA K
A NK I TA T RI PAT H I
 The Origins of Uber

Idea generation - 2008

Early stages - 2010

Investments - 2011

Growth - 2013
PROCESS FOLLOWED BY CUSTOMER FOR A RIDE OF UBER

After booking
Customer can
Create an the ride,
see name,
account and customers can
DOWNLOAD quality
fill the credit track the
UBER APP rating(1-5
card driver’s
Stars) of
information progress on a
driver
map

Customer can
also contact
the driver via
Customer phone or text
Customer can The fare is
receives email
rate the driver automatically
receipt on
when ride deducted from
completion of
ends customer’s
ride
account
 PROCESS FOLLOWED BY DRIVERS FOR A RIDE OF UBER

Drivers can Once request is

Drivers use At the end of
reject or accept accepted
CUSTOMER’S Uber’s built-in the trip ,driver
request based drivers may
REQUESTS GPS system to is required to
on location or contact
RECEIVED navigate the press the end
customers' customers via
destination the ride button
rating phone or text

Features for drivers for a ride of UBER

Feedback icon,
HEAT MAPS - it
Payment icon, drivers can see how
gives visibility to
drivers can see riders are rating
drivers of areas
breakdown of money them including
where most likely
they are making comments left by
passengers are.
them
UBER’S DRIVER MODEL
• Drivers did not receive certain compensation benefits

• Uber flat commissioned had been raised.

• Did not own any of the cars

• Hires private drivers on the basis of:

• Skills and Experience

• Checking Personal Profile

• Expected to have an iPhone, if does not have, Uber would rent them.

• Preparing to launch in new city: two advance teams would be send in advance

• Granted bonus incentives to driver in their first year of driving

• Uber Offered favorable loan terms for potential drivers

COMPETITIVE ANALYSIS
Uber Taxi Livery Services
Number of Taxis Unconstrained Controlled Depends
Booking Booking on app and taxi is Can be dispatched after a Not Available
dispatched call / hit or miss

Pre-booking No Possible but Perceived Available

Unreliable
Taxi Fare Advance information Official Taxi meter, Preset minimum + charged
Exception existed based on time
Complaints Regulated No control over it. NA
Payment system Cashless Credit/Cash NA
Night availability No info Hard to catch NA
Becoming a member Easy Complicated process Privately owned

Reaching to destination Easy (GPS Enabled) Complex NA

Renting or Joining the 20-30 percent of the gross Expensive to purchase and Employing the chauffer's
Services fare commission rent
COMPETITIVE ANALYSIS
UBER VERSUS THE TAXI
INDUSTRY
Critics:
● Social Aspect (livelihood of professional drivers)
● Legal Aspect i.e. Unclarity in Uber business model - Operating in Gray area due to Regulations being ill equipped
against the Uber model
● Safety Concerns: Non Professional drivers on road (risking lives of people) eg. UberX
● Fair Competition Concern: Unfairly priced to eliminate competition (To move towards Monopoly)
Uber Claims & Advocates:
● More than thorough as per industrial defined stds. (Min. age 21, 2000+ car model, background check)
● Protectionist scheme
● Driver base Advocates: In Traditional Taxi model- Long waiting time for availing taxis from garages that too if
available
● Customer base Advocates: One’s not in the league of Manhattans or non Subway stop residents; Non Racist
policy(“to CATER for ALL”)
● Business Insider Journalist: “Uber has changed my life and as God is witness, in my life will never take a Taxi
again”
SURGE PRICING
● Demand exceeding supply led to Surge Pricing.

● Customers acknowledging the Pricing.

● Uber vowed not to exceed 2.8 times its normal

rates during any future state of emergency.

● Uber refused to back down from its overall policy

of surge pricing when demand peaked

AGGRESSIVE MARKETING TACTICS
•Disruption of competitors’ service & attempting to poach drivers from other ride sharing
platforms.

• Entering a new market by recruiting drivers and offering first time free rides to

customers.

•Ignoring local regulations and threats of legal action.

•Monopolizing the market by hiring more number of drivers and manufacturing PR stunts.

•Lobbying the state governments by innovative advertising and ultimately creating a

positive image among the locals.

ONE YEAR LATER
Complete overhaul of its mobile app

●Continued use of surge pricing in a different way. Introduced

new algorithms in the app.

Deal with rival Didi Chuxing in China

●Lost $2 Billion in two years in china. Took 20% stake in Didi.

Aggressive test launch of self driving cars

●Aggressively testing a fleet of autonomous vehicles. Enormous

potential to further their mission and improve society.
 SWOT ANALYSIS

Strengths Weakness Opportunities Threats

●Strong Brand Recognition ●Surging Prices ● It can exploit new and ● New competitions
• Lower Price compared to • Relation between Uber huge markets in countries entering the market.
the taxi operator and Drivers like India ●Constant laws and
• Cashless Payment System ●Driverless Technology and regulation notices being
• Low fixed Investment other Services sent to the company.
• Dynamic Pricing Strategy ●Logistics ●Faced Backlash - Public,
• Ease of customer and regulators and industry
driver interaction incumbents
 PEST ANALYSIS

• Local, State & federal • Strong Customer

Support • Ubers technology
governments in some • Uber is clearly meeting
cases have resisted or • Social resistance has been a disruptive
an economic need
banned Uber • Use of credit cards and strongest where force in not just the
• Outdated laws allow traditional cabs are the ride sharing industry
not cash
uber to operate in Grey most entrenched but the economy as a
Area • Younger Crowd has whole
• Loss of licensing been very responsive to • Many companies
revenues and costs the business model copying the uber
traditional cabs incur • Some Anger over model
such as drug test, incidents with surge
insurance & official pricing model taking
status are main advantage of Customers
arguments against uber
RECOMMENDATIONS

• Provide third-party liability insurance for drivers.

• Avoid competitive tactics like poaching & slowing down the services.

• Understand laws and regulations of the market they operating in.

• Can introduce pre-booking system.

• Can Introduce certain training programs as well as their own frameworks of tests for drivers.