UBER

Submitted by:
Group 9, Section B
Karan Sehgal (PGP10150)
Sakshi Tawar (PGP10232)
Shweta Kumari (PGP10232)
Vaishnavi Kumbhare (PGP10243)
Chirag Ved (PGP10244)
 1. Industry Analysis: Transport
2. Cab Industry
3. Company Analysis: Uber
4. Service Offering Diagram 
Contents 5. IHIP Model
6. Tangibility Diagram
7. Gap Analysis
8. Service Blueprint
9. Servicescape
10. Market segmentation 
11. CRM and Customer Satisfaction
12. Pricing Strategy
13. Additions in Services due to COVID-19
14. Reflective Summary
15. Recommendations

2
INDUSTRY ANALYSIS: TRANSPORT

Impact of COVID-19
Transport Industry:
• Transport Industry was one of
• According to Global Industry Classification the most hit sectors due to
Standard (GICS), it is a subset of Industrial travel restrictions
sector • Number of people in Public
• It provides services to move individuals or transport reduced from 70
goods along with transportation infrastructure million prior lockdown to 4
• It comprises of 5 modes of transportation: million during May 2020
• Road Transport |Railway Transport | Water • Benefit: Reduction in
Transport | Air Transport | Pipeline Industry pollution and a move towards
• The industry is affected by several factors like a more sustainable and eco-
Fuel Prices, Demand, Labor costs, government friendly transportation
regulations alternative

3
CAB INDUSTRY
Porter’s Five Forces Analysis
 Cab Industry has changed over the years from
companies owning fleet of owners to a mix of fleer
owners and single car owners to finally aggregate Supplier
WEEK
business model.
 The changes took place due to: Buyer
Competitor HIGH
 Less investment and less liability HIGH
 Ability to expand to multiple cities
 Use of technology increased access Substitution
 Competitors: OlaCabs, Meru Cabs. Ixigo cabs, HIGH
New Entry
Womencabs.com MEDIUM

4
COMPANY ANALYSIS: UBER
 American company that primarily offers
Ride sharing service along with package
delivery, couriers, freight transportation,
etc. though partnership
 On demand transportation service
 Primary Service in transportation includes
UberX, UberXL, UberBLACK and UberSUV
What makes UBER Disruptive:
• Reduced the number of steps in the
process booking of Cab and to
reaching destination
• Uber claims to be a technology
company or Platform treating drivers as
independent contractors saving the
cost incurred due to full-time
employees
• Dynamic or Surge pricing instead of a
fixed fee
5
SERVICE OFFERING DIAGRAM

Supplementary Service
Core Service
Insurance, tracking and analytics,
Ride-Sharing transportation
location of drivers, a profile of
(Uber X, Uber Lux, Uber pool,
drivers, multiple payment
etc.) riding people from Point A
options with automated billing
to Point B
options, GPS location tracking,
sharing of the ride details with
family or friends
Augmented Service
Customer service support

6
IHIP MODEL

Heterogenous
Intangibility
Every ride varies depending on the
Uber provides rides which do not have
Passenger, customer, and the route.
physical evidence. It is just the ride that
This means the service provided cannot
the customer pays, which is intangible
be standardized

Inseparable
Perishable
Uber rides are initiated as the demand
The service offering ends right after the
arises. It cannot be kept separated from
consumption and cannot be stored
the customer

7
TANGIBILITY DIAGRAM

 We have put Uber next Airline

industry since the core service
provided is same which is
transporting people from Point
A to Point B
 Customers pay for the service
which is transportation and in
exchange does not receive a
physical product in exchange

8
GAP ANALYSIS
Gap 1: Listening Gap
Uber use market research information
and decisions about service research.
Managers and customers do not interact
enough due to the automation of the
system
Gap 3: Service Performance Gap:
Delivering consistent service concerning
quality across all geographies, teams,
units, and employees
Gap 2: Service Design and Standard
Gap
To provide attractive and effective
service, clean vehicles, and in optimum
condition
Gap 4: Communication Gap
Uber pricing (surge pricing)
Communication and interaction
between company employees and
customers at all stages
9
GAP ANALYSIS
Gap 3: Delivery Gap
We have identified Gap 3 to be the most
important Gap and the reason being:
 Operate in 80 countries worldwide
 Multiple Driving Partners
 Multiple vehicles used
 Operating issues from customer’s side
Managing Gap 3
• Using updated technologies specifically GPS
• Resolving Customer Complaints effectively
and timely
• Managing unavoidable circumstances via a
message to the customer
• Training Drivers to provide service at par
with Uber standards and constant
performance reviews and incentive to high
performers
• Tutorials on App for customers so that they
perform their part in the service delivery
10
SERVICE BLUEPRINT

11
SERVICE BLUEPRINT
Fail Points Solution
Location of the Improving GPS technology to increase the
Passenger, and accuracy of the location
Possible Wait Times Drop off location

• Confirmation of ride by the Rude behaviour by Using Rating and Reviewing effectively.
driver the driver Incentives for better reviews by passengers.
• The arrival time for the driver Hiring and training the drivers
• Ride
• Receipt Condition of the car: Hold drivers accountable for clean cars and
Foul smell or messy if possible hire vehicle cleaners
• Rate and Review
Traffic incident Effective Insurance provision
A rider may not input Making the rating mandatory for every ride
rating for the previous and providing a buffer period for rating.
ride

12
SERVICESCAPE

Uber works with independent drivers and Ease of Booking a ride

operate in multiple locations across the world, • App interface

• Booking Phase
so the servicescape depends on environment.
• Information availability
There are two factors on which the • Payment options
Servicescape of Uber depends:
1. The ease of Booking a Ride The ride

Phase of signing up to booking a ride and • Car

• Etiquettes of Driver
post payment • Journey
2. The ride
The journey to the destination

13
MARKET SEGMENTATION
Types of Segmentation Uber Target customer Segment
Segmentation Criteria
Uber X, Uber XI, Uber pool, Uber- Uber Premium, Uber Go
MOTO, Uber AUTO
Geographic Region North & South America, Asia, & New North & South America,
Zealand Australia, Europe, Africa Asia, & New Zealand
Uber AUTO – Bangalore, Pune, Mumbai Australia, Europe, Africa
and Delhi NCR

Density Urban/Semi urban Urban/Semi urban

Age 18+ 25-65
Behavioural Benefits sought cost-efficiency sense of achievement
Personality Easy-going, determined, ambitious Determined, ambitious
Psycho-graphic Social class Lower class, working class, middle class middle class, upper class
14
CRM AND CUSTOMER SATISFACTION

CRM Customer Satisfaction:

With the help of industry-leading CRM
suppliers Salesforce, Uber’s approach to
managing its customer relationships has been
the very lifeblood of its ascent to the top.
 Listening to its customers
 Targeting the right crowd
 Cultivating customer loyalty
Cab Industry have very low product
differentiation hence, to stand out Uber
creates an impression at every stage via:
 Removing Irritation
 Offering Transparency
 Customer Feedback
 Strong and Long Relationship with
customers

15
PRICING STRATEGY
Uber uses On-demand pricing where it increases the prices based on demand instead of fixed-price.
The two Pricing Strategies that Uber uses are:
Dynamic Pricing Algorithm
 Rates are adjusted according to several
variables such as time, distance, traffic and
current ride to driver demand
 Demand is directly proportional to supply
 Also known as Surge Pricing Model
Price Discrimination Strategy
 Uses two different strategies to maximize
how much consumers are willing to spend
through
 Capturing the excessive
 Unattainable consumer surplus
 Classic Supply & Demand Problem
16
ADDITIONS IN SERVICE DUE TO COVID -19

 Go Online and Check Mask Verification

Drivers are asked to wear a mask and send a selfie which is verified by the system
 Accountability
Allows driver to cancel trip is the rider is not wearing a mask or does not feel safe
 Supplies to Riders
Allocated $50 million to purchase protective gears to provide them to drivers and are shipped to their
homes
 Safety Education from Experts
Uber is working with CDC (US Canters for Disease Control and Prevention) and WHO (World Health
Organisation) to provide tips and recommendations to drivers specifically towards ride sharing

17
REFLECTIVE SUMMARY

Studying the gap analysis helped us identify the reason that are leading to customer dissatisfaction
arising due to differences between customer expectations and customer experiences.

Studying the dynamic pricing of Uber enabled us to understand various factors on which
determining the dynamic prices depend.

The CRM processes and other initiatives towards improving the customer satisfaction of Uber
gives insights into different strategies that can be used in App based aggregator service provider
business to satisfy customers.

18
RECOMMENDATIONS

 Loyalty Program for Customers

We suggest Uber to implement a customer loyalty program where repeat customers could earn
points based on rides taken and redeem them in future rides

 Opening Offices at Locations

Increase in efficiency of background check, reduce the complaint redressal time and add a
personal touch

 Venue Partnerships
During a festival or program like Concerts, Matches, etc. there is a rush to and from a single
location. Uber should increase the frequency of providing discounts or coupons for those rides
much like they did in the US Presidential Election
19
SOURCES

 https://www.annexcloud.com/blog/ubers-marketing-strategy-in-7-steps-revisited/
 https://dribbble.com/shots/8412551-Uber-Business-Model-Canvas
 https://www.myfeelback.com/en/blog/uber-customer-experience-business-priority
 https://swaay.com/what-are-the-competitive-marketing-strategies-of-uber
 https://www.academia.edu/41399789/Marketing_Strategy_and_Marketing_Mix_Analysis_of_Uber_Technologies
 https://liveramp.com/blog/uber-data/
 https://www.cnbc.com/2020/01/28/ubers-self-driving-cars-are-a-key-to-its-path-to-profitability.html
 https://www.uber.com/en-GB/blog/uber-dynamic-pricing/
 https://www.slideshare.net/raahulshaha/uber-marketing-presentationrahulshaha-63967059
 https://www.garyfox.co/uber-business-model/
 https://www.academia.edu/41399789/Marketing_Strategy_and_Marketing_Mix_Analysis_of_Uber_Technologies
 https://zachariahmillerblog.files.wordpress.com/2016/06/report.pdf
 https://medium.com/@studiowatr/optimise-your-business-with-service-design-an-uber-case-study-8b273de13bcb#
:~:text=Service%20design%20would%20focus%20on%20how%20Uber%20operates,customers%20to%20rolling
%20out%20payments%20for%20its%20staff
 https://innovationtactics.com/porter-five-forces/
 https://www.uber.com/newsroom/your-second-first-trip/

20
21