Professional Documents
Culture Documents
Marketing Communications
Case
Market entry/Employee
Highlights recruitment
● Butting heads with Lyft
Business Model
Product Definition
Relationship:
● Social Media
● Customer Support
● Review Rating and Feedback system
Value Proposition
Customers: Drivers:
● No need to wait for a taxi for long times. ● Additional source of income.
● Free rides on certain occasions and ● Flexible working schedules. Can work part
discounts from time to time. time or simply whenever they like.
● Prices lesser than the normal taxi fares. ● Easy payment procedure.
● Uber’s tagline says – Your personal driver. ● Those who love to drive can earn money
It lets customers travel in style. while pursuing their hobby.
● Fixed prices for certain common places ● Uber pays drivers to be online, even if they
(Airport) don’t get any request.
Profit Proposition
● Surge Pricing
● Car rides on per KM/Mile basis
● UberX, Uber Black, Uber Taxi, Uber SUV
Strategic Objectives:
Strategies:
● Recruitment strategies
○ Drivers/logistics and social media/public relations
● Promotional strategies
○ New user discount codes
○ Social Media - Twitter, Facebook, YouTube, and its website
○ Promotional Events - “Romance on Demand”, ice-cream delivery, Christmas tree delivery, etc.
Internal Analysis
Resources:
Capabilities: “Tap and ride” technology, fast, reliable, “safe” and convenient transportation
Competitive Advantages:
● Existing Substitutes
○ Taxi
○ Public Transportation
○ Biking
● Quality performance and price comparisons
External Analysis - Industrial Environment
Bargaining Power of Suppliers (Low)
● Competition
○ Lyft
○ Hailo
○ Sidecar
○ Taxi
○ Car-pooling
External Analysis - Competitor Analysis
Future Objectives: Expand and be able to offer rides at airports and areas where they are
currently unable to. Expand into highly populated, local areas such as Miami and Washington
DC and international markets such as India.
Current Strategies: Offer rides to areas where taxis have no presence or where taxis are too
costly.
Assumptions: Uber can assume that the future will lead to more success for their company.
Lyft and Taxi services will continue to improve so Uber must stay on top of their game.
Capabilities: Uber is capable of providing rides through the use of a smartphone app.
Response: Uber must expand into new areas and lobby for certain laws. Uber must pay drivers
more for better customer satisfaction.
SWOT Analysis
SWOT Analysis
Strengths Weaknesses
● It is a well-recognized brand. ● The idea can be easily copied. Nothing will prevent
● As cashless payment system is used, Uber can track and competition from presenting the same product.
choose highly rated drivers. ● Very unpredictable business model.
● The prices are lower compared to traditional taxi ● The relationship between Uber and the drivers is ethically
operators. questionable. It lacks the real connection. So, it is
● It has a high standard of service, verified drivers and cars. expected that loyalty between Uber and its drivers is quite
Uber Black users enjoy very high standard of service. low.
● Operational cost is quite low. As it relies on ● There are privacy concerns within the application itself
customer-to-driver interaction, a dispatcher is not needed. with it’s users.
Opportunities Threats
● Can tap growing markets in suburban areas where taxi ● Some new legal regulations in countries like Germany will
services are not available. ban Uber from operating.
● It can exploit new and big markets in countries like India ● Problems with local authorities can lead to fines. It will also
where taxi services are inconvenient and expensive. earn a bad public relations.
● Additional services like transporting older patients to ● Increasing competition will ultimately decrease prices. This
hospital, transporting children to school and transporting will result in loss of customers.
pets to the vet can be offered. ● As new markets and drivers are joining, fraud and
scandals are also increasing. It is damaging for the brand.
Recommendations
● Maintain consistent pricing for customers in both rural and non-rural cities.
● Allow users put in for a reservation hours or days in advance, and let drivers