Car Aggregator Model

Value Chain Analysis

Presenters:
Aditya Chavan (20-I-103)
Karishma Mastud (20-I-109)
Saurabh Pimple (20-I-112)
Abhipsa Sahu (20-I-113)
Rucha Todankar (20-I-120)
Porter’s Five Forces
Value Chain
Analysis
and
Porter’s Concept
of Value Chain
Analysis
 Value
Chain Analysis
Primary Activities
 Operations at UBER cab
1. Install the Uber app
2. Register
3. Enter the destination
4. Choose the cab service
5. Ride
6. Pay the bill

By: Saurabh Pimpale

 Marketing and Sales

Marketing and Sales After Sales- Service:

 Promotions  Driver on Boarding
 Advertising  In-app support
 Digital Marketing  Customer Complaints

By: Aditya Chavan

Sales and Marketing
Uber sales and marketing costs amounted to USD 3,58 USD 4,63 and USD 3,15 billions in
2020, 2019 and 2018 respectively. The ride-hailing giant mainly relies on social media
marketing and word-of-mouth marketing to communicate its marketing message to the target
customer segment.
Uber will highlight the benefits and differentiation points of offered products to persuade the
customers that its offering is better than competitors. Only producing a high quality product at
affordable costs and distinctive features cannot create value until Uber invests on the
marketing and sales activities. Uber's marketing and sales activities are- sales force,
advertising, promotional activities, pricing, channel selection, quoting and building relations
with channel members.
Uber uses print and media advertising, sales promotions, events and experiences and public
relations as part of its marketing strategy. Convenient payment method is a major source of
value addition for the company. Uber automatically charges the credit card registered with the
app. Therefore, customers don’t have to have cash or credit card when they reach
destinations.
 Marketing Strategy
Market Market Market Marketing
Segmentation Mix Decisions
Targeting Positioning

Success Failure
Market
Market Segmentation
Fragmentation
Implementations

Marketing
Feedback
Response
 What is making Uber
Successful?
Price
 List Price
 Discounts
 Allowances
 Payment Period
 Credit terms

Promotion
 Referrals
 Advertising
 Personal selling
 Sales promotion
 Loyalty Programs
 Uber Services
An Omni-Channel Approach
Uber Eats
Uber Rush
Uber Health
Uber Events
Uber Freight
Safet Toolkit
Safety Center
Share My Trip
911 Assisstance
Reviews
Support Activities
 Procurement
 Inputs Purchase but not by themselves
 Vendor Management
 Procedures
 Ongoing Performance Evaluation
 Suppliers abiding by Laws and regulations.

By: Abhipsa Sahu

 Technology Development
 Product Development
 Process Development
 Research and Development Department
 App/Website
 Security
 Human Resource Management
 Recruitment
i. Recruitments for Drivers
ii. Recruitments for Executives
 Performance Appraisal For Executives & Drivers
 Uber Training & Development

By: Rucha Todankar

 Firm Infrastructure

 Quality Management
 Legal Matter handling
 Accounting
 Financing
 Planning

By: Rucha Todankar

Profit Margin

By: Karishma Mastud

 Cost Structure of Uber
 Platform cost:
 New feature development
 Sales & Marketing:
 Promotion and branding costs
 Discount offers and deals
 Partners and community events
 Assets cost:
 Computer equipment – phones,
tablets, etc.
Operational cost :
Employee salaries
Legal and accounting expenses
Commission to drivers
Infrastructure cost
Web/app hosting cost
Insurance cost
Maintenance of lease vehicle
Credit card/ mobile wallet processing cost
Day-to-day office maintenance expenses
 How Uber makes Money?
 Base fare – it’s an initial flat fare
 Distance per km Fare – is charged based on distance traveled per km, after initial fixed fare distance (differs
from car to car and geographical location)
 Ride time fare – A fare charged based on the total time of the trip from pick up to drop off. Customers will be
charged based on travel time in minutes.
 Wait time fare – is imposed if the driver had to wait
 Peak Pricing – During high demands for cabs, Ola increases the rates per km. It may also increase the rate of
slabs depending on the type of car to generate more revenue. Your charges will vary according to the car you
have selected at the time of booking. These charges include a fixed rate per km, per km travel charges and
driver’s waiting time.
 Advance booking fees – there is an advance booking fee that is charged on all rides that are booked for later
use.
 Access fees – it’s a fee for auto rides
 Convenience fee – its applicable to ride that provides in-cab entertainment
 Airport fees – surcharge fees are charged in case of airport pickup/ drop off
 Tool and parking fees – it’s based on the usage, when applicable
 A cancelation fee may be charged for canceled rides in certain conditions (fees vary as per rides and regions).
 Service Tax – is also charged on the entire trip fare
 Net Profit/Loss made by the Cab Operator
(Uber)

Net Profit = Total Income – Total Cost

 Conclusion:

Conclusion

 By using Value Chain Analysis, Uber can select and source

premium quality raw material and develop customer loyalty based
on it. It can also use Value Chain Analysis to develop brand
identity.
 Uber can also achieve competitive differentiation by speeding up
the delivery of offered products to the final customers.
 Uber can analyze value chain activities to reduce the costs, find
better deals with suppliers and offer high quality products at
affordable prices.
Thank you