CASE STUDY PRESENTATION

PRICING STRATEGY
 AGENDA
Company Overview 01

Objectives 02

Challenges 03

Solution 04

Recommendations 05
 • Founded in 2009
• Founders: Garett Camp and Travis
Kalanick
COMPANY • Based in San Francisco
OVERVIEW • Originally a private car service for
executives
• Started growth in 2010
• Use technology to bring together
passenger and drivers
 • Uber’s phenomenal market
success
OBJECTIVE
• Customer Value Proposition
S
• Business Model

• Pricing Strategy – surge pricing

 Uber

Phenomenal Market Success

• Benefits for Customers

• Benefits for Uber Drivers

• Early Adopters

• Word of Mouth

• Price Surging

• Disrupting old industry

Uber
 Uber
Value Proposition
Customers: Drivers:

• No need to wait for a taxi • Flexible working schedules.

for long times. Can work part time or
simply whenever they like.
• Prices lesser than the
normal taxi fares. • Easy payment procedure.

• Uber’s tagline says – Your • Uber pays drivers to be

personal driver. It lets online, even if they don’t
customers travel in style. get any request.
Uber

Pricing Strategy

Pricing Strategy is a huge element of an overall marketing

strategy.

Uber uses dynamic pricing system often called “ surge pricing”.

Uber

Why surge price is used ?

• To help in meeting higher demand.

• To help in moderating the demand

for riders.
Uber
Challenges
Issues Solutions

• Trust and Safety issues • Driver/Passenger information, GPS

i. Alleged (sexual assaults) following rides.
ii. Alleged Kidnapping • Panic button
• Identification of new technologies.

Legal Issues
• Uber Car Insurance coverage for
- Insurance coverage for accidents.
UberX.
- Regulatory laws – illegal taxi
• App’s terms and conditions.
operation?
• Conforming to the laws.
Surge Pricing – Cap on fares for certain
events.
Uber

Recommendations
• Maintain consistent pricing for customers in both urban and
metro cities.

• Provide validated proof of safety for customer peace of mind.

• Expand business model into other facets of business (i.e.

UberAlternate, UberTour, UberFresh).

• Allow users put in for a reservation hours or days in advance,

and let drivers commit to pick up a reservation.
THANK YOU!!