Uber & Grab SWOT Analysis for class ICP205. DISCLAIMER: Pricing in slides are based on Thailand's prices.

1. &

2.  Founded by Travis Kalanick and
Garrett Camp on March 2009 (6
years ago)
 Headquarters is in San
Francisco, California, USA.
 Private company under the
transport industry.
 On October 2010, the company
changed its name from
‘UberCab’ to ‘Uber’.

3.  Founded by Anthony Tan and
Tan Hooi Ling on 2011 in
Malaysia.
 Headquarters is in Singapore.
 Under the transport industry.
 Recently change its name from
‘GrabTaxi’ to ‘Grab’ on the 28th
of January 2016.
New Name/Logo:
Old Name/Logo:

4.  Taxi - Calls a taxi that has an agreement with Uber. These taxis are just like any taxi except that
you pay through the application.
 UberX – Base fare: ฿25 + ฿1 per min. + ฿4.5 per km.
Sends an ‘every day’ car to your location with seating up to 4 people.
 Black Car – Base fare of ฿50 + ฿2.50 per min. + ฿14 per km.
This is Uber’s original service. Choosing Black Car will send a high-end Sedan or SUV/MPS with
seating up to 4 people.
 SUV – Sends a SUV to your location with seating up to 6 people. Significantly more expensive
than the Black Car service.
 LUX – Sends a high-end luxury car to your location with seating for up to 4 people. This is
Uber’s most expensive service.

5.  Grab Taxi – Fast, safe and reliable metered Taxis.
Base fare of ฿35
1 – 10 km ฿5.50/km
10 – 20 km ฿6.50/km
20 – 40 km ฿7.50/km
 Grab Bike – On-demand bike service for passengers and instant deliveries. This service can
be found in Ho Chi Minh City and Hanoi City, Vietnam, Bangkok, Thailand and Jakarta, Indonesia.
Base fare of ฿25 + ฿10/km
 Grab Car (Economy) – Your every day private car.
Base fare of ฿30 + ฿9/km
 Grab Car (Premium) - Your premium driver service with a luxurious experience.
Base fare of ฿75 + ฿15/km

6. 7-seater Taxi – A metered, spacrious and a comfortable ride.
Base fare of ฿35
1 – 10 km ฿5.50/km
10 – 20 km ฿6.50/km
20 – 40 km ฿7.50/km
Grab XL -
Base fare of ฿300
0 – 1 km ฿20/km
10 + km ฿15/km

7.  Service is available worldwide
in 58 countries and 300 cities.
 Application is only available
for Andriod and iOS.
Offers free rides when you
refer a friend to sign up and
use the service.
 Service is available in 22 cities
in 6 countries – Malaysia,
Singapore, Thailand, Vietnam,
Indonesia and Philippines.
 Application is available for
Andriod, iOS, BlackBerry 10
devices and Windows Phone.
 Doesn’t offer free rides but
promotion codes are available.
First time users only gets a free
ride.

8. Strength
It has a high standard of service. Only
verified drivers and cars will be able to
work for Grab.
Grab’s payment method requires you
to pay directly to the driver.
The operational cost is quiet low as it
relies on customer-to-driver
interaction.
The estimated charges and the
summary of the driver’s details will be
shown on the next screen once the
booking is successful.
 It is a well-recognized business.
 A cashless payment system is
used.
 Dual rating system boosts trust
and safety for both drivers and
customers.
 As Uber has a high value, many
people are ready to invest in it.

9. Weakness
 Grab and its customers have no
bonding.
 There are privacy concern as Grab
records where customer gets the
taxi from and where they go with
it.
 Incentive to remain with Grab is
very low.
 Drivers are very dependent on
tips.
 The relationship between Uber and
the drivers is ethically questionable.
 There are privacy risks as Uber
records where customer gets the taxi
from and where they go with it.
 The cost of operating the vehicles are
very high but the drivers do not earn
as much.
 Drivers can also reject unwanted
clients.

10. Opportunities
 The estimated charges and the
summary of the driver’s details of
the booking will be shown on the
next screen once the booking is
successful.
 You can hire the driver to
transport children to school, pets
to vet, patients to hospitals etc.
 Can tap growing markets in
suburban areas where taxi services
are not available.
 Cheaper electric cars can be used.
It will reduce the cost and increase
the driver’s profit margin.
It can exploit new and big markets
in countries where taxi services are
inconvenient and expensive.
Uber can increase the valuation.
This might appeal more investors.
Uber will have more money to
operate.

11. Threats
 Tan, started by going door to door
to ask the biggest taxi fleet
companies to try his product.
 The initial period was tough with
many skeptics.
 Over valuation can lead to over-
investment in locations where
there is no room for businesses for
a similar type.
 Drivers constantly asking for tips
can make the customers feel
repulsed and not use the service
anymore.
 Drivers aren’t happy with the low-
profit margins. This might lead to bad
publicity.
As new markets and drivers are
joining, fraud and scandals are also
increasing. It is damaging for the
brand.
 Self-driving cars will eliminate the
need for Uber.
 Problems with local authorities can
lead to fines. It will also earn a bad
PR.

12. In favour of?
 Grab is easily accessible and
affordable.
 Significantly cheaper than
Uber.
 Provides more services than
Uber.
 Very popular in Asian
countries.

13. Presentation by (Group 3):
Doline Stephanie Mafoh Tchio
Dujfah Tungsujaritphun (Peem)
Jariyaporn M. Seenay (Jenny)
Jimoh Taiwo Aweda (Ola)
Sulaimon Sikirulai Adeshina (Dammy)
Tunde Atiku
Odejayi Olajide Abdul