Case study of Uber Egypt

1. P R E PA R E D T O D R R I H A M M O AWA D

2. Marketing Strategy Of Uber
• Operating in more than 540 cities worldwide Uber have a come a long
way in operating as a cab aggregator from 2009. The company was
formerly known as Uber Cab and is founded by Travis Kalanick and
Garrett Camp head quartered in San Francisco, United states.

3. Uber Egypt
• Uber Expand its business in Egypt since 2015
• It facilitates a platform for customers for booking cabs at their locations while the app
automatically prompts the nearest Cab driver registered with Uber.

4. Segmentation, Targeting, Positioning In
The Marketing Strategy Of Uber
• Segmentation is the process of dividing the market into the groups of homogeneous
characteristics. Uber uses a mix of demographic and geographic segmentation
variables which helped the company pricing its services accordingly.
• Both geographic and demographic segmentation is important because Uber needs to
know which areas to target for customers who are ready to use an “on order
transportation service” over public transport services. You will not find Uber in Rural
areas but mainly in urban areas only where it replaces taxis.

5. Geographic Segmentation
• Uber Started in Cairo and Giza now it is in many countries

6. Demographic Segmentation
• It divided the market into many categories as per income level so it offers some
products to serve each level
– Uber Select (for high level)
– Uber X (for middle level)
– Uber Scooter (for low level)
– Uber Bus recently

7. Competitors

8. Competitive Advantage In The
Marketing Strategy Of Uber
• Global Presence: Having expertise and experience of operating in more than 70
countries globally is what making it competitively ahead of its competitors. Its presence
in the remotest areas and easy & timely availability of the services are some of the
major factors for its success.

9. Adaptation In Egyptian Market
• Uber USA has been tying up with many car manufacturing companies to jointly
produce customized vehicles exclusively for Uber which is giving a competitive
advantage to the company over others. Recently it partnered with Daimler to build
autonomous vehicles which will operate on Uber’s transportation network.
• In Egypt this strategy will make the cost of service is very high

10. Distribution Strategy In
The Marketing Strategy Of Uber
• Uber has a fleet of vehicles who get themselves registered with uber
• A problem facing Uber is that being in the services sector, several companies have
replicated the same business model as UBER (Careem, SWVL) therefore it is facing
hard competition where distribution of its services is concerned.

11. Competitive Analysis In The
Marketing Strategy Of Uber
• The industry in which Uber operates is overcrowded with a large number of players,
the primary ones being public transport and the second competition being from small
companies
The unorganized sector of Cab / Taxi services as well as the threat of ever changing
government laws poses a serious threat to the business of Uber.

12. Barriers And Challenges
Barriers
• Government regulations
– Reconciling situations:
• End of March, 2018 the Parliament passed a law regulating the mass transit using information
technology
– Gas Floating
Challenges
• More new customers join in Uber every day

13. SWOT ANALYSIS
• Strengths:
– Technology
– Affordable transportation options
• WEAKNESSES:
– Lack of relationship with drivers
– Highly Dependent on Manpower
– Highly dependent on Internet
• Opportunities
– Dissatisfaction with unorganized market
– Ability to expand to new cities and countries
– High employment rates
• Thereat:
– Copycat competitors
– Government regulations are unclear
– Low profit margins ( to drivers)
– High Gas Prices

14. Marketing Mix Of Uber
• Product
– Uber Select
– Uber X
– Uber Scooter
– Uber Bus
– Uber Eats
• Place
– Uber is present in 83 countries and across 674 cities. Five countries where the brand is most active and
popular are US, Brazil, China, Mexico and India. However, since Uber has relied upon networking, it did not
need too many offices. It has offices in key locations globally. It has its headquarters in San Francisco. Apart
from that, it has offices in key locations like Manhattan and New York. In 2017, it employs 12000 people.
– Virtual service through mobile application ( IT service ).

15. • Price
– Uber’s concept of taxi services was mainly based on availability and affordability. However,
apart from economy options it also makes premium options available on demand. The
economy options are meant to save costs. Uber saves cost on infrastructure and passes the
benefits to its customer. Its competitive pricing strategy has become a major trouble for the
competitors. Uber either calculates the prices upfront or right after the ride is over. In case
of upfront pricing, the prices are available to the customer before the ride begins. These
costs depend on three factors that include a base rate, rate for estimated time and distance
and the demand for rides in that area.
• Promotion
– Uber mainly promotes its business through its website and app. However, the brand has
also created a lot of buzz through its differentiated services which has generated a lot of
publicity and word of mouth marketing. The brand remains in news regularly and apart from
the news sites is also talked of on discussion sites. However, it actively promotes itself on
social media too. The Facebook account of Uber is used for promoting the brand and its
newest deals and discounts as well as for addressing the customer concerns.

16. • Physical evidence –
– Uber has many agents in most cities. Most of its business is carried out online through its
app and website. Apart from that the only physical evidence of its service are the taxis and
its hospitable taxi drivers.
• Process
– When you have to hire a taxi, you just need to enter necessary details in your app and the
nearest taxi will come to pick you. You are given an upfront fare that you can pay through the app
or one before the drive over. Either way, you can do it all seamlessly using the app. Just jump in
to the taxi as soon as it arrives and get out when you reach your destination.

17. • People
– In 2018, Uber has more than 150,000 people working for it including the satellite customer
support and leasing agents.