3. The worlds most popular media
owner creates no content
The most valuable retailer has no
The world’s largest accommodation
provider owns no real estate.
Largest telecommunication company
owns no infrastructure
Fastest growing banks have no actual
Independent Software vendors do
not write any code 3
12. Uber is a Carpool & Taxi Assistance venture with main office in San Francisco, California,
and operating in several countries.
By 2015, service was accessible in 58 countries & more than 300 towns
worldwide, estimated more than US$68 billion in December 2015.
Uber is subject of current protests from taxi drivers, taxi houses & elective bodies
with belief that carpool companies are illegal that occupy unfair trade executions &
imperil passenger security.
In December 2014, demonstration has been staged in Germany, India,
Thailand, Spain, France, & England, among other nations, for disturbances
Uber was prohibited in Spain & two towns of India in December 2014, and pursues
to find solutions with many governmental bodies, plus those of U.S. & Australia.
Image curtsey - http://onwardstate.com/wp-content/uploads/2014/09/o-UBER-
15. Customer Segmentation
Do not own a car.
Do not want to
to a party or
Like to travel in
style and want to
be treated as a VIP.
Want a cost-
efficient cab at
Uber has such a vast customer segment that it has got something on offer for everyone. From Uber Taxis
to Uber Black and from Uber X to Uber SUV, the company has got a vast range for its customers to make a
Uber serves professionals as they hire an Uber cab to and fro work. For this Uber did few tie-ups with
corporates in the beginning and does so when it launches in a new city in a new country. Apart from
professionals, Uber tries to touch hearts of people by offering special services like:
Uber for Kids: A special service from Uber dedicated for parents who want their kids to reach home from
school in an Uber cab.
Uber for Senior Citizens: Another special service from Uber where it targets senior citizens. As per the
statistics, Senior citizens make for upto 30% to 40% of total rides in many cities. This made Uber have
some special features for seniors and hence attract more senior citizens on the platform.
19. Uber product lines
UberX, the low-budget option.
UberBLACK is for consumers who desire to have their own private driver in a high-end sedan.
UberSUV connects users with SUVs
UberLUX is the most expensive service with luxury vehicles
UberXL is similar to UberSUV but is 50 percent less
Other low-cost options include UberPool, which allows passengers to share rides and split the costs, and UberPOP, a service costing
less than UberX because it utilizes non-professional drivers and smaller cars. Despite the opportunities UberPOP provides, its use of
non-professional drivers have led to regulatory issues in different countries.
UberFRESH and UberEATS are meal delivery apps that partner with local restaurants to offer meals to consumers within 10 minutes.
These new services are allowing Uber to branch out and expand its services into different businesses.
24. Areas where UBER plans to disrupt!!
Number of Customers (Demand) The Stability of Demand Organized Competition
Luxury Transportation Low (-) Stable (+) Low (+)
Mass Transportation Medium (+) Unstable (-) High (-)
Delivery Logistics High (++) Stable (+) High (-)
Home Services High (++) Stable (+) Low (+)
26. Provides What Customer Wants
Customers get a cab
Easy to operate
uberX at least 10%
cheaper than a Taxi
27. How it works
Uber's rates are alike to metered cabs, and entire lease & remittance is administered
Uber uses a smartphone application to accept ride requests, & then redirects these trip
applications to their chauffeurs.
Travelers use the app to demand rides & track the reserved automobile’s position.
In some towns, if Uber cab is travelling at more than 11 mph (18 km/h), then the
payment is decided upon distance, else the price is decided upon time basis.
On reaching the destination, the entire fare is automatically billed to the customer's
Uber has categorized its high prices as premium being paid by the travelers as its
service is reliable, punctual as well as comfortable.
During festival season such as Halloween, New Year's Eve, or severe weather
conditions, Uber reserves rights to increase its prices, alluring more business.
29. • Easy to start
• Individual business
(have full control)
• Earn more than taxi
(simple cost structure)
[Incentive to join the network]
Dynamic Pricing Model
(stably balancing quantity of
demand & supply)
• Easy to use
(thru smartphone app)
(arrival time & Fare)
• Cheaper than taxi
(simple cost structure)
• Better quality
(ratings & feedback)
34. Global Multi Domestic
UBER services are available in 58+ countries and 300+ cities around the world
• Govt. regulations
• Communication infrastructure
• Cultural adaptation
• Organizational structure
• The transferability and sustainability of
the technology & information systems
(Navigation system, apps, telematics)
• A very well positioned and easy-to-
37. Threat of new entrants
Threat of substitutes
Suppliers’ power Buyers’ power
Intensity of rivalry
BARRIERS TO ENTRY: MEDIUM-HIGH
UBER’s strong brand identity
UBER first mover advantage
Large number of firms
Fast market growth
(industry in apps segment)
Similar cost structure
Low switching cost
Low diversity within rivals
DETERMINANTS OF BUYER POWER: HIGH
Many substitute available
Switching cost is cheap
DETERMINANTS OF SUBSTITUTES THREAT : HIGH
High buyer inclination to substitute
(Strong public transportation system/taxi/car-sharing…)
Price elasticity is high
[DRIVER] DETERMINANTS of SUPPLIER POWER: LOW
Many competitive suppliers
Low bargaining power
Low impact of input on cost
[Others] DETERMINANTS of SUPPLIER POWER: MED
Navigation or Background check companies
[Porter’s five forces analysis]
40. [Three big challenges & Group suggestions]
Regulations1 Imitators2 New Technology3
• Current law systems says
UBER is illegal in most
cities (No licensed drivers)
• Total or partial prohibition
of the services and
confiscations of cars and
• Basically anyone with a
car and a driver’s license
could be a competitor
• There are many
companies operating in
very similar ways as UBER
(e.g. LYFT and Sidecar)
• New disruptive
• New business model
• Driverless cars
• Establishing better and
earlier relationships with
• Pushing drivers to obtain
such permits by
• “Too big to fail” strategy
• Reinforce safety system
& Improve PR
• Lock-in strategy through
Google synergy (e.g.
& UBER brand synergy
• Retain critical mass and
achieve economy of
• Leverage big data
• Invest R&D
41. Recent Setbacks
Thailand announced Uber illegal. Regulatory
obstacles were slammed in Germany, Netherlands &
San Francisco, where a chauffeur has been imposed
in a mishap leading to the demise of a six-year-old
Judge in Spain prohibited Uber's
carpool on Tuesday, 9th December
2014, stating it breached laws.
On 9th December 2014, San
Francisco & Los Angeles formally
summoned Uber for deceiving users
about charges & background checks.
Monday, 8th December 2014, city
government in New Delhi prohibited Uber to
function in the Indian capital after a rider
charged one of its chauffeur of rape.
42. Recent Setbacks
An Uber driver in San
Francisco has been
accused with vehicular
killing of a six-year-old
girl in San Francisco
on New Year's Eve in
2013, last year.
An Uber driver in
Orlando was charged of
molesting a female
traveler and holding the
In September 2014,
an Uber driver was
charged of hitting a
traveler in the head
with a hammer and
During the week of
December 9, 2014, a
Dutch court ruled
Uber system as illegal
chauffeurs offer trips
in their personal cars
at half the price of a
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