QSM Chap 10 Service Culture in Tourism and Hospitality Industry.pptx
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Car for hire business case Uber - Business Model Canvas
1. âCar for hireâ
Business model canvas
Case Uber
Strategy Case Study1
Image: Uber website
Š Jukka Ala-Mutka / jukkaam.com / @jukkaam
2. Taxis, whose business model
has hardly changed since the
invention of the tax meter in
the 1940s, have a lot to worry
aboutâŚ
2 James A. Bacon, âBacon: Innovation Uber allesâ, The
Washington Times, February 2, 2012
Š Jukka Ala-Mutka / jukkaam.com / @jukkaam
3. Case: Uber
⢠Case description based on analysis of Uber, but the
rules of the strategy can be applied to mass
participation platforms in general
⢠Uber is a platform which connects passengers to drivers
of available âfor hireâ car services. The mobile app
sends an electronic hail for a car based on the personâs
location. This service is convenient and reliable because
it is a guaranteed ride, and all transactions are
automatically billed to the passengerâs on filed credit
card by Uber, not driver.
3Š Jukka Ala-Mutka / jukkaam.com / @jukkaam
4. Uber is not a transportation
provider.
4
https://www.uber.com/cities/san-francisco#
Image: Uber websiteŠ Jukka Ala-Mutka / jukkaam.com / @jukkaam
5. Uber users are spending over
$100 a month on average on
the service â an astonishing
figure compared to the
minuscule purchases most
apps encourage.
5
http://fortune.com/2012/02/02/the-trials-of-uber/
Š Jukka Ala-Mutka / jukkaam.com / @jukkaam
6. Target customers
⢠End users:
⢠Upper class
⢠Business
⢠Technology
⢠Urban Middle-class
⢠Suppliers:
⢠Drivers
6Š Jukka Ala-Mutka / jukkaam.com / @jukkaam
7. Value proposition
⢠Value proposition for
both sides:
⢠End users:
⢠Secure, trustworthy and
guaranteed ride with
shorter waiting
⢠Drivers:
⢠Busier and efficient days
for drivers
7Š Jukka Ala-Mutka / jukkaam.com / @jukkaam
8. Regulators part 1
⢠Problem:
⢠âBecause Uber was allegedly running and marketing itself
as a cab service but without a permit, the company was
threatened with fines, including $5,000 for every
transaction it made.â
⢠Solution:
⢠âThe next day, the startup dropped the word âcabâ from its
name. So far, that has appeased local regulators.â
8
http://fortune.com/2012/02/02/the-trials-of-uber/
Š Jukka Ala-Mutka / jukkaam.com / @jukkaam
9. Regulators part 2
⢠Problem:
⢠Local âtaxiâ or âcabâ business is regulated
⢠Solution:
⢠the definition of limousine â âmotor vehicle carrying
passengers for hire in the District, designed to carry fewer
than nine (9) passengers, excluding the driver, with three
(3) or more doors, other than a taxicab, coach, or
wheelchair accessible van, and not permitted to accept
street hails from prospective passengers in the street.â
9
http://www.washingtonpost.com/blogs/mike-debonis/post/uber-car-service-runs-afoul-of-dc-taxi-commission/2012/01/11/gIQAxH3UrP_blog.html
Š Jukka Ala-Mutka / jukkaam.com / @jukkaam
10. Regulators part 3
⢠Problem:
⢠Qualifications of employed drivers
⢠Solution:
⢠âUber does not employ cars and drivers; it operates a
system that connects riders via smartphone with limousine
companies that have contracts with Uber but are
otherwise independent businesses. Those companies and
their drivers, he said, are required by contract to have all
the requisite licenses, registrations and insurance limo
drivers are required to have.â
10
http://www.washingtonpost.com/blogs/mike-debonis/post/uber-car-service-runs-afoul-of-dc-taxi-commission/2012/01/11/gIQAxH3UrP_blog.html
Š Jukka Ala-Mutka / jukkaam.com / @jukkaam
11. Key Problems
⢠Security and trust are
challenges in general during
usage of the service
⢠Pricing have been the
problem and also it is also for
Uber
⢠Waiting especially when in
hurry.
⢠Transportation industry is
heavily regulated
11Š Jukka Ala-Mutka / jukkaam.com / @jukkaam
13. Two-sided mass participation market
⢠Uber is a platform
which connects
passengers to
drivers of available
âfor hireâ car
services.
Become a
driver
(suppliers)
Signup for
Uber
(customers)
http://www.uber.com
13Š Jukka Ala-Mutka / jukkaam.com / @jukkaam
14. Location based electronic hail
⢠The mobile app
sends an electronic
hail for a car based
on the personâs
location
http://www.uber.com
14Š Jukka Ala-Mutka / jukkaam.com / @jukkaam
16. Comfortable billing system
⢠All transactions are
automatically billed
to the passengerâs
on filed credit card
⢠No transactions
with driver
⢠Tip included in
price
http://www.uber.com
16Š Jukka Ala-Mutka / jukkaam.com / @jukkaam
18. âŚmade by many. It is open,
participatory, and peer-driven.
18
http://www.fastcompany.com/3039042/ubers-new-power-failure
Š Jukka Ala-Mutka / jukkaam.com / @jukkaam
19. Must-win battle #2
Mass participation for suppliers
19
2
Š Jukka Ala-Mutka / jukkaam.com / @jukkaam
20. Service is convenient and
reliable because it is a
guaranteed ride.
20Š Jukka Ala-Mutka / jukkaam.com / @jukkaam
21. Product quality
⢠Standardization of
the service
https://www.uber.com/cities/san-francisco#
http://www.uber.com21Š Jukka Ala-Mutka / jukkaam.com / @jukkaam
22. Culture of quality
⢠Metrics for service quality
⢠Rating of the service from
both sides â driver & rider
http://www.businessinsider.com/uber-drivers-rate-passengers-2013-8?IR=T
https://play.google.com/store/apps/details?id=com.ubercab&hl=en_GB22Š Jukka Ala-Mutka / jukkaam.com / @jukkaam
26. The whole New BMC Model
26Š Jukka Ala-Mutka / jukkaam.com / @jukkaam
27. Methodology of the Analysis
⢠The structure of the analysis is based on so called Business Model
Canvas and strategy as a visual model
⢠The Business Model Canvas is a strategic management template for
developing new or documenting existing business models. It is a visual
chart with elements describing a firm's value proposition, infrastructure,
customers, and finances[1].
⢠It assists firms in aligning their activities by illustrating potential trade-
offs. The Business Model Canvas was initially proposed by Alexander
Osterwalder[2] based on his earlier work on Business Model Ontology.[3]
⢠See more from Wikipedia Business Model Canvas.
⢠See creative commons license from
http://www.businessmodelgeneration.com
⢠Used canvas is further modified, but include all building blocks as
original.
27Š Jukka Ala-Mutka / jukkaam.com / @jukkaam
UberX: The least expensive Uber service. Drivers use their own everyday cars to give you a ride. Seats 4 riders.UberXL: Seats at least 6 passengers. An UberXL car will be an SUV or a MiniVan. Higher fare price than UberX UberPlus: Also for groups of 5-7 riders, but the vehicle standards and fares are higher. Black Car: Uberâs âexecutiveâ luxury service. Your driver will be a licensed livery driver and pick you up in a luxury sedan or SUV. Higher fare price than UberPlus
More about UberX
UberX is the âride sharingâ service that matches riders with independent drivers who use their own personal vehicle. UberX drivers are not professional livery drivers and a commercial license is not required, although some UberX drivers might have one. UberX drivers must be 21 or older with a clean driving record.
Related: More about UberX driving requirements.
UberX cars must be model year 2006 or newer and pass an independent vehicle inspection. When you request an UberX, youâll probably be picked up in a Honda Accord, Toyota Camry, Mazda3, Ford Escape, Ford Escort, etc. UberX drivers drive âregularâ cars that typically arenât luxury sedans or SUVs.
UberX prices are the lowest of all three services. Check Uber.com to see the fare prices in your area. Youâll find that they are much cheaper than cab fare, and very similar in price to Lyft.
Want to drive for UberX? Itâs easy to apply and youâll know if youâre hired only a few days after you apply. Apply now with my link and you may be eligible for a signing bonus.
More about UberXL
UberPlus is very similar to UberX, but the vehicles are larger and the fare price is higher. An UberPlus car can hold 6 passengers. The driver requirements are the same as UberX, and the vehicles are ordinary minivans and SUVâs. Think Honda Pilot, Dodge Caravan, GMC Acadia, etc. If youâre looking for the cheapest Uber option for a large group, UberXL is the right choice.
More about UberPlus
UberPlus is similar to UberXL â the vehicles seat 6 passengers. The vehicle standards are higher for UberPlus, so expect a leather interior in your UberPlus. If you want a nice ride for a large group but you donât want to pay for Black Car service, UberPlus is a good option.
More about Uber Black Car
Black car is the livery service that has given Uber a high-end reputation in the business world. The vehicle standards and driver standards are much higher for Black Car: Your Black Car driver will be a licensed livery driver and their vehicle will have a leather interior and should be impeccably clean.
There are two options in the Black Car service: Choose a Black Car luxury sedan that seats for, or an SUV that seats 6 or more.
Naturally, the fare for Black Car is higher than UberX and Uber Plus. It caters to wealthier users, business people, celebrities, and Uber users who are willing to spend a little extra for a special occasion.
UberX: The least expensive Uber service. Drivers use their own everyday cars to give you a ride. Seats 4 riders.UberXL: Seats at least 6 passengers. An UberXL car will be an SUV or a MiniVan. Higher fare price than UberX UberPlus: Also for groups of 5-7 riders, but the vehicle standards and fares are higher. Black Car: Uberâs âexecutiveâ luxury service. Your driver will be a licensed livery driver and pick you up in a luxury sedan or SUV. Higher fare price than UberPlus
More about UberX
UberX is the âride sharingâ service that matches riders with independent drivers who use their own personal vehicle. UberX drivers are not professional livery drivers and a commercial license is not required, although some UberX drivers might have one. UberX drivers must be 21 or older with a clean driving record.
Related: More about UberX driving requirements.
UberX cars must be model year 2006 or newer and pass an independent vehicle inspection. When you request an UberX, youâll probably be picked up in a Honda Accord, Toyota Camry, Mazda3, Ford Escape, Ford Escort, etc. UberX drivers drive âregularâ cars that typically arenât luxury sedans or SUVs.
UberX prices are the lowest of all three services. Check Uber.com to see the fare prices in your area. Youâll find that they are much cheaper than cab fare, and very similar in price to Lyft.
Want to drive for UberX? Itâs easy to apply and youâll know if youâre hired only a few days after you apply. Apply now with my link and you may be eligible for a signing bonus.
More about UberXL
UberPlus is very similar to UberX, but the vehicles are larger and the fare price is higher. An UberPlus car can hold 6 passengers. The driver requirements are the same as UberX, and the vehicles are ordinary minivans and SUVâs. Think Honda Pilot, Dodge Caravan, GMC Acadia, etc. If youâre looking for the cheapest Uber option for a large group, UberXL is the right choice.
More about UberPlus
UberPlus is similar to UberXL â the vehicles seat 6 passengers. The vehicle standards are higher for UberPlus, so expect a leather interior in your UberPlus. If you want a nice ride for a large group but you donât want to pay for Black Car service, UberPlus is a good option.
More about Uber Black Car
Black car is the livery service that has given Uber a high-end reputation in the business world. The vehicle standards and driver standards are much higher for Black Car: Your Black Car driver will be a licensed livery driver and their vehicle will have a leather interior and should be impeccably clean.
There are two options in the Black Car service: Choose a Black Car luxury sedan that seats for, or an SUV that seats 6 or more.
Naturally, the fare for Black Car is higher than UberX and Uber Plus. It caters to wealthier users, business people, celebrities, and Uber users who are willing to spend a little extra for a special occasion.
UberX: The least expensive Uber service. Drivers use their own everyday cars to give you a ride. Seats 4 riders.UberXL: Seats at least 6 passengers. An UberXL car will be an SUV or a MiniVan. Higher fare price than UberX UberPlus: Also for groups of 5-7 riders, but the vehicle standards and fares are higher. Black Car: Uberâs âexecutiveâ luxury service. Your driver will be a licensed livery driver and pick you up in a luxury sedan or SUV. Higher fare price than UberPlus
More about UberX
UberX is the âride sharingâ service that matches riders with independent drivers who use their own personal vehicle. UberX drivers are not professional livery drivers and a commercial license is not required, although some UberX drivers might have one. UberX drivers must be 21 or older with a clean driving record.
Related: More about UberX driving requirements.
UberX cars must be model year 2006 or newer and pass an independent vehicle inspection. When you request an UberX, youâll probably be picked up in a Honda Accord, Toyota Camry, Mazda3, Ford Escape, Ford Escort, etc. UberX drivers drive âregularâ cars that typically arenât luxury sedans or SUVs.
UberX prices are the lowest of all three services. Check Uber.com to see the fare prices in your area. Youâll find that they are much cheaper than cab fare, and very similar in price to Lyft.
Want to drive for UberX? Itâs easy to apply and youâll know if youâre hired only a few days after you apply. Apply now with my link and you may be eligible for a signing bonus.
More about UberXL
UberPlus is very similar to UberX, but the vehicles are larger and the fare price is higher. An UberPlus car can hold 6 passengers. The driver requirements are the same as UberX, and the vehicles are ordinary minivans and SUVâs. Think Honda Pilot, Dodge Caravan, GMC Acadia, etc. If youâre looking for the cheapest Uber option for a large group, UberXL is the right choice.
More about UberPlus
UberPlus is similar to UberXL â the vehicles seat 6 passengers. The vehicle standards are higher for UberPlus, so expect a leather interior in your UberPlus. If you want a nice ride for a large group but you donât want to pay for Black Car service, UberPlus is a good option.
More about Uber Black Car
Black car is the livery service that has given Uber a high-end reputation in the business world. The vehicle standards and driver standards are much higher for Black Car: Your Black Car driver will be a licensed livery driver and their vehicle will have a leather interior and should be impeccably clean.
There are two options in the Black Car service: Choose a Black Car luxury sedan that seats for, or an SUV that seats 6 or more.
Naturally, the fare for Black Car is higher than UberX and Uber Plus. It caters to wealthier users, business people, celebrities, and Uber users who are willing to spend a little extra for a special occasion.