Business Model of UBER
Presented by-
Ajit Gupta
PGDM
MARKETING

About UBER
Uber is an on demand
transportation service
which has brought a
revolution in the taxi
industry all across the
world
Uber is one of those
few tech companies in
the world that has been
valued over $70 Billion
The business model has
made it possible for
people to simply tap their
smartphone and have a
cab arrive at their
location in the minimum
possible time
Uber has already received an equity
funding of $22.2B and is present in
633 cities worldwide

Business Model of UBER

Keys partners
Driver Investors Technology
Cloud storage Map Uber car partners

Key Activities
customer proposition Reduce churn Expand to more cities
Analyse the data Continue Improve service Stop Negativity

Key resources
Brand name & assets
Venture capital The rider and the driver app

Value proposition
Fast pick-ups
often 3-5 mints
Lower
price than
comparable taxi
ride
Cashless
transactions
Secure and
safe
No need to tell
the driver the
destination
Rating system that
allows for feedback

Customer Segmentation
Driver segmentation-
• Demographic: age, socio-
economic status, family status,
nationality
• Geographic: by city, suburb
• Geo-demographic: see above
example
• Behavioral: preferred work
hours & patterns
• Offering: UberX, UberPOOL,
Uber BLACK, etc; part-time vs
full-time
Customer segmentation-
• Micro-Geography: home, work, typical
locations
• By usage patterns: regular, infrequent, etc
type of usage
-Uber POOL: Weekday regular workplace
commuters in a car pool
• Uber X: business travel users (e.g.
airport to CBD)
• Uber X: Casual users
• Uber BLACK: Limousine users
• Uber SUV or Uber LUX: Weekend

Customer Relationships
Relevant for drivers &
customers-
• Manage any safety risks
• Manage bad behavior (on both
sides drivers and passenger)
• Deal with customer issues in an
appropriate manner and
timeliness (see “Channels” for
more details)
• Transparent pricing
• Transparency around privacy
Especially for the drivers
• The platform’s ability to
generate income.
• Acceptable hourly wages
• Acceptable working conditions
and hours
• Manage issues (accidents,
damages or issues affecting
earnings)
• Support in the on-boarding
process where required

Channels
Channels for the initial awareness and customer acquisition can be:
• Campaigns: free vouchers when Uber enters a new cities
• Free media coverage based on the novelty factor (new-joiners have often
soared even after extensive negative coverage)
• Word of mouth
• Social media, people sharing
• Digital ad campaigns
• App stores (iOS, Android) – through high ratings, ads and being featured

Cost structure
• Cost of customer acquisition, CAC: free vouchers, one-off
subsidies, digital advertising, etc
Weighted average cost of capital.
• Development of new feature.
• Uber Pool driver costs (but none of the other drivers)
• Legal cases and settlement costs
• Regulatory compliance
• Transaction fees (credit card charges)
• Expansion to more cities and countries
• Infrastructure costs, computing Power, Customer support
• Insurance costs

Revenue Model
Revenue from
fares
Deposit money
from drivers
Advertisement

1.Driver
2.Technology
3.GPS
4.Cloud 5.storage
6.Data analytics
7.Payment apps
8.Bank
9.Investor
1.Captured data
2.Skilled engineers
3. Brand name and
assets
4.Apploication
driver & rider
1. Team
Management
2. Expand more cities
3. Analyses the data
to to fine
1.Micro geography-
home, work
location
2. By usage
Patterns-regular,
infrequent and etc.
3. Type of usage-
UBER pool
UBER X (business)
UBER X (casual)
1.Manage safety risk
2.Deal customers
issue
3.Transparent pricing
1.Fast pick up service
2.Lower price
3.No need to tell the
driver the destination
4.Cashless transaction
5.Rating system
6.Secure and safe
7.duration of time
1. Value of fare
2. License fees
3. Operational and maintaince cost
1.Cost of customer acquisition
2.Weight average cost of capital
3.UBER pool drive cost
4.transaction fees
Word of mouth
Social media
Digital campaign
App store