term paper of UBer

1. Letter of Transmittal
April 07, 2018
Dr. Chowdhury SaimaFerdous
University of Dhaka
Subject: Submission of International Strategic Management Term paper.
Dear Sir
I, Abu Saleh Al Imran was being assigned to do the report on Business Strategy of UBER in
Bangladesh. I found this assignment to be useful and practical and I have enjoyed it while
making this report as I gather knowledge about this area of my interest. I tried my level best
to meet all aspects required for this report. Moreover few aspects are unintentionally
overlooked. I hope that you would avoid any discordance considering my limitations.
This report has increased my level of knowledge in this particular area and we truly
understand the significant of working with this report. I hope that any short of ideas needed
regarding this report will be met.
Sincerely,
Abu Saleh Al Imran
ID- 801621025
Acknowledgement

2. I would like to express my sincere gratitude and cordial thanks to some specific persons who
helped us in preparing this report. At first, we want to mention our honorable course teacher
Dr. Chowdhury SaimaFerdous, Department Of International Business, University of
Dhaka, to give me this opportunity to prepare this report.
I wish to thank those students who provide me important information about different
company which helped us in preparing report.
I also want to mention of our classmates who also have contributions on my report. In
preparing of this report, I got help from others as they wished to remain anonymous. I owe
them with all gratitude
I would be thankful if this report comes to any benefit of our teacher as well as any students
of our department.

3. Executive summary
Uber generally commences operation in a city, then, if its operation is not permitted, Uber
mobilizes public support for its service, and, supported by a small army of lobbyists, mounts
a political campaign to change regulations.In January 2015, Uber announced a program
Kalanick called "principled confrontation" that included reaching compromises with local
municipalities on new regulations. Since implementing this program, Uber has seen 17 cities
pass new favourable ordinances. Uber had worked out an arrangement with the city of Boston
to share quarterly data on the duration, locations, and times of day in which riders used the
app to travel in or out of the city. This information was first delivered to the city in February
2015, and the report kept all individual user data private. Bradley Tusk, a former campaign
manager for Michael Bloomberg, has played a significant role in advising Uber with respect
to cities In 2014–2015, Uber used the services of David Plouffe in 2016–2017,
communications was led by Rachel Whetstone, and Jill Hazelbaker is now the senior vice
president of policy and communications
On November 22 last year, Uber started its operations in Bangladesh and now it has 9,500
registered drivers for cars, said Pradeep Parameswaran, head of central operation at Uber
India and South Asia.“We are now adding more than 100 drivers to our network every day,”
Parameswaran said at a programme to celebrate Uber's first anniversary of operations in the
country, at Sonargaon Hotel in Dhaka.
“Dhaka is a very important city for us and we will soon add new features to Uber's services
here.”Dhaka is the most densely populated among the 600 cities across the world where Uber
has operations, he said. The company is working to establish a well-planned network to
attract more customers, Parameswaran said “Dhaka presented us with a challenge of
transforming the transportation landscape and creating alternatives to a city burdened with a
growing population of cars on its roads.” Cars are very expensive in Dhaka compared to
many countries of the world and that is why Uber's service is expensive here, he told The
Daily Star.“The cost of the service is primarily determined by the cost of the car.”

4. Chapter-1: Introduction
Purpose of the studay:
The research problem is all about the Business Strategy of UBER in Bangladesh.
Rationale for its Study:
The first and main reason of doing this report is to analyze the business procedure of Uber
and their problems while delivering services in Bangladesh.
The other reason is to know about the Uber , an international service provider.
Objectives of the Study:
There are two types of objectives for making this report and those are mentioned below.
General Objective:
➢ To fulfill the requirement of MBA program’s term paper of ISM
➢ To gather some knowledge about how Uber is performing in Bangladesh and their
business strategy.
Specific Objective:
➢ To know the app based communication system like UBER’S industrial history
➢ UBER’S services in Bangladesh and operating procedure with Statical data.
➢ Economical Prospectus of Uber in Bangladesh.
➢ Draw out the Market segmentation and their implication procedure.
➢ In Perspective of UBER Porters 5 factor analysis and findings.
➢ SWOT analysis in perspective of Bangladeshi Environment, especially in Dhaka city.
➢ Comparative analysis of close compitator Like Pathao.bd
➢ Recommendation of , How they can improve Their services
➢ Accelerate growth in Uber riders;

5. ➢ Increase the supply of transport available on the Uber platform; and
➢ Establish partnerships that drive profitability
Methodology of the Study:
The report combines both primary and secondary sources of data and it is exclusively a
descriptive study.
Primary: The primary information collected through face to face interview and observation.
 Informal discussion with professionals and
 Observation.
Secondary: The secondary information collected from website, Magazine, Memorandum,
Journals, books and some other relevant sources. The secondary data sources are-
 Different published reports
 Manuals
Limitations of the Study:
The study has been prepared with very attentively and tries to implement all the academic
knowledge as well as Practical knowledge .To prepare this report there was some limitation.
The limitations are as follows:
➢ Lack of times to complete the study.
➢ Lack of experience to perform such kind of study.
➢ The information sources concerning this study are not so much large.

6. Chapter-2 (Literature Review)
Throughout the Industrial Revolutions, advances were made in transportation and
communication, which first began in England. Roads were created made of long lasting
surfaces and waterways such as canals and rivers connected all parts of a nation. George
Stephenson, a mining engineer, developed and invented the first steam powered locomotive,
which continued into the establishment of railroads. These inventions both lead to improved
transportation which in turn, helped communication and unity among the entire nation
undergoing development.
Throughout the more advancement of technology and internet service mobile application
based communication system has been introduced which paves the way of easy
communication. In this aspect the first name come to mind is “UBER” Uber is a privately
held company that was founded by Travis Kalanick (founder of Red Swoosh) and Garrett
Camp (co-founder of Stumble Upon) in march of 2009. Their vision was to create a
convenient, easy-to-order car service for reliable taxi rides in San Francisco. In early 2009,
the venture received $200,000 in seed funding. Uber is a transportation network company
(TNC) which is a fancy term for a company that uses an online platform to connect
passengers with drivers using their personal vehicles (just to be crystal clear, Uber doesn’t
own any of the vehicles). Uber is leading by laying out a platform for people to help other
people. Riders get an on-demand service and drivers can make additional income off an
underlying asset that normally just sits in the garage. Riders can request four different vehicle
types: UberX, Black Car, SUV and UberXL. Today, the company operates in more than 42
countries and has raised 1.2 billion at a $17 billion evaluation led by Fidelity Ventures. The
company is currently headquartered in San Francisco, California.
As of August 2016, the service was available in over 66 countries and 545 cities worldwide.
The Uber app automatically calculates the fare and transfers the payment to the driver. Since
Uber’s launch, several other companies have replicated its business model, a trend that has
come to be referred to as Uberification.
Global ride hailing company Uber sees a promising market in Bangladesh, with two lakh
people in Dhaka taking 15 lakh rides in November alone.

7. Chapter-3: Main Discussion/Body
Uber in Bangladesh:
Every once in a while, we all are faced with dreadful times, where we need to quickly make
way to a meeting, an exam, a gathering, but are at a loss of transport. A very common
problem faced by more than half of the population - you, me and everybody else. Well, long
gone are the days when we would awe in surprise every time we heard the words Uber on
television or on the Internet, because now the bustling city of Dhaka along with many other
neighboring cities have the convenience of calling such rides, both in times of emergencies
and regular use.
On November 22 last year, Uber started its operations in Bangladesh and now it has 9,500
registered drivers for cars, said Pradeep Parameswaran, head of central operation at Uber
India and South Asia.“We are now adding more than 100 drivers to our network every day,”
Parameswaran said at a programme to celebrate Uber's first anniversary of operations in the
country, at Sonargaon Hotel in Dhaka.
“Dhaka is a very important city for us and we will soon add new features to Uber's services
here.”Dhaka is the most densely populated among the 600 cities across the world where Uber
has operations, he said. The company is working to establish a well-planned network to
attract more customers, Parameswaran said.“Dhaka presented us with a challenge of
transforming the transportation landscape and creating alternatives to a city burdened with a
growing population of cars on its roads.” Cars are very expensive in Dhaka compared to
many countries of the world and that is why Uber's service is expensive here, he told The
Daily Star.“The cost of the service is primarily determined by the cost of the car.”
However, Parameswaran is very hopeful about the growing middle class of Bangladesh. “The
size of the middle class is very big and that segment of people wants to use our service as an
alternative,” he said.“The economy has been growing roughly at 7 percent for the last few
years and only a few countries can maintain that growth; this will also help us to grow here.
But Parameswaran declined to disclose their profit or investment in Bangladesh and how they
repatriate revenues.

8. The world's largest ride hailing company started operations in 2009, he said. There were
many cities in the world where Uber became profitable after running operations for over
seven years, he said. “There is a track record and we cannot be profitable from day one in
Dhaka.” Uber is investing to enrich Bangladesh's market, said Parameswaran. The Company
plans to launch its services in Chittagong and Sylhet soon, he said. “But the time has not yet
been finalised.”Local entrepreneurs have started entering the market and some of them even
launched their services outside Dhaka, he said. “Uber welcomes the competition.”
If there is a real competition, everything will move faster collectively, said Parameswaran. It
is a privilege to have more people in the space, he said. New investments depict that the
market is attractive, he also added. Uber is waiting for the ride sharing policy, which would
help the industry flourish, he said. About the data leakage from Uber last year, Parameswaran
said the company is now taking a lot of measures to ensure safety of customers' data.
Industry in which UBER belongs:
Industry can be defined as a group of companies, offering products or services that are close
substitute for each other.

9. Uber Technologies Inc. is a global taxi technology company headquartered in San Francisco,
California, United States, operating in 633 cities worldwide. It develops, markets and
operates the Uber car transportation and food delivery mobile apps. It belongs to
Transportation or Delivery (commerce) industry.
Uber has been a pioneer in the sharing economy, so much so that the changes in industries as
a result of it have been referred to as Uberisation. Uber has also been the subject of protests
and legal actions and the subject of a criminal investigation for its use of Greyball.
Uber able to disrupt the taxi industry by combining modern technology with flexible payment
and pricing strategies, while simultaneously offering a beneficial platform for prospective
drivers.To add to the convenience of its users, Uber has done away with cash payments.
Users define their payment details in the app, so the ride is paid for digitally, saving time and
hassle. Users are also provided the estimated charge in advance, increasing the transparency
of the service.
In recent times, Uber is taking on the taxi industry. Uber users are growing steadily as a result
of their satisfaction from the short pick up time, the increased convenience and the lower
rates, so there is a resulting increase in demand for drivers.
Thus, there has been a decrease in the prices of taxi licenses and taxi medallions (permits) in
some major cities. In order to not overinflate the market with drivers, taxis were required to
own a medallion, the number of which is controlled, thereby ensuring consistent demand for
drivers.
Other sectors related to UBER:
Sector means the group of closely related industries of which it is a part.
There are some othersectorswhich are closelyrelatedwithUberandcan be foundaroundthe
worldwhere there businessiswellestablished.
Here is some sectorsthatis alsoa part of Ubermentionedbelow-

10. Uber for Odd Jobs: GladlyDo
Uber for Hotel Rooms: HotelTonight
Uber for Beauty Services: Swan, Stylebee, StyleSeat, Manicube
Uber for Home Cleaning: Handybook, Homejoy
Uber for Car Repairs: YourMechanic
Uber for Babysitting: Urban Sitter
Uber for Pizza Delivery: Push for Pizza.
Uber for Medical Equipment: Cohealo
Uber for Quiet Spaces: Breather
Uber for Vet (Home Visit): VetPronto
Uber for Dog Sitters: DogVacay
Uber for in-home Massage: Massage, UnwindMe, Zeel, Soothe
Uber for Doctor House-call: Medicast, Pager
Uber for Doctor (Remote) Consultation: Doctor on Demand, dvisit
Uber for Courier Deliveries: Deliv, Postmates, Shyp
Uber for locksmiths: KeyMe, KeysDuplicated
Uber for Childcare/School Run: KangaDo.
Uber for Dry Cleaning/Laundry: Cleanly, Dashlocker, Washio, Flycleaners
Uber for Hotel Dry Cleaning: Oliom
Uber for Mobile Repairs: iCracked
Uber for Restaurant Home Delivery: Seamless
Uber for Home Deliveries: Anyvan, Doorman, Instacart, UberRUSH
Market Segmentation of UBER in Bangladesh context:
If we segment the category by A, B,C

11. A
Income Profession Tech
Knowledge
Location
High,
Excellent
Higher Level
Executives,
Business man,
Student
High, Needful Urban Areas,
Towns, Cities,
Metropolitan
Cities
B
Income Profession Tech
Knowledge
Location
Mid level,
Sufficient
Mid Level
Executives,
Small
Entrepreneurs,
Student
High, Average Urban Areas,
Towns, Cities,
Metropolitan
Cities
C
Income Profession Tech
Knowledge
Location
Low Low level
officials,
Unemployed,
Student
Average, Low Urban Areas,
Towns, Cities,
Metropolitan
Cities
The Target group of UBER is clearly the A & B in Bangladesh.

12. Here are some facts we can discuss:
The Smartphone users are the main focus group of UBER as the UBER service requires an
UBER app installed Smartphone with data connectivity. High profile officials who do not
own a car are another big target.
Porter's five forces model of Uber :
This is the detailed Porter's five forces mode of Uber that has been operating in transport
industry . It has been operating in more than 600 cities and now in Bangladesh
Applying the Porters five forces model, we will see how these external forces act on Uber
and define its position and competitiveness in the market.
Industry Rivalry
Uber operates in many countries worldwide and their competitors might be different in
different countries. But generally we can see intense competition in most of the markets and
in most of the major markets for Uber, including the United States, Uber faces competition
with services like Lyft, whose business model is almost the same as Uber and gives a tough
competition to Uber in terms of market share. Other competitors include Chalo, Pathao, Amar
Bike, Garivara, Taxiwala which operates on the same business model and is almost same
popular in Bangladesh. These competitors compete on different aspects like customer service,
price, convenience, comfort, and reliability. if we see the overall competition that Uber is
facing in its industry, the industry rivalry is very high.
Threat of New Entrants
The kind of business model on which Uber is operating at the moment does not take a lot of
effort or cost to build. This kind of business operates on the concept that people, who want to

13. work as their drivers can just bring their own cars, get it registered and work for Uber at
flexible hours. So if any new company wants to enter the industry with a similar business
model, the cost and barriers to entry are low. Also, people are now looking for convenient
ways of traveling which makes this market attractive. Thus, there is a high threat of new
entrants into this industry. In our country Pathao, Chalo are new entrants in this business and
becoming the great threat for Uber .
Threat of Substitutes
The substitutes for Uber are not only those in that are in direct competition with it companies
that are based on the same business model and provid. same convenience and price to the
customers, but also those companies that are in indirect competition with Uber. Other taxi
companies and CNG that provide convenient transport are also in indirect competition with
Uber and can be considered its substitutes. Along with these companies, other kinds of public
transport are also considered substitutes for Uber and are a threat to its sales and market
share. These substitutes are a big threat to Ubers operations in Bangladesh as the other local
services can be used by customers which can eventually drive sales away from Uber.
Bargaining Power of Suppliers
Since Uber does not own any of the vehicles operating in its name, it is dependent on its
supplier i.e drivers for their cars. Uber outsources their cars and the drivers services which
give the suppliers an upper hand on Uber. Thus the suppliers in case of Uber have a high
bargaining power. Moreover, Uber has also had to take care of the suppliers that it is
outsourcing because if anything bad happens, it directly affects Ubers name and brand image
of Uber.
Bargaining power of Buyers
The buyers of Uber are not permanent unless they become very loyal to the company because
of their services or any other reason. With so many options available in the industry to choose
from, customers have an upper hand as they can shift from one service to another. The
shifting cost in the market is also low, thus giving the customers the freedom to shift easily to
another service because of any reason. Moreover, most of the customers of Uber are price

14. sensitive, thus leaving Uber and other services at a disadvantage as they have to compete on
the basis of price. We can conclude that the buyers in case of Uber have a high bargaining
power.
SWOT analysis for Uber:
Strengths:
1. It is a well-recognized brand
2. It has a high standard of service, verified drivers and cars. Uber Premier users enjoy
very high standard of service.
3. Has an unlimited fleet of vehicles. Regular CNG service regulations are not
applicable for Uber.
4. Uber has no full-time drivers. As it does not hire drivers, there are no responsibilities
toward employees.
5. Operational cost is quite low. As it relies on customer-to-driver interaction, a
dispatcher is not needed.
6. Very little competition. A major competitor is Pathao&Sohoj
7. As cashless payment system is used, Uber can track and choose highly rated drivers.
It has many other features like getting a car easily and having record of the spending.
8. Dual rating system boosts trust and safety.

15. 9. The system is convenient for the drivers. They can work flexible hours and even
choose to be a part-time employee. Drivers can also reject unwanted clients.
10. The prices are lower compared to traditional taxi operators as well as CNG service.
11. High valuation of Uber. Many people are ready to invest on it.
12. Low fixed investments.Uber, being an aggregator does not require high fixed
investment and so it becomes easier for Uber to add more cities to its network. It has
expanded rapidly because there is no fixed investment or infrastructure required.
Weaknesses:
1. The idea can be easily imitated. Nothing will prevent competition from presenting the
same product.
2. Highly dependent on manpower.Drivers are the face of the company and thus the
company’s image depends on the behaviour of drivers towards the customer. This is a
highly uncontrollable situation even though strict guidelines are provided to the
drivers.
3. The relationship between Uber and the drivers is ethically questionable. It lacks the
real connection. So, it is expected that loyalty between Uber and its drivers is quite
low.
4. Also, company and its customers have no bonding. Incentive to remain with Uber is
low.
5. Costs of operating vehicles are very high. But, the drivers do not earn so much.
6. Very Unpredictable business model.
7. There are privacy concerns. Uber records where customer gets the taxi from. It also
notes where he goes with it.
8. Uber is heavily dependent on internet connectivity to expand and develop itself in
developed countries. Thus, it is facing problems in developing and emerging countries
where internet is slow or poor.
9. Digital Literacy in developing nations is low and hence technology based applications
such as Uber only cater to those who are technologically updated.
Opportunities:

16. 1. Customers are often dissatisfied with traditional cab companies and CNG service
because of high prices and long waiting time.
2. It can exploit new and big markets in countries like Bangladesh where taxi services
are inconvenient and expensive.
3. Can tap growing markets in suburban areas where taxi services are not available.
4. Rise in number of Uber drivers will reduce the Estimated Time of Arrival. This will
make Uber more liked. The startup will get more revenue and drivers will be profited
as well.
5. Uber can increase the valuation. This might appeal more investors. As a result, Uber
will have more money to operate.
6. Cheaper electric cars can be used. It will reduce the cost and increase the driver’s
profit margin.
7. Additional services like transporting older patients to hospital, transporting children to
school and transporting pets to the vet can be offered.
8. In markets Bangladesh where there is over population and people are tired of using
public transport, Uber provides a kind of privacy and relief where the user gets his
own space to travel and does not have to drive in Traffic.
Threats:
1. Drivers aren’t happy with the low-profit margins. This might lead to bad publicity.
This can in turn discourage the new drivers from joining Uber.
2. The primary point of disagreement between cab aggregators and government
regulators is about their legal status and whether they should be treated as
conventional taxi companies or as IT companies.
3. Some new legal regulations in countries like Germany will ban Uber from operating.
4. Problems with local authorities can lead to fines. It will also earn a bad PR.
5. Increasing competition will ultimately decrease prices. This will discourage drivers
from joining the startup in new markets. This will result in loss of customers. Uber’s
revenues will decline.
6. As new markets and drivers are joining, fraud and scandals are also increasing. It is
damaging for the brand.

17. 7. Self-driving cars, e.g. Google Cars, will eliminate the need for Uber.
8. Overvaluation can lead to Overinvestment in locations where there is no room for
businesses of a similar type.
9. Women have lost interest on Uber due to security problem.
10. Many popular brand of Bangladesh may come soon in this sector. People can easily
shift to those brands as Uber is an international brand but is not well known in
Bangladesh.
There is no doubt that the customers love Uber. They enjoy benefits of the service. Apart
from the fact that it is convenient, they like how Uber helps save time and money.
But, governments and drivers often hate Uber. To main its customer-centric approach, the
company charges a very low price. This is why the drivers do not have a high-profit margin.
It is not known what Uber’s future is. Pathao, Shohoj.com are a big threat to its success. Uber
should maintain its strengths. It should address the weaknesses found in the SWOT. The aim
should be to turn weaknesses into strength. The team must work and exploit the opportunities
and avoid the weaknesses.
CLOSE COMPITATOR OF UBER
Ride-hailing service Uber is the talk of the town now. Although this very concept of
'Uberisation' is new in Bangladesh, Uber isn't the first or only ride-hailing service operating
in the country. In the last couple of years, we have seen a significant number of local startups
(some backed by foreign VCs) getting into the ride-hailing business. Some of these services
are very good, providing premium ride quality and levels of service. Others are not so great,
but get the job done somewhat. Here are some of the few that caught our attention:

18. CHALO
This is probably the most prominent Uber alternative out there. Starting its journey on May 5,
2015, Chalo is considered as one of the pioneers in the industry. Currently operating from
Dhaka and Chittagong, Chalo provides services in 20 districts. We got to talk with its CEO,
Dewan Shuvo. He informed us that Chalo is now not only a ride-hailing service, but it has
started to grow into a lifestyle platform. In addition to ride-hailing, Chalo now offers air
tickets and parcel transportation. Chalo also has plans to enter the food delivery business,
according to Shuvo. When asked how Chalo can be differentiated from its competition he
said: “We care about the comfort and safety of our passengers, as well as our drivers. We
offer the best possible services coupled with multi-layered security. Drivers can get low-cost
instalments if they plan to buy a car through us.”
GARIVARA
This little startup has been operating since May this year and has already created a fan
following. Mostly known for its out-of-city ride-hailing, Garivara has positioned itself as a
luxury car rental/ hailing service. Mehedi Zaman, CEO of Garivara, told us that through their
website, anyone can book a car for out-of-city at a reasonable price. Moreover, he said that
Garivara is a luxury car rental service, meaning the basic car that comes through their service
is the Toyota Axio. Currently it has operations in Dhaka, Chittagong, Sylhet, Srimongol,
Bandarban, Khagrachori, Rangamat and Cox's Bazar. In addition to conventional car rental
services, Garivara also provides roadside assistance and emergency basic repair services for
cars in the above stated locations.
AMARBIKE
The three co-founders of Amarbike, Shafeen Chowdhury, Shaneel Chowdhury and Navil
Mostafa came up with the idea with a vision of making Dhaka city's traffic more bearable.
They started their operations mid-July this year and they are currently in their beta phase.
Shafeen informed The Daily Star that they have already approached the concerned authorities
in regards to bringing such services under the umbrella of the concerned policies in Dhaka
and are proceeding accordingly. Amarbike has implemented certain features, which enable

19. them to track bikes and passengers alike. It lets the control room know when a particular bike
is on a trip or if it's free for the next one. In case of an emergency, Amarbike has the ability to
shut off a bike whenever needed.
PATHAO
What started as an on-demand delivery service, Pathao has now become a startup that
provides on-demand ride-hailing too. According to Hussain M Elius the CEO, Pathao is a
logistical company that has been poking around on ride hailing business for sometimes now.
He affirmed that, the number of riders, which is 50+ now, is going to be doubled by end of
this year. This app based ride-hailing startup has and plans for incorporating some more
security feature.
TAXIWALA
Taxiwala first began operations in March 2015, but it was re-launched with a new business
model on November 1, 2016. Currently they are offering in-app booking for Toma Taxi, but
they plan to work as an aggregator between interested travellers and service providers soon.
According to the CEO of Taxiwala, Taufiqur Rahman, their aim is to provide a safe and
comfortable ride to city dwellers with complete safety measures, which are essential while
travelling. Unlike other services, they plan to open their ride-hailing service with a broadcast
bidding system rather than the complex billing system
CONCLUSION
Uber is enjoying double digit growth in Dhaka, both on drivers' side and riders' side, over the
last five months. It is the company's fastest growth for any city in Asia,. The fares were also
increased on January 23, 2017 to ensure sustainable operations.
Dhaka suffers from some of the worst traffic congestions in the world. There is a demand for
more options for reliable, efficient and affordable ways to get to and from work, particularly
around commuting routes underserved by public transport. This is where ridesharing and
Uber come into play. Smartphone apps for these services can help today's existing

20. infrastructure, primarily private cars, more efficiently at no extra cost – enabling more people
to share their journeys and by providing affordable, convenient alternatives to car ownership.