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Semelhante a Uber's Market Strategy - An example of modern day business models
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Uber's Market Strategy - An example of modern day business models
- 1. 7/12/2016 1 Strategic Marketing Rahul Shaha HTW Berlin ‘Where lifestyle meets logistics’
- 2. Some disruptive transport systems! 7/12/2016 2 The Jitney Bus, Los Angeles (USA) 1914 The Six-Seater, Pune (India) 2000-2003 Both of these were regulated out of the market within years of their entry
- 3. Agenda • Company Profile • Core Business • Growth History • Offerings and Pricing • Competition • Strategies • Company Analysis 7/12/2016 3
- 4. Company Profile Travis Kalanick Co-Founder, CEO Uber Technologies Founded RedSwoosh before Uber Garrett Camp Co-founder, Chairman Uber Technologies Founded StumbleUpon before Uber Founded in 2009 in San Francisco, California Net Worth: Over $60 billion* Employees: 6700 Drivers: 160,000 Industry: Logistics Area in Focus: Cab/Ride-share service 7/12/2016 4 *pre-funding valuation as of Dec 2015
- 5. Job To be Done? Take Person X from Point A to Point B: • Conveniently • Comfortably • Safely • Reliably • At a low cost 7/12/2016 5
- 6. Growth History 2008 First idea of a shared limousine service 2009 Seed funding $200,000 2010 Beta launch in New York and full launch in San Francisco Funding $1.25 million 2011 2012 Expansion US, Paris Expansion London Series A and B rounds Funding ~45 million 2014 2016 2015 2013 Service in over 60 countries, 450 cities Service in 58 countries, 300 cities. Launch of UberEats Expansion India, South Africa Expansion China UberRush, UberPool Series C $258 million Valuation : $3.5 billion Series D, E funding $1.2 and $2.8 billion each Valuation: $40 billion Series F, etc. Over $7 billion Valuation: $62.5 billion 7/12/2016 6
- 7. $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 2014 Q1-Q2 2015 Gross Revenue (in $billion) $0 $100 $200 $300 $400 $500 $600 $700 2014 Q1-Q2 2015 Net Revenue (in $million) $0 $200 $400 $600 $800 $1,000 $1,200 2014 Q1-Q2 2015 GAAP Loss (in $million) $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 2014 Q1-Q2 2015 Cash (in $billion) Year-o-Year Growth 7/12/2016 7
- 8. Product Offerings Uber offers: • UberX – The low-cost car. • UberBLACK – The classic, luxury car. • UberPOOL – Share ride with others • UberSUV – Ride in an SUV • Amongst others..!! 7/12/2016 8
- 9. Competition 7/12/2016 9 USA India S-E AsiaDidi Chuxing, China
- 10. Comparison 7/12/2016 10 Breakdown UberX Base Charge $2 Minimum Cost $6.55 Cost Per mile $1.15 Cost per minute $0.22 Cancellation Fees $5 Booking Fee $1.55 Breakdown Lyft Base Charge $2 Minimum Cost $5 Cost Per mile $1.16 Cost per minute $0.23 Cancellation Penalty $5 Trust and Service Fee $1.55 San Francisco, CA
- 11. Comparison 7/12/2016 11 Breakdown UberGO Base Fare INR 45 Minimum Fare INR 60 Cost Per km INR 8 Cost per minute INR 1 Cancellation Fees INR 60 Breakdown OLA Micro Base Fare INR 45 Cost Per KM INR 6 Cost per minute INR 1 Cancellation Penalty - Mumbai, India Allows pre-booking Gained market share by initial payment optionsOn-going race to the bottom
- 12. Growth Strategies • Vehicle Lease programmes with Toyota tie-up • Microsoft partnership for mapping technology • Partnership with Toyota for self-driving vehicles • Expansion into courier, food delivery, corporate tie- ups, other kinds of vehicles. etc. 7/12/2016 13
- 13. Pricing Model Pricing Model of Uber is a strategy-based one. They have a basic pricing model which includes: (Base fare + Ride duration based fare + Ride distance-based fare + miscellaneous)*Demand-based multiplier The multiplier increases from 1 to as much as 7 to 8 to attract more drivers to meet the demand. Fares vary based on the type of vehicle. Uber then charges 20% of the amount as a commission. 7/12/2016 14
- 14. Promotion • Free rides • Referral Code discounts • Initiatives such as UberIcecream, UberKitten or the on-going UberPITCH across the world. • Brand positioning • Festival-based themes, UberTree, UberValentines, etc. 7/12/2016 15
- 15. Porter’s 5 Forces Model Strong competition in most markets, 2- way competition Low as contemporary competitors have strong backing and massive networks Riders have a high bargaining power as there are options easily available Low - Moderate Traditional taxi industry, public transportation Moderate as they are independent and riding for only 1 isn’t as profitable 7/12/2016 16 Supplier Power Buyer Power Threat from Substitutes Threat of New Entrants Existing Competition Commodity being traded: Rides
- 16. PESTEL Analysis 7/12/2016 17 History of policy-makers regulating disruptive innovation out of existence to keep incumbent happy Focus on India and China Payment preferences in different markets. Efficiency, to optimize costs and productivity Flexibility, Be-Your-Own- Boss mind-set, sharing culture, crowded cities, parking problems Smarter collaborative technology, predictive and reliable systems, Autonomous vehicles Measures for Pollution control and engineering, carbon emissions, GoGreen Regulations catching up, bans on ride-sharing cabs in several places P E S LET
- 17. Business Model Canvas 7/12/2016 18 Value propositionKey partners Customer Segments Customer Relationships Channels Key activities Key resources Cost Structure Revenue Streams • Skilled drivers with cars • Investors • Mapping API providers • Payment channel providers • Local regulators • Technological infrastructure • Developers • Product Development • Advertising • Customer acquisition and support • Hiring, on- boarding and paying drivers • Website • Mobile applications • Media • Online customer support • Driver reviews • Interaction via social media Users • Don't own a car • Don't prefer to drive the car • To travel in style Cost-efficient doorstep service Drivers • Drivers who want to work with flexibility • People who want to earn additional income Users Convenient, comfortable and reliable transportation at a low cost in real- time by the click of a button Drivers Opportunity to earn money with self- defined schedules, just like a small business • Driver payments • Employee salaries • Technological infrastructure • Promotion and branding • Ride-based commission • Surge-pricing based commission
- 19. Company Vision Uber’s vision is to create a smart urban transit system where people don’t need to own cars. Self-driving vehicles would take them where they want to, and bring to their doorstep what they need, when they need it. “Transportation as reliable as running water” 7/12/2016 20
- 21. Summary • A start-up that makes mistakes and learns from it. • Brave and passionate founders. • Always ready to try. • Vision for the future. • A great recipe for an investor 7/12/2016 22
- 22. References • https://www.youtube.com/watch?v=idjrouG_8vY • http://www.slideshare.net/MichaelReed11/uber-analysis- mgmt-180 • http://www.reuters.com/article/us-autos-selfdriving- idUSKCN0XN1F1 • http://www.bbc.com/news/technology-36139986 7/12/2016 23
- 24. 7/12/2016 25
Notas do Editor
- More valuable than Time Warner, Ford Motors and Morgan Stanley. 6 years down the line Google or Facebook were half of the value.
- 2 million rides per day, 1 billion rides in Dec 2015
- Differentiation against other competitors