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Uber's Business Model & Strategy

Uber is a technology company that was founded in 2009 and initially offered a luxury transportation service in San Francisco using high-end vehicles. It has since expanded to offer less expensive UberX service and operates in many cities around the world. Uber's business model utilizes a smartphone app to connect riders to drivers, takes a commission from each fare, and aims to provide a lower cost and more convenient alternative to traditional taxis. While Uber has experienced rapid growth, it also faces challenges from regulators and competition from existing transportation services. The company is seeking to expand into new markets and services like food delivery to continue its growth.

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148 views6 pages

Uber's Business Model & Strategy

Uber is a technology company that was founded in 2009 and initially offered a luxury transportation service in San Francisco using high-end vehicles. It has since expanded to offer less expensive UberX service and operates in many cities around the world. Uber's business model utilizes a smartphone app to connect riders to drivers, takes a commission from each fare, and aims to provide a lower cost and more convenient alternative to traditional taxis. While Uber has experienced rapid growth, it also faces challenges from regulators and competition from existing transportation services. The company is seeking to expand into new markets and services like food delivery to continue its growth.

Uploaded by

meidianiza
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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UBER

Leading The Sharing Economy

Syndicate 3:
Alex M. Simanjuntak (29318343)
Bara Yohantomo (29318424)
Deri Meidian Ramdhani (29318301)
Dito Ananta Putra (29318460)
George G. Hutauruk (29318426)
Heny Pramita Siwi (29318353)
Rikordias Dominius (29318391)
Muhammad Ilyas Pratama (29117428)
BACKGROUND
● Uber Technologies Inc. (Uber) was founded
in 2009 and initially catered to a single
market: San Fransisco, California.

● The company’s original service was


UberBLACK, which offered high-end
transportation in luxury cars such as BMW
7s, Mercedes-Benz S550s, Lincoln Town
Cards, and Cadillac Escalades.

● Then, UberX service was introduced which


was somewhat less exclusive and less
expensive.
Business Model Canvas
Key Partners Key Activities Value Propositions Customer Customer Segments
Relationships
• Application • Lower price
• Drivers with own Development and • Better service • Free ride for new users • Unhappy and
vehicles Maintenance • Simplicity of order • Discount Underserved customers
• Government as • Driver Recruitment • More options (lux vs • Promotion by existing taxi
regulator • Training for driver economy) • Customers satisfaction • Mostly young and
• Investors • Standardized the • Accountability highly tech population
system • Flexibility • Price sensitive users
• Gathering Customer
Feedback
Key Resources Channels

• Conventional billboards
• Technology • TV
• Quality Mobile • Digital marketing
Application (email, search engine,
• Qualified people etc)
• Socmed influencers

Cost Structure Revenue Streams


• Recruitment & Training Cost • Commission fee (5-20%)
• Application Development Cost • Surcharge pricing
• Employees Salaries
• Office & Equipments
• Overhead Costs
UBER : SWOT ANALYSIS

● Brand Recognition ● Easy to imitate ● Increase valuation will ● Regulators


● Low Operational Cost ● Low earning vs higher attract investors ● Conflict with
● Cashless Payment cost for operating ● Growth of market in Limousine and Taxi
● Trust and Safety vehicle small town (no taxi)
Cab Services
● Privacy issue ● Cheaper electric or
●
hybrid cars
RECOMMENDATION (UBER BEYOND CARS)

● Reach small town


● Having electrical units
● Expand new region
● Choose more cooperative approach with the legal entities to avoid further legal costs which are
damaging the company's financial performance
● Introducing new features building customer retention
● Expanding to motorbikes sharing in several countries, but still struggle to create profit similar to cars
● Add value by integrating with other tech companies, such as financial tech company
● Uber tries to expand the chain by entering food business and delivery
● Uber bets on self driving cars
THANK YOU

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