The Marketing Model Of Uber

“It’s a simple experience and a much more pleasant way to get a ride than stepping onto a busy street and waving at oncoming traffic” (Stone, 2014, p. 53). It is convenient for both the employee and customer to arrange a ride, which makes Uber preferable. Additionally, the employees of Uber are given more benefits than the employees of taxi companies. For example, Uber issues an iPhone with the Uber software, free gear to secure it to their windshield and an hour of orientation (Stone, 2014, p. 52). It is this simplicity that appeals to people seeking employment. They are also using a platform that is accessible to many of their customers, because, as of 2015, “64% of American adults now own a smartphone of some kind” (Smith, 2015). Since their focus is on luxury, innovation, and results, they have transformed the public transportation system in their favor.

Uber Technologies, Inc. was founded in 2009 by Travis Kalanik and Garrett Camp as a way to solve their own transportation problems in the traffic congested city of San Francisco where it is still based and headquartered. Uber Technologies offers an on demand car service application for smartphone users that links drivers with people needing a ride. According to Jim Makos of Pestle Analysis “It brilliantly connects the transportation industry with technology via its ride-sharing app.” With the click of a button on the application you can summons a vehicle of your choice see your rate, pay

Uber Technologies Inc. is a transportation company within a mobile application that has revolutionized the way that people travel in different countries and cities all around

Cons: The is difficulty in carry out this approach. And it takes long time. The investors cannot see the good performance of Zipcar immediately. Then it will increase the difficulty of raising fund.

First, there remain jurisdictions that are not allowing Uber to operate legally. They are, by definition, not innovating to facilitate adoption of the new technology. Some of these jurisdictions are enforcing regulations against Uber’s operations.36 Other jurisdictions are tolerating Uber’s operating in apparent contravention of

One of the biggest issues that Uber faces at the moment is the stack of lawsuits. Uber needs to adopt a zero-tolerance stance for violation of the anti-harassment, anti-discrimination, and anti-retaliation policies no matter the level or performance of the violator. Uber also needs to adopt a more thorough background check process. Uber has had a problem with its ethics recently. Companies such as Airbnb and Lyft have clear values which they try to model in their business activities daily. One way that Uber can address these concerns is by creating a good set of core values. To do this Uber will need to rewrite their core company values to “reflect more inclusive and positive behaviors”. Uber should work with an established and respected company

John Mackey studied religion and philosophy at the University of Texas. He dropped out of college by borrowing $45,000 to start his own health food shop called SaferWay in a garage in Austin which is now called Whole Foods. Travis Kalanick studied computer engineering at UCLA, and dropped out to help Dan Rodrigues find Scour Inc., which was a peer-to- peer sharing system that filed for bankruptcy in 2000 because a lack of copyright. He later developed Uber with Garrett Camp in 2009 by giving him full credit for the ideal. Uber has been a successful company even though it has had controversy in New York, Chicago, and other

Michael Porter classified market attractiveness by five forces: industry competitiveness, potential entrants, substitutes, buyers, and suppliers (Keller & Kotler, 2016). Long-term attractiveness depends on the five forces, and help determine the overall attractiveness of each market segment, and the needs of those within the segment. Market segment refers to a group of customers who have similar sets of needs and wants (Keller, Kotler, 2016). Geography, demographics, psychological and behavioral variables are used to decipher if the services Uber has to offer meet the wants and needs of its consumers. After identifying and grouping customers based on their similarities and differences, the overall attractiveness for each segment must be identified. The market segments must be identifiable, measurable, actionable and stable.

Uber is a ridesharing service where consumers are able to request travel online or through a mobile application. Uber is a privately held company founded in 2009 by its current CEO Travis Kalanick. Uber is a leader in the ridesharing industry, dominating more than eighty percent of the market . Uber has proven itself to be more than successful but has also found itself at the center of many controversies. There are numerous accounts of terrifying, dangerous, and horrific incidents related to Uber stemming from sexual assault to robbery. Uber does not currently have legal status in many countries and others are protesting its presence within their borders. As Uber struggles to operate successfully beyond the United States, the company found

Uber human resources utilize many tactics to control all drivers and passengers. In addition, Uber is widely known for allowing all drivers to be their own independent contractor. However, the issue that occur is that Uber does not compensate drivers for gas usage or provide incentives to keep up maintenance with driver vehicles. Beside, that Uber has many human resources tactics that has lead Uber to be a company that acquire and retain drivers. Due to the fact that Uber offers driver with many incentives and benefits. Furthermore, the primary human resource tactic that is strongly implemented is during the initial request between driver and passenger. During

In early 2015, Uber Technologies Inc., the company that invented and developed technology platform to connect driver-partners and riders via smartphone apps since 2009, decided to refresh their brand and drew attention by rebranding. The rebranding includes a new logo, updated colors and patterns based on cities and a fresh direction for the ride-sharing company. Uber promised that this rebranding will transform its purpose and cement a new reputation to change not only how it is perceived throughout the world, but how it perceives itself. "We created a beautiful new brand for the company that will lead us forward for years to come" Uber's head of design Andrew Crow said. Howsoever, many people think that Uber failed to rebrand.

Uber, one of the most successful startups in the world with over $50 billion value, is regarded as revolutionizing ways of transportation. Uber makes transportation cheaper and more convenient and helps to create unique job opportunities for drivers. Present in 537 cities around the world, Uber application has changed the way people use transportation.

Main reason of the success of this lies in the fact that it tackled the issues of local taxi industry which were becoming unbearable by the common people. For example ordinary taxis charge on the basis of time spend while using the taxi (by customer) while Uber charges on the basis of distance. In populated cities it was hectic to find taxi on urgent basis, Uber tackled this issue and gave service which is handled by a smart phone app and claims to provide taxi with in exact 10 minutes of ordering the service. In the start prices of Uber taxi services were high due to their high quality services which left the customer range un-attended who prefer to pay less money to the taxi, but in 2012 Uber offered a service with a name Uber-X with comparatively less prices and a bit less quality service (in terms of not providing first class taxis and a bit of delay in time), this service gained the attention of those customers who were not in hurry while going somewhere (Brown 17). This much coverage of taxi industry created a lot of issues in the local taxi industry where almost 80% of customers started using Uber, because of many facilities like one can travel without cash on the spot, as all transactions are through credit cards, safety reasons, quality service reasons, urgent service and etc.

Uber is a perfect example of network effect. One strategy Uber uses is word-of-mouth. Most Uber users know about Uber from their friends. As shown in Appendix A, in order to attract more users, Uber provides free rides and coupons for the new users (Zimmerman, 2016). Also, drivers are motivated by demand, the increase of users can lead to the increase of drivers at the same time. As more users bring more drivers to the application, it is beneficial for more users and not just more drivers to use the application. Enough drivers can shorten the waiting time of users.

By December 2015, Uber has raised total equity funding of $6.61 billion in 12 rounds from 52 investors (Exhibit 2: Uber’s Investment Rounds) (CrunchBase, 2015). Compared to its seed capital of $200,000, the company has expanded enormously in these few years. Besides its evolving service lines, Uber is actively investing and developing marketing campaigns. This is highly related to Uber’s success in attracting customers, which is the most important revenue stream of the company.