Marketing Management UBER Analysis

MARKETING MANAGEMENT

REPORT ON UBER CASE STUDY

2014-2015

Module Coordinator: Chris Pickford

Ali Mohebbian 3400518
Berna Sahin 3326994
Khaled Saheb 3307223
Nihara Maheswaran 3329096

1. Introduction 3
2. Audit 4
2.a Organizational environment 4
2.b Uber’s business model 4
2.c External and internal analysis of Uber 5
Competitors: 8
3. Strategic Options: 9
4. Marketing Strategies 13
Uber’s Marketing Objectives: 14
5. Strategies and solutions suggested: 15
6. Critical Analysis: 16
7. Conclusion: 16
10. References: 18

1. Introduction

Application software has been very popular as distribution platforms since 2008 due to rapid spread of smartphones all around the worldwide. According to a marketing research done by Gartner (2013), there is an increasing trend in mobile apps usage worldwide, He indicates that 21.58 billion dollars of revenue has been made by mobile apps in 2013. Uber was established in 2009 as a digital platform that connects cab drivers and customer, by downloading the online application. Uber determines the location of customers and shows the location of the cabs nearby. Once the customer accepts to get a ride with push of a botton, the application is then authorized to take the payment based on the credit card information that has been registered under the customer’s name, without any further exchanges.

Uber was established in San Francisco and has become the world’s most valuable startup in the past five years. Uber’s latest market value has been determined as 18.2 billon dollars in June 2014. However, as a disadvantage of developing markets, the entrance of Gett and Hailo in the UK market, decreased Uber’s market value.

The major advantage of Gett in this compétitive market against Uber is charging flat fees unlike Uber. Uber has a surge pricing strategy depending on the demand, weather and distance, which is not a cost efficient way for customer.

Therefore Uber it is

References: Anon, How is Uber different from a standard taxi? Available at: https://support.Uber.com/hc/en-us/articles/201968463-How-is-Uber-different-from-a-standard-taxi- [Accessed November 13, 2014a]. Anon, The Business Co-Founder. Available at: http://businesscofounder.tumblr.com/post/34572063959/lessons-from-Ubers-marketing-strategy [Accessed November 13, 2014b]. Damodaran, A., 2014. A Disruptive Cab Ride to Riches: The Uber Payoff.Forbes. Available at: http://www.forbes.com/sites/aswathdamodaran/2014/06/10/a-disruptive-cab-ride-to-riches-the-Uber-payoff/ [Accessed November 13, 2014]. Ferrell, O., Dibb, S. and Simkin, L. (2005) Marketing: Concepts and Strategies. United States: Houghton Mifflin Company. Ferrell, O. and Hartline, M. (2011) Marketing Strategy. United States: South-Western Cengage Learning. Winer, R. and Dhar, R. (2010) Marketing Management - 4th Edition. United States: Prentice Hall. GURLEY, B., Above the Crowd. Available at: http://abovethecrowd.com/2014/07/11/how-to-miss-by-a-mile-an-alternative-look-at-Ubers-potential-market-size/ [Accessed November 13, 2014]. Hill, H. (2009) London Chamber. Available at: http://www.londonchamber.co.uk/docimages/2519.pdf (Accessed: 20 November 2014). Kell, J., Berlin bans Uber app, citing passenger safety concerns. Available at: http://fortune.com/2014/08/14/Uber-berlin-band/ [Accessed November 13, 2014]. MACMILLAN, D., The Wall Street Journal. Available at: http://blogs.wsj.com/digits/2014/03/14/Uber-and-lyft-insurance-now-covers-drivers-between-rides/ [Accessed November 13, 2014]. Mathieu, F., Francois Mathieu shared: Taxi War: Uber vs Hailo. Available at: http://quibb.com/links/taxi-war-Uber-vs-hailo [Accessed November 13, 2014]. Palmer, S., 2013. GetTaxi - Some Real Competition for Uber in NYC T. H. Post, ed.Huffington Post. Available at: http://www.huffingtonpost.com/shelly-palmer/gettaxi--some-real-compet_b_3743958.html [Accessed November 13, 2014]. Think, B., 2014.How Uber Disrupted an Industry, with Karan Girotra, How Uber Disrupted an Industry, with Karan Girotra. Available at: https://www.youtube.com/watch?v=kfA8wzWP02Q [Accessed November 13, 2014]. Uber, 2013.How Uber Moves Your City Forward with Innovation | Uber, How Uber Moves Your City Forward with Innovation | Uber. Available at: https://www.youtube.com/watch?v=P2M0RD7bhYY [Accessed November 13, 2014]. WOHLSEN, M., Uber’s Biggest Danger Is Its Business Model, Not Bad PR. Available at: http://www.wired.com/2014/08/the-peril-to-Uber-is-its-business-model-not-bad-pr/ [Accessed November 13, 2014]. Porter, Michael E., "Competitive Advantage"