Company Preso - Uber for EECS441

1. Uber
Cheng Perng Phoo (cpphoo)

2. Problem
● Getting reliable and reasonably-priced transportation service is hard
● E.g difficult to find transportation at certain places
● E.g unreasonable taxi fares

3. Solution to Difficulty in Finding Transportation
Make a
request
Notify
drivers
nearby
A driver
responds
Notify
requester

4. Solution to Unethical Transportation Service
Providers/Expensive Transportation
● Upfront pricing / taximeter
● Different services to cater different needs
○ UberPool
○ UberX
○ UberXL
○ Others...

5. Business Model
● Commission per ride (or booking) - 15 to 20% depending on area
● Surge Pricing - different pricing depending on demands
● Different car models to cater different need - UberXL is more expensive than
uberX

6. Finances
● Lost approximately $3 billions in 2016
○ Fierce competition from competitors in different areas
○ Multiple lawsuits
● Had to sell its China’s operation in July 2016
○ Chinese biggest ride-hailing company - Didi Chuxing
● Profitable? No
● Revenue from bookings hit $5.5 billion in the Q3 2016
● Still has 85% of US market share

7. Competitions
Area of Focus
Most major cities
around the world
US Southeast Asia Everywhere
Upfront Pricing/
Taximeter Yes Yes Yes Not Always
Car Pooling
UberPool No No No
Food Delivery
UberEats No No No

8. Secret Sauce
- Large user base
- Reasonable pricing
- Different services - UberPool, UberRush

9. History
● 2009: Founded by Garrett Camp and Travis Kalanick (named UberCab)
● 2010: Beta Launch in San Francisco
● 2011: Changed name to Uber
● 2012: Introduced UberX
● 2014: Introduced UberPool
● 2015: Started Research in autonomous car
● September 2016: Launched first self-driving car services in Pittsburgh
● December 2016: Started testing autonomous car in San Francisco but was
stopped due to a few car accidents and moved to Arizona

10. Prediction
- Short term: Will not fail. Profitability?
- Long term: Hard to say. Advancement of autonomous car?

11. Questions?

12. References
● https://en.wikipedia.org/wiki/Uber_(company)
● https://www.grab.com/sg/
● https://en.wikipedia.org/wiki/Lyft
● http://nextjuggernaut.com/blog/how-uber-works-business-model-revenue-ub
er-insights/
● https://www.quora.com/What-percentage-cut-does-Uber-take-from-the-total-f
are-cost-of-a-ride
● https://www.forbes.com/sites/shlomofreund/2016/08/15/a-short-history-of-
uber-in-china-was-it-a-failure/#682c65223386
● https://www.bloomberg.com/news/articles/2016-08-01/uber-said-to-merge-c
hina-business-with-didi-in-35-billion-deal

13. More References
● http://www.geekwire.com/2016/uber-reportedly-on-track-to-post-a-3b-loss-fo
r-2016-as-revenue-and-bookings-continue-to-grow/
● https://skift.com/2016/12/21/uber-isnt-profitable-in-the-u-s-and-is-on-track-to
-lose-3-billion-in-2016/