A business model of UBER

1. PRESENTATION ON

2. TEAMS
2
Anzali Chapagain Mijala Shakya Shristi Dhakal Utsab Pokharel

3. CONTENTS
3
How uber
Started
Value
Proportion
Services
Revenue
Model
Capital
Summary
Marketing
Strategies
Market
Opportunities
Competitive
Environment
Competitive
Advantage
Uber
Controversies Uber’s Future Team
Recommendation

4. HOW UBER STARTED?
2008
Travis Kalanick and Garrett Camp attended
(LeWeb)
Camp bought domain name UberCab.com
2009
Camp worked on the prototype of UberCab
2010
Official launch of UberCab
2011
UberCab changed to Uber
4

5. UBER’S TEAM
Travis Kalanick
Founder
Garrett Camp
Co-Founder
Dara Khosrowshahi
CEO
5

6. SERVICES
Service in more than 10,000 cities
across 71 countries.
✧ UberKIDS
✧ UberPETS
✧ UberWAV
✧ UberMOTO
✧ UberEATS
✧ UberBOAT
✧ UberRental
“Move the way you want”
6

7. VALUE PROPOSITIONS
✧ Easiest way around
✧ Any where Any Time
✧ Low cost luxury
✧ No communication problems due to Google map
✧ On demand cab booking
✧ Accurate estimate time of arrivals
✧ Cashless rides
✧ Upfront pricing
✧ Multiple ride options
7

8. REVENUE MODEL
✧ Commission
✧ Cancellation Charges
✧ Branding and Advertising
✧ Leasing to Drivers
✧ Mobility
✧ Delivery segment
✧ Freight segment
8

9. CAPITAL SUMMARY OF UBER
✧ 2010 $1.25 Million Seed Funding
✧ 2011 Series A and Series B of $ 11 million and
$37 million altogether 33 rounds of funding amounts of $ 25.3B.
✧ Funds from Softbank in 2015 and become valuation of$ 51 B
✧ 2016 Funds from Saudi Arabia sovereign wealth
and global loss of $ 3.8B
✧ 2017 valuation decrease from $68 B to $48 B.
✧ 2019 $120 B valuation and issue IPO
✧ Recently uber has capital of $ 46.04B
✧ $17.4B revenue on 2021. 9

10. 10

11. MARKETING STRATEGY
✧ Product and Pricing
✧ Know the customer base
✧ Rating and Review system
✧ Promotion and Advertising
✧ Surprise for delight
11

12. MARKET OPPORTUNITY
✧ Exploit new and big markets
✧ Growth of market in sub-urban areas
✧ Uses of Electric cars
✧ Partnering with Hospitality Brands
✧ Driverless Technology and other services
Our company
Our company
12

13. COMPETITIVE ENVIRONMENT
Direct Competitors:
✧ Lyft: (US Competitor)
– 31% US market share
– Base fare - $2.50 /mile VS Uber’s - $2 /miles
– 30 million customers and 2 million drivers in US and Canada
– Tipping allowed in lyft
✧ Bolt: (UK Competitor)
– 75 million clients and over 1.5 million drivers in 45 countries
(Latin America, Europe, Africa, Western Asia and Middle East)
– Commission 10%-15% VS Uber’s of 20%-25%
– Millions of sign-ups in London alone.
13

14. COMPETITIVE ENVIRONMENT
Direct Competitors:
✧ Didi Chuxing: (China Competitor)
╺ 91% sharing market
╺ Uber China sold to Didi Chuzing in 2016
╺ Operates in 16 countries and 493 million customers
(Australia, Brazil, Mexico and Russia)
✧ Ola Cab: (India Competitor)
– 60% of market place.
– Serves in UK, Australia and New Zealand and more than 250 cities.
╺ Developing AI to bet the Uber in its 12 million market.
14

15. Our company
COMPETITIVE ENVIRONMENT
Direct Competitors:
✧ Other Direct Competitors
– Curb (US), Via (US), Grab (Singapore and other Asia markets),
Yandex Taxi (Russia), Snap (Iran), 99, (Brazil), Careem (Middle East)
Direct Competitors:
✧ Local taxis
– Charges can be negotiated but Uber ‘s is fixed.
✧ Public Transport (Bus, Train, Tampos, Ferries):
– Cheaper mode of transportation.
– Does not leave the spot unless the vehicle is full
Our company
15

16. COMPETITIVE ADVANTAGE
✧ First Movers Advantage
✧ Low Pricing and Surge Pricing
✧ Diversification
Uber eats - 8.3 B revenue and 72% YoY increase,
Uber Freight - 2.42 B revenue and 245% YoY increase
✧ Customer Loyalty
Referred code with $5 off and 16% more loyal customers
New Reward Program and Uber cash introduced in 2018
16

17. 17
CEO Travis kalanick in a heated
argument with uber driver over prices.
UBER’S CONTROVERSIES

18. FUTURE PLANS
Offering more ways to ride green
Helping drivers go electric.
Partnering to flight climate change.
Making transparency a priority
2020
Announced global commitment to becoming a Zero-
emission mobility platform.
2025
Hundreds of thousands of drivers transition to electric
vehicles(EVs) through our Green Future Program
2030
Uber is operating as a Zero-emission mobility platform in
Canada, Europe and the US
2040
100% of rides globally are in Zero-emission vehicles or
through micromobility and public transit
18

19. RECOMMENDATION
✧ Strong background check on
drivers.
✧ Implement proper laws and
regulation within the uber eco
system
✧ Proper data protection
technology.
CONCLUSION
✧ Largest Ride sharing
technology.
✧ Cost effective.
✧ Easy to use.
✧ Efficient
✧ Despite legal and regulatory
challenges, the company
remains a global leader in the
future of the technological
industry.
19

20. 20
Any Questions?

21. REFERENCES
✧ Uber Business Model (businessmodelanalyst.com)
✧ https://biznewske.com/uber-competitor-analysis/
✧ https://www.nytimes.com/2021/06/30/technology/didi-wall-street-initial-public-
offering.html#:~:text=Although%20Didi%20is%20dominant%20in,smaller%20than%20
Uber's%20%2494%20billion.
✧ https://www.investopedia.com/articles/small-business/012517/didi-chuxing.asp
✧ https://seoaves.com/uber-competitors/
✧ 2021-Annual-Report.pdf (q4cdn.com)
✧ uber-app-features
✧ the-biggest-scandals-to-ever-hit-the-history-channel
✧ driving-a-green-recovery
21