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Competitor analysis Meru vs Uber

This document compares Meru Cabs and Uber Cabs in India. It provides background on each company, including their business models, products offered, and revenue sources. Meru Cabs was founded in 2007 in Mumbai and uses a revenue sharing model, while Uber was founded in 2009 in San Francisco and initially used a revenue sharing model before shifting to a partial inventory model. Both companies aim to expand services and introduce new technologies like self-driving vehicles. The document also analyzes the strengths and weaknesses of each competitor.

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Introduction to the Company UpGrad Product Management Competitor Analysis Student Name: Narendra A
2 Competitor Analysis Meru Cabs Vs Uber Cabs
Competitor Analysis Competitor Identification Company Background Business Model Strengths and Weaknesses Product Analysis Future Initiatives 3
Competitor Identification Direct Competition • Meru carbs has direct competition with Ola, Uber, unorganized intra and intercity cabs and auto rickshaws Indirect Competition Qucik Ride Ride sharing(pooling) for corporate ZoomCar Self driving car rental & subscription service BlaBla Inter city car pooling connected service Yulu Bycycle renting service 4
Company Background Founders & CEO City World Presense Estd Valuation Revenue(IN) Meru Neeraj Gupta Nilesh Sangoi(CEO) Mubai India 2007 USD 1B(2022) 319Cr(216) Uber Garrett Camp Travis Kalanick Dara Khosrowshahi(CEO) SanFransisco ,CA,USA 63 Countries 2009 USD 11B(2018) 533CR(2018) 5 Investors Employees Fleet size Operating cities Market Share India Meru True North 500-1000 20,000 24 0.8% Uber Softbank(16.3%) Benchmark Capitol partners(11%) Garrett Camp(6%) Travis Kalanick(8.6%) 22,000 3.9 Million 700+ 39.6%
Company Background – Mission and Goal 6 Mission - To give urban commuters in India a world-class travelling experience, by using a technology that has evolved in developed over the past 20 years Goal- To be considered the first choice of land transport solutions in India. Mission - We ignite opportunity by setting the world in motion. Good things happen when people can move, whether across town or towards their dreams. Opportunities appear, open up, become reality. What started as a way to tap a button to get a ride has led to billions of moments of human connection as people go all kinds of places in all kinds of ways with the help of our technology. Goal - Uber’s mission is to bring transportation — for everyone, everywhere.
Company Background – Strategy 7 • Built brand image as the No.1 airport taxi and most reliable for solo woman passengers • Improved employee stickiness by providing incentives like loans, insurance and scholarships for them and their families • Expanding to Tier2/3 cities slow and steadily • Renewing strategy to provide customized solutions for B2B clients • Customer friendly initiative can book cabs via call center • No Surge pricing, fixed pricing everyday even throughout the peak hours • No cancellation policy is user friendly • Earning revenue through “Cabvertisements” • Always kept focus on being an online platform for aggregation and reach • Customised car manufacturing for Uber gives an edge • Providing drivers with very attractive and lucrative monetary incentive schemes • Heavily investing money in future proof tech like driver less cars, air taxis etc. • Renewing other offering thru Uber eats • Always technology focused to provide solutions to the customers • No non sense call center policy • Focus is on crating comprehensive ecosystem for drivers and passengers • Pay by cash mode for Indian consumers
Company Background – Funding Series Funded By Date Amount Initial India Value fund March 2015 $50 M First Series Bennet Coleman and co ltd June 2016 $25 M 8 Note: Uber entered IPO in May 2019
Company Background – Products offered 9 • Radio Taxi, Sedan, Hatchback and SUV. • One-way and Round Trips, Local, Rental and Outstation rides • Ride cashless or with cash. It’s your wish • UberX, UberPool, XL, Select, Bikes, Lux, SUV, Scooters, Auto • Ride cashless or with cash(India). It’s your wish
Company Background – Social Media 10 • Google trends shows Uber is far ahead of Meru
Business Model - Meru 11 Inventory Model(Old) Revenue Sharing model(New) • In2007, Meru launched with the Inventory model of owning the cab fleet • Cabs were bought from car manufacturers on an EMI • Cab drivers were to pay a fixed amount to Meru everyday. (Rs1200 appx) • Cab drivers were promised at least 25 assignments a day • Anything above the per day fee was the income of the cab driver • Meru would consume cost of petrol, maintenance and overheads • In2012, Meru moved away from Inventory Model • Meru on boards driver entrepreneurs that owned their own cars or ready for leasing • Drivers share 15 –20% of their revenue with Meru • It is drivers choice to choose when and how long they work Reason for Shift: • The Inventory model required a huge initial investment • Drivers had to pay the Per day fee even when they were on a leave • During vehicle downtime, the drivers would loose ride time and yet have to pay the per day fee • This created a lot of discomfort with most Meru drivers and hence Meru decided to shift the business model • The new business model is more scalable and viable • Operated in 24 Cities with5 different types of products and more than 20,000 cabs completed 12M rides
Business Model - Uber 12 Revenue Sharing model(Old) Part Inventory Model(New) • Uber started with the simple revenue model of tying up with drivers and small cab rental firms • Basic model of ‘X%’ commission from the total fare of the trip ranges from 15% to 20% depending on city and type of vehicle • Every driver gets an incentive on every 12 to 14 rides of Rs.500- 750 based on city and type of vehicle(which is discontinued after controversy changed) • Uber leasing policy to promote owners • Drivers can lease a car for an initial deposit and then make monthly lease payments with an option to own the vehicle after three years Reason for Shift: • To build exclusivity with drivers and discourage drivers going to rivals • Better loyalty of drivers towards the brand to ward off those drivers who used to be on both • 91M active monthly platform consumers and 3.9M drivers • 10 billion trips completed • 700+ cities in 63 countries • 14M trips each day
Business Model – Revenue Model 13 • Trip based commissions • Security Deposits of leased out cars from existing owned fleet. • Cabvertisements : In and on-cab ads turns out to be successful generating Rs10 Crore with in a year of launch • Trip Based Commissions • Corporate Tie Ups / Event Tie Ups • Vehicle On-Boarding Fee • In-Cab Advertisements • Peak Time Charges • Diversification in cab offerings • Uber Eats
Business Model – Revenue Model 14 Strengths: • First radio taxi provider • Cost effective. No surge pricing • Only aggregator to actually be making a profit • Leading in advanced booking space • Very advanced back-end technology • Drivers loyalty is high due to awareness Weakness: • Present only in 24 cities • Not a large cab fleet compared to competition • Brand awareness and promotions are less among competition • Attracting low funding • High training costs • Widespread marketing of the brand. High customer awareness • Present in 700+ cities across 63 countries • New products and features for every segment of the customer base • Huge cab fleet ensures high cab availability • Investing in new and future ready technology • Innovative idea with Uber Eats and Air taxi Weakness: • High surge prices • Huge investment but no profits due to other priorities/investments in future tech • Drivers are usually signed up with rivals to benefit from the surge pricing • Decreasing incentives affecting cab drives behaviors with customers
Business Model – Revenue Model 15 Specifics iOS Android iOs Android App Downloads NA 1M+ NA 100M+ App Rating 2.8 3+ App Reviews More than 50% are 1 Star Majority are 4 and 5 Star 80% are 5 Star 80% are 5 Star Download Size 48MB 11MB 382MB Varies with device Basic Features Book, track cabs and get notifications, ICE , pay through4 different wallets See availability, book and track cabs and get notified, recharge wallet, SOS New Features Drivers can choose at what fare they can offer ride Share the trip and location suggestions App User Experience Not fast and smooth experience as Uber, Availability is an issue. Launch of app is very quick with accurate GPS location
Future Initiatives 16 • Concentrating on B2B segment by providing customized solutions for companies • Book cab directly from google maps • Plans to expand beyond 31 cities in India • Partnership with other car manufacturers in developing self-driving cars • Focus on generating profits from new revenue generating schemes
References https://www.meru.in/media-centre https://en.wikipedia.org/wiki/Uber https://www.uber.com/en-IN/newsroom/company-info/ https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/meru-rides-to-marketplace-to-catch-up-with-its- rivals/articleshow/63309737.cms https://www.financialexpress.com/industry/uber-plans-to-expand-in-india/1337915/ Google and iOS app store https://www.meru.in/about-us/our-philosophy https://inc42.com/buzz/amidst-competition-from-ola-and-uber-meru-cabs-drivers-will-decide-fares/ 17