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Uploaded byNiyaj Kureshi
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SWOT and Market and Demand Analysis of Uber Inc.

The document contains a market and demand analysis of Uber, highlighting its business model, strengths, weaknesses, opportunities, and threats. Uber is recognized for its brand equity and adaptive marketing strategies, but relies heavily on internet connectivity and its drivers. Recommendations for improving Uber's services include maintaining consistent pricing, providing safety proofs, enabling advance reservations, and exploring new business models.

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Confidential Customized for Lorem Ipsum LLC Version 1.0 UBER Inc. MARKET AND DEMAND ANALYSIS BY NIYAJ KURESHI ARYABHATTA COLLEGE (UNIVERSITY OF DELHI) BBE 2ND YEAR ROLL NO-17/BBE/071
Confidential Customized for Lorem Ipsum LLC Version 1.0 CONTENT Overview Company Background Business Model SWOT Analysis Supply and Demand Analysis Recommendation s
Overview One of the most acclaimed startups, which showed the power of the internet and has a really inorganic growth is Uber. Uber is an app and is known as the company which has the largest fleet of automobiles and yet, it does not own a single car by itself. Uber is a ride sharing app and it replaces people having to step out of their homes to hail a cab. Now the cab comes to your doorstep. This, and the fact that Uber has a fantastic and low pricing policy for its users, makes Uber a favorite app for the frequent or even random travellers. Many office going crowd are now regularly picking an Uber cab instead of driving to the office themselves.
BUSINESS MODEL
SWOT ANALYSIS 1 STRENGTHS 2 WEAKNESS 3 OPPORTUNITIES 4 THREATS
STRENGTHS ● BRAND EQUITY ● LOW FIXED INVESTMENT ● CUSTOMER SATISFACTION ● DYNAMIC PRICING STRATEGY ● ADAPTIVE ● GROWTH RATE
BRAND EQUITY 01 Uber is a recognised Brand Globally with presence in over 50 countries. Uber has already surpassed Automobile giants like General Motors, Ford and Honda on Brand value Parameter. With increasing internet penetration and coming of age technology, Uber is expected to grow rapidly in the coming years. It is currently valued at over $68 Billion. Due to the high valuation of brand, Uber attracts investors too.
How Uber surpasses Ford And General Motors Valuation in 5 Years
LOW FIXED INVESTMENT 02 Uber, being an aggregator does not require high fixed investment and so it becomes easier for Uber to add more cities to its network. It has expanded rapidly because there is no fixed investment or infrastructure required
CUSTOMER SATISFACTION 03 Uber has always prioritised customer satisfaction. Uber has understood that it is serving in a totally customer driven market where competition is increasing. To keep an edge over the rivals, it needs to provide better customer satisfaction and enhanced user experience.
DYNAMIC PRICING 03 Dynamic Pricing Strategy: Uber has adopted the dynamic pricing strategy which works on the demand supply principle of economics. Higher the demand, Higher the price. This becomes really beneficial for the company and the drivers. In peak hours as well as in Night time, drivers earn a good amount of money.
ADAPTIVE 04 Uber is also known to adapt very well to business conditions. Because of its international exposure, Uber faces various problems in various regions. Uber is known to be a smart marketer and has adapted very well wherever it has established its business.
GROWTH RATE 05 The growth rate of Uber can be seen below. This concerns growth rate in India only. As we can see, Ola is expanding by more then 100% year on year and this expansion has continued in 2017.
UBER INDIA REVENUE GROWTH
WEAKNESS ● HIGH DEPENDENCY ON MAN POWER ● HIGH DEPENDENCY ON INTERNET ● CATERS ONLY TO TECH SAVVY INDIVIDUALS ● CONTROVERSIES ● LOW BARRIER TO ENTRIES
HIGH DEPENDENCY ON MAN POWER 01 Drivers are the face of the company and thus the company’s image depends on the behaviour of drivers towards the customer. This is a highly uncontrollable situation even though strict guidelines are provided to the drivers.
HIGH DEPENDENCY ON INTERNET 02 Uber is heavily dependent on internet connectivity to expand and develop itself in developed countries. Thus, it is facing problems in developing and emerging countries where internet is slow or poor..
CONTROVERSIES 03 Uber has encountered controversies in the past mainly because of the drivers and their behavior. This affects the image of the company and a trust deficit is created in the minds of the customer which is difficult to cover up.
LOW BARRIER TO ENTRY 04 Uber is in an industry where the barriers to entry are very low so it will face competition in multiple fronts. Already in India, Meru, Ola and others are giving tough competition to Uber.
OPPORTUNITY ● DISSATISFACTION WITH UNORGANISED MARKET ● INCREASING INTERNET PENETRATION ● RISING DISPOSABLE INCOME ● ALTERNATE TRANSPORT ● LOGISTICS
DISSATISFACTION WITH UNORGANISED MARKET 01 This is one of the main reasons for the success of Uber. Local cab drivers are known to be rude and do not comply.
INCREASING INTERNET PENETRATION 02 With Government’s move to digitise India, Number of smartphones are increasing and technology based applications like Uber can expand their services to other cities and enlarge its footprint over the country
RISING DISPOSABLE INCOME 03 With rising disposable income, customers are willing to spend higher on convenience.
ALTERNATE TRANSPORT 04 Uber has launched ‘Uber chopper’ in various countries and can look for other transport medium catering local needs. In India, Uber can launch Bus aggregator system.
LOGISTICS 05 A smart idea for Uber can be to launch movers and packers support whereby people can search movers and packers in the nearby area via Uber. Local logistics can also be integrated. Though this is easier said than done.
THREATS ● GOVERNMENT REGULATION ● CUSTOMER RETENTIONS ● LOW MARGINS ● REVOLT FROM UNORGANISED MARKET
GOVERNMENT REGULATIONS 01 The primary point of disagreement between cab aggregators and government regulators is about their legal status and whether they should be treated as conventional taxi companies or as IT companies..
CUSTOMER RETENTION 02 As competition rises, it becomes all the more difficult to retain customers and drivers for Uber. Any monetary advantage can sway the customers and drivers from Uber.
LOW MARGIN 03 Uber helps the drivers to get a high number of daily rides but it does not have a high-profit margin for the drivers and thus they can easily be swayed away.
REVOLT FROM UNORGANISED MARKET 04 The unorganized market of cab drivers can revolt against such companies which are taking away the bread and butter of drivers from unorganized market. Such a revolt will directly affect the operations of a brand like Uber.
DEMAND AND SUPPLY ANALYSIS
RECOMMENDATION ● Maintain consistent pricing for customers in both rural and non- rural cities. ● Provide validated proof of safety for customer peace of mind. ● Allow users put in for a reservation hours or days in advance, and let drivers commit to pick up a reservation. ● Expand business model into other facets of business (i.e. UberAlternate / UberAlternateX, UberTour, UberFresh, UberEssentials, UberAmbulance).
Thank you.