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Transcript of Uber: Brazil's
Type of Ubers Offered
How Uber Works
Why Rio and Sao Paulo?
Upper class consumer market
Low %, high number
+$100 a month
Who value time efficiency and safety
of Uber Business
Consumption and the Emerging Middle Class
Consumption and the Emerging Middle Class
"Going forward, the sheer size of Brazil's population, combined with the aggressive infrastructure upgrades needed ahead of the 2014 FIFA World Cup and the 2016 Summer Olympics, will boost growth to set it apart from any other market in the region. We predict that by 2017, there will be 70.5 million smartphone user in the country." -eMarketer
Since 2011, no new taxi licenses have been issued
Valuation for illegal selling of licenses reaches $140 billion
Uber has the support of consumers and employees to overcome legal barriers.
Country of Lawyers
Over 1,200 Law Schools
Second with respect to the number of lawyers per capita (US)
Uber Legal Challenges
What is Uber?
Uber in Brazil
Infrastructure and Logistics
Challenges and Success
What is Uber? History
Founded March 2009 by Travis Kalanick & Garrett Camp
Lack of SF taxis
Definition: Outstanding or supreme example of a particular kind of person or thing.
Where Uber Currently Operates
Timeline of Uber in Brazil
By 2020, approximately 9 million households will be part of the middle class
“Sectors likely to experience the most rapid acceleration in consumer spending this decade [include] ...telecommunications, transport, and leisure” BCG
Uber Partners with...
85% of population concentrated in coastal areas
73% of population in S/SE
Both create a concentrated market of people
Promise for tomorrow
Investments of up to R$205 billion have been made in Infrastructure
which include R$ 133 billion in renovating/ duplication of 7,500 km of roads
Driver verification process:
No criminal background
All cars are 2009 or newer
Driver must have insurance
Insurance for the passenger
Safety for drivers as well
Labor Unions and Taxi drivers
Federal Law #12.468
Companies face tough challenges pertaining to TAX issues.
Used to be considered illegal in the Municipality of Rio and Sao Paolo.
Population: 11.8 million
Economic pillar of Brazil
1 taxi per 195 habitants
Two most important cities of Brazil
Population: 19.7 million
State with highest GDP
1 taxi per 295 habitants
"Everyone's private driver"
Explicit CSR Model
7th largest economy in the world
5th most populated country in the world (205 m people)
4th in the world for Smartphone devices (55 m devices)
Many cities with concentrated populations
Potential for expansion
Quickly expanding- first mover advantage
Household’s with incomes exceeding $1250 per month are “likely to sharply increase spending on postpaid mobile phone plans”
Dramatic expectations for spending increases, notably on automobiles
2013 Q3: 60% of newly purchased devices
2014's end: Nearly 55 million smartphone users
20% of the population
The fifth largest seller in the world
82% of buyers are new users
(emarketer, 2014)(The Guardian, 2014)
The Competitive Market
Sao Paulo: 4 + .4/min + 2.42/km
Rio de Janeiro: 5.4 + .3/min + 2.76/km
Sao Paulo: 4.2 + 3/km
Rio de Janeiro: 4.7 + 1.9/km
Founded in 2009
Over $55 m in investments for expansion
Founded in Brazil 2012
$25 million in investments for expansion
Challenges of Uber in Brazil
Why Uber WILL succeed in Brazil
Proven business model
Potential for growth
Manage personal relationships
Sao Paulo= business capital of Latin America
• Safety (Verification Process, Documents, New Car)
• Lack of Taxis in both operational cities can work in advantage towards proving a need.
• Strong around the world victories in its license to operate in different countries and cities with similar opposition.
o Price increase up to 30% in comparison to regular taxis.
o Intended target (High-middle, upper class) is a very low percentage of population).
o Hard to create brand-recognition because of Brazilian’s attachment to traditions.
• With Brazil’s emerging economy and wide population, it is likely UBER will be able to expand to other major cities around Brazil.
• Opportunity to expand it’s service in cities already established because of the social division of the population.
• With improvement in transportation, lack of traffic could appeal to a higher percentage of people. THREATS
:| Labor Unions and Taxi drivers could lead to the delay of development and/or inability to operate.
:| Brazil has a great system of public transportation, including the subway and many bus routes.
:| Other taxi apps that, are user-friendly.
:| If the transportation is bettered then people could switch to public transportation.
Lack of taxis
Legal victories in other cities
Brazil is a country of tradition
Exchange rate fluctuation
Intended target low % of population
Brand recognition hard because attachment to tradition
More Brazil cities
Expand range of services
Labor unions, taxi drivers
Subway and bus routes
Other taxi applications