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Ubers’ Business concept / value proposition

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Yemi Amelia

on 21 April 2017

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Transcript of Ubers’ Business concept / value proposition

Ubers’ Business concept / value proposition
Beth Pestel | Charlotte Garside | Jack Deaner | Yemi Fadahunsi
Value Proposition
Customers
Product Attributes
•One tap and a car comes directly to you
•Your driver knows exactly where to go
•Payment is completely cashless

Uber subtly highlights everything that sucks about a traditional taxi and points out how its service is superior
Both located in San Francisco
Similar service to Uber
Price, App (Uber clearer price)
Smaller coverage area
Offer images to show you what the rides like
Lyft aren't as clear as Uber in their ride types
Extremely competitive:
"Gett is an on-demand mobility company"
Uses an app with customer and driver information - can book and pay via the app
Can also use as traditional black cab - i.e. general 'waiting' pick ups at train stations
First to introduce fixed fairs - $10 any ride in Manhattan - fixed in London which beat the meter pricing strategy
No 'surge charges' guaranteed
Cashless transactions
"The Smartest Way to Get Around"
- Lyft New Driver Discounts, Uber follows
- Lyft introduce free ride credit, Uber follows
- Uber invests in self-driving cars, Lyft makes deal with GM
Gett. (2017) About. [online]. Gett. Available from: https://gett.com/about/ [accessed 13 March 2017].

Shewan, D. (2016) 7 of the Best Value Proposition Examples We've Ever Seen. [online] Word Stream. Available from: http://www.wordstream.com/blog/ws/2016/04/27/value-proposition-examples [accessed 13 March 2017].

Hardy, Q. (2016) What Saudi Arabia's $3.5 Billion on Uber Buys. [online] New York Times. Available from: https://www.nytimes.com/2016/06/03/technology/what-saudi-arabias-3-5-billion-in-uber-buys.html?_r=0 [accessed 13 March 2017]

Campbell, H. (2015) Just How Far Is Your Uber Driver Willing To Take You. [online] Forbes. Available from: https://www.forbes.com/sites/harrycampbell/2015/03/24/just-how-far-is-your-uber-driver-willing-to-take-you/#b1dc2e6597ca [accessed 13 March 2017].
No phone calls, complicated directions or handling of money is needed. At the top of the Uber website is an aspirational message, which states "your day belongs to you." Which reinforces the hassle free service they offer.
Past
Competition was low;
Uber established in 2009
Gett established in 2010
Lyft established in 2012

Key points of differentiation of Gett and Uber = Gett is still a black-cab service offers lower fixed fares
Personalization

Car size
Car classification
Music preference
Type of payment (Apple pay, Paypal, card)
Want a customisable experience
Cheap travel fares (than direct alternative)
Ease of use - digital/app
Convenience/ Quick time of pick up
Comfort
Keep track of spending
Discounts/Free credit
Card linked to app, don't have to use change
Choice of cars - status conscious
Competition
Convenience

Reduced waiting time (when booked)
Book in advance on the app
Instant pick up
Book via other platforms (Facebook messenger, city mapper, google maps etc.)
Type of payment (Apple pay, Paypal, card)
Safety

Can see who your driver is
Driver profiles
Follow on app where you are going
Safe payment
Read reviews on driver
Encrypted communication between driver and passenger
Recognisable brand worldwide (Holidays)
Strong brand focus on safety
24/7 support
Demographics:
Digital Natives
Millennials & Gen Y
Disposable income

Geographics:
Developed/Developing countries
Urban areas / cities

Psychographics:
Price conscious
Active lifestyle
Social
Business
Digital transport

Phone app
Limited human interaction when booking
Physical evidence of booking
Product Offering
Core
Speed of booking, wait and travel time
Cheaper than traditional taxi service
Safety - due to profile info of driver and a car tracking system

Actual
App
Transport Service
Uber Brand

Augmented
Personalised Music Choice
Customer Service Focus - Rating System
Selection of type of Uber (I.e. UberX, UberPool)
Track Spending/Previous Rides
Example
When introducing Uberpool a competition were going to beat them to market. Leaving Uber with a choice, release an unfinished service or wait and perfect the service but loose out on first to market. They chose the former. Releasing an unfinished product could cause low customer satisfaction and ultimately loose out to the competitor who developed a fully functional service. Uber should respond to this by continuously improving the service.
ICON Matrix
New Proposed Value Proposition
Currently in red ocean, Uber needs to move back into blue ocean

When starting out Uber had a competitive advantage but due to Lyft having the same business model this advantage has gone
Previous
Competition copying the business model
Public transport cheaper

Current
Drivers not happy with the high % Uber takes from fares (discourage new drivers)
Legal regulation in foreign markets (i.e. Germany or France)
Increased competition (Gett and lyft )
Increasing number of markets operating in and number of drivers increases fraud and scandals (reputation damage)

Future
Self-driving cars developments (eliminate the need for taxi service)
Strategy Canvas:
Customers
Drivers
Elements which could have an impact on Uber's value proposition
Overview of Uber (Salient Features)
A user can tap his smartphone and call a cab at his location.
The driver has the option to accept or reject a ride.
If driver accepts the ride, driver details are sent to the customer along with ETA.
The customer can track the driver as he arrives to his location.
The driver can also track the exact location of the customer and reach his exact location.
The payment procedure is handled by Uber.
In some countries like India, Uber has even started accepting cash payments which are paid directly to the driver.
Uber business model had a rating system in place for drivers right from beginning, where a customer can rate the driver after his ride.
Additional source of income.
Flexible working schedules. Can work part time or simply whenever they like.
Easy payment procedure.
Those who love to drive can earn money while pursuing their hobby.
Uber pays drivers to be online, even if they don’t get any request.
No need to wait for a taxi for long times.
Free rides on certain occasions and discounts from time to time.
Prices lesser than the normal taxi fares.
Uber’s tagline says – Your personal driver. It lets customers travel in style.
Fixed prices for common places like Airport etc.
Uber is an on-demand transportation service. It revolutionised and disrupted the taxi & black cab industry, enabling people to order an ondemand taxi from their smartphone.

Uber is one of those few tech companies in the world that has been valued over $62.5 Billion. (nytimes,2016)
Current
Adaptation of black cabs as a response to Uber and the decline in use of them
Laws and Legal battles that are being thrown at Uber
Uber's and Traditional Taxis' promise value proposition
Thank you for your time
Any questions?
Uber Rewards
UberMiles: a simple points system, where UberMiles translate into physical miles which can be redeemed against future journeys
UberAchieve: an achievement (tier based reward system), rewarding both drivers and riders on passing Uber determined goals.
A loyalty program that rewards frequent users of the app and service.

Strategy Canvas:
Uber's and Lyft 's promise value proposition
Full transcript