INTERNATION MARKETING STRATEGY REPORT

UBER

Word Count - 1634

26/07/201
SUBMITTED BY
DIVYANSHU SHEKHAR
 Executive Summary

Uber is an App-powered transportation service that was founded in 2009 and has
since expanded rapidly across 56 countries, ultimately saturating the global
transportation industry.

At first, Uber’s purpose was to function as a lifestyle company and a luxury car
service but now it strives to be the most convenient, economic, and personal riding
experience and accommodates all kinds of riders. Whether you’re a VIP looking to
travel in style or a young professional trying to find the cheapest and quickest way to
get from point A to point B, Uber is the app for you. Uber is constantly finding ways
to revolutionize the transportation service and diversify it’s already impressive range
of transportation vehicles. It’s no surprise that in it’s most recent year,

Uber achieved a net profit of $2 billion and was recently valued at $41 billion. This
unparalleled success in the industry has allowed it to not only dominate the market
but also incorporate innovations into its service, i.e, the uber chopper and uber car
that delivers groceries/necessities.

Through this report, we will look at the marketing strategies used by Uber, their analysis, the
implications based on social, economic and environmental factors and also identify solutions for
the same for both the senior management and the regulators.

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 Table of Contents

S. No. Topic Page No.

1 Introduction 3
2 Key Stakeholders 3
2.1 Key Capabilities 3
3 Market Analysis 4
3.1 Market Segmentation 4
3.2 Market Size, Growth and Scope 4
4 Marketing Mix 5
5 Economic Implication of Uber’s Marketing 5
Strategy
6 Environmental Implication of Uber’s 5
Marketing Strategy
7 Social Implication of Uber’s Marketing 5
Strategy
8 Recommendations 6
9 References 6

List of Tables and Figures

S. No List of Table/Figure Page No.

1 Table 1 4

2 Figure 1 4

3 Figure 2 4

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 INTRODUCTION & COMPANY BACKGROUND

Introduction
Founded in 2009 in San Francisco, Uber began its inception as a transportation company that
hired experienced and licensed drivers to provide its services. Over time the company began to grow
dramatically and evolve owing to its ride-sharing app and adaptation of the current trending advertisement
procedures. Business has been booming since although a number of controversies have dogged its brand.
In this report, we are going to study Uber’s marketing strategy in the Asia Pacific and evaluate the
sustainability issues related to the same. First of all, we go over the key capabilities and stakeholders of Uber
to understand the business model and working of the company. Next, we move on to the Market Analysis
which will help us identify the market segmentation, trends, size and scope of the company in terms of
growth in the coming years. We will also look at the marketing mix of the company in order to analyse the
4Ps of their marketing strategies
 Product
 Price
 Place
 Promotion
We will then do a PESTEL Analysis as a broad fact-finding activity. It helps an organisation establish the
external factors that could impact decisions made inside the organisation. By understanding these external
factors, it's possible to understand the opportunities & threats broadly and mitigate the risks to the company.
We will then look at the Economic, Environmental, Social/Ethical implications of Uber’s Marketing strategy
to understand the issues from these perspective in order to find solutions for them after in-depth analysis.

Key Stakeholders
 Customer – They cannot maintain their sustainability without the credibility approval of customers.
 General Public – Uber is geared to portray a positive image to the public in terms of services,
campaigns, and contributions.
 Regulators – Uber offers accountability, and transparency through its review and rating system.
 Drivers– The drivers form a unique partnership with Uber in the sense that they are the ones who
acquire Uber’s customers and deliver them their value proposition.
 Lobbyists – They ensure that their interests are advocated in the political or entertainment spheres.
 Investors – It’s their business to spend their profit on Uber which benefits its business dramatically.
 Other Partners – Mostly technology providers which include maps, insurance provider, payments,
and analytics.

Key Capabilities
 For the drivers, the value proposition is their ease in getting started, opportunity to earn, ease in
accessing more passengers as well as having the freedom to choose their hours for work.
 For riders, it offers safety and security, the chance to avail services with lower prices than the
normal taxi service, it is much more convenient with easier transactions.
 Uber’s app gives you the opportunity to get an insight as to the fare and duration of the ride.
 The Uber rating system that allows for feedback has also been credited.
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 MARKET ANALYSIS

Target Market Segmentation

Segmentation means to divide the population to various groups as per their similar characteristics. Market
segmentation helps to reach out to various groups through different services. Like Uber has Uber X, Uber
XI, Uber Pool for people that are cost conscious and it has Uber Premium of luxury rides for luxury loving
people.

Table 1

Market Trends, Size and Growth

 Uber generated $11.1 billion revenue in 2020, a 21 percent decrease, due to the coronavirus
pandemic shutting down its ride-hailing operations for most of the year
 While Uber’s ride hailing segment contracted by 24 percent, Uber Eats increased revenues by over
200 percent in 2020
 93 million people used Uber in Q4 2020, below its peak of 111 million active users in 2019
 Uber drivers completed 4.98 billion trips in 2020, a 27 percent decrease from the 6.9 billion trips in
2019

Figure 1 Figure 2 4
Market Mix
 Product - It is a service providing company. Uber X, UberXI, Uber Pool, Uber Premium are all
different kinds of services they provide. Uber rides are designed in such a way that mostly every
person can afford rideride.
 Place - Uber has spread its services in more than 900 cities. It does not have many offices because of
its business model. But anybody can avail their services just by downloading their app.
 Price - Uber pricing can be said as a type of geographical pricing. The price of ride depends on the
base rate, estimate time, distance and demand surges are there if the demand of rides is more in the
area then. It is a dynamic pricing based on demand and supply.
 Promotion - Uber has a unique marketing strategy that create loyal customers. Free rides, low price
rides, discounts and referral benefits are their top strategies
 Now, talking about their marketing strategy, word of mouth has been very helpful to the business.
Apart from all advertising, it gives free rides. There are people who have earned $50,000 as referral
credit.

Economic Implications of Uber’s Marketing Strategy

 There are many who swear by the freelance model of work since they can masters of their time
and pursue other occupations as well as decide to set the working hours themselves instead of
being dictated and ordered by the straightjacket of the traditional work model.
 Uber economy is a model where the workers do not receive health, social security, and 401(k)
or pension benefits, in addition to not receiving any paid leave or time off for medical reasons.
 When one is performing freelance work, there is no guarantee that such gig work or the Uber
model would let them continue even if they fail once or twice.
 Uber competitive place (literally as well as metaphorically) where one is as good as the last
work or the gig done and there are virtually no laws or regulations that would protect the
workers and their rights.

Environmental Implications of Uber’s Marketing Strategy

 Uber increases traffic congestion and fuel usage.
 According to the Union of Concerned Scientists, Uber trips today result in an estimated 69
percent more climate pollution on average than the trips they displace
 Uber’s role in sustainability is very likely to impact customer perception. Current target
customers are young, educated and environmentally sensitive passengers in relatively more
developed countries.

Social/Ethical Implications of Uber’s Marketing Strategy

 Driver’s Security - The major security threats were violent attacks from other local drivers,
assault, and misbehaviour on behalf of customers, robbery, etc. There have been instances that the
cabs were being damaged by the customers, but there has been no significant support given by the
company to the Uber drivers
 Safety of the passengers - The inconsiderate background check before employing the drivers was
the major reason which led to these unfortunate events. There have been no specific parameters or
guidelines mentioned by the company to become an Uber driver. 
 Unethically Poaching down the drivers of the competitor company - The Uber Company has
appointed some of the independent contractors who use dummy accounts in their burner phones.
By using it, they order new rides from their major competitors 
 Breach in Privacy
 Unprincipled Leadership 5
 RECOMMENDATION

For Uber’s Senior Management

 To maintain an ethically healthy competition with other companies
 Acquire Lyft or other competitors across Uber’s global enterprise to achieve greater market power
 Cost Awareness and exploring new options
 Individual or pooled ridesharing services, as now
 All public transportation services
 Micro-mobility services: E-bikes and scooters
 Peer-to-peer short-term car rental
 Longer-term car rental
 Emerging new travel modes, including autonomous mobility aircraft
 Any combination of the above (e.g. Uber Pool to a commuter rail station, train to city center, scooter
to the workplace; or, bike to peer-to-peer car rental location, return vehicle after several stops, walk
home, etc.).

For public policy makers/regulators

 To stop repeating the mistakes and offenses made in the past

 Testing Technology’s Reach
 Evaluating how the Market Would Readjust
 To understand the needs of all the stakeholders
 To put proper regulations in place for all the stakeholders
 To have a thorough background check on the drivers to insure passenger safety
 To have regulations in place to ensure driver safety

References
 https://www.businessofapps.com/data/uber-statistics/
 https://www.forbes.com/sites/lensherman/2019/06/03/are-there-quick-fixes-to-improve-ubers-
profitability/?sh=7bdc42ca7145
 https://www.annexcloud.com/blog/ubers-marketing-strategy-in-7-steps-revisited/
 https://www.joshmeah.com/blog/15-lessons-from-ubers-marketing-strategy
 https://www.nap.edu/read/21875/chapter/11#154