uber presentation

ADDRESS 182 HOWARD STREET # 8

SAN FRANCISCO, CA 94105

WEBSITE WWW.UBER.COM

SECTOR RIDE SHARING

INDUSTRY VEHICLE LIVERY

TABLE OF CONTENTS

I. Introduction Summary.………………………………………………………………………………………………………………………………………………………………………… 3

Company History

II. External Analysis…………............................................................................................................................................................................................ 5

Industry Overview

Porter Five Forces

III. Internal Analysis…...................................................................................................................................................................................................... 9

Most Important Executives

Drivers

Product Diversification

Strategic Alliances

Other Resources and Competencies

IV. Financial Analysis..................................................................................................................................................................................................... 15

Uber’s Funding

Comparable Financial Metrics

V. Recommendation...................................................................................................................................................................................................... 18

Competitors’ Funding

Other Services

Uber Legislation

International Expansion

Reward Program

INTRODUCTION

SUMMARY

3

4

INTRODUCTION SUMMARY: COMPANY HISTORY

Aug 2008:

Inspired by the difficulties to find

a taxi in Paris, Travis Kalanick

and Garrett Camp invented

UberCab.

Jul 2010:

UberCab went live as a

luxury private transportation

between San Francisco and

Silicon Valley.

May 2011:

Uber expanded domestically

to major cities, including New

York City, Chicago and Los

Angeles.

July 2012:

Uber started to expand

internationally.

Nov 2016:

Uber is currently in 70

countries with over 10

million users and 200

thousands drivers.

“Where does Uber go from here?”

EXTERNAL

ANALYSIS

5

EXTERNAL ANALYSIS: INDUSTRY OVERVIEW

SOURCES: CIA FACTBOOK, THE FEDERAL RESERVE BANK

18.8%

13.5%

39.6%

12.9%

15.3%

0% 10% 20% 30% 40% 50%

0- 14 Years

15- 24 Years

25- 54 Years

55- 64 Years

65 and Over

2015 POPULATION AGES DISTRIBUTION (U.S.)

CURRENT STATE

• Vehicle Livery is a class of privatized point to point transport requiring

one driver and at least one customer.

• The industry is in a period of transition with regulatory reform either

occurring or being reviewed.

• Ridesharing is the newest component of this industry.

FUTURE DEVELOPMENTS

6

• The ridesharing encourages consumers to use more services in the point

to point market. These rideshares can replace the needs for car in some

urban areas.

• Price and services differences have pushed consumers to switch from

traditional services taxi services to ridesharing platforms.

• The regulation environment will decrease and accept the shift in the

industry.

Vehicle

Livery

Taxi Cab Ride sharing

Vehicle for Services

VEHICLE LIVERY SUMMARY CHART

7

EXTERNAL ANALYSIS: PORTER FIVE FORCES

INTENSITY OF RIVALRY

(HIGH)

THREATS OF NEW ENTRY

(MEDIUM)

THREAT OF SUBSTITUTION

(HIGH)

• Rivalry is more rampant than ever, after

decades of virtually none

• The number of vehicle livery drivers is at an

all-time high, with a relatively low number of

firms, thus increasing intensity

• Individual participating firms have taken

heavy legal action against competitors, and

sabotage is not unheard of

• There is a little of differentiation in service,

though the importance of superficial

qualities has become a more critical element

of industry vehicles

• Vehicle livery competes against public

transportation, private transport ownership,

and pedestrian locomotion

• Switching costs are low or nonexistent

between vehicle livery and other forms of

transportation

• Urban public transport in particular has

consistently lower costs than most vehicle

livery providers

• Barriers to entry are prevalent in this

industry.

• Individual vehicle livery providers have a high

cost of capital requirements, including

vehicles, maintenance costs, driving

technology platforms, and vehicle operators

• Government policy varies upon location, but

is powerful. Special licenses and background

checks can be required. Some cities limit the

number of certain vehicle livery operators

through caps on licenses granted and/or

number of vehicles for this purpose

• Launched in 2012

• Operates internationally

• Valued at $5.5 Billion

• Available on iPhone and Android


• Operates in South East Asia




• Operates in Western Europe


• Available on the Web


• Operates in major cities in the West Coast



EXTERNAL ANALYSIS: PORTER FIVE FORCES (CONT.)

SOURCES: BUSINESS INSIDER

MAJOR RIDESHARING PLAYERS

8

BUYERS POWER (MEDIUM)

SUPPLIER POWER (LOW)

47.9%

32.1%

20.0%

Taxi Cab

Uber

Lyft

MARKET SHARE COMPARISON (U.S.)

• There are ample suppliers of drivers, and if applicable, vehicles to

operate

• Drivers’ margin of profit vary across the industry, with established

competitors generally providing a smaller margin

• Wider breadth of industry members makes prices more competitive

• Customers have ability to select perceived less expensive competitors,

but are usually locked into whatever rate is charged

INTERNAL

ANALYSIS

9

10

INTERNAL ANALYSIS: MOST IMPORTANT EXECUTIVES

TRAVIS KALANICK

(CEO)

GARRETT CAMP

(CHAIRMAN)

GAUTAM GUPTA

(CFO)

THUAN PHAM

(CTO)

BRIAN MCCLENDON

(VP)

• CEO and Co-Founder of Uber.

• Invented 5 successful start ups in the technological area.

• Graduated from MIT with a degree in Computer Engineering.

• Chairman and Co-Founder of Uber.

• Has 20 years of experience working with and inventing startup companies such as Stumble Upon, and Expa.

• Received the Top Innovator Award from MIT.

• CFO of Uber since March 2015.

• Previously worked at Goldman Sachs as Vice President in Technology Group.

• Graduated from MIT with a degree in Computer Engineering.

• CTO of Uber since April 2013.

• Oversees the technology division of over 400 people.

• Held a Bachelor and Master Degree in Computer Engineering from MIT.

• Vice President of Uber Product since June 2015.

• Previously worked at Google, GET IT Mobile, Keyhole. Assisted in developing key products such as Google Earth,

Google Map and Google Ad.

SOURCES: WIKIPEDIA

11

INTERNAL ANALYSIS: DRIVERS

Hours/ Week 1 to 15 16 to 34 35 to 49 Over 50

ProductsPercent of

Drivers

Earnings per

Hour

Percent of

Drivers

Earnings per

Hour

Percent of

Drivers

Earnings per

Hour

Percent of

Drivers

Earnings per

Hour

UberBlack 29% 20.87 32% 20.85 19% 21.67 20% 20.76

UberX 55% 16.89 30% 18.08 10% 18.31 5% 17.13

SOURCES: UBER CASE STUDY

ACTIVE U.S. UBER DRIVERSDRIVERS BENEFITS

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15

UberX UberBlack

12

INTERNAL ANALYSIS: PRODUCTS DIVERSIFICATION

Service Description

UberBlack and UberSUV

Uber luxury service. Commercially registered and insured livery vehicles, typically black luxury sedan or SUV. Drivers

must be professional livery drivers – they must have a commercial license, commercial insurance- and must own a high

–end black sedan or SUV.

UberX

Uber’s low-price service. Drivers are not professional livery drivers and a commercial license is not required. Drivers must

be 21 or older with a clean driving record ,and must own a model 2000 car or newer. Driver must pass a background

check.

UberXLSlightly higher fare price than UberX. Vehicles seat at least six passengers. Vehicles are ordinary minivans and SUVs.

Driver requirements are the same as for UberX.

UberSelect

Only available in some cities. Uber’s mid-luxury service. Prices are lower than UberBlack, but higher than UberX. Drivers

are not professional livery drivers and a commercial license is not required, but they must own a luxury sedan that seats

up to four riders.

UberPOOLOnly available in some cities. Passengers share rides with other passengers and split the cost. Because of the carpooling

nature of the ride, passengers may not be picked up first or dropped off first. An even cheaper option than uberX.

SOURCES: UBER CASE STUDY

13

INTERNAL ANALYSIS: STRATEGIC ALLIANCES

HOTELS INDUSTRY

FINANCIAL SERVICES

CUSTOMER INTERFACE

AUTO MANUFACTURERS

SOURCES: UBER NEWS

14

INTERNAL ANALYSIS: OTHER RESOURCES AND COMPETENCIES

DESCRIPTION COMPETENCIES

Provides an international recognition

Is known for safe and reliable services

An edge on their competition

Allows them to regulate commission for the drivers

Surge Pricing Model incentivizes drivers to work challenging

hour of the day

Uses aggressive tactics to competition and entry to new

locations

Costly to imitate

Stapled as primary provider

RESOURCES

Brand

Recognition

Business ModelHave least amount of wait time for the consumers in the industry

Has the majority of shares in the ridesharing

First Mover

Advantage

Spearheads the vehicle livery industry

Possess industry patented technology

Captures loyalty customers from the beginning

Has a strong loyal consumers base

Can set the trend within the industry

FINANCIAL

ANALYSIS

15

FINANCIAL ANALYSIS: UBER’S FUNDING

SOURCES: UBER WEBSITE

0.2 1.3 11.0 37.0

258.0

1,200.0

600.0

1,600.0

1,000.0 1,000.0

100.0

1,200.0 1,200.0

2,000.0

0

500

1,000

1,500

2,000

2,500

Seed Angel Series A Series B Series C Series D Series E Debt

Financing

Series E Series F Private

Equity

Private

Equity

Private

Equity

Private

Equity

52 Investors

Aug. 2009 Oct. 2010 Feb. 2011 Dec. 2011 Aug. 2013 Jun. 2014 Dec. 2014 Jan. 2015 Feb. 2015 Jul. 2015 Aug. 2015 Sep. 2015 Oct. 2015 Jan. 2016

$6.61 Billion Raised

12 Rounds

16

17

FINANCIAL ANALYSIS: COMPARABLE FINANCIAL METRICS

Company Estimated Value Gross Booking Revenues Operating Profit or

Loss # Cities Served # Rides # Drivers

Uber $51,000 $10,840 $2,000 ($470) 300 1,460,000 800,000

Lyft $2,500 $1,200 $300 ($100) 65 156,000 100,000

Ola $2,500 $1,200 $150 NA 85 100,000 250,000

GrabTaxi $1,500 $1,000 $50 NA 26 300,000 75,000

BlaBlaCar $1,600 $600 $72 NA 100 NA NA

Sum $59,100 $14,840 $2,572 ($570) 576 2,016,000 1,225,000

Company Value/Gross Billing Value/ Revenues Value/ City Value/ Ride

Uber 4.70 25.50 $170.00 $0.03

Lyft 2.08 8.33 $38.46 $0.02

Ola 2.08 16.67 $29.41 $0.03

GrabTaxi 1.50 30.00 $57.69 $0.01

BlaBlaCar 2.67 22.22 $16.00 NA

Average 2.61 20.54 62.31 $0.02

Median 2.08 22.22 38.46 $0.02

SOURCES: PUBLIC NEWS REPORT

RECOMMENDATION

18

RECOMMENDATION: COMPETITORS’ FUNDING

Didi Kuaidi,

$4,200.0

Yidao Yongche,

$790.0

GrabTaxi, $680.0

Lyft, $1,010.0

Other, $1,254.0

Ola Cabs,

$1,180.0

Companies Raised

Blablacar $336.5M

Shenzhou Zhuanche $250.0M

Gett $220.0M

Hailo $110.6M

Easy Taxi $77.0M

Careem $71.7M

Meru $50.0M

Via $37.1M

Sidecar $35.0M

Flywheel $34.9M

INGOGO $31.3M

19SOURCES: PUBLIC NEWS REPORT

RECOMMENDATION: OTHER SERVICES

Brand Name Services Description Locations

uberFresh Groceries delivery Los Angeles

uberEats Restaurants delivery International

uberBike Motorcycle as transportation Asia

uberChopper Private helicopter as transportation New York City, Dubai, Abu Dhabi

uberRush Bicycle messenger for quick delivery New York City

uberKittens On demand kittens to play with North America

20SOURCES: UBER WEBSITE

RECOMMENDATION: UBER LEGISLATION

USA

Anchorage, AK; San Antonino, TX;

Panama City Beach, FL

India

Maharashtra, Hyderabad,

Telengu, Karnataka, New Delhi

Australia

Queensland, Western Australia,

Victoria

Netherlands Germany Spain Taiwan South Korea Thailand

South Africa

Cape Town

Japan

Fukuoka

Brazil

Rio de Janerio

SOURCES: UBER WEBSITE 21

RECOMMENDATION: INTERNATIONAL EXPANSION

Uber Dominated Area

Other Competitors

US

Lyft, Via, Sidecar,

Flywheel, Curb

Colombia, Brazil

Easy Taxi

Nigeria, Kenya,

South Africa

Easy Taxi

Australia

Ingogo, Gocatch

Singapore, Malaysia,

Philippines, Thailand,

Vietnam & Indonesia

Grab Taxi, Easy Taxi

SOURCES: DELOITTE, JP MORGAN

India

Ola Cabs, Meru

South Korea

Hailo, Easy Taxi

China

Didi Kuaidi, Yidao

yongche, Shenzhou

Russia

Gett

Germany, France

Blablacar

UK

Gett, Hailo

Spain

Cabify

Israel

Gett

22

23

RECOMMENDATION: REWARD PROGRAM

BENEFIT FOR THE CUSTOMERS

• Loyalty program offered to customers allowing them to accumulate

points for trips taken.

• Members may redeem their accrued points for free Uber trip or for other

products and services available through a network of commercial

partners.

• Members may be recognized for their long term relationship with Uber

and be rewarded for the loyalty.

BENEFIT FOR UBER

• Company can increase the loyalty as a mean to differentiate.

• The coalition program offers commercial partners the ability to acquire

and retain customers at lower cost.

• Commercial partners can collect data on customers, allowing them to

optimize their marketing campaigns.

• The companies can also increase the exposure of their individual brand

through network association.

• The reward program offers Uber possibility to increase their pricing

margin.

Accrual of points for purchase

Redemption for free products

REWARD PROGRAM STRUCTURE

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