Uber

13-Jul-161

Strategic MarketingRahul ShahaHTW BerlinWhere lifestyle meets logistics

Some disruptive transport systems!13-Jul-162

The Jitney Bus, Los Angeles (USA) 1914

The Six-Seater, Pune (India) 2000-2003Both of these were regulated out of the market within years of their entry

AgendaCompany ProfileCore BusinessGrowth HistoryOfferings and PricingCompetitionStrategiesCompany Analysis

13-Jul-163

Company Profile

Travis KalanickCo-Founder, CEO Uber TechnologiesFounded RedSwoosh before Uber

Garrett CampCo-founder, Chairman Uber Technologies Founded StumbleUpon before UberFounded in 2009 in San Francisco, California

Net Worth: Over $60 billion*

Employees: 6700Drivers:160,000

Industry: Logistics

Area in Focus: Cab/Ride-share service13-Jul-164*pre-funding valuation as of Dec 2015

More valuable than Time Warner, Ford Motors and Morgan Stanley. 6 years down the line Google or Facebook were half of the value.4

Job To be Done?Take Person X from Point A to Point B:ConvenientlyComfortablySafelyReliablyAt a low cost13-Jul-165

5

Growth History

2008First idea of a shared limousine service 2009Seed funding $200,0002010Beta launch in New York and full launch in San FranciscoFunding $1.25 million20112012Expansion US, ParisExpansionLondonSeries A and B rounds Funding ~45 million2014201620152013Service in over 60 countries, 450 citiesService in 58 countries, 300 cities.Launch of UberEatsExpansion India, South AfricaExpansion ChinaUberRush, UberPoolSeries C $258 millionValuation: $3.5 billionSeries D, E funding $1.2 and $2.8 billion eachValuation: $40 billionSeries F, etc.Over $7 billion Valuation: $62.5 billion13-Jul-166

2 million rides per day, 1 billion rides in Dec 20156

Year-o-Year Growth13-Jul-167

Product Offerings Uber offers:UberX The low-cost car.UberBLACK The classic, luxury car.UberPOOL Share ride with othersUberSUV Ride in an SUVAmongst others..!!13-Jul-168

Competition

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USAIndiaS-E AsiaDidi Chuxing, China

Differentiation against other competitors9

Comparison13-Jul-1610

BreakdownUberXBase Charge$2Minimum Cost$6.55Cost Per mile$1.15Cost per minute$0.22Cancellation Fees$5Booking Fee$1.55

BreakdownLyftBase Charge$2Minimum Cost$5Cost Per mile$1.16Cost per minute$0.23Cancellation Penalty$5Trust and Service Fee$1.55

San Francisco, CA

Comparison13-Jul-1611

BreakdownUberGOBase FareINR 45Minimum FareINR 60Cost Per kmINR 8Cost per minuteINR 1Cancellation FeesINR 60

BreakdownOLA MicroBase FareINR 45Cost Per KMINR 6Cost per minuteINR 1Cancellation Penalty-

Mumbai, India

Allows pre-bookingGained market share by initial payment optionsOn-going race to the bottom

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Comparison13-Jul-1612

BreakdownUberXBase FareSGD 3Minimum FareSGD 3Cost Per kmSGD 0.45Cost per minuteSGD 0.2Cancellation FeesSGD 6

BreakdownGrabCAR EconomyBase FareSGD 3Cost Per KMSGD 0.8Wait TimeSGD 5 per 10 minCancellation Penalty$5

Singapore

Growth StrategiesVehicle Lease programmes with Toyota tie-upMicrosoft partnership for mapping technologyPartnership with Toyota for self-driving vehiclesExpansion into courier, food delivery, corporate tie-ups, other kinds of vehicles. etc.13-Jul-1613

Pricing ModelPricing Model of Uber is a strategy-based one. They have a basic pricing model which includes: (Base fare + Ride duration based fare + Ride distance-based fare + miscellaneous)*Demand-based multiplierThe multiplier increases from 1 to as much as 7 to 8 to attract more drivers to meet the demand. Fares vary based on the type of vehicle.

Uber then charges 20% of the amount as a commission.13-Jul-1614

PromotionFree ridesReferral Code discountsInitiatives such as UberIcecream, UberKitten or the on-going UberPITCH across the world.Brand positioningFestival-based themes, UberTree, UberValentines, etc.

13-Jul-1615

Porters 5 Forces Model13-Jul-1616Supplier Power Buyer Power Threat from SubstitutesThreat of New EntrantsExisting CompetitionCommodity being traded: Rides

PESTEL Analysis13-Jul-1617PESLET

Business Model Canvas

13-Jul-1618

Value propositionKey partnersCustomer SegmentsCustomer RelationshipsChannelsKey activitiesKey resourcesCost StructureRevenue Streams

Skilled drivers with carsInvestorsMapping API providersPayment channel providersLocal regulatorsTechnological infrastructureDevelopersProduct DevelopmentAdvertisingCustomer acquisition and supportHiring, on-boarding and paying driversWebsiteMobile applicationsMediaOnline customer supportDriver reviewsInteraction via social mediaUsersDon't own a carDon't prefer to drive the carTo travel in style Cost-efficient doorstep serviceDriversDrivers who want to work with flexibilityPeople who want to earn additional incomeUsersConvenient, comfortable and reliable transportation at a low cost in real-time by the click of a button DriversOpportunity to earn money with self-defined schedules, just like a small businessDriver paymentsEmployee salariesTechnological infrastructurePromotion and brandingRide-based commissionSurge-pricing based commission

Portfolio13-Jul-1619

Company VisionUbers vision is to create a smart urban transit system where people dont need to own cars. Self-driving vehicles would take them where they want to, and bring to their doorstep what they need, when they need it.

Transportation as reliable as running water

13-Jul-1620

Company Vision

13-Jul-1621

SummaryA start-up that makes mistakes and learns from it.Brave and passionate founders.Always ready to try.Vision for the future.A great recipe for an investor13-Jul-1622

Referenceshttps://www.youtube.com/watch?v=idjrouG_8vYhttp://www.slideshare.net/MichaelReed11/uber-analysis-mgmt-180http://www.reuters.com/article/us-autos-selfdriving-idUSKCN0XN1F1 http://www.bbc.com/news/technology-36139986

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Thank You

13-Jul-1625