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Uber Pricing Strategies and Marketing Communications

Essay by   •  May 24, 2016  •  Case Study  •  623 Words (3 Pages)  •  3,202 Views

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Information System and Analysis

Case Study: Uber Pricing Strategies and Marketing Communications


  1. What does Uber’s business model look like?

Key Partners

 “willing” drivers and “needy” consumers

Key Activities

Software development -app

Quality control through ratings system for drivers and customers

Use of Social Media Platform for advertising and marketing purposes, and developing strong relationships with customers

(even work together to fight against governmental regulations)

Value Propositions

UberX service - 10% lower than taxi prices

Short waiting periods compared to usual taxi

Customer has access to driver’s name, car model, rating, and pricing prior to accepting or declining the ride

No more kickbacks to human dispatcher that results in unfair customer distribution

Customer Relationships

Self-service:

Uber app

Automatic charge customer’s credit card / pay drivers via direct deposit

Communities: social media connection

Customer Segments

Passengers who need rides

Drivers who need money

Key Resources

Human:
employees such as the data-science team

Intellectual: Uber app with its algorithms for calculating the fares

Channels

Twitter, Facebook, YouTube,

Website,

Uber app

Recruiting drivers in their own car

Cost Structure        

Software development cost

Employee

Fixed cost

Revenue Streams

UberX, Black Car, SUV charge differently

Uber takes 20% commission on each ride.

Rides are calculated based on algorithm (matching supply with demand)

Uber does not directly employ drivers, instead it develops an app that connects “willing” drivers with “needy” consumers, and then earns the 20% commission on each ride. Since it does not hire drivers, Uber also does not need to own any fleet of vehicles.

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