Uber Pricing Strategies and Marketing Communications
Essay by Acprotools Elanmax • May 24, 2016 • Case Study • 623 Words (3 Pages) • 3,339 Views
Information System and Analysis
Case Study: Uber Pricing Strategies and Marketing Communications
- 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: 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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