Uber’s Customer Segments

In general, Uber has two customer segments riders and

drivers. The side of riders is people who either do not have
their own car, need to travel outside their city of residence,
or don’t want to drive at a certain time — for example, when
they know they will consume alcohol at a party, concert or
celebration. And the side of drivers are those people
mentioned above, who are probably out of the market or
need some extra money, and may start a new job just by
driving and using an app.

Uber’s Value Propositions

For customers, the greatest value proposition is the
convenience of not having to look for a taxi — the car comes
to you. Cars are available 24/7 and their route can be tracked.
In addition, fares are generally lower than those charged by
taxi drivers, and the rider can estimate how much the ride
will cost before calling the driver. For drivers, it is a source of
income (main or additional), a job that doesn’t require
experience, with flexible working schedules and easy access
to passengers. Plus, let’s not forget that the passenger
informs the destination on the app, which avoids
misunderstandings when we are talking about people who do
not speak the same language, which is a positive point for
both sides.
Uber’s Channels
Historically, in those ten years, the biggest channel for
accessing customers was word of mouth. In addition, the
other widely used distribution channel has been social media.
And, of course, the app stores, where riders and drivers
download their Uber apps.
Uber’s Customer Relationships
The customer relationship involves three sides: customer,
driver, and regulators. Uber’s focus is predominantly on the
customer. If the company has no credibility with the end-user,
then it has no reason to create a relationship with the other
two. Transparency regarding time and prices, as well as
confidence in security and privacy, are essential here. Uber’s
second-largest customer is its own driver. Since the driver is
not an Uber employee and their vehicle is not Uber’s
property — even though there are several lawsuits around
the world in this regard —, the company needs to offer them
attractive working and payment conditions to keep its
business running. As for regulators, Uber seeks compliance
and responsibility within the law, within a threshold that also
allows it to obey the laws of the market itself.
Uber’s Key Activities
Uber’s two key activities are: 1) Developing and maintaining
the app (and its algorithms), and 2) Maintaining and
improving engagement between riders and drivers. In order
for these activities to work, its key activities also include
marketing, communication between the parties, customer
service, and more.
Uber’s Key Partners
Uber’s most important key partner is its driver, without
whom the company doesn’t reach the final customer, doesn’t
deliver its value propositions, and therefore doesn’t produce
revenue. They are the supply side of the chain. Other
important key partners are the investors, that allow the
company to develop and reach other levels of performance.
They bring the initial rounds of funding to develop the app,
algorithms, and new proposals, such as driverless cars. Of
course, this revenue is also used for other expenditures. And,
last but not least, technology providers, with GPS, payment,
communication, cloud storage, and data analytics systems,
among others.
 Lyft: This is the major competitor. Founded in 2012, the
company provides services throughout the U.S. and in
more than 220 cities, providing 18.5 billion rides per
month. It went public at a $24 billion valuation;
 Curb: Owned by VeriFoneSystems, the company uses its
systems and credit card machines for operation.
Launched in 2015, Curb operates most of New York’s
green and yellow taxis and aims to reach all the major
cities in the U.S.;
 DidiChuxing: Launched in 2009 and already one of the
largest companies in China, it offers services such as DiDi
Chauffeur, Didi Test Drive, taxi-hailing, DiDi Minibus, and
DiDi private car rental through its app. In 2015, the
company reached 1.4 billion rides and its valuation was
$28 billion in 2016;
 OlaCabs: It began in Mumbai, in 2010, as an online taxi
aggregator. Now, the network reaches Australia, New
Zealand, and the UK, and its valuation surpassed $5
billion in 2015. Currently, Ola has a more than 60
percent market share in India;
 Grab: Founded in 2011, in Singapore, the company also
offers services in the Philippines, Indonesia, Vietnam,
Thailand, Myanmar, and Malaysia. At the end of 2016,
Grab introduced a messaging service on its app that
allowed language translations, helping break this barrier
in Asia;
 Cabify: Launched in 2011 in Spain, it is considered the
most secure in the industry, with modern vehicles,
expert drivers, and geo-tracking. The company operates
in Spain, Mexico, Chile, Brazil, Peru, Argentina, and
Portugal, among other places;
 Yandex Taxi: This Russian company offers ride-sharing
and food delivery services in the Middle East, Russia,
Eastern Europe, and Africa, and is also one of the world’s
leading companies developing self-driving vehicles. The
company completed 1 billion rides by the end of 2018,
performed by more than 700,000 drivers;
 Local taxis: Every major city in the world has taxi spots,
generally near stations, terminals, airports, and hotels.
The advantage of taxis is the possibility of negotiating
prices directly with the clients.
Uber’s Strengths
 Global reach: Uber is a worldwide company, making it
the most recognizable brand in the industry, since it
operates in 85 countries;
 Convenience: Uber is accessible to anybody with an
internet connection and a smartphone. The app is easy
to use, offers interaction with the drivers, provides
several payment methods, and is usually cheaper than
regular taxis;
 Pricing: The company uses multiple variables to
determine the price of a trip, also bringing more
advantages for the drivers;
 Operating structure: Uber doesn’t have employees,
which allows the company to invest much more back in
the business and R&D;
 Brand: Uber has the widest coverage in the industry, was
the first one to be launched, and also had a lot of
attention from the media.
Uber’s Weaknesses
 Lawsuits: Uber has been involved in many lawsuits
which have been affecting its image and reputation;
 Regulations: The company has a history of problems
with governments regarding regulations and laws of the
taxi industry;
 Sustainability: Uber does not have internal policies to
minimize the impact on the environment;
  Transparency: As it is a private company, Uber does not
need to open up its finances, but this lack of
transparency puts in check whether they are investing in
R&D or others;
 Safety: Like any other transportation, Uber riders are
subject to robbery, abuse, and other safety issues;
 Internet dependence: It relies on the internet and
smartphones to run, but the majority of emerging
countries still face difficulties in those matters.
Uber’s Opportunities
 Expansion: Uber has a huge opportunity to expand into
new markets around the planet;
 Diversification: The company has already added food
delivery to its services, but it can still diversity its
business and offers, especially niching down to
categories of transportation, for example;
 The number of drivers: Whether it is a result of an
economic crisis or not, the company has been able to
attract many drivers. This increases the offer for cars,
which pleases the consumers, thus raising the number
of regular users.
Uber’s Threats
 Competition: The high level and rising number of rivals
may jeopardize Uber’s expansion, thus making it difficult
to grow as planned;
  Margins: Uber keeps low rates that result in low
margins. For example, it has an 80% market share in
Brazil, but it is still unprofitable there;
 Regulations: Governments may impose strict rules that
can endanger Uber businesses in many countries.
Technological Innovations:
4.1 Mobile App Development: Central to Uber's success is its
user-friendly mobile app,
which allows riders to seamlessly request rides, track their
drivers, and pay for trips
electronically. The Uber app leverages GPS technology,
mapping algorithms, and real-time
data analytics to optimize routing, minimize wait times, and
enhance the overall user
experience. Over the years, Uber has continuously updated
and improved its app with new
features such as in-app messaging, ride-sharing options, and
safety features like real-time ride
monitoring and emergency assistance.
4.2 Data Analytics and Machine Learning: Uber harnesses the
power of data analytics and
machine learning to optimize its operations, improve driver
efficiency, and enhance
passenger safety. The company collects vast amounts of data
on rider preferences, driver
behavior, traffic patterns, and environmental conditions,
which are analyzed to identify
trends, predict demand, and optimize pricing strategies.
Machine learning algorithms are used
to match riders with drivers, optimize route planning, and
detect fraudulent activity or safety
incidents in real-time. Uber's data-driven approach enables
continuous innovation and
optimization across its platform.
4.3 Autonomous Vehicle Research: Uber has invested heavily
in autonomous vehicle (AV)
research and development, aiming to revolutionize the future
of transportation with selfdriving cars. The company
launched its Advanced Technologies Group (ATG) in 2015 to
develop and test autonomous vehicle technology, including
sensor systems, mapping

1. Regulatory Challenges:
 Response: Uber has encountered regulatory
hurdles worldwide as governments grapple with
how to classify and regulate ridesharing services.
Uber has responded by engaging in legal battles,
lobbying efforts, and negotiating with local
authorities to adapt regulations. It has also made
efforts to comply with existing regulations and
enhance safety measures.
2. Labor Disputes:
 Response: Uber has faced numerous lawsuits and
protests from drivers over labor rights, wages, and
classification as independent contractors. In
response, Uber has made concessions such as
offering benefits to drivers, providing additional
support services, and engaging in dialogue with
driver representatives. Additionally, Uber has
implemented changes to its platform, such as
allowing drivers more flexibility and transparency in
their earnings.
3. Competition:
 Response: Uber faces fierce competition from both
traditional taxi services and rival ridesharing
companies. To stay ahead, Uber has expanded its
services beyond ride-hailing to include food
delivery (Uber Eats), freight transportation (Uber
Freight), and other mobility solutions. It has also
invested in research and development, innovation,
and strategic partnerships to differentiate its
offerings and maintain market share.
1. Public Relations Crises:
 Response: Uber has faced several high-profile public relations crises,
including allegations of sexual harassment, data breaches, and
executive controversies. In response, Uber has taken steps to improve
its corporate culture, leadership transparency, and accountability. It has
appointed new leadership, conducted internal investigations, and
implemented policies to address issues such as diversity and inclusion,
data privacy, and ethical behavior.
2. Environmental Concerns:
  Response: Uber has faced criticism for contributing to traffic
congestion and pollution in urban areas. In response, Uber has
launched initiatives to promote sustainability, such as investing in
electric and hybrid vehicles, incentivizing carpooling and shared rides,
and exploring alternative transportation modes like bicycles and
scooters. Additionally, Uber has committed to reducing its carbon
footprint and offsetting emissions through environmental initiatives.

Conclusion:

1. Innovation at the Core:

 Uber Technologies, Inc. has continually showcased its
commitment to innovation, leveraging cutting-edge
technology to transform the transportation landscape. From
the introduction of ridesharing to pioneering new services
like Uber Eats and Uber Freight, innovation remains at the
heart of Uber's success.
2. Global Impact:
 With a presence in over 900 metropolitan areas worldwide,
Uber has made an indelible mark on the global
transportation industry. Its widespread reach has not only
provided convenient mobility solutions to millions but has
also created economic opportunities for drivers and
businesses across the globe.
3. Navigating Challenges:
 Throughout its journey, Uber has encountered numerous
challenges, including regulatory hurdles, legal disputes, and
public relations crises. Despite these obstacles, Uber has
demonstrated resilience and agility, navigating through
turbulent waters and emerging stronger than ever.
4. Commitment to Safety and Sustainability:
 Uber has prioritized safety and sustainability as key pillars of
its business strategy. Through initiatives such as background
checks for drivers, real-time GPS tracking, and investments in
eco-friendly transportation options, Uber is committed to
ensuring the well-being of its users and the environment.
 5. Future Opportunities:
 Looking ahead, Uber has promising opportunities for further
growth and expansion. By diversifying its service offerings,
investing in emerging markets, and embracing technological
advancements such as autonomous vehicles, Uber is poised
to shape the future of mobility and redefine urban
transportation.
In conclusion, Uber Technologies, Inc. is more than
just a ridesharing company; it's a catalyst for
change, innovation, and progress in the global
transportation ecosystem. As we move forward,
let's continue to embrace the possibilities and
opportunities that Uber brings, as we journey
towards a more connected, accessible, and
sustainable future for all.