ANALYSING

Abii-Ndoh, Godwin Tunmise

BYDeepika Sethia

Hnuna RKBalaji K

Salman KPSaravana kumarVinodh Kanna

The Taxi and Limousine Industry

In 2012 – 240,000 drivers nationally who earned an average salary of 22400 dollars.

NYC and Chicago controlled the industry through medallions

Taxicabs charged passengers based on time and distance which was calculated by taxi meter.

AN OVERVIEW OF THE COMPANY

Key Peopl

e Head of Global Operations

Co-Founder and CEO

Travis Kalanick

Co-Founder and

Chairman

Gareth Camp

Chief Technology

Officer

Thuan Pham Ryan Graves

Ubercab was founded as a privately held company by Travis Kalanick and Garett Camp in 2009.

Ubercab received $200,000 in seed funding that year, as it began operations as a transportation company in San Francisco, California.,

The company primarily develops, markets and operates the Uber app, which allows individuals with smartphones to submit a trip request which is then routed to Uber drivers who use their own vehicles to provide taxi services.

In 2011, the company changed its name to Uber and began expanding each month into new cities in the USA, and by 2012, it had begun expanding internationally.

As at September 15, 2015, Uber was operational in 327 cities, in 60 countries and estimated to be worth over $50 billion.

WHAT DOES UBER DO?Uber is a network orchestrator ; it connects passengers with drivers within minutes. It does this by:

Providing options and varieties in the transportation service

Managing a network of drivers and passengers with a mobile application

The business model in an explanation

3. Passengers use Uber app:•  Pick-Up request•  Real-time tracking•  Payment

4. Drivers receiverequests via the Uberapp:

•  Locate passengerpick-up & drop-offdestination Receive cash-less payment via Uber1 * Uber recruits drivers

* Pays commercial taxi license

(legal requirement)

• 

2.Uber connects drivers withlocal rental car companies•  Commercially driving with

private cars is illegal

UBER – BUSINESS MODEL

Value Proposition – Network Orchestrator

Picks the passenger and brings himto the

destination

Request forride

Notification ofthe request

Notification ofacceptance

Acceptsrequest

DriverPassenger

- Indicates navigation

- Estimates fare &time

App- Pay the ride- Give feedback

GPS

10UBER TECHNOLOGIES INC.

UBER’S OPERATIONAL FRAMEWORK Uber’s structure requires next to no inventory.

Uber does not pay fees to regulatory institutions since it does not regard itself as a “taxi operator”

Uber claims that it is not a taxi service provider, but a technology company that merely creates a market

• It is a network orchestrator that matches drivers with passengers

• Unlike the case with regular taxis, Uber driver-partners do not pay professional fees to deliver their services.

Uber refers to its drivers as partners not employees

Most Uber drivers work part time.

1. Uber sets prices for rides2. Customers pay Uber3. 20% of the ride fee goes to Uber (Depending on the city and

competition)4. Uber covers marketing, R&D and part of the insurance expenses

PROMOTION AND BRANDING

COMPETITORS

Value Proposition – Surge Pricing: Meeting highdemandSurge Pricing : Uber rates increase to ensure reliability when demand

cannot be met encourage more driver to be available.

12UBER TECHNOLOGIES INC.

SURGE PRICING : CEO’S RESPONSE

- Without Surge pricing, there will be no cars available.

- Shorter wait times.

- More time spent on comfort of the riders home as opposed to on a windy, rainy or a bitterly cold street.

- Surge Pricing was designed to maximise number of rides, not revenue.Incentivized drives to work even after their given target was achieved.Encouraged drivers to be available during high demands.

Q & A

Is it time to change models or Uber should stay the course?

Would emergence of more competition affect Uber’s choice?

THANK YOU……!!!!