Uber - Business Model Canvas

The presentation describes the business model canvas of UBER as a part of the Entrepreneurship and Innovation Module wherein the Problems faced by UBER is mentioned along with the Recommendations which they can follow in order to improve the companies performance.

1. Entrepreneurship
and Innovation.
CEO : Dara Khosrowshahi 
Year founded : 2009 
Headquarter : San Francisco, California, USA

2. TEAM MEMBERS
MBA SEPTEMBER 2019
KAMLESH BHOOPAL
SID- 1919077
FARAZ ANSARI
SID- 1840097
SATHYASHREE
VENUR JAIN
SID- 1838278
DIVYA AGARWAL
SID- 1931570
TOM MATHEW
SID- 1836888

3. Uber has gained major popularity in 2011 when Kalanick
started providing iPhones with preloaded uber
applications
INTRODUCTION
Uber is a multinational ride sharing company,
founded by two friends in 2009.
Every city had two or three taxi
companies, because of the way
they operated they could not scale
beyond a limited geographical area
but Uber changed all that.(Oakley,
2020) Uber's technology disrupted the taxi market by allowing
people with cars and spare times to drive people
who don’t want to drive and make an extra income
(Cramer, Judd, and Alan B. Krueger, 2016).
KEY IN-APP
FUNCTIONALITIES
Travis KalanickGarrett Camp
BE YOUR OWN BOSS

4. Car owners who want to make money.
People who love to drive and want to
make it their profession.
DRIVERS
Those who do not own a car.
Those who cannot drive or want to be
driven around.
PASSENGER
CUSTOMER SEGMENTATION

5. PASSENGER
VALUE PROPOSITION
DRIVERS
Additional Source of Income.
Ease of getting started.
Flexible working hours (BYOB).
Driver Reward Programs
Fast pick up.
Easy and convenient transactions.
Rating System.
Tracking and Sharing.

6. Social Media/ online
chalnnels (website)
Word of Mouth
Television and
Media
Ads/ Referrels
Local Campaigns
CHANNELS

7. CUSTOMER
RELATIONSHIP
Review, Rating & Feedback System
Social Media
Customer Support

8. REVENUE
STREAMS
NET ADJUSTED REVENUE
$12.5 billion
GAAP REVENUE 2019
$14 billion
NET LOSS
$8.5 billionRevenue Model
-Transaction Fees
Cost Savings to Taxis
-Asset capital cost
-No Licence Fees
(Uber Technologies, Inc.
- Investor Relations |
Uber, 2020)

9. KEYRESOURCES


Network
(Drivers/Riders)

Uber
Platforms

Pricing
Algorithm
Uber takes commission of 20% of the total fare
and 80% is given to the driver.
UBER HAS BEEN KEEN ON MAINTAINING THEIR
BRAND IMAGE.

Routing
Algorithm

Tech Talent
and
Data Analysis

10. UBER DISCOUNT
COUPONS
KEY ACTIVITIES

REFERRAL
PROGRAM

LOYALTY
PROGRAM
Uber must reduce or
eliminate subsidiaries to
cope up with cut throat
competition. Since uber a
better know brand with a
bigger Market share it will
find easier than most of its
competitors to attract its
customers through loyalty
programs.
Uber's has integrated its
referral program into both
their web and mobile apps.
Customers can either share a
referral link or a referral
code. Uber lets their
customers to personalize
their referral code.
As new customers it is possible
to pick up Uber discount code,
as well as an Uber promo code
if you allow push
notifications/communications
on your phone from the
company. 
Uber for business customers
can also get Uber vouchers to
save money on their
transportation services.

11. All the relationships that Uber has with other
business, governmental, or non-consumer
entities that helps Uber's business model work.
KEY PARTNERS
Drivers
Investors
Supporters /
Well wishers
Financing / Insurance companies
Technology Providers
Payment Providers
(Rauch and Schleicher, 2020)

12. Cost of revenue is the total cost of production ,
distribution of product or service to a customer.
Uber's biggest cost  of revenue which includes,
insurance costs related to ride-hailing, incentives paid
to drivers, and costs incurred with carriers for
the Uber Freight trucking platform (Griswold, 2020).
In 2018, Uber spent $5.6 billion, or 50% of its revenue.
COST OF REVENUE
- Customer Acquisition Cost
- Legal and settlement Cost
- Research and Development Cost/ Technology Cost
- Lobbing Cost / Support System Cost .
COST STRUCTURE
(Rogers, 2020)

13. SWOT Analysis
UBER TECHNOLOGIES, INC.
Recognized brand.
Track and choose highly rated drivers.
Working on algorithms helps get lower prices than traditional
taxis.
High standard of service.
Verified drivers and cars.
Operational cost is quiet low(As it relies on customer-to-driver
interaction, a dispatcher is not needed).
Strengths
Expansion in suburbs where cab service isn’t available.
Exploitation of newer and bigger markets where taxi services
are inconvenient and expensive.
Additional services like transporting older patients to hospital
and transporting children to school or pick up and drop service
of any item from one place to another.
Opportunities
Easily copied Idea.
Competitors with same product.
Very unpredictable business model
Ethically questionable relationship between the driver and the
company.
Lacks the physical connection, thereby diminishing the loyalty
of drivers towards the company.
Privacy concerns within the application.
Weaknesses
Legal regulations in some countries will ban Uber from
operating.
Fines by local authorities can be a problem. Thereby earning
bad public image.
Increasing competition may lead to decreasing prices. Thus,
resulting in loss of customers.
Increase in frauds and scandals as new markets and drivers are
joins.
Threats
S W
O T

14. Problems
Uber can’t keep up with
cutthroat competition overseas.
Southeast Asia accounts for more than 70%
of the global ride-sharing market and uber
isn’t the most used app here (McBride, 2020).
Uber customers don’t care
about Uber… Since there is no
customer loyalty in the
business
Since the customer would always
want a cheaper ride there is no loyalty
to the company as ubers pricing
fluctuates as per their algorithms
depending on the time and the
demand factors.
Days before Uber’s IPO, Uber
drivers boycotted the
company and turned off the
app clearly stating uber does
not care about the employees
This clearly shows that the uber
drivers clearly had a rift with the
company (Berger and Thor, 2018).
Inconsistent Marketing Strategy
The social media pages of uber are not
updated consistantly and hence fails to
communicate with the customer
through major social platforms.
Poor customer service
The customer cannot contact the
driver after the ride is completed in
case they have forgotten something
in the cab.

15. 01
Consistant
marketing
strategy
The social
media pages of
Uber must be
engaged
regularly and
updated on a
timely basis.
Maintaining a
dedicated team
is
recommended.
04
Employer and
employee
Transparancy
Since the
revolution start at
home thus, uber
needs to reform its
toxic culture which
has been
questioned by alot
of employees, their
by creating more
transparency
between employer
and employee.
(WEISSMAN, 2020)
05
Uber cant keep
up with the
competition
Uber should stop
trying to be a service
which is found
everywhere. Since
South Asian Market is
already dominated by
the Regional
Companies it would be
resolute for uber to
engage in the price
war ,when the
company is already
losing alot of money .
RECOMMENDATIONS
02
Focus on Goodwill
marketing
Uber showed it’s capability to react
well in tough situations. When its
automated “surge pricing” kicked
in during the Covid-19 crisis and
rates skyrocketed for rides, Uber
responded quickly by offering free
rides to Hospital Staffs, Doctors
and Nurses in business district,
and they reimbursed people
affected by the surge pricing.
Uber’s actions will respond to
create a goodwill of the company,
and it needs to follow this script in
the future.
03
Value
drivers as
much as
their
customers
Drivers are the
backbone to
uber's service, it is
important for the
company to focus
more on the
benifits and the
safety of the
drivers as much as
the customers.

16. CONCLUSION
This organization has added to society
surprisingly. It costs lower than a city taxi or
individual driver and is effectively open to
the overall population.
All things considered, it has made life
simpler for some in the working class. That
being said there is an opportunity to get
better particularly as far as correspondence
where the organization is as yet attempting
to reproduce its picture that has been
influenced by the discussions it has been
drenched in. Of course, it isn't the only
portable application which is accessible by
transportation administration. Lyft, Ola and
others are giving it a run for its cash. All in
all, it is an increasingly conspicuous
element for its clients who incline toward it
over anything else.

17. Berger, Thor, et al. “Drivers of Disruption? Estimating the Uber Effect.” European Economic Review,
North-Holland, 20 June 2018, www.sciencedirect.com/science/article/pii/S0014292118300849.
Biographics. 2020. The History Of Uber. [online] Available at: <https://biographics.org/the-history-of-
uber/> [Accessed 4 April 2020].
Cramer, J. and Krueger, A., 2016. Disruptive Change in the Taxi Business: The Case of Uber. American
Economic Review, 106(5), pp.177-182.
Griswold, A., 2020. FamouslyUnprofitable Amazon Has Nothing On Uber. [online] Quartz. Available at:
<https://qz.com/1592971/uber-ipo-filling-reveals-how-it-spends-its-money/> [Accessed 22 March
2020].(Griswold, 2020)
McBride, S., 2020. Uber's Nightmare Has Just Begun. [online] Forbes. Available at:
<https://www.forbes.com/sites/stephenmcbride1/2019/09/04/ubers-nightmare-has-just-
started/#62e378ffb7e0> [Accessed 30 March 2020].
Oakley, D., 2020. The Uber Business Model Canvas - Denis Oakley & Co. [online] Denis Oakley & Co.
Available at:<https://www.denis-oakley.com/uber-business-model-canvas-success/> [Accessed 24
March 2020].
Rauch, D. and Schleicher, D., 2020. Law Journal Library - Heinonline.Org. [online] Heinonline.org.
Available at: <https://heinonline.org/HOL/Page?
handle=hein.journals/ohslj76&div=31&g_sent=1&casa_token=SbE9rmPvcgAAAAA:bJazcH6sDhIU9OFM
w5rBjilFr2IwLY_ssE2ShdJWIF0HSKjNl-G9VTy7xxR12oZRyCKAYrjnXc8&collection=journals>[Accessed
4 April 2020].
Rogers, B., 2020. Law Journal Library - Heinonline.Org. [online] Heinonline.org. Available at:
<https://heinonline.org/HOL/Page?
handle=hein.journals/uchidial82&div=7&g_sent=1&casa_token=SRDag2VAswgAAAAA:hvbuUO0tuIEX
bBB1V9ZCIxJoY0PZj8hK45ZIgppBH7uc1gFrBygouugudAe7ahVdXZSsp_YFSss&collection=journals>
[Accessed 3 April 2020].
The History Of Uber. [online] Available at:<https://biographics.org/the-history-of-uber/> [Accessed 24
March 2020].
WEISSMAN, C., 2020. What Can Uber Do To Fix Its Broken Culture?. [online] Fast Company. Available
at: <https://www.fastcompany.com/3068682/what-can-uber-do-to-fix-its-broken-culture> [Accessed
27 March 2020].
REFERENCES

18. THANK YOU
YouTube Video Presentation Link: https://youtu.be/vqjw-ZhgYYY