Marketing Strategy of Uber – Uber Marketing Strategy: In operation in over 560 cities across the globe, Uber has made significant progress in its role as a cab and aggregator since 2009. The company was previously called Uber Cab and is founded by Travis Kalanick and Garrett Camp with its headquarters in San Francisco, United States. It offers a platform for customers to reserve cabs near their location, and it automatically alerts to find the nearest Cab driver that is registered with Uber.
Uber At A Glance – Marketing Strategy of Uber
Company: Uber Technologies, Inc.
CEO: Dara Khosrowshahi
Founder: Travis Kalanick | Garrett Camp
Year founded: March 2009, San Francisco, California, United States
Headquarters: San Francisco, California, United States
Annual Revenue: US$21.9 Billion
Profit | Net income: US$3.93 Billion
Number of employees: 28,900
Products & Services: A ride-hailing service | Uber Eats | Uber Freight | UberX | UberXL |UberSELECT | UberBLACK | UberSUV
Competitors: Housejoy | Narchie | Kandua | Mutlubiev | Helpr | Premend | Mr Right | Bro4u | Homvery | UrbanPro | Timesaverz | HomeTriangle | Ola
Uber Fun Facts: Uber currently operates in 173 countries across the globe and it has more than 110 million users worldwide.
Marketing Strategy of Uber
Uber’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Uber? Let us discuss.
Segmentation, Targeting, Positioning – Uber Marketing Strategy
Segmentation is the process of breaking down segments of the market into groups of homogeneous characteristics. Uber employs a mixture of demographic and geographical segmentation variables that have helped the business in determining the cost of its services.
The demographic and geographic segmentation is crucial since Uber must know where to concentrate for customers eager to utilize the “on-demand transportation services” instead of public transportation. There isn’t any Uber in rural areas, but mostly in urban areas in areas where it is a substitute for taxis. 1
The differentiating targeted technique is utilized by Uber to increase maximize the portion of wallets customers bring in and to help increase the size of wallets by increasing sales. If we wish to determine the type of differentiation employed by Uber in its strategy, we can employ the term “Cost differentiation based on cost”. Due to the structure and structure of Uber as a business, it offers a massive price benefit to the final consumer when they compare Uber taxis to publically accessible methods of transportation.
Pricing based on user benefit and position technique is employed by Uber to draw customers from all tiers of society. Since daily transportation is an enormous expense for customers, positioning the company on the basis of an economy can make a significant difference in the perception of customers.
Uber Mission Statement
“To connect people who need a reliable ride with people looking to earn money driving their car”
Uber Vision Statement
Competitive Advantage – Marketing Strategy of Uber
Worldwide Presence: Having an understanding and knowledge of working in over 70 countries around the world makes it stand out among its rivals. Its ability to operate in remote regions and the speedy and simple access to services are just a few of the key factors behind its achievement.
Wide Services Portfolio: Its comprehensive range of services, including Uber Go, Uber X, Uber XL, and the most well-known and affordable Uber Pool with GPS-enabled app-based tracking has assisted the company makes it easy to reserve cabs.
Strategic Partnership: It has been tying up with a variety of automobile manufacturing firms to create a custom-built vehicle exclusively for Uber which gives the company an advantage for the business over its competitors. Recently, it has partnered with Daimler to create autonomous vehicles that operate through Uber’s transportation system.
BCG Matrix – Uber Marketing Strategy
It is a company that operates in four segments: Uber Pool, Uber GO, Uber X along with Uber XL. Uber’s Uber Pool along with its Uber GO services are classified by BCG’s BCG model because they hold a large proportion of the market, however, at the same time, they also have a significant growth rate and a high level of competition.
The two other segments i.e Uber X and Uber XL are a red flag on the BCG matrix because of the lowest consumer demand and a high level of competition from regional and local players in the segment. If this segment doesn’t generate profits the segment is marked as DOG on the BCG matrix and could result in more losses than profits for the company.
Distribution Strategy – Marketing Strategy of Uber
Uber has an extensive fleet of company-owned automobiles, SUVs, and vehicles that register with Uber for the purpose of being in business. Uber only has ties with automobile and vehicle manufacturing companies making its fleet of vehicles custom-designed.
As the company is present across more than 70 nations and over 450+ cities around the world they have established driving schools that teach the necessary driving abilities among those who are employed in the company’s operation architecture. Because the industry is currently flourishing and there are a lot of auto drivers that are preparing to join the company it will result in the growth of the general presence. presence.
One of the issues with Uber is that being in the service sector numerous companies have copied similar business models UBER ( OLA in India) which means that it faces fierce competition as far as the distribution and marketing of its services are related to the distribution of its services.
Brand equity – Uber Marketing Strategy
At first initially, the name of Uber was a red magnet, but it was replaced by the”U,” a black “U” badge that was shaped like the year 2012. Uber is recognized for its efficiency and reliable transportation service. Uber is valued at more than $60 billion.
Competitive Analysis – Uber Marketing Strategy
The business within which Uber operates is extremely crowded, with many competitors, the main ones being public transportation and the third one is smaller companies and multinational corporations that are consuming their respective market share in the developing and developed countries.
The unorganized industry that provides Cab / Taxi services and the risk of constantly changing laws is a major danger to the company Uber. The main competitors of Uber from emerging as well as advanced nations include Lyft, Ola cabs, etc.
Market Analysis – Marketing Strategy of Uber
Changes in lifestyle, as well as global warming fluctuation in oil prices, exchange rate, changes in lifestyle and government regulations instabilities, political instability, and inequities, are just a few of the main factors that affect the sector in which Uber is operating in one or another manner.
The majority of customers of Uber are working professionals and the younger generation of Gen-Y tech-savvy who want ease of booking. They also trust in the standard procedure and pre-defined rates for commutes.
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