2. AGENDA
An Overview of the Company
What Does Uber Do?
End Users and Suppliers
Uber’s Operational Framework
Business Strategy
Financial and other Key Figures
Competitive Analysis: Uber vs Lyft
SWOT Analysis
Challenges and Solutions
Q & A
3. AN OVERVIEW OF THE COMPANY
Key
People
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.
4. 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
Uber’s Competitors
Side Car
Didi Kuaidi
TaxiForSure
Lyft
Curb
Uber has Eazy Taxi
and Tranzit Nigeria
to reckon with in
the Nigerian ride-
sharing market
5. END USERS AND SUPPLIERSEndUsersSuppliers
Users Who Value
Time
High-End
Users
Tech-Savvy
Users
Urban Middle Class
Drivers
6. UBER’S OPERATIONAL FRAMEWORK
Uber’s Operational Stategy
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 rides
2. Customers pay Uber
3. 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
Surge Pricing: Meeting High Demand
Uber rates increase when demand cannot be met to ensure
reliability
“Good View”: Real time aerial view of the movement of
cars
“Heat Mapping” to indicate where high demand is
The app automatically detects situations of high
demand and low supply and adjust prices accordingly,
depending on the level of shortage
7. BUSINESS STRATEGY
First Mover Advantage
• Accumulate a large partner installed base. Like most services, real-
time ride sharing apps thrive on the size of customer base. Uber
works towards rapidly expanding globally. Currently in 327 cities,
60 countries (including Nigeria), and 6 continents, Uber seeks to
grow large enough to dominate the ride-sharing market and make
itself impossible to ban.
Barrier to entry through patent applications
Network and marketing through quality ride service delivery and
healthy Uber-partner relationships
Aggressive tax avoidance through shell companies in tax havens
• Uber is built from the ground up to pay as little taxes as possible in
as few places as it can.
UberGarage – Supporting Services
UberFresh
• Delivery of lunch and various products
• Based on the same model (app, drivers,
location, payment, rating)
UberCARGO
UberPool
UberRUSH
Uber for Business
• Providing reliable rides for customer-
company employees
Customers
Price Promotions
Partnerships with
local
establishments
eg. restaurants,
shops, airports,
hotels and events
Drivers
Partner reward
programs
Vehicle Financing
Health care
incentives
Car insurance
expenses covered
Why People Choose Uber
To earn more income
To have more flexibility in their schedule
To be their own boss
8. FINANCIAL AND OTHER FIGURES
Uber is presently valued at $51 billion. Its investors include Goldman Sachs, Baidu, Google
Ventures, Menlo, Benchmark, Lowercase Capital, and First Round.
Uber accrues high administrative costs. It expended $59 million on this in 2014’s Q2 alone
In the US, Uber has over 160,000 active drivers, receiving $656.8 million of payments during Q4
2014
In 2014, Uber processed $2.91 billion in bookings and generated $600 million in revenue as a
result.
Uber is expected to process $10.84 billion bookings this year alone. Hence, an estimated $2 billion
in revenue is expected.
Projections for 2016 are much larger. With $26.12 billion dollars and approximately $5 billion
projected for bookings and revenues respectively
It fulfils one million rides daily, has over eight million users and encourages them to spend an
average of $100 daily, a minuscule amount compared to what individuals spend on other apps.
14% of its drivers are female
The top two reasons for drivers who choose Uber are higher income (91%) and work-day
flexibility (87%)
0
5000
10000
15000
20000
25000
30000
2014 2015 2016
Bookings ($millions)
Revenue ($millions)
Uber’s Bookings and
Revenue Figures and
Forecast
9. COMPETITIVE ANALYSIS: UBER VS LYFT
Uber Lyft Winner
Valuation $51 billion $2.95 billion Uber
Price Low or average High Uber
Surge Pricing No Cap Cap at 200% Tie
Company Revenue (2014) ~$600 million ~$130 million Uber
Market Share ~46% ~10% Uber
Company Investment (2014) ~$405 million ~$303 million Uber
Safety Insurance/Driver
Rating
Insurance/Driver
Rating
Tie
Customer Support Online support 24/7 Call centre Tie
Professionalism Feels Professional Feels Friendly Uber
Service/Experience Passenger – driver
relationship
Feels friendly Lyft
Legality Issues on real-time ride sharing Tie
Uber Wins!
10. SWOT ANALYSIS
Strengths
Uber currently has the largest market
share amongst all mobile ride-sharing
apps
Uber has expanded the most in terms of
size, number and reach amongst its
competitors
Uber is the largest and most valuable
ride-sharing company in the world
Uber’s app is widely aknowledged to be
reliable and user friendly
Weaknesses
Reports from Bloomberg claim Uber
has been operating at a loss for some
time now
Uber users still express safety concerns
about using the ride-sharing app.
Users also have concerns about the
app’s privacy policies
Opportunities
While Uber may be in 60 countries
currently, Uber has not entered into over
a 100 more. Hence, many more markets
to tap from.
Uber’s growing investment in research
on self-driving vehicles may yield
unending possibilities.
If developed optimally, Uber’s Garage
services will generate large sums of
revenue in the future.
Threats
Uber faces fierce competition from companies like
Lyft in the U.S. and companies like Didi Kuaidi and
TaxiForSure in global markets
Uber is continuously plagued by costly legal battles
and stringent regulatory sanctions from local
authorities in the cities in which it operates
The company has been banned from operating in
many cities.
Uber recently appealed against a court ruling
mandating the company to reclassify its driver-
partners in the U.S to employees. It could cost Uber
as much as $209 million to reclassify its driver-
partners.
Many campaigns exist that urge users to cease using
the app and delete their Uber accounts.
11. CHALLENGES AND SOLUTIONS
Challenges/Issues Solutions
Trust and Safety Issues
Alleged Sexual Assaults
Alleged Kidnapping
Driver/passenger information, GPS
following rides
Panic button
Background checks, identification of new
technologies
Legal Issues
Insurance coverage for accidents
Regulatory laws - illegal taxi operation?
Metromile’s Uber Car Insurance
Insurance Coverage for UberX
The application’s terms and conditions
Conforming to the law
Surge Pricing Cap on fares for certain events