“Car for hire”
Business model canvas
Case Uber
Strategy Case Study1
Image: Uber website
© Jukka Ala-Mutka / jukkaam.com / ...
Taxis, whose business model
has hardly changed since the
invention of the tax meter in
the 1940s, have a lot to worry
abou...
Case: Uber
• Case description based on analysis of Uber, but the
rules of the strategy can be applied to mass
participatio...
Uber is not a transportation
provider.
4
https://www.uber.com/cities/san-francisco#
Image: Uber website© Jukka Ala-Mutka /...
Uber users are spending over
$100 a month on average on
the service — an astonishing
figure compared to the
minuscule purc...
Target customers
• End users:
• Upper class
• Business
• Technology
• Urban Middle-class
• Suppliers:
• Drivers
6© Jukka A...
Value proposition
• Value proposition for
both sides:
• End users:
• Secure, trustworthy and
guaranteed ride with
shorter ...
Regulators part 1
• Problem:
• “Because Uber was allegedly running and marketing itself
as a cab service but without a per...
Regulators part 2
• Problem:
• Local “taxi” or “cab” business is regulated
• Solution:
• the definition of limousine — “mo...
Regulators part 3
• Problem:
• Qualifications of employed drivers
• Solution:
• “Uber does not employ cars and drivers; it...
Key Problems
• Security and trust are
challenges in general during
usage of the service
• Pricing have been the
problem an...
Everyone’s private driver
12
http://www.bizjournals.com/sanfrancisco/print-edition/2012/02/03/rider-seeking-taxi-driver.ht...
Two-sided mass participation market
• Uber is a platform
which connects
passengers to
drivers of available
“for hire” car
...
Location based electronic hail
• The mobile app
sends an electronic
hail for a car based
on the person’s
location
http://w...
Notifications
• Arriving driver
• Surge pricing
alarms
http://www.uber.com
15© Jukka Ala-Mutka / jukkaam.com / @jukkaam
Comfortable billing system
• All transactions are
automatically billed
to the passenger’s
on filed credit card
• No transa...
Must-win battle #1
Technology for two-sided markets
17
1
© Jukka Ala-Mutka / jukkaam.com / @jukkaam
…made by many. It is open,
participatory, and peer-driven.
18
http://www.fastcompany.com/3039042/ubers-new-power-failure
©...
Must-win battle #2
Mass participation for suppliers
19
2
© Jukka Ala-Mutka / jukkaam.com / @jukkaam
Service is convenient and
reliable because it is a
guaranteed ride.
20© Jukka Ala-Mutka / jukkaam.com / @jukkaam
Product quality
• Standardization of
the service
https://www.uber.com/cities/san-francisco#
http://www.uber.com21© Jukka A...
Culture of quality
• Metrics for service quality
• Rating of the service from
both sides – driver & rider
http://www.busin...
Must-win battle #3
Feed-in loop for drivers & riders
23
3
© Jukka Ala-Mutka / jukkaam.com / @jukkaam
Must-win battle #4
Participation culture & lock-in
24
4
© Jukka Ala-Mutka / jukkaam.com / @jukkaam
The Must-Win Battles
25
1
2
3
4
© Jukka Ala-Mutka / jukkaam.com / @jukkaam
The whole New BMC Model
26© Jukka Ala-Mutka / jukkaam.com / @jukkaam
Methodology of the Analysis
• The structure of the analysis is based on so called Business Model
Canvas and strategy as a ...
Customer-driven approach to
business modeling
1.2.3.
4.
5.
6.
7.
8.9.
1. Customers
2. Value Proposition
3. Activities
4. R...
Author
@jukkaam
29
Contact:
https://jukkaam.com/businesscard
Serial entrepreneur,
speaker, scientist and
consultant
Contac...
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Car for hire business case Uber - Business Model Canvas

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Case Uber
Business Model Canvas
Strategy case study
Uber business case

Publié dans : Business

Car for hire business case Uber - Business Model Canvas

  1. 1. “Car for hire” Business model canvas Case Uber Strategy Case Study1 Image: Uber website © Jukka Ala-Mutka / jukkaam.com / @jukkaam
  2. 2. Taxis, whose business model has hardly changed since the invention of the tax meter in the 1940s, have a lot to worry about… 2 James A. Bacon, “Bacon: Innovation Uber alles”, The Washington Times, February 2, 2012 © Jukka Ala-Mutka / jukkaam.com / @jukkaam
  3. 3. Case: Uber • Case description based on analysis of Uber, but the rules of the strategy can be applied to mass participation platforms in general • Uber is a platform which connects passengers to drivers of available “for hire” car services. The mobile app sends an electronic hail for a car based on the person’s location. This service is convenient and reliable because it is a guaranteed ride, and all transactions are automatically billed to the passenger’s on filed credit card by Uber, not driver. 3© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  4. 4. Uber is not a transportation provider. 4 https://www.uber.com/cities/san-francisco# Image: Uber website© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  5. 5. Uber users are spending over $100 a month on average on the service — an astonishing figure compared to the minuscule purchases most apps encourage. 5 http://fortune.com/2012/02/02/the-trials-of-uber/ © Jukka Ala-Mutka / jukkaam.com / @jukkaam
  6. 6. Target customers • End users: • Upper class • Business • Technology • Urban Middle-class • Suppliers: • Drivers 6© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  7. 7. Value proposition • Value proposition for both sides: • End users: • Secure, trustworthy and guaranteed ride with shorter waiting • Drivers: • Busier and efficient days for drivers 7© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  8. 8. Regulators part 1 • Problem: • “Because Uber was allegedly running and marketing itself as a cab service but without a permit, the company was threatened with fines, including $5,000 for every transaction it made.” • Solution: • “The next day, the startup dropped the word “cab” from its name. So far, that has appeased local regulators.” 8 http://fortune.com/2012/02/02/the-trials-of-uber/ © Jukka Ala-Mutka / jukkaam.com / @jukkaam
  9. 9. Regulators part 2 • Problem: • Local “taxi” or “cab” business is regulated • Solution: • the definition of limousine — “motor vehicle carrying passengers for hire in the District, designed to carry fewer than nine (9) passengers, excluding the driver, with three (3) or more doors, other than a taxicab, coach, or wheelchair accessible van, and not permitted to accept street hails from prospective passengers in the street.” 9 http://www.washingtonpost.com/blogs/mike-debonis/post/uber-car-service-runs-afoul-of-dc-taxi-commission/2012/01/11/gIQAxH3UrP_blog.html © Jukka Ala-Mutka / jukkaam.com / @jukkaam
  10. 10. Regulators part 3 • Problem: • Qualifications of employed drivers • Solution: • “Uber does not employ cars and drivers; it operates a system that connects riders via smartphone with limousine companies that have contracts with Uber but are otherwise independent businesses. Those companies and their drivers, he said, are required by contract to have all the requisite licenses, registrations and insurance limo drivers are required to have.” 10 http://www.washingtonpost.com/blogs/mike-debonis/post/uber-car-service-runs-afoul-of-dc-taxi-commission/2012/01/11/gIQAxH3UrP_blog.html © Jukka Ala-Mutka / jukkaam.com / @jukkaam
  11. 11. Key Problems • Security and trust are challenges in general during usage of the service • Pricing have been the problem and also it is also for Uber • Waiting especially when in hurry. • Transportation industry is heavily regulated 11© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  12. 12. Everyone’s private driver 12 http://www.bizjournals.com/sanfrancisco/print-edition/2012/02/03/rider-seeking-taxi-driver.html © Jukka Ala-Mutka / jukkaam.com / @jukkaam
  13. 13. Two-sided mass participation market • Uber is a platform which connects passengers to drivers of available “for hire” car services. Become a driver (suppliers) Signup for Uber (customers) http://www.uber.com 13© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  14. 14. Location based electronic hail • The mobile app sends an electronic hail for a car based on the person’s location http://www.uber.com 14© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  15. 15. Notifications • Arriving driver • Surge pricing alarms http://www.uber.com 15© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  16. 16. Comfortable billing system • All transactions are automatically billed to the passenger’s on filed credit card • No transactions with driver • Tip included in price http://www.uber.com 16© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  17. 17. Must-win battle #1 Technology for two-sided markets 17 1 © Jukka Ala-Mutka / jukkaam.com / @jukkaam
  18. 18. …made by many. It is open, participatory, and peer-driven. 18 http://www.fastcompany.com/3039042/ubers-new-power-failure © Jukka Ala-Mutka / jukkaam.com / @jukkaam
  19. 19. Must-win battle #2 Mass participation for suppliers 19 2 © Jukka Ala-Mutka / jukkaam.com / @jukkaam
  20. 20. Service is convenient and reliable because it is a guaranteed ride. 20© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  21. 21. Product quality • Standardization of the service https://www.uber.com/cities/san-francisco# http://www.uber.com21© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  22. 22. Culture of quality • Metrics for service quality • Rating of the service from both sides – driver & rider http://www.businessinsider.com/uber-drivers-rate-passengers-2013-8?IR=T https://play.google.com/store/apps/details?id=com.ubercab&hl=en_GB22© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  23. 23. Must-win battle #3 Feed-in loop for drivers & riders 23 3 © Jukka Ala-Mutka / jukkaam.com / @jukkaam
  24. 24. Must-win battle #4 Participation culture & lock-in 24 4 © Jukka Ala-Mutka / jukkaam.com / @jukkaam
  25. 25. The Must-Win Battles 25 1 2 3 4 © Jukka Ala-Mutka / jukkaam.com / @jukkaam
  26. 26. The whole New BMC Model 26© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  27. 27. Methodology of the Analysis • The structure of the analysis is based on so called Business Model Canvas and strategy as a visual model • The Business Model Canvas is a strategic management template for developing new or documenting existing business models. It is a visual chart with elements describing a firm's value proposition, infrastructure, customers, and finances[1]. • It assists firms in aligning their activities by illustrating potential trade- offs. The Business Model Canvas was initially proposed by Alexander Osterwalder[2] based on his earlier work on Business Model Ontology.[3] • See more from Wikipedia Business Model Canvas. • See creative commons license from http://www.businessmodelgeneration.com • Used canvas is further modified, but include all building blocks as original. 27© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  28. 28. Customer-driven approach to business modeling 1.2.3. 4. 5. 6. 7. 8.9. 1. Customers 2. Value Proposition 3. Activities 4. Resources 5. Partners 6. Customer Relationships 7. Channels 8. Revenue Streams 9. Cost Structure 28© Jukka Ala-Mutka / jukkaam.com / @jukkaam
  29. 29. Author @jukkaam 29 Contact: https://jukkaam.com/businesscard Serial entrepreneur, speaker, scientist and consultant Contact me for assignments: • Consulting & Training • Keynote Speaker • Board Member • Co-Founder © Jukka Ala-Mutka / jukkaam.com / @jukkaam

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