1.
1. What is UBER?

2.
Someone who needs a personal drive from any point at any time

3.
Someone who wants to have a side business, or a full-time business,
or a revenue generation hobby by driving people for money

4.
UBER connects these two needs
in simple, fast, and predictable way

5.
2. Industry before UBER

6.
[Personal Transportation Industry - TAXI]
License Fare
Taxi supply Regulations
Protective! Costly! No invest!
Gov. Taxi Firm
Low customer satisfaction

7.
3. How UBER works?

8.
GPS
RIDE
80% of Fare
20% of Fare

9.
• Easy to start
(no license)
• Individual business
(have full control)
• Earn more than taxi
(simple cost structure)
[Incentive to join the network]
Dynamic Pricing Model
(stably balancing quantity of
demand & supply)
• Easy to use
(thru smartphone app)
• Reliable
(arrival time & Fare)
• Cheaper than taxi
(simple cost structure)
• Better quality
(ratings & feedback)

10.
Generalist Niche
ValueNetwork Effects
UBER X
UBER Black
[UBER focuses on Generalist strategy in network effects industry]

11.
4. UBER’s International Strategy

12.
Global Multi Domestic
UBER services are available in 50+ countries and 300+ cities around the world
• Govt. regulations
• Communication infrastructure
• Cultural adaptation
• Organizational structure
• The transferability and sustainability of
the technology & information systems
(Navigation system, apps, telematics)
• A very well positioned and easy-to-
recognize brand
UBER

13.
5. Five Forces Analysis

14.
Threat of new entrants
Threat of substitutes
Suppliers’ power Buyers’ power
Intensity of rivalry
BARRIERS TO ENTRY: MEDIUM-HIGH
Government policy
UBER’s strong brand identity
UBER first mover advantage
RIVALRY DETERMINANTS:HIGH
Large number of firms
Fast market growth
(industry in apps segment)
Similar cost structure
Low switching cost
Low diversity within rivals
DETERMINANTS OF BUYER POWER: HIGH
Many substitute available
Switching cost is cheap
DETERMINANTS OF SUBSTITUTES THREAT : HIGH
High buyer inclination to substitute
(Strong public transportation system/taxi/car-sharing…)
Price elasticity is high
[DRIVER] DETERMINANTS of SUPPLIER POWER: LOW
Many competitive suppliers
Low bargaining power
Low impact of input on cost
[Others] DETERMINANTS of SUPPLIER POWER: MED
Navigation or Background check companies
[Porter’s five forces analysis]

15.
6. Challenges & Group Suggestions

16.
[Three big challenges & Group suggestions]
Regulations1 Imitators2 New Technology3
Challenges
• Current law systems says
UBER is illegal in most
cities (No licensed drivers)
• Total or partial prohibition
of the services and
advertising, fines,
confiscations of cars and
other penalties
• Basically anyone with a
car and a driver’s license
could be a competitor
• There are many
companies operating in
very similar ways as UBER
(e.g. LYFT and Sidecar)
• New disruptive
technology
• New business model
• Driverless cars
Suggestions
• Establishing better and
earlier relationships with
government
• Pushing drivers to obtain
such permits by
themselves
• “Too big to fail” strategy
• Reinforce safety system
& Improve PR
• Lock-in strategy through
Google synergy (e.g.
maps)
& UBER brand synergy
• Retain critical mass and
achieve economy of
scale
• Leverage big data
• Partnership/Acquisition
of technology
companies
(Leverage Google)
• Invest R&D