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A technology company which operates under a digital business environment: App powered on demand car service provider; Plays the role of matchmaker, matching a
driver/car with a customer looking for a ride and taking a slice of the fare for providing the service;
Uber charges 20% commission on fare and driver gets the rest 80%.
Why to disrupt? SWOT analysis1. Global player with presence in over 50 countries and 200 cities2. Serves as a market place and hence fixed investment is less3. Gained a premium brand image especially in developing countries4. First mover advantage globally5. Deep pockets & hence can burn cash heavily to acquire market share
Rebecca Ren
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1. Unorganized market is huge in developing countries and hence huge potential is there2. Increasing internet penetration & smart phone users3. Rising disposable income4. Shifting of consumers towards convenience creates huge demand
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1. The use of dynamic pricing2. Drivers are the face of the company and hence their
misbehavior directly affects the brand image3. While the demand is huge, amount of cash burning
is huge and monetization is difficult4. Driver dissatisfaction on insurance and customer
complaints 5. Security concerns6. Frauds in China market7. Legal issues & Government regulations
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1. Rising competition2. Presence of many national players3. Absence of clear government regulations4. Future is unclear due to lack of regulations5. Customer loyalty is less in this industry
• In line with Uber strategic direction set by CEO Travis Kalanick “Self driving cars not people were the future of Uber’s ride services.” A decade time waiting though!
• An eye catching marketing initiative
• Maintaining premium & advanced image
• Activating more idle cars to increase supply
• Oxford University’s Mobile Robotics Group (MRG) is almost there!
Why self-driving?• Good investment:o Average cost of driver: typically one-third
of overall gross fare income, according to "Forbes." Adding gas I would use ½ as the driver cost of total fare.
o Uber driver in US report $30,000 income a year after expenses.
o As cost of split 80% fare reduced to ½ of it, which is 40%.
o $30,000 *60%=$18,000 will be saved per car
o V.S. cost per system is US$7,700;o $18,000-$7,700= $10300 /car saving/year