Integrated Customer Experience Page: Uber China
Added on 2021-04-21
8 Pages1863 Words57 Views
Integrated Business ExperienceShort question and AnswersUber China
Running Head: Integrated Customer ExperiencePage | 1Table of ContentQuestion 1: What made the Chinese market attractive to Uber? Do you believe that Uber can succeed in the Chinese Market?..................................................................2Question 2: What market forces did Uber China fail to identify, underestimate or consider in relation to its market entry?........................................................................2Question 3: What positioning and customer acquisition program the company could have pursued? Do you believe that Uber could have succeeded? Why?...................3References...................................................................................................................6
Running Head: Integrated Customer ExperiencePage | 2Question 1: What made the Chinese market attractive to Uber? Do you believe that Uber can succeed in the Chinese Market?China had almost 750 million urban commuters which made it the largest consumer market in the world, roughly 5 times that of the size of the 150 million US commuter market. At the same time, Chinese car ownership was extremely low; it had 69 cars for 1000 people. Moreover there was a short supply of taxi services in China and lowfares were paid to the taxi drivers. Adding to the agony, the entire population relied heavily on buses, metro and other such means of transport for commuting. All these features made the market extremely attractive for Uber to foray in the Chinese market. As the market held limitless opportunity to gain riders and offer ride sharing and online Chauffeuring service to the commuters. Uber then finally launched in the year 2013 with Uber Black, the company did not achieve much success initially because people perceived that the fares were too high. Therefore when the company moved to other cities it went forward with Uber X, the low cost ride services. Uber also launched the service Uber people to penetrate in the market; it was not for profit ride hailing services with the fare being calculated according to the ownership and the operating cost of the vehicles. The company at the same time spent around $ 2 Billion towards the promotion and it benefited all the stakeholders (Uber, drivers & riders). In the bid to dominate the market, company faced stiff competition from Didi Chuxing and Yideo, and by 2015 the company had a total market capitalization worth $ 8 billion. At last in the year 2016 Uber in a share swap deal sold its business and operation to Didi. The move was right as it was really difficult for Uber to keep on competing in a price sensitive market with deep pocket players. The company did everything to capture the market; however its positioning flaw led company to sell off its business.Question 2: What market forces did Uber China fail to identify, underestimate or consider in relation to its market entry?Uber entered the Chinese market in the year 2013; a year after DIdi entered the market. The company went with the vision to apply the model which made it highly successful in the US market. However the company did not anticipate the challenges
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