UBEREATS Quiz One: External Environment Analysis for Marketing 116

This assignment analyzes UBEREATS, focusing on its external environment and competitive landscape. The student examines social-cultural, technological, economic, and political factors influencing UBEREATS, including changing consumer patterns, new ordering and delivery methods, economic trends like inflation, and government regulations. The analysis explores the positive and negative impacts of these factors, proposing strategies such as customer segmentation, product differentiation, and increased promotional activities to address potential challenges. The assignment also compares UBEREATS with its direct competitors, Grubhub and DoorDash, evaluating their positioning in terms of place, price, and product offerings. The student highlights Grubhub's advantage in certain markets and differences in pricing and product availability, such as alcohol delivery. The analysis is supported by references to industry sources.

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MARKETING 116
Name
(Affiliation Institution)

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UBEREATSS
Quiz one
UBEREATS is an American online food ordering system that is based in San Francisco,
California and was launched in 2004. There are various external environment factors, changes
and trends that are occurring in America and around the world which impacts UBEREATS.
In a social-cultural and demographics perspective, there is a change in product
consumption patterns in the industry with millennial becoming key drivers in the market. In
Technology, some trends that could impact UBEREATS include change of new ordering
methods as customers will be able to order their packages via a virtual assistant, tweet,
smartwatch, TVs, cars, eyes. In addition, there are trends that even delivering method will
change with orders being delivered by robots, drones and parachutes. In the economic
perspective, the trends include rise of inflation rates in future and increase in interest rates and
GDP of USA. In political perspective, the trends that the government is planning to increase
taxation on food items in an effort to discourage and regulate health concerns to curb the
increased cases of obesity will significantly impact UBEREATSS.
In social-cultural and demographic perspective, change in consumer patterns will
positively impact UBEREATS as demand for products will increase. In addition, UBEREATS
will be able to supply its products effectively across the regions it operates. Negatively, change
in consumer patterns to include millennial as key drivers might be as a result of increasing health
concerns of the aging generation which in turn may lower consumption rates. In addition,
millennial generation has low disposable income and therefore they might just make few orders
resulting in losses for the business. To address the implications, I will recommend adding
millennial as target customers in the customer segmentation. Social-cultural and demographic

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has an impact on product as it leads to product differentiation in order to handle the
contemporary issues of health, promotions will be increased to create awareness of the products
to new customer segments, prices will be increased as demand increases and positioning will
change as the company penetrates to many places.
In the technological perspective, new delivery channels will have positive impact on the
UBEREATS as it ensures timely delivery of orders to customers. Change in ordering methods
also has positive impact as they will ensure customers are flexible to make orders anytime
anywhere. Negatively, delivery methods such as drones and robots may results in delays when
delivering the products. In addition, the issue of insecurity and inconveniences in regards to new
ordering and delivering methods will be experienced. To address these implications, I
recommend inclusive of ordering and delivering methods to the business plan. Technology
advancement will have an impact on price as it will lead to low prices due to reduced costs,
product differentiation due to change in business model and high promotion activities as a result
of increased social media platforms.
In the economic perspective, the trend that GDP of USA is likely to increase has a
positive impact on UBEREATS as it will increase the rate of consumer consumptions. In
addition, there will be disposable income in the cycle facilitating to high spending. Negatively,
increase in taxation will discouraging potential customers from making orders. Furthermore,
increase in inflation may limit ability of consumers to spend due to the rise in prices. Monitoring
of economic trend regularly and UBEREATS remaining compliant to government regulations
will be appropriate actions for enhancing the business plan. Economic trend impacts on prices as
it leads to UBEREATS lowering prices to fit customers demand. Few products will be produced
to the market as economic crisis causes low demands. The promotional methods will be

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increased to include in-store and direct marketing. Products will be marketed to more places
rather than UBEREATS strongholds.
Question 2
UBEREATS operates in a very competitive environment. The direct competitors of the
UBEREATS include Grubhub, DoorDash and Delivery hero. In terms of place, Grubhub is
positioned in Chicago while UBEREATS and Doordash are situated in San Francisco. Therefore,
Grubhub has competitive advantage as compared to UBEREATS in terms of place. Furthermore,
Grubhub is most popular in Northern Eastern metros like Philadelphia, Boston and Network as
compared to DoorDash and UBEREATS.
Summary of UBEREATS and its competitors place popularity
(Rieck, 2019)
In terms of price, Grubhub does dot surge prices (a system of raising priced delivery
process during busy times) when compared to UBEREATS and Doordash. Furthermore, Door
Dash charges between 99 cents per order delivery alongside service fees of 7-15% as compared
to UBERAEATS 100% with service fees of 5-20 % (Guru, 2019). In terms of products, all the

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competitors offer differentiated products to increase their deliveries. However, UBEREATS does
not deliver alcohol products unlike its key competitors DoorDash and Grubhub that deliver
alcohol to cities that are allowed.
Summary of UBEREATS competitors and their sales
(Rieck, 2019)

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References
Guru, F. D. (2019). Grubhub vs doordash: a head to head review. Retrieved 09 29, 2019, from
making food convenient: https://fooddeliveryguru.com/grubhub-vs-doordash/
Rieck, K. R. (2019, 09 24). Which company is winning the food delivery war? Retrieved 09 29,
2019, from the Second measure: https://secondmeasure.com/datapoints/food-delivery-
services-grubhub-uber-eats-doordash-postmates/