Challenges and Marketing Strategy of Uber

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Introduction
Every company faces many challenges in running the various departments or in changing the
policies. These issues affect the productivity and growth of the company. To reduce the
issues a company makes the strategy to gain the competitive advantage or to grab the high
market share. Marketing strategy is a forward-looking and long-term approach to attain the
high competitive advantage. The main objective of market strategy is to achieve the company
goal as on the basis of company goals these marketing strategies are made. In this report,
Uber has been taken into consideration to analyse the issues and strategy of the company.
Uber is a transportation network company which operates in peer-to-peer ridesharing, food
delivery, and taxi cab. It operates in 785 metropolitan areas in the world; its platform is
designed through websites and mobile application. Riders are also founded by the mobile
application (Uber, 2018).
At the beginning of the report, issues faced by the company will be discussed. After that,
market segmentation, target, and positioning of the company is analysed. At the end of the
report, marketing strategy will also be analysed to reduce the issues and attain the higher
market share.
Challenges faced by Uber
Taxes
Uber is a technology company which connects the driver and the rider. It is the responsibility
of the driver to pay taxes but the government claims the amount of taxes from the company.
According to the government, the entire ride payment is the revenue for uber that’s why uber
is liable to pay taxes. The company charges the tax from the drivers or the riders by increases
the ride fares. Due to more pressure or loss; the company has stopped the services in some
particular cities or states.
Government Challenge
The company faces an incredible risk at the time of working in cities or countries. There are
some cities and countries in which Uber cabs are banned such as American cities. In
America, the government took steps towards the industry and declared the car-shipping

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application illegal. Airport authorities banned Uber drivers to drop-off the people, the
authorities charge extra fees to drop-off and pick-up the customer at the airport (The New
economy, 2015). The extra fees paid by the drivers and the company increases the fare of a
ride for the riders, which decreases the competition as compared to the traditional taxis. The
government authority randomly bans the services which makes difficult conditions for the
drivers as well as the company (Hall, and Krueger, 2018). It is a governmental issue which is
faced by the company.
International expansion
The company faces issues while expanding the business at the international level. It increases
the operational risk of the company such as Asia has more taxes because of the large
population as compared to America. It increases the competition between the cabs and
traditional taxis (The New economy, 2015). It has been seen that in expanding the business in
Asia the company had to face tough competition by reducing the fair value of ride. The
company can easily expand the business but it is difficult for the drivers to compete against
the traditional taxies which have high brand value as compare to the Uber companies in Asia
(West, Ford, and Ibrahim, 2015).
Segmentation, targeting, and positioning
Segmentation divides the population into groups according to behaviour and nature; targeting
is process of selecting a specific group to influence or to sell the whole products. Positioning
is the selection of marketing mix which is more suitable for the target customer segment.
Uber targets all age of people with the different services; the company offers different
services to the different types of people such as Uber X, Uber Pool, and Uber XI for the cost-
saving customers. Uber Premium is also offered by the company to the customers who can
easily afford and did not mind to pay more (Research Methodology, 2018). Below table
provides a clear picture of Segmentation, Targeting and Positioning strategies of Uber:
Types of
segmentatio
n
Segmentation
criteria
Target customer segment
Uber Pool, Uber Uber Access