Customer Value Proposition Analysis of Uber for Entrepreneurship

This project provides a comprehensive analysis of Uber's Customer Value Proposition (CVP). The assignment begins with an overview of Uber's CVP, highlighting its focus on reducing customer effort in securing transportation while ensuring safety and convenience through its mobile application. The analysis covers the value proposition's aim to standardize rates and provide 24/7 service to meet customer needs. The project then explores metrics for measuring Uber's success, including customer retention, satisfaction, sales volume, and annual earnings. The assessment reflects on how the module helped in understanding the rationale behind organizations developing offerings based on customer needs and challenges. The project references key articles and resources, providing insights into Uber's competitive advantage through its CVP, which addresses customer pain points and enhances their overall experience.

Running head: CUSTOMER VALUE PROPOSITION
CUSTOMER VALUE PROPOSITION
Name of the student
Name of the university
Author note

1CUSTOMER VALUE PROPOSITION
1. CVP of Uber
Fig: Customer Value Proposition
(Source: Eggert et al. 2018)
Uber’s 24/7 service of calling the ride with a single tap and track the driver help(s) the customers
who want to travel by reduced efforts of locating a cab and increasing on-site tracking of
location for secured journey. (unlike minimized cost of offerings) (Strategyzer.com 2020).

2CUSTOMER VALUE PROPOSITION
The value proposition that is made by the organization, Uber, aimed at reducing the concerns
that are being faced by the customers in locating a cab while being assured of the safety. In this
connection, the organization developed standardized rates for the customers with the purpose of
improving their value propositions in accordance with the common goals of the venture. It has
been observe d that most of the customers were dissatisfied with the cab services that were
provided with the other cab companies due to the lack of standardized security measures or
unavailability of 24/7 services. Moreover, the customers also faced significant issues in locating
a cab in times of their urgency which resulted to utmost dissatisfaction. In this connection, the
concerned organization offered their propositions on the basis of adhering to the safety and cab
service related needs of the customers through a single tap on their mobile application while
providing the same with features for locating their cab. Again, the organization provided 24/7
service which contributed to the urgencies faced by the customers in different situations.
The benefit that the organization aims at providing to the customers is through their
increased availability of the cab service for improving the experience of the customers through
the service propositions. The propositions benefitted the customers through the improved quality
of services while minimizing the waiting time for locating a cab (Payne, Frow and Eggert
2017). The organization provides an application for locating a nearby cab with a single tap which
has helped the customers in minimizing their efforts. It has been observed that the organization
provided dependable services to the customers, which significantly supported the business in
gaining over their support while operating in the d8ifferent business environment. The challenge
of finding cabs had been growing all over and the lower availability of cabs in the crucial hours
affected the interests of the customers. In this connection, Uber developed the cab service while
integrating with a mobile application with the purpose of providing the customers with an

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opportunity of improving their experience while locating the cabs with a single tap. Therefore,
the improvements in the service propositions that were made by the organization significantly
contributed to the competitive edge of the same while adhering to the common needs and beliefs
of the customers.
2. Metrics for measuring success of Uber
The measurement of the customer profile (the circle) will be based on the retention and
satisfaction of the customers through the services that are provided by the organization. The
satisfaction of the customers and their retention would allow the organization in gaining a
competitive edge while increasing their dependence on the service propositions. The increased
dependence of the customers on the service propositions that are made by the business would
allow the organization in enhancing the market shares of the same while operating as per the com
on goals of the venture. On the other hand, the metrics for measuring the effectiveness of the
value map of the organization (the square) would be based on the increased sales volume and
annual earnings of the venture. The propositions are designed by the organization with the
purpose of increasing the involvement of the customers in the different operations. Therefore, the
improvement in the sales volume and the annual earnings of the business would provide the
same with a sustainable edge while operating as per the common goals of the venture.
3. Reflection on the module
The assessment of the customer value propositions of Uber assisted me in developing an
idea on the rationale that is used by the organizations while developing an offering. During the
assessment I observed that the common challenges that are faced by the customers are targeted
by the organizations for resolving the concerns and gaining over the dependence of their
customer base. I observed that every value proposition that is made by an organization is

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specifically reliant on the needs of the clients which enabled the businesses in gaining a
competitive vantage over the existing market players. The module assisted me in identifying the
core service areas that are concentrated by the organization Uber and the manner in which the
same focused towards minimizing the customer pains or concerns while gaining a competitive
edge in the markets.

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References
Eggert, A., Ulaga, W., Frow, P. and Payne, A., 2018. Conceptualizing and communicating value
in business markets: From value in exchange to value in use. Industrial Marketing
Management, 69, pp.80-90.
Payne, A., Frow, P. and Eggert, A., 2017. The customer value proposition: evolution,
development, and application in marketing. Journal of the Academy of Marketing Science, 45(4),
pp.467-489.
Strategyzer.com, 2020. [online] Assets.strategyzer.com. Available at:
<https://assets.strategyzer.com/assets/resources/ad-lib-value-proposition-template.pdf>
[Accessed 10 April 2020].