Strategic Analysis of Uber's Business Model and Strategies

This report provides a strategic analysis of Uber, examining its business model components through the lens of key partners, activities, resources, value proposition, customer relationships, customer segments, and channels. It outlines Uber's cost structure and revenue streams. The analysis further highlights Uber's unique strategies, emphasizing its competitive advantages such as the app-based booking system, flexibility for drivers, and ability to operate without the constraints of traditional taxi medallion systems. The report discusses Uber's customer satisfaction, efficient navigation, and the convenience it offers to riders. It also acknowledges the company's competition while focusing on the innovative aspects of its service delivery and technology. Overall, the report provides a comprehensive overview of Uber's strategic positioning within the transportation industry.

STRATEGIC ANALYSIS OF UBER
Strategic analysis of Uber
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STRATEGIC ANALYSIS OF UBER
Key
Partners
The key
partners of
the company
are the
suppliers.
The taxi
drivers and
the owners
Key
Activities
Key
activities
involve
providing
pickup
services to
the
customers
Contacting
the riders
who book
their rides
Value
Proposition
 Uber
creates
value
among
its
customer
s by
providing
them
pickup
services
from
their
homes.
The
customer
s are not
required
to
contact
the Uber
Customer
Relationships
The taxi drivers
make sure the
customers with
the help of
Uber rides
reach their
prescribed
destinations.
Customer
Segments
Passenger
Segment
 Uber X
 Uber Pool
 Uber SUV/
Uber LUX
Driver
Segment
Full-time
drivers
Part-time
drivers
Drivers
those who
use their
own cars
Segmentation
by location
Drivers
financing cars
through Uber.
Key
Resources
 Cars
 Taxi
drivers
 GPS
navigator
Channels
 Social media
 Word of
mouth
 Paid
Campaigns
 Digital
campaigns

STRATEGIC ANALYSIS OF UBER
drivers
the
customer
s are
only
required
to make
the
bookings
from
their
phones.
The
convenie
nce of
the
customer
s has
been
helpful in
creating
a
competiti

STRATEGIC ANALYSIS OF UBER
ve
advantag
e among
the
customer
s.
Cost Structure
 Cost of consumers
 Weightage average cost of
capital
 Legal settlement
Revenue Streams
 Transaction fee from the customers
Key Partners- The key partners of Uber include the investors, lobbyists, venture capitalists and drivers.
Key activities- The key activities of Uber involve picking up the riders from their locations and dropping
them to their desired destinations.
Key resources- The key resources involve cabs, drivers and GPS navigator for detecting the location of
the customers
Value proposition- Uber provides value to the by the unique concept of having an app that would help
the customers to book their rides online just by a simple click.
Customer relationships- Uber has maintained a healthy relationship with its customers as it help its
customers to reach their desired location within the time safely

STRATEGIC ANALYSIS OF UBER
Customer segments- The customers of the Uber are divided into Uber X, Uber Pool, Uber SUV and
Uber LUX. The type of ride customers prefer to take determines the segments. The driver segment of
Uber include full-time drivers, part-time drivers, Drivers those who use their own cars, drivers financing
cars through Uber and Segmentation by location.
Channels
The channels used by Uber for its promotion include, Word of mouth, Paid Campaigns, digital campaigns
and social media.
Cost Structure- The cost structure of Uber includes, cost of consumers, weightage average cost of capital
and legal settlement.
Revenue streams- Uber gets revenue from the fee paid by the transactions by customers.
Unique strategies of Uber
1. The company has strategic advantage over other players in the market because it has been
delivering services that other players do not provide. Uber is unlimited by the taxi
medallion system. They have infinite fleet of cars for their operations for which the
company does not have to invest millions of dollars.
2. Uber does not hire full time drivers. They have part time drivers so they do not have to
take care of them. The taxi drivers and companies have the privilege to sign up and sign
out at their own convenience.
3. The system of Uber does not have any competition. It provides an opportunity to the
customers to occupy a niche market. Many taxi companies can be seen in the market have
unlimited litigation. The customers agree to the fact that there is no second Uber.
4. Uber makes the rider happy as they can avail the ride any time of the day or night.