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Uber's Market Position and Challenges

Uber started in the luxury market but expanded its service and adapted to customer needs by focusing on trust, security, and community. It gained traction through positive feedback loops as riders and drivers rated each other, but is now losing momentum as competitors copy its model and provide similar services. While surge pricing is core to Uber's business model, its use of social media to avoid regulation backfired in Seattle, where authorities restricted Uber's operations and imposed new permitting and insurance requirements.

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María José Cardoso Ríos
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1K views2 pages

Uber's Market Position and Challenges

Uber started in the luxury market but expanded its service and adapted to customer needs by focusing on trust, security, and community. It gained traction through positive feedback loops as riders and drivers rated each other, but is now losing momentum as competitors copy its model and provide similar services. While surge pricing is core to Uber's business model, its use of social media to avoid regulation backfired in Seattle, where authorities restricted Uber's operations and imposed new permitting and insurance requirements.

Uploaded by

María José Cardoso Ríos
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Uber Case

1. How did Uber achieve its present position?

Market  It started in the luxury market.


Problem  Trust, security
Solution  Evaluate! Community, New Market

Customer Journey Map – Road map of the experience of the customer

 See the Add on Fb


 Download the App
 Insert all the personal information (Create and account)
 Receive a confirmation code
 First ride – you can get a discount
 Recommendation – you get discount
 Get it – use the app and the service
 Rate the driver and the driver rates the passenger
 Receive and email with the right and the information
 You can make a legal invoice
 If you forget something on the car you can put it on the app or send an email

Started in a premium market (“trial and error”) and as it gets results it get to know
the market and realized about the trends in the use of the service and about the
needs from the drivers and passengers. Adapt the service into the requirements of
the drivers and users, increase security and gain trust by giving the users the
information of the drivers.

2. Where are the positive feedback loops? Is Uber losing momentum?


In the rate drivers and users give about the service and the use of the app, such as
problems with the people and with the localization. We consider its losing
momentum, because right now we could consider is not the innovation of the
moment, due to the fact that there are many companies that have copied its model,
giving the “same service” (el Mercado se lo está comiendo) and actually providing a
high level of service, many competitors in the market.

3. Should Uber continue or pivot?


Uber should pivot so the company can differentiate again in the market, because
they are getting in to a point where they are not being “the one” to be picked up by
the users. Competitors are just behind them, taking part of their market and also
innovating by diversifying the principal service.

4. Was surge pricing a distraction or a core part of the business model?


It is a core part of the business model, because it depends on the market and gives
the driver an incentive to make the ride when the demand is to high. Maintaining the
surge pricing in tacked, incentives drivers to make more pickups, which would lead
to more drivers servicing the consumer.

5. Why did the use of social media fail Uber in Seattle?


In first place Uber started illegally operating its service in Seattle, because it was
operating as a transportation service, which means it had to follow regulations
according as the taxi and limousine services. But they said that they were a service
that connects drivers and passengers, so they were not operating as a transportation
company, reason why they do not need to operate under that rules. However, the
government of Seattle do not drop regulations threats despite the last argument.
Uber used their social media trying to reach out their users with the hope of
influencing public officials not to regulate their services. At the end, the effort didn’t
turn out well, actually local authorities restricted the amount of cars Uber could use.
Not to finish, they have more insurance requirements and new permitting processes.

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