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Submitted to: Submitted by:

Dr. Anita T. Lal Puneet Gupta


FMG 23-B
231107
Acknowledgement:

I take this opportunity to express my profound gratitude and deep regards to my teacher Dr.
Anita T. Lal for giving me an opportunity to make this report and for her exemplary
guidance, monitoring and constant encouragement throughout the course of this report. It had
been a wonderful experience making this report and it deeply added to my learning.

Puneet Gupta

Date of Submission: 18-11-2014


1. Introduction:
1.1 Overview:

Uber is a ridesharing service based in San Francisco. The company uses a smartphone
application to connect passengers with drivers of vehicles for hire. Customers use the app to
request rides and track their reserved vehicle's location. As of August 29, 2014, the service
was available in 45 countries and more than 200 cities worldwide, and was valued at
US$18.2 billion.

Upon its inception, Uber only offered full-size luxury cars for hire, and the "UberBlack" title
was adopted for the company's main service (named after the "black cars" private
transportation services in New York City). In 2012 the company launched its "UberX"
program, which made available to consumers smaller vehicles. Due to the lower fees that
accompanied the program, the service became extremely competitive with traditional taxi
services, expanding Uber's appeal to a broader cross-section of the market.

1.2 Purpose:

The purpose of this report is to prepare a comparative study of UBER and its major competitors.
This comprehensive study will show analysis of the differences in business strategies, their
growth and approach of these companies in the industry.
The SWOT Analysis of UBER

Strengths

User Experience
It offers services/featuers like reliable pickup, clear pricing, cashless and convenient
payment and splitting of fares, which in turn leads to an enhanced user experience.

First to the market


Has a significant headstart in the areas of branding, infrastructure, and consumer trust.

Mobile platform
Cabs, perhaps more than any other service, are uniquely fitted to the mobile platform
because, well, they are mobile.

Mobile app design is thoughtful and user-friendly


Glitches are minimal and responsiveness from servers and system itself is exceptional
(crucial, given cab riders need to get somewhere fast)

Weaknesses

Standard insurance and liability questions that plague most start-ups offering services
or community connections.

Lawsuits charging illegal cab practices from multiple cities including New York.
Established deals between cities and taxi companies, as well as union laws associated
with these, have led Uber to be drawn into court repeatedly in just its 3 year history.

Inconsistent Prices
Uber has a system in place which is called surge pricing, under which uber rates
increases during the busiest times.

No Cash Transactions
Only payment options available are credit and debit card.

No Scheduling
There is no option of pre-booking a cab.

Monetizing the idea; while there is always a proven demand for cabs, the overhead
and potential legal costs required offer significant limitations to potential market cap
Opportunities

Expanding to new cities

With seemingly boundless overseas markets for this service (seriously, name me a city
where you cant grab some sort of cab) helps alleviate some of the legal and overhead
limitations on market potential.

Introducing Novelty services

Introducing services like Uber Ice cream in other cities. Uber introduced Uber Ice
Cream in London, which allows you the ability to summon one of the companys ice
cream trucks to your location. A novelty for sure, but thats the kind of innovative
thinking that draws media and social attention to your brand and also generates revenue.

Further improving customer experience by adding services like pre-booking a cab and
payment through cash (in atleast developing countries like India were the banking
habits are really low).

Threats

Lawsuits
If a city wins one of the sweeping lawsuits against Uber for illegal cab practices, the
court precedent could be damning to Ubers entire model. Liability costs and potential
risks would severely limit further growth and expansion opportunities

Increasing Competition
As with any other newly created mobile-based market, competition is emerging. There
are many new apps (such as Ola, taxi4sure, Meru cabs) that attempting to carve into
Ubers domain.

The SWOT Analysis of OLA Cabs


Strengths

User Experience
It offers services/featuers like reliable pickup, safety and clear pricing which in turn
leads to an enhanced user experience.

Mobile platform
Cabs, perhaps more than any other service, are uniquely fitted to the mobile platform
because, well, they are mobile.

Mobile app design is thoughtful and user-friendly


Glitches are minimal and responsiveness from servers and system itself is exceptional
(crucial, given cab riders need to get somewhere fast)

Wide Presence
It is currently present in 25 cities in India.

Payment Options
Wide range of payment options such as cash, debit and credit card, mobile wallet, etc.

Scheduling
There is an option of pre-booking a cab.

Weaknesses
Lack of global presence

Monetizing the idea; while there is always a proven demand for cabs, the overhead and
potential legal costs required offer significant limitations to potential market cap

Opportunities

Expanding to new cities

With seemingly boundless overseas markets for this service (seriously, name me a city
where you cant grab some sort of cab) helps alleviate some of the legal and overhead
limitations on market potential.

Takeaways
With the companys growth and expansion continuing at an exponential rate, and with the ever-
increasing possibilities for the companys network as well as the massive international market
for the idea, the future looks bright for Uber.

Uber should not let potential risks and legal issues from stopping its expansion. Instead,
working to establish brand recognition and trust can help build customer and public support
that can shield its brand, product, or service from legal ramifications.

However, getting over the goal line wont be easy. With the amount and variety of pending
litigation, as well as the continual monkey-on-the-back of overhead costs required to start a
feasible cab service in each new city.