Uber Technologies Inc. Report 2018 PDF

Uber Technologies Inc.
Company Report
2018
Contents
1. Executive Summary..................................................................................................................... 1
2. Business Strategy......................................................................................................................... 2
3. Leadership ................................................................................................................................... 2
4. Organisational Structure .............................................................................................................. 3
5. Organizational Culture ................................................................................................................ 5
6. Uber and Ansoff Matrix .............................................................................................................. 6
7. SWOT Analysis ........................................................................................................................... 8
7.1 Strengths ................................................................................................................................ 8
7.2 Weaknesses .......................................................................................................................... 11
7.3 Opportunities ....................................................................................................................... 13
7.4 Threats ................................................................................................................................. 15
8. PESTEL Analysis ...................................................................................................................... 16
8.1 Political Factors ................................................................................................................... 16
8.2 Economic Factors ................................................................................................................ 17
8.3 Social Factors ....................................................................................................................... 17
8.4 Technological Factors .......................................................................................................... 18
8.5 Environmental Factors ......................................................................................................... 18
8.6 Legal Factors ........................................................................................................................ 19
9. Marketing Strategy .................................................................................................................... 20
9.1 7Ps of Marketing .................................................................................................................. 21
9.2 Segmentation, Targeting & Positioning............................................................................... 24
9.3 Marketing Communication Mix .......................................................................................... 25
9.3.1 Advertising........................................................................................................................ 25
9.3.2 Sales Promotions............................................................................................................... 26
9.3.3 Events & Experiences ....................................................................................................... 26
9.3.4 Public Relations ................................................................................................................ 27
9.3.5 Direct Marketing ............................................................................................................... 27
9.3.6 Personal Selling ................................................................................................................ 28
10. Porter‘s Five Forces Analysis .................................................................................................. 28
10.1 Threat of new entrants ....................................................................................................... 29
10.2 Bargaining power of buyers ............................................................................................... 29
10.3 Bargaining power of suppliers ........................................................................................... 29
10.4 Threat of substitute products or services ........................................................................... 30
10.5 Rivalry among existing firms ............................................................................................ 30
11. Value-Chain Analysis .............................................................................................................. 31
11.1 Uber Primary Activities ..................................................................................................... 31
11.1.1 Uber Inbound logistics ................................................................................................ 31
11.1.2 Uber Operations .......................................................................................................... 32
11.1.3 Uber Outbound Logistics ............................................................................................ 32
11.1.4 Uber Marketing and Sales ........................................................................................... 33
11.1.5 Uber Service ................................................................................................................ 33
11.2 Uber Support Activities ..................................................................................................... 33
11.2.1 Uber Infrastructure. ..................................................................................................... 33
11.2.2 Uber Human Resource Management .......................................................................... 34
11.2.3 Uber Technology Development .................................................................................. 34
11.2.4 Uber Procurement ....................................................................................................... 35
12. McKinsey 7S Model ................................................................................................................ 35
12.1 Hard Elements .................................................................................................................... 36
12.2 Soft Elements ..................................................................................................................... 37
13. Uber Corporate Ecosystem ...................................................................................................... 38
14. Corporate Social Responsibility .............................................................................................. 39
14.2 CSR Criticism .................................................................................................................... 40
15. Recommendations ................................................................................................................... 44
List of Figures
Figure 1 Uber Organizational Structure .......................................................................................... 4
Figure 2 Uber Ansoff Growth Matrix.............................................................................................. 7
Figure 3 Daly trips in New York City: Yellow Taxi, Uber and Lyf ............................................... 9
Figure 4 Valuation History for Selected Unicorn Startups............................................................ 10
Figure 5 Ubers‘s net losses ............................................................................................................ 12
Figure 6 Ride-Hailing Users Projections ....................................................................................... 13
Figure 7 Worldwide internet user penetration from 2014 to 2021 ................................................ 14
Figure 8 Uber Porter's Five Forces ................................................................................................ 28
Figure 9 Valuations of Learning Ride-hailing Companies, April 2017 ........................................ 30
Figure 10 Uber Value Chain Analysis ........................................................................................... 31
Figure 11 McKinsey 7S model ...................................................................................................... 36
List of Tables
Table 1 Uber SWOT analysis .......................................................................................................... 8

Table 2 Uber services and descriptions ......................................................................................... 21
Table 3 Uber segmentation, targeting and positioning .................................................................. 25
1. Executive Summary
Uber Technologies Inc. is a global transportation technology company that operates in more than
760 cities in more than 70 countries. The ride-hailing giant booked USD20 billion in rides and
generated net revenue of USD 6,5 billion (excluding China) in 2016, but it also lost USD 2,8
bilion during the same year.1 The largest taxi company in the world has no cars of its own.
Drivers are independent contractors for the company and they use their own or rented cars to
drive with Uber using Uber app.
The company has effectively disrupted the taxi industry in the global scale. Uber business
strategy involves increasing service range to cater for the needs of great amount of customers
and focusing on high levels of user convenience. Moreover, cost-saving through technological
innovation is placed at the core of Uber business strategy.
The ride-hailing giant had a leadership crisis recently. Lack of leadership skills of co-founder
and the first CEO Travis Kalanick had caused the formation of a poor corporate culture. As a
result the company has suffered from a range of serious scandals involving discrimination,
sexual harassment and even mobbing. Uber CEO was even caught on video rudely arguing with
driver about declining fares.2 Mr. Kalanick had to step down from leadership role as demanded
by investors and Expedia‘ CEO Dara Khosrowshani became a new CEO for Uber.
Uber possesses considerable strengths such as the first mover advantage, global market
leadership and the brand value of USD 69billion3. At the same time, the company has serious
weaknesses such as damaged brand image due to numerous scandals and increasing losses of the
business.
1
Carson, B. (2017) ―Uber booked USD20 billion in rides in 2016, but it's still losing billions‖ Business Insider,
Available at: http://www.businessinsider.com/uber-2016-financial-numbers-revenue-losses-2017-4
2
Wong, J.K. (2017) ―Uber CEO Travis Kalanick caught on video arguing with driver about fares‖ The Guardian,
Available at: https://www.theguardian.com/technology/2017/feb/28/uber-ceo-travis-kalanick-driver-argument-
video-fare-prices
3
Abboud, L. (2017) ―Uber's USD69 Billion Dilemma‖ Bloomberg, Available at:
https://www.bloomberg.com/gadfly/articles/2017-03-16/uber-needs-to-get-real-about-that-69-billion-price-tag
1
2. Business Strategy
Uber business strategy consists of the following 3 pillars:
1. Increased service range to cater for the needs of great amount of customers. Extensive
offering is rightly considered as Uber competitive advantage. Depending on their budget, the
occasion and purpose of ride, customers can choose among Uber X, Uber XI, Uber Pool,
UberGO, Uber AUTO, Uber Access, Uber MOTO, Uber Premium or Uber Rush.
2. High level of user convenience. Uber offers unprecedented user convenience at multiple
levels. No need to call dispatch, wait in a line, or wave from a curb. Customers can tap ‗Request‖
on their phone from comfort of indoors and wait for notification that their driver is "arriving
now." Even in dense urban locations Uber drivers usually arrive in 1-2 minutes.
When they reach their destination, customers just say thanks and get out of the car. No need to
reach for cash or credit card. The payment is automatically charged to card on customer‘s Uber
account and receipt is sent via email. Moreover, dispute resolution with Uber is easy. Each ride
receipt includes a map and a GPS track, customers can complain if their your driver took a
longer route and Uber is prompt with refunds.
3. Cost-saving through innovation. Extensive user conveniences described above come for a
little cost for the company, thanks to the app that integrates innovative features and capabilities.
Therefore, it can be argued that operating at low costs thorough innovation is placed at the core
of Uber business strategy. Moreover, first mover advantage in internet-based ride-hailing sector
is one of the most important points of Uber competitive advantage.
3. Leadership
Uber leadership style was authoritative with co-founder and first CEO Travis Kalanick
attempting to micromanage the company. The global transportation technology company had to
face a leadership crisis due to incompetency of Travis Kalanick. Mr. Kalanick‘s leadership style
was criticized as ‗one-man-show‘4. Moreover, it has been noted that ―the sexual harassment
4
Hook, L. (2017) ―Uber struggles to fix leadership amid Kalanick‘s one-man show‖ Financial Times, Available at:
https://www.ft.com/content/aabe4fe4-4bab-11e7-a3f4-c742b9791d43
2
claims, the bullying, the intellectual property lawsuit - are attributable to former leader Travis
Kalanick's brash take-no-prisoners, admit-no-errors leadership style.‖5
Scandals at the global taxi technology company escalated to an extent where Kalanick was
pressured by investors to step down as Uber CEO in June 2017. The search for new CEO by the
Board of Directors took two months and experienced leaders such as former CEO of HP Meg
Whitman and former CEO of General Electric Jeff Immelts were shortlisted as potential heads of
new Uber leadership. Expedia CEO Dara Khosrowshani was chosen as a person to lead Uber
effective from August 30, 2017.
Dara Khosrowshahi was CEO of Expedia for 12 years and has proved himself as an effective
business leader. Expedia‘s stock has climbed more than 500% since the 2005 spinoff under the
leadership of Khosrowshani.6 New Uber leadership is faced with a set of complex challenges that
include improving organizational culture, building gender-balanced senior management team
and improving relationships with drivers.7
Changes made by Mr. Khosrowshahi so far include securing USD 7,7 billion investment from
Softbank8, emphasizing diversity and inclusion, acknowledging and apologizing for past
misdeeds by the company.9 Uber‘s newly appointed chief operating officer, Barney Harford, has
announced plans to reduce costs and ―bring a dose of financial discipline.‖10
4. Organisational Structure
Uber organizational structure has been traditionally highly hierarchical with co-founder and
former CEO Travis Kalanick yielding tremendous power and micromanaging the the ride-hailing
giant. Lack of Kalanick‘s leadership skills resulted in a series of scandals involving bullying,
5
Stillman, J. (2017) ―In Just 8 Words, Uber's New CEO Gave a Master Class in Leadership‖ Inc. Available at:
https://www.inc.com/jessica-stillman/in-just-8-words-ubers-new-ceo-gave-a-masterclass-i.html
6
Griswold, A. (2017) ―Two years ago, Uber‘s CEO pick was the highest-paid chief of a US public company‖
Quartz, Available at: https://qz.com/1063313/new-uber-ceo-expedias-dara-khosrowshahi-was-the-highest-paid-ceo-
in-the-sp-500-in-2015/
7
Pontefract, D. (2017) ―Five Key Leadership Actions For Uber's New CEO‖ Forbes, Available at:
https://www.forbes.com/sites/danpontefract/2017/08/29/five-key-leadership-actions-for-ubers-new-
ceo/#1c8c03bc125c
8
Sherman, L. (2018) ―Is Softbank Uber's Savior?‖ Forbes, Available at:
https://www.forbes.com/sites/lensherman/2018/01/01/is-softbank-ubers-savior/#2e784bffd04a
9
Mann, S. (2018) ―8 Ways Uber's New CEO Is Changing Its Image‖ Inc. Available at: https://www.inc.com/sonya-
mann/dara-khosrowshahi-first-month.html
10
Hook, L. (2017) ―New Uber COO wants more strategy and less controversy‖ Financial Times, Available at:
https://www.ft.com/content/46f68336-e5f3-11e7-8b99-0191e45377ec
3
discrimination at workplace, sexual harassment etc. Kalanick had to resign as a result of these
scandals. After Dara Khosrowshahi became new CEO in 2017, Uber organizational structure
has been subjected to certain changes.11
Figure 1 below illustrates Uber organizational structure
Dara Khosrowshahi
Chief Executive Officer
SVP of Engineering Chief Financial Officer
Chief Technology Officer

SVP Business
Chief Legal Officer
SVP Policy and Communications
Chief HR Officer
SVP Leadership & Strategy
Chief Product
Officer
Chief of Security
Head of Uber General President

Everything Counsel Ridesharing
Figure 1 Uber Organizational Structure
It can be argued that the current pattern of Uber‘s organizational structure illustrated in Figure 1
above can be subjected to more changes by new CEO Dara Khosrowshahi in the medium-term
perspective. Demoralized workforce and poor organizational culture belong to the list of major
issues for the global transportation technology company. Dara Khosrowshahi is credited for
creating collaborative work culture at Expedia where employees are encouraged to propose their
ideas to management.
Mr. Khosrowshahi will attempt to fix Uber organizational culture as part of his grand plans to
turnaround the business. Accordingly, improvement in organizational culture may necessitate
changes in organizational structure. Specifically, de-layering of organizational structure may be
introduced, removing certain levels of management in order to make the business more flexible
11
Newcomb, A. (2017) ―Uber Board Votes to Change the Company's Power Structure‖ NBC News, Available at:
https://www.nbcnews.com/tech/tech-news/uber-s-ceo-charms-london-while-ex-ceo-kalanick-makes-n807186
4
to respond to the changes in external marketplace. Moreover, advantages of flat organizational
structure include faster speed of communication between the top management and floor-level
employees.
5. Organizational Culture
Uber organizational culture has been associated with sexual harassment and discrimination for
the past few years. In June 2017 the global transportation technology company ―fired more than
20 employees after a company investigation into sexual harassment claims and workplace
culture.‖12
Uber company culture crisis has resulted into the resignation of co-founder and CEO Travis
Kalanick. Uber‘s new CEO Dara Khosrowshahi, has successfully led internet travel company
Expedia for 12 years. Mr. Khosrowshahi now has an important task of sophisticating Uber
organizational culture so that the ride-hailing giant can improve its image and eventually become
profitable.
Change management of Uber organizational culture initiated by Dara Mr. Khosrowshahi can be
explained applying Lewin‘s Model of Culture. The model divides change management in
organizational culture into 3 stages:
Stage 1: Unfreezing. During this stage, the necessity of cultural changes for the long-term
growth prospects of the company needs to be explained to employees at all stages. So far,
Khosrowshani had dealt with this stage effectively. ―Uber's new CEO had employees write and
vote on cultural guidelines for the workplace‖13. In total about 12000 employees voted and the
results of voting determined underlying principles for Uber‘s new organizational culture.
Stage 2: Implementing changes. According to results of the voting discussed above, new
principles of Uber organizational culture have been developed as the following14:
12
Solon, O. (2017) ―Uber fires more than 20 employees after sexual harassment investigation‖ The Guardian,
Available at: https://www.theguardian.com/technology/2017/jun/06/uber-fires-employees-sexual-harassment-
investigation
13
Balakrishnan, A. (2017) ―Uber employees voted on the new company culture — and it looks a lot like Google and
Amazon‖ CNBC, Available at: https://www.cnbc.com/2017/11/07/ubers-new-cultural-norms.html
14
Khosrowshani, D. (2017) ―Uber‘s new cultural norms‖ Linked In, Available at:
https://www.linkedin.com/pulse/ubers-new-cultural-norms-dara-khosrowshahi
5
 We build globally, we live locally.
 We are customer obsessed.
 We celebrate differences.
 We do the right thing.
 We act like owners.
 We persevere.
 We value ideas over hierarchy.
 We make big bold bets.
Stage 3: Refreezing. Uber is attempting to promote its new culture to all organizational
stakeholders in general and employees in particular. The global transportation technology
company has developed its online classes led by SVP of Leadership and Strategy. The classes
are aimed at promoting Uber organizational culture, along with increasing employees overall
knowledge about strategy.15
6. Uber and Ansoff Matrix
Uber Ansoff Matrix is a marketing planning model that helps the ride-hailing giant to determine
its product and market strategy. Uber Ansoff Matrix illustrates four different strategy options
available for businesses. These are market penetration, product development, market
development and diversification.
15
Carson,B. (2017) ―Inside Uber's Effort To Fix Its Culture Through A Harvard-Inspired 'University'‖ Forbes,
Available at: https://www.forbes.com/sites/bizcarson/2018/02/03/inside-ubers-effort-to-fix-its-culture-through-a-
harvard-inspired-university/#53e7c0b51695
6
Figure 2 Uber Ansoff Growth Matrix
Within the scope of Ansoff Matrix, Uber uses all four growth strategies in an integrated manner:
1. Market penetration. Market penetration refers to selling existing products to existing

markets. Uber engages in market penetration via application of various sales promotions
techniques. These include distributing promo codes to allow users to have a discount for their
next ride and ―Uber VIP‖ loyalty program that rewards riders with special access to highest-rated
drivers. Moreover, users can earn free rides by inviting their friends to sign up and ride with
Uber.
2. Product development. This involves developing new products to sell to existing markets.
The global transportation technology company consistently increases its service range.
Currently, its extensive range of services include Uber X, Uber XI, Uber Pool, UberGO, Uber
AUTO, Uber Access, Uber MOTO, Uber Premium and Uber Rush.
3. Market development. Market development strategy is associated with finding new markets
for existing products. Launched only in San Francisco in 2009, the company currently operates
in more than 760 cities worldwide. The global transportation technology company is expected to
further engage in new market development under the new CEO Dara Khosrowshahi.
4. Diversification. Diversification involves developing new products to sell to new markets.

This is considered to be the riskiest strategy. Initially launched only as a taxi company, the ride-
hailing giant has entered takeaway food delivery segment with Uber Eats.
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7. SWOT Analysis
SWOT is an acronym for strengths, weaknesses, opportunities and threats related to

organizations. The following table illustrates Uber SWOT analysis:
Strengths
1. First mover advantage and global market leadership

2. Low operational costs
3. Effective implementation of ‗Think Global, Act Local‘ strategy
4. Brand value of USD 69 billion16
5. High levels of user convenience
Weaknesses
1. Damaged brand image due to a series of various scandals

2. Increasing losses of the business
3. Uber business model is easy to imitate
4. Only technically savvy individuals can use Uber services
5. Low earnings by Uber drivers
Opportunities
1. Increasing popularity of sharing economy

2. Self-driving cars
3. Improving brand image through CSR programs and initiatives
4. Increasing internet penetration in the global scale
5. Increasing service range
Threats
1. More legal actions in certain countries to ban Uber from operating

2. Further intensification of competition
3. The risk of new scandals and ethical issues
4. Growing protests and retaliations from traditional taxi services
5. Drivers leaving Uber due to low earnings
Table 1 Uber SWOT analysis
7.1 Strengths
1. Uber is the largest global taxi technology company in the world and it has a first mover
advantage in the ride-hailing segment in the global scale. By 2016 the ride-hailing giant had
16
8
more than 40 million monthly active riders in more than 760 cities worldwide17. As it is
illustrated in Figure 3 below, Uber‘s largest competitor Lyft generates only a fraction of net
revenue (USD700 million) compared to Uber (USD6.5 billion).
Figure 3 Daly trips in New York City: Yellow Taxi, Uber and Lyf18
2. The global transportation technology company is able to achieve low operational costs,
considering massive scale of its global operations. Uber does not hire drivers as employees and
accordingly, the company does not have responsibilities towards its drivers in terms of monthly
salary payments. Uber business model is based on an aggregator Uber app. Therefore, adding
more cities on Uber network does not require significant additional expenses. Cost efficiency of
business operations is a considerable strength for Uber in terms of maintaining its cost leadership
business strategy.
17
Kokalitcheva, K. (2016) ―Uber Now Has 40 Million Monthly Riders Worldwide‖ Fortune, Available at:
http://fortune.com/2016/10/20/uber-app-riders/
18
Source: Schneider T. (2016) ―Taxi, Uber, and Lyft Usage in New York City: Open TLC data reveals the taxi
industry‘s contraction, Uber‘s growth, and the scramble for market share‖ Available at:
http://toddwschneider.com/posts/taxi-uber-lyft-usage-new-york-city/
9
3. The global taxi technology company effectively implements ‗Think Global, Act Local‘
business strategy by adjusting various aspects of its services to tastes and preferences of local
customers. For example, Uber users can pay USD30 to have a visit from an actual kitten, for up
to 15 minutes of quality snuggle time in over 50 markets across the United States and Canada.19
In India, on the other hand, Uber provides a ride in a hatchback, taking into account unique
needs of local customers.
4. Uber brand value has been valued at USD 69 billion20. As it is illustrated in Figure 4 below,
Uber brand value is considerably greater than the brand value of all other notable unicorn
startups in the global scale. High brand value is a considerable strength for the business in
various levels. Specifically, high brand value allows the business to secure more financing
needed for further expansion. Brand value is also associated with high level of customer loyalty.
Figure 4 Valuation History for Selected Unicorn Startups21
5. A high level of user convenience is another strength point associated with Uber service
offerings. With Uber, there is no need for customers to call dispatch, wait in a line, or wave from
a curb. Customers can tap ―Request‖ on their phone from the comfort of indoors and wait for a
19
Bender, A. (2015) ―Uber Delivers Kittens: Prepare for Cuteness Overload with UberKITTENS‖ Forbes,
Available at: https://www.forbes.com/sites/andrewbender/2015/10/29/uber-delivers-kittens-prepare-for-cuteness-
overload/#2589be333fa0
20
21
Source CBIInsights (2017) Available at: https://www.cbinsights.com/research/snapchat-valuation-ipo/
10
push notification that their driver is "Arriving Now". Even in dense urban locations, Uber drivers
arrive usually in less than a minute. Moreover, passengers rate drivers and poorly rated drivers
are deactivated by the company.
7.2 Weaknesses
1. Uber brand image has been damaged considerably during the past few years due to a series of
scandals and management incompetence. The ride-hailing giant employees were responsible for
sexual harassment and mobbing, the company suffered more than a few resignations of top
executives and it had retreated from China, failing to compete with local Didi Chuxing. As a
result of above and other scandals #DeleteUber campaign has been launched and about 500,000
users had deleted their accounts by March 2017.22
2. Despite increasing revenues, Uber has been making massive losses since its establishment in
2009. The global transportation technology company has spent a lot of cash during the past few
years on driver bonuses and discounts for its customers as the company tries to ward off global
competition. As it is illustrated in Figure 5 below, net losses made by the ride-hailing giant have
been consistently increasing to exceed USD 2,75 billion in financial year 2016.
22
Flynn, K. (2017) ―About 500,000 people deleted their Uber account in week #DeleteUber began: NYTimes‖
Mashable, Available at: https://mashable.com/2017/03/22/uber-delete-account-500000/#FDn7P8OFxaqa
11
Figure 5 Ubers’s net losses23
3. There is no significant entry barrier for new players and Uber business model is easy to
imitate by existing or new competitors. In other words, unlike Google‘s search algorithm, there
is no secret in Uber‘s app and its business model. Other companies may also develop similar or
even better apps to represent additional competition for Uber.
4. To be able to use Uber services, customers have to possess a smartphone or tablet, have access
to internet and be technically savvy. These requirements alienate potential customers in
developing countries, who do not have smartphones and/or have internet problems. Moreover,
even in developed countries, some elderly people may not be technically savvy enough to be
able to use Uber app, thus restricting revenue potential for the ride-hailing giant.
5. Despite massive revenues generated by the global transportation technology company, Uber
drivers do not earn competitive rates. Earnest found that the median Uber driver makes
USD155 a month, while the average Uber driver makes USD364 a month. 24 Low pay checks
for drivers can be classified as a weakeness for Uber due to their negative implications on
driver‘s loyalty.
23
Source: Business Insider
24
Wile, R. (2017) ―Here's How Much Uber Drivers Really Make‖ Money, Available at:
http://time.com/money/4845407/uber-drivers-really-make-per-hour/
12
7.3 Opportunities
1. Increasing popularity of sharing economy in the global scale. By 2017 potential valuation of
sharing economy soared to USD 2 trillion.25 Moreover, as it is illustrated in Figure 6 below, the
numbers of global ridesharing is projected to exceed 530 million by 2021. These numbers
present an attractive opportunity for Uber in terms of long-term growth prospects.
Figure 6 Ride-Hailing Users Projections26
2. There is an opportunity for Uber to increase the chances of its long-term growth prospects by
focusing on self-driving cars. The global transportation technology company has already
experimented with self-driving cars in selected locations. Uber uses light-detection and ranging
(LiDAR), the technology inside a little spinning eyeball on the top of a self-driving car‘s roof.
Alphabet-owned Waymo is trying to sue Uber claiming that LiDAR actually was built using
trade secrets stolen Waymo27. Regardless of the outcome of dispute between the two companies,
it is important for Uber to further concentrate on self-driving cars.
25
BofAML, BIA/Kelsey, SIC: Primer on the Sharing Economy, 2017
26
Source: Statista
27
Weise, E. & Cava, M. (2018) ―Self-driving cars: Uber faces Waymo in trial over race to remove the driver‖ USA
Today, Available at: https://www.usatoday.com/story/tech/2018/02/04/self-driving-cars-uber-faces-waymo-trial-
over-race-remove-driver/300918002/
13
3. As it has been mentioned above, Uber was a subject for criticism due to a range of
misconducts and irresponsibility by its management and drivers during the past years. With the
new CEO Dara Khosrowshahi at the helm, the global taxi technology company has a chance to
improve its brand image. Uber needs to increase the effectiveness of its CSR programmes and
initiatives, at the same time when increasing efficiency of implementation of these programs and
initiatives.
4. Steadily increasing internet penetration in the global scale can be mentioned as an additional
opportunity for Uber. As it is illustrated in Figure 7 below, internet penetration worldwide has
been consistently increasing during the past few years and it is expected to exceed 53% by the
end of 2021. Uber is an internet-based ride-hailing company and as such, increasing levels of
internet penetration contributes to its long-term growth prospects.
Figure 7 Worldwide internet user penetration from 2014 to 202128
5. The global taxi technology company can increase the range of services it currently provides
using its current infrastructure and capabilities. Specifically, there is an opportunity for Uber to
become a delivery company to compete with leading express delivery companies. By increasing
28
Source: Statista (2017)
14
the range of its services, Uber can develop its own ecosystem, thus increasing the levels of
customer loyalty with positive implications on the bottom line.
7.4 Threats
1. The global taxi technology company had to face legal actions in a number of countries and
cities due to its failure to meet the standards to be met by local taxi companies. Uber operations
were suspended in Bulgaria after being accused of ―unfair trade practices‖ and it was banned in
Italy after its business practices were found to ―constitute unfair competition‖. The company has
also faced suspensions in Finland, France, Spain and the Netherlands, primarily over
its UberPOP service.29 There is a threat that the company will be banned in more markets with
negative implications on the amounts of revenues and long-term growth prospects.
2. Despite the fact that internet-based ride-hailing is a relatively new market, the competition is
already intensive. Nowadays, Uber has to compete with Lyft and Juno in the US, Chinese Didi
Chuxing, India‘s Ola Cabs, Malaysia‘s Grab, Dubai‘s Careem and other ride-hailing companies.
Due to low entry barrier to the industry, further intensification of competition can be expected
threatening Uber‘s market share.
3. As discussed above, Uber brand image has been bruised considerably due to a number of
scandals and revelations of wrongdoings within the company. The global transportation
technology company is not immune from more scandals in the future. There is a threat that more
scandals involving Uber drivers or other internal stakeholders can cause further damage to the
brand image of the global taxi technology company.
4. It is evident that along with causing a disruptive innovation in taxi industry, Uber‘s ride-
hailing app took bread and butter from numerious traditional taxi companies and their drivers in
markets it operates, causing numbers of protests from various parties. More protests may erupt in
the future causing governments to protect local taxi companies via legislations to place Uber in a
disadvantaged position.
29
Rhodes, A. (2017) ―UBER: WHICH COUNTRIES HAVE BANNED THE CONTROVERSIAL TAXI APP‖
Independent, Available at: http://www.independent.co.uk/travel/news-and-advice/uber-ban-countries-where-world-
taxi-app-europe-taxi-us-states-china-asia-legal-a7707436.html
15
5. As mentioned above, Uber drivers do not earn much and this is one of the main weaknesses
associated with the brand. Uber drivers leaving the company due to uncompetitive payment is a
noteworthy threat for the business. It is important for the ride-hailing giant to be proactive to deal
with this threat by increasing the attractiveness of tangible and intangible benefits offered to
drivers.
8. PESTEL Analysis
PESTEL is a strategic analytical tool and the acronym stands for political, economic, social,
technological, environmental and legal factors. Uber PESTEL analysis refers to the analysis of
potential impact of these external factors on the performance of the ride-hailing giant and its
long-term growth prospects.
8.1 Political Factors
Generally, political factors affecting businesses include government stability, bureaucracy, levels
of corruption, impacts of home market lobbying groups and others. When Uber started its
operations in 2009, there was no other ride-hailing taxi app. Accordingly, legislations related to
the regulations of such services did not exist. With the advent of Uber, the following and other
questions needed to be answered by local governments and authorities:
 Who is responsible in case of car accident: Uber or the driver?

 Does it need to be compulsory for Uber drivers to have taxi licences?
 Can Uber list thousands of its drivers as contractors, but not employees?
 Does Uber has to comply with minimum wage requirements?
Dealing with above and other related questions in different countries and regions have caused
charged political debates. Moreover, it can be argued that Uber has caused political debates in
the global scale in a way that few companies have done.
16
While some local governments have been favourable towards Uber taking into account its
modern business model, others demanded strict adherence to the rules and regulations making no
difference between Uber and regular taxi companies. As a result, Uber has been banned in a
number of countries and such as Bulgaria, Hong Kong and Germany and certain cities such as
London and Brno.
8.2 Economic Factors
The range of economic factors affecting businesses is extensive and the most important factors
include macroeconomic climate, inflation rate, interest rate, currency exchange rates and
unemployment rates. Moreover, economic factors such as cost of labour, changes in disposable
income of consumers and tax rates also affect businesses.
For example, due to a new tax law introduced in the US in February 2018 ―freelancers and other
independent contractors will be able to deduct 20 percent of their income from their taxable
income before paying the new lower tax rates‖.30 This particular change in external economic
factor has positive effect on Uber, because it increases attractiveness of becoming Uber driver
from a financial point of view.
Uber‘s business model is based on sharing economy, a concept that may change the state of
economies, especially in developed countries. The economic impacts of the global
transportation technology company are controversial. Uber has created additional income
opportunities for many people, at the same time as taking away jobs from local taxi drivers.
8.3 Social Factors
Increasing popularity of sharing economy is one of the most important social factors that has
positive effects on Uber‘s bottom line. Moreover, increasing use of internet and various apps for
a wide range of personal and professional purposes in the global scale can also be classified as a
factor with positive implications for the global transportation technology company.
30
Zaveri, P. & Bosa, D. (2018) ―The new tax law creates a huge boon for Uber and Lyft drivers‖ CNBC, Available
at: https://www.cnbc.com/2018/02/05/uber-lyft-drivers-and-other-contractors-get-2018-tax-law-benefit.html
17
However, not all social factors positively impact Uber performance. A social tendency of
increasing level of consumer sensitivity towards CSR aspect of the business can be mentioned as
an example. Specifically, Uber brand image has been damaged considerably once discrimination,
sexual harassment and other scandals related to the brand emerged during the past few years.
Uber is also greatly impacted by additional range of social factors such as demographic changes,
changes in family values, changes in the level of education of customers, changes in consumer
attitudes and opinions towards ride-hailing, media perception of the brand and health and welfare
of the target customer segment.
8.4 Technological Factors
Being a global transportation technology company, Uber is impacted by a wide range of

technological factors. Generally, prominent technological factors that impact Uber include
industry-specific technological innovations and breakthroughs, decreasing life cycle of
technology, changes in energy consumption practices, shifts in manufacturing maturity and
capacity and others.
Uber duly recognizes the importance of technological factors and commits to relevant
investments in a regular manner. For example, Uber runs Advanced Technologies Group Centre
in Pittsburgh, where the company is building autonomous cars.31
8.5 Environmental Factors
The performance of Uber can be indirectly impacted by a set of ecological factors such as global
warming, air pollution, thickening of ozone layer and others. Moreover, the impact of
environmental factors on Uber performance can be direct as well in cases of environmental
disasters such as earthquakes, flooding, tornados etc.
For example, in UK a ―natural capital‖ stress test found that flooding in 2050 on a similar scale
to the winter of 2013/14 would affect more than twice as many homes. 32 Such a natural disasters
31
Budds, D. (2017) ―Inside The R&D Lab Where Uber Is Building ―The City Of The Future‖ FastCoDesign,
Available at: https://www.fastcodesign.com/3067101/inside-the-rd-lab-where-uber-is-building-the-city-of-the-future
32
Johnston, I. (2017) ―Extreme weather to cost UK billions and leave 2.5m homes at risk of flooding unless
ministers take action, warns WWF‖ Independent, Available at: http://www.independent.co.uk/environment/climate-
change-global-warming-extreme-weather-flooding-homes-drought-uk-economy-a7964851.html
18
can have negative implications for Uber via damaging company‘s properties in UK and reducing
customer purchasing power in this important market.
Similarly, air pollution is a serious environmental factor that can affect Uber via decreased
employee performance. It has been estimated that air pollution is responsible for 656,900 sick
days a year in Central London. Employee productivity across 190 Chinese cities would rise by
about 4 per cent per year if the amount of fine-particle pollution in the air was cut to fall within
World Health Organization standards.33
Any corporation of a size of Uber is expected by stakeholders in general, general public and non-
governmental organization in particular to behave in a socially responsible manner and to
illustrate commitment in dealing with a wide range of environmental issues. Neglecting this
expectation may result in damage to the brand image via negative online and offline press
coverage.
8.6 Legal Factors
Uber is directly impacted by a set of legal factors such as trade regulations anti-trust rules and
regulations, data protection regulations and others. Additionally, there is a wide range of rules
and regulations related to employee health and safety, consumer protection laws, employment
laws, and competitive rules and regulations that need to fully adhered by Uber. Changes in these
rules and regulations are most likely to impact Uber performance in direct and indirect manner
and in ways that are difficult to predict.
Legislators and regulators may make legal and regulatory changes, or interpret and apply
existing laws or policies, in ways that make Uber products and services less useful to its users,
require the company to incur substantial costs, expose it to unanticipated civil or criminal
liability, or cause it to change its business practices.
33
Phillips, R. (2017) ―Air pollution: The business concern‖ Eco-Business, Available at: http://www.eco-
business.com/opinion/air-pollution-the-business-concern/
19
The app has been banned in Berlin in 2014. ―The court‘s ruling followed heavy lobbying by the
German taxi drivers‘ associations that accuse the start-up of not complying with the rules
followed by regular German taxi drivers.‖34
In 2017 ―Uber has been stripped of its London licence in a surprise move that dealt a serious
blow to one of Silicon Valley‘s fastest rising companies and sparked an outcry from a coalition
of customers, government ministers and drivers at the ride-hailing company. The firm‘s
application for a new licence in London was rejected by Transport for London on the basis that
the company is not a ―fit and proper‖ private car hire operator.‖35
9. Marketing Strategy
Uber marketing strategy integrates print and media advertising, sales promotions, events and
experiences, public relations and others. Particularly, Uber marketing strategy is mainly based on
the word-of-mouth. Moreover, media in general and social media in particular plays an
instrumental role in terms of increasing the levels of Uber brand awareness in the global scale.
At the same time, it is important to note that during the past few years, Uber-related messages
communicated by the media have been mainly focused on scandals involving Uber, thus
damaging the company‘s brand image.
Uber‘s ―rider-focused ad spend has increased twentyfold in the last year and a half‖36 However,
new Chief Operating Officer Barney Harford has announced his plans to decrease marketing
expenses as part of his attempts ―bring a dose of financial discipline.‖37
Uber 7ps of marketing focuses on product and price elements of the marketing mix to a greater
extent compared to other elements. Specifically, the global transportation technology company is
increasing the ranges of its services to target greater numbers of customer segments. At the same
time, the majority of Uber services are cheaper than traditional taxi, illustrating company‘s focus
on cost element of the marketing mix.
34
Scott, M. (2014) ―Court Upholds Ban on Uber in Berlin‖ The New York Times, Available at:
https://bits.blogs.nytimes.com/2014/09/26/court-upholds-ban-on-uber-in-berlin/
35
Butler, S. & Topham, G. (2017) ―Uber stripped of London licence due to lack of corporate responsibility‖ The
Guardian, Available at: https://www.theguardian.com/technology/2017/sep/22/uber-licence-transport-for-london-tfl
36
Schiff, A. (2017) ―Uber Is Upping Its Ad Spend And Doubling Down On Data‖ Ad Exchanger, Available at:
https://adexchanger.com/mobile/uber-upping-ad-spend-doubling-data/
37
Hook, L. (2017) ―New Uber COO wants more strategy and less controversy‖ Financial Times, Available at:
https://www.ft.com/content/46f68336-e5f3-11e7-8b99-0191e45377ec
20
Uber‘s unique selling proposition is associated with cost efficiency, increasing service range and
high level of customer convenience. Accordingly, the global transportation technology company
targets wide customer segment in terms of geographical location, age, social status and other
criteria.
9.1 7Ps of Marketing
Uber marketing mix (Uber 7Ps of marketing) comprises elements of the marketing mix that
consists of product, place, price, promotion, process, people and physical evidence.
Product
Uber is a service company and it does not sell products. Uber has clear advantages over regular
taxi. These include clear overview of pricing prior to booking, one-tap rides, follow drivers on
map, cashless convenience and fare splitting, as well as feedback options.
The range of services offered by Uber with brief descriptions is illustrated in Table 2 below:
Service Descrption
Uber X Low cost option for the passengers looking for low cost rides for upto 4
riders
Uber XI Low cost option for the passengers looking for low cost rides for upto 6
riders
Uber pool Car sharing: riders can bring one other person with them, thus saving on
travel costs
UberGO ride in a hatchback
Uber AUTO ride in Auto rickshaws, currently available in Bangalore and Pune only
Uber Access Taxi service with wheelchair access to cater to the need of elderly and
people with disabilities.
Uber-MOTO Booking bike rides around the city
Uber Premium a fleet of stylish vehicles to choose from. Uber Premium comprises
UberSELECT, UberBLACK, UberSUV and UberLUX
UberRUSH Courier Package Service
UberEATS allows customers to order food on the go
Table 2 Uber services and descriptions
21
Place
Despite being active in more than 760 cities, Uber does not have too many offices due to
network nature of its business model. Anyone can become an Uber customer at any time, simply
by downloading Uber app. The five top countries where Uber is the most active are US, Brazil,
China, Mexico and India.
Price
Uber pricing strategy can be described as geographical pricing. The cost of riding with Uber
depends on three factors - a base rate, rate for estimated time and distance and the demand for
rides in that area. Moreover, Uber pricing strategy can be classified as a dynamic pricing that is
based on the basic economic principle of demand and supply. At any given time and given
location, the higher the demand for taxi services, the higher the prices.
Generally, Uber pricing strategy integrates the following principles:
Economy pricing. A range of Uber services such as Uber-Moto, Uber Pool and Uber Go offer
no-frills rides for competitive costs.
Upfront pricing. Customers are quoted estimated costs, before confirming their order.
Surge pricing. During times of high demand for rides, fares will increase, sometimes multiple
times.
Penetration pricing. When entering new markets, the global taxi technology company sets its
prices artificially low in order to gain market share.
The ride-hailing giant offers a range of payment methods to customers such as Uber wallet,
money and even credit cards.
Promotion
Uber usually does not use traditional print and media advertising and mainly promotes its
services through its website and the app. Word-of-mouth, media in general and social media in
particular have played an instrumental role in terms of increasing the levels of consumer
22
awareness about the brand in the global scale. Moreover, free rides promotional schemes offered
by Uber played an important role in causing the buzz in social media.
Process
Uber has to maintain a range of processes, such as technological processes and HR-related
processes. Being a technology transportation company, there are many technological processes
that has to be maintained and continuously improved by Uber. HR-related processes, on the
other hand, include employee recruitment and selection, employee motivation and others. The
company attempts to gain efficiency in relation to each of these processes.
People
The company refers to its drivers as partners. ―Of Uber‘s 12,000 employees — including satellite
customer support and leasing agents — fewer than 40 percent are women. Moreover, black and
Hispanic employees together make up only about 15 percent of its ranks, while white and Asian
employees number around 80 percent‖.38 Requirements to become Uber driver include minimum
age requirements, being legally allowed to drive and watching training video. Average income
of Uber drivers is equal to USD 364.39
Physical evidence
Physical evidence refers to items related to Uber brand recognition. These include logo of the
company and the font of UBER, written in capital letters. UBER stickers on vehicles are also an
important physical evidence of the brand. Moreover, physical evidence for the global
transportation technology company includes the design of Uber app and Uber cabs which come
for customer pickup.
38
Bhiuyan, J. (2017) ―Uber has published its much sought after diversity numbers for the first time‖ Recode,
Available at: https://www.recode.net/2017/3/28/15087184/uber-diversity-numbers-first-three-million
39
―How Much Are People Making From the Sharing Economy?‖ (2017) Available at:
https://www.earnest.com/blog/sharing-economy-income-data/
23
9.2 Segmentation, Targeting & Positioning
Uber segmentation, targeting and positioning can be specified as the essence of Uber marketing
strategy.
Segmentation involves dividing population into groups according to shared characteristics,

whereas targeting implies choosing specific groups identified as a result of segmentation to sell
products. Positioning refers to the selection of the marketing mix the most suitable for the target
customer segment.
Uber uses multi-segment type of positioning and accordingly, targets several customer segments
with different levels of service. The ride-hailing giant offers economy services such as Uber X,
Uber XI and Uber Pool for cost-conscious customers. At the same time, Uber PREMIUM
consisting of fleet of stylish vehicles is available for customers who don‘t mind to pay more.
The following table 3 illustrates Uber segmentation, targeting and positioning:
Type of Segmen Uber target customer segment

segmen tation Uber X, Uber XI, Uber Uber Premium, Uber Uber Access
tation criteria pool, Uber-MOTO, Go, UberEATS, Uber
Uber AUTO BOAT, UberRUSH
North & South North & South North & South
America, Asia, & New America, Asia, & New America, Asia, & New
Geog- Region Zealand Australia, Zealand Australia, Zealand Australia,
raphic Europe, Africa Europe, Africa Europe, Africa
Uber AUTO -
Bangalore and Pune
only
Density Urban/rural Urban/rural Urban/rural
Age 18+ 25-65 45-65
Gender Males & Females Males & Females Males & Females
Bachelor Stage Full Nest I Full Nest III
Newly Married Couples Full Nest II Empty Nest I
Full Nest I Full Nest III Empty Nest II
Demog- Life- Full Nest II Empty Nest I
raphic cycle Full Nest III Empty Nest II
stage Empty Nest I
Empty Nest II
Solitary Survivor I
Solitary Survivor II
Occupat Students, employees, Employees & Retired & Hadicapped
ion professionals Professionals
Degree 'Hard core loyals' 'Hard core loyals' 'Soft core loyals'
of 'Soft core loyals' 'Soft core loyals'
loyalty 'Switchers' 'Switchers'
24
Benefits cost-efficiency sense of achievement convenience
Behavi- sought
oral Persona Easygoing, determined, Determined, ambitious Easygoing
lity ambitious
User non-users, potential potential users, first- non-users, potential
status users, first-time users, time users, regular users users,
regular users
Social Lower class, working middle class, upper working class, middle
Psycho- class class, middle class, class class, upper class
graphic Life- Struggler, Aspirer, Succeeder, Resigned, Struggler,
style40 Mainstreamer, Explorer, Reformer Mainstreamer,
Explorer, Reformer
Table 3 Uber segmentation, targeting and positioning
9.3 Marketing Communication Mix
Uber marketing communication mix comprises print and media advertising, sales promotions,
events and experiences, public relations and direct marketing. Uber marketing communication
mix is aimed to associate using Uber services with cost-efficiency, effectiveness and
convenience.
9.3.1 Advertising
Uber uses traditional print and media advertising sparingly, mainly concentrating on social
media and word-of-mouth marketing channels. Nevertheless, the global taxi technology
company still uses TV ads, newspapers and magazine ads, posters and banners in selected
locations.
The ride-hailing giant is known for unconventional advertising techniques. These include putting
ads on drones and having them taunt drivers stuck in traffic in Mexico City. 41 Marketing
campaign ―Boxes‖ as metaphor for excessive traffic jams in Asian cities, where the ad proposes
ridesharing as a key part of the solution has been praised as innovative and appealing.42
40
According to Cross Cultural Consumer Characterization by Young & Rubican
41
Kiefaber, D. (2016) ―Uber Is Putting Ads on Drones and Having Them Taunt Drivers Stuck in Traffic‖ AdWeek,
Available at: http://www.adweek.com/creativity/uber-putting-ads-drones-and-having-them-taunt-drivers-stuck-
traffic-174136/
42
Nudd, T. (2017) ―Uber Thinks Inside the Box in Its Big New Ad About Car-Clogged Cities‖ AdWeek, Available
at: http://www.adweek.com/creativity/uber-thinks-inside-the-box-in-its-big-new-ad-about-car-clogged-cities/
25
At the same time, Uber‘s use of advertising has proved to be controversial in several instances.
For example, a billboard in Egypt which says ―I escaped from driving my mother-in-law home
64 times‖ was found to be offensive by local people43. In France, campaign offering men free
rides with ‗incredibly hot chicks‘ has been criticized as sexist, resulting in an apology from Uber
France.44
9.3.2 Sales Promotions
Uber uses various sales promotions techniques in an integrated manner. These include the
following:
 Promo codes. Promo codes are distributed to the users allowing users to have a discount
for their next ride.
 Loyalty program. ―Uber VIP‖ is exclusive to those who are actually loyal – customers
who‘ve taken over 100 Uber rides. The benefits include special access to the highest-
rated drivers among others.
 Free rides. Users can earn free rides by inviting their friends to sign up and ride with
Uber
9.3.3 Events & Experiences
Uber initiates promotional events and experiences in an occasional manner. Sometimes the
service delivers kittens to offices and other times it lets passengers ride with famous musicians
like Diplo or Matt & Kim.45 Uber events and experiences are aimed at increasing the level of
brand awareness among the public in general and the target customer segment in particular.
Moreover, Uber attempts to communicate the brand value offer to the target customer segment in
indirect manner via such events.
43
Uber Egypt Billboard Ads: One word makes all the difference! (2017) Think Marketing, Available at:
https://thinkmarketingmagazine.com/uber-egypt-billboard-ads-one-word-makes-difference/
44
Withnall, A. (2014) ―Uber France apologizes for sexist promotion offering men free rides with ‗incredibly hot
chicks‘ as drivers, Independent, Available at: http://www.independent.co.uk/life-style/gadgets-and-tech/uber-france-
apologises-for-sexist-promotion-offering-men-free-rides-with-incredibly-hot-chicks-as-9813087.html
45
Fisher, E. (2016) ―Uber‘s Marketing Strategy in 7 Steps, Without the Bad Press‖ Annex Cloud, Available at:
http://www.annexcloud.com/blog/2016/01/28/ubers-marketing-strategy-in-7-steps/
26
9.3.4 Public Relations
Public relations can be defined as a ―discipline which looks after reputation, with the aim of
earning understanding and support and influencing opinion and behaviour. It is the planned and
sustained effort to establish and maintain goodwill and mutual understanding between an
organisation and its publics.‖46
The global transportation technology company had to deal with PR disasters multiple times.
―The controversies have been coming at such a regular clip that it‘s almost comical—to some
observers, anyway. Clickhole, the parody news site, published this joke headline last week:
―Getting Out Ahead Of This One: Uber Has Apologized In Advance If Anyone Finds Out About
Something Called ‗Project Judas.‘‖(Uber has been a frequent target of satire in the past: ―New
Uber Update Allows Users To File Lawsuit Against Company Directly In App,‖ The
Onion joked in 2016.)‖47
9.3.5 Direct Marketing
Direct marketing can be defined as ―a marketing strategy to build stronger, more personal
relationships between the buyer and selected customers directly‖ 48. In other words, in direct
marketing there are no intermediaries between the buyer and the seller in terms of promotion and
distribution.
Uber uses direct marketing through traditional mails, as well as, emails. Uber‘s mail represents a
simple postcard that touts the benefits and makes a special offer. Uber direct emails, on the other
hand, counter any and all objections to the service.49
46
Chartered Institute of Public Relations (n.d.) Available at: http://www.cipr.co.uk/content/careers-advice/what-pr
47
Lafrance, A. (2017) ―Uber Did What!?‖ The Atlantic, Available at:
https://www.theatlantic.com/technology/archive/2017/04/ubers-pr-nightmare-a-field-guide/523269/
48
Moore, K. & Pareek, N. (2010) ―Marketing: The Basics‖ 2 nd edition, Taylor & Francis, p.168
49
Zimmerman, J. (2015) ―Uber Gets an A+ for Its Direct Mail and Email Marketing!‖ Target Marketing, Available
at: http://www.targetmarketingmag.com/article/uber-gets/
27
9.3.6 Personal Selling
Personal selling is ―person-to-person communication with a prospective customer in order to

develop a relationship, identify customer needs, match goods/services with those needs,
communicate benefits to customers, and gain commitment to purchase goods/services that satisfy
customer needs‖50 Uber does not use personal selling element of the marketing communication
mix.
10. Porter’s Five Forces Analysis
Uber Porter‘s Five Forces analytical framework analyses five individual forces that shape an
overall extent of competition in the industry. These forces are illustrated in Figure 8 below:
Bargaining Bargaining
power of power of
buyers suppliers
Threat of
Threat of new substitute
entrants Rivalry products or
among services
existing
firms
Figure 8 Uber Porter's Five Forces
50
Siguaw, J.A. & Bojanic, D.C. (2004) ―Hospitality Sales: Selling Smarter‖ Cengage Learning, p.2
28
10.1 Threat of new entrants
Threat of new entrants into internet-based ride-hailing sector is significant. Nothing about Uber
business model or its app is secret. In other words, Uber business model and its app can be
replicated by any other company without massive amounts of capital requirements. Thanks to
internet-based nature of the business model, new entrants to the market will not have issue to
access distribution channels
Furthermore, due to low entry barriers into the ride-hailing industry, the numbers of local and
global competitors for Uber have been consistently increasing during the past few years. The
absence of switching costs from Uber to a new taxi technology company for customers further
increases the threats of new entrants.
10.2 Bargaining power of buyers
The bargaining power of buyers is great. Buyer bargaining power is mainly fuelled by the
abundance of competition in the industry. Uber customers are highly price sensitive. If the ride-
hailing giant decides to increase costs in its attempts to become profitable, considerable numbers
of customers may stop using Uber services.
Taking into account increasing numbers and ranges of scandals Uber has been involved during
the past few years, buyers may choose to exercise their bargaining power with negative
implications for the company. Specifically, customers may choose alternative ride-haling
providers such as Lyft or Curb, or they can even switch back to use traditional taxi.
10.3 Bargaining power of suppliers
Bargaining power of ride-sharing suppliers is low. Drivers with own or rented cars are the main
suppliers for Uber. There are millions of drivers who would like to drive for Uber and the
bargaining power of each supplier is low. The ride-hailing giant is known to use its bargaining
power for various reasons. For example, Uber deactivates accounts of its drivers for receiving
29
below-average ratings from passengers, violating the terms of Uber‘s Community Guidelines or
cancelling too many rides.51
10.4 Threat of substitute products or services
The threat of substitute services for ride-hailing services is significant. There are direct
substitutes such as traditional taxi, public transport or own transport. Indirect substitute, on the
other hand, includes walking, instead of using any transport at all. There are no or little
additional costs for riders to switch to substitute services. Moreover, the threat of substitute
services increases, if their quality increases.
10.5 Rivalry among existing firms
The extent of rivalry among existing firms in ride-haling industry is intense. Since the
establishment of Uber in 2009, many global and local ride hailing competitors emerged to
compete with Uber. These include Lyft and Juno in the US, Chinese Didi Chuxing, India‘s Ola
Cabs, Malaysia‘s Grab and Dubai‘s Careem. Nevertheless, as it is illustrated in Figure 9 below,
Uber is an undisputed leader in ride-haling industry in the global scale in terms of market
valuation.
Figure 9 Valuations of Learning Ride-hailing Companies, April 201752
51
Uber Account Deactivated: Ten Common Causes (2017) Ridester, Available at: https://www.ridester.com/uber-
account-deactivated/
52
Source: Atlas (2017) Available at: https://www.theatlas.com/charts/HJX3QMVTl
30
Taking into account increasing popularity of sharing economy and low entry barriers into ride-
hailing industry, it can be argued that the extent of rivalry within the industry is gong to further
intensify in medium and long-term perspectives.
11. Value-Chain Analysis
Uber Value chain analysis is a strategic analytical tool that helps to identify the sources of value
and competitive advantage for the global transportation technology company. Figure 10 below
illustrates the essence of Uber value chain analysis.
Figure 10 Uber Value Chain Analysis
11.1 Uber Primary Activities
11.1.1 Uber Inbound logistics
Generally, inbound logistics involves receiving and storing raw materials. Uber, the largest taxi
technology company in the world, does not own the vehicles it uses to serve customers. The
31
vehicles are owned or rented by Uber drivers, who are not employees, but contractors. Uber
drivers need to possess smartphones to use Uber app software. Uber users, i.e. customer also
must have access to a smartphone or mobile website to be able to use the service.
Therefore, value addition in Uber inbound logistics relates to internet-based nature of business
operations and the business model of the company. Specifically, thanks to its business model,
despite the large size of the business, Uber inbound logistics is only limited to mainly hardware
and office equipment needed to sustain the business.
11.1.2 Uber Operations
Uber operates in more than 760 cities worldwide. The usage of Uber services involves the
following stages:
1. Requesting the ride. Customers can use Uber app to tap each ride option to see wait time,
size, and price. Customers can enter their pickup location and tap-request for their driver to
arrive in minutes.
2. Ride. Customers are able to see contact information of their driver, as well as, vehicle details
on the app. This ensures that customers get into the right car.
3. Pay and Go. When they reach their destination, customers simply hope out of the car and rate
their driver. Customers don‘t need to have cash or credit cards with them; Uber automatically
charges credit card on file.
Uber operations are highly sophisticated and customer-centric thanks to its app equipped with
advanced functions and capabilities. Therefore, it can be argued that Uber app is one of the main
sources of value in Uber operations.
11.1.3 Uber Outbound Logistics
Outbound logistics in value chain analysis is associated with warehousing and distribution of
products. Outbound logistics does not fully apply to service sector such as ride-hailing due to
inseparability of delivery and consumption of services. As discussed above, Uber operates in
32
more than 760 cities worldwide and internet-based nature of its business model is a major source
of value for the global taxi technology company.
11.1.4 Uber Marketing and Sales
The ride-hailing giant mainly relies on social media marketing and word-of-mouth marketing to
communicate its marketing message to the target customer segment. Moreover, Uber uses print
and media advertising, sales promotions, events and experiences and public relations as part of
its marketing strategy. Convenient payment method is a major source of value addition for the
company. Uber automatically charges the credit card registered with the app. Therefore,
Customers don‘t have to have cash or credit card when they reach destinations.
11.1.5 Uber Service
High level of customer service is one of the core competitive advantages for Uber. Good
customer service is effectively integrated into Uber business model. Riders rate their drivers on
the scale of 1 to 5 after each journey and accounts of drivers with average low riding scores are
promptly deactivated. Drivers therefore have an incentive to maintain a clean car and provide
good service.
Each ride receipt includes a map and a GPS track. Customers can complain if their driver took a
longer route to reach the destination. Uber is assessed to be prompt in issuing refunds in such
situations.
11.2 Uber Support Activities
11.2.1 Uber Infrastructure.
Uber‘s infrastructure includes its wide range of support systems and functions such as finance,
planning, quality control and general senior management. Moreover, Uber‘s infrastructure relates
33
to physical and organizational structures and facilities that the company uses to achieve its
primary objective of profit maximization. An interesting aspect of Uber infrastructure relates to
the fact that the largest taxi company in the world has no cars of its own. Uber drivers, who are
independent contractors use their own cars or rented cars to ride customers.
11.2.2 Uber Human Resource Management
Average income of Uber drivers is equal to USD 364.53 The company has been criticized for the
lack of diversity among its employees. ―Of Uber‘s 12,000 employees — including satellite
customer support and leasing agents — fewer than 40 percent are women. Moreover, black and
Hispanic employees together make up only about 15 percent of its ranks, while white and Asian
employees number around 80 percent.‖54 In order to tackle this issue, the global transportation
technology company hired its first chief of diversity officer effective from March 2018.55
11.2.3 Uber Technology Development
Technology development is rightly understood by Uber as one of the critical success factors to
survive in the contemporary marketplace. Being a global transportation technology company,
Uber invests in research and development and improvement of technological infrastructure in a
regular manner. Moreover, Uber has been praised as ―One of the Most Innovative Companies of
2017.‖56 The global taxi technology company ―launched a program in Pittsburgh that allowed
people to summon a self-driving car from their phones. At the same time, Uber acquired
autonomous-trucking startup Otto‖57
53
54
55
Bolden-Barrett, V. (2018) ―Uber hires its first chief diversity officer‖ HR Drive, Available at:
https://www.hrdive.com/news/uber-hires-its-first-chief-diversity-officer/515437/
56
Why Uber Is One Of The Most Innovative Companies Of 2017 (2017) Fast Company, Available at:
https://www.fastcompany.com/3067460/why-uber-is-one-of-the-most-innovative-companies-of-2017
57
Why Uber Is One Of The Most Innovative Companies Of 2017 (2017) Fast Company, Available at:
https://www.fastcompany.com/3067460/why-uber-is-one-of-the-most-innovative-companies-of-2017
34
11.2.4 Uber Procurement
Procurement activity within Uber‘s chain of support operations relates to the ways resources are
acquired for the business. Due to the size and scope of Uber‘s business operations, the company
runs complex procurement activities in the global scale, aiming to adhere to fair business
practices. ―By far the biggest barrier to entry for drivers is the lack of a vehicle that suits the
needs of the job. What Uber offers is to effectively eliminate this limitation by offering a car
rental program, so that anyone can sign up to drive for the company.‖58
12. McKinsey 7S Model
Uber McKinsey 7S model illustrates the ways in which seven elements of businesses can be
aligned to increase effectiveness. According to the framework strategy, structure and systems
represent hard elements, whereas shared values, skills, style and staff are soft elements.
McKinsey 7S model stresses the presence of strong links between elements in a way that a
change in one element causes changes in others. As it is illustrated in Figure 11 below, shared
values are positioned at the core of Uber McKinsey 7S model, since shared values guide
employee behaviour with implications on their performance.
58
Klara, L. (2018) ―How to Recruit Delivery Drivers Against Uber and Lyft‖ Wonolo, Available at:
https://www.wonolo.com/blog/how_to_recruit_delivery_drivers_against_uber_and_lyft/
35
Figure 11 McKinsey 7S model
12.1 Hard Elements
Strategy. Uber pursues cost leadership business strategy. The ride-hailing giant gains cost
advantage thanks to internet-based nature of its business model that disrupted traditional taxi
industry in the global scale. The international transportation technology company increases its
service ranges regularly to cater for the needs of greater numbers of customers. Moreover, Uber
business strategy places a great emphasis on a high level of user convenience.
Structure. Uber organizational structure can be classified as hierarchical. Accordingly, the

company is disadvantaged by the shortcomings of hierarchical structure such as ineffective
communication across various departments, rivalry between departments that may compromise
long-term growth prospects and high level of bureaucracy. Uber‘s new CEO Dara Khosrowshahi
may change the organizational structure to remove certain layers of management as part of his
business turnaround attempts.
Systems. There is a wide range of various systems that are important for Uber‘s long-term
growth prospects. These include employee recruitment and selection system, team development
36
and orientation system, transaction processing systems, customer relationship management
system, business intelligence system, knowledge management system and others. Particularly,
Uber‘s app is a critically important system for the business.
12.2 Soft Elements
Skills. The range of skills and competencies required to be successful at Uber is vast and
include interpersonal skills, leadership skills, teamwork and ability to work under pressure.
Moreover, Uber employees need to possess ability to embrace change, communication skills,
customer orientation, creativity and analytical thinking skills.
Staff. Average income of Uber drivers is equal to USD 364.59 The company has been criticized
for the lack of diversity among its employees. ―Of Uber‘s 12,000 employees — including
satellite customer support and leasing agents — fewer than 40 percent are women. Moreover,
black and Hispanic employees together make up only about 15 percent of its ranks, while white
and Asian employees number around 80 percent.‖60 In order to tackle this issue, the global
transportation technology company hired its first chief of diversity officer effective from March
2018.61
Style. Leadership style at Uber has been traditionally autocratic, with co-founder and former
CEO Travis Kalanick attempting to micro-manage the ride-hailing giant. Lack of leadership
skills by Travis Kalanick was one of the major reasons for the series of scandals such as
bullying, sexual harassment and discrimination at the workplace. However, new CEO Dara
Khosrowshahi is known for his visionary leadership style and he is not scared to show his
vulnerability.62
Shared values. Uber‘s values placed at the core of its new corporate culture by Dara
Khosrowshahi include the following points:63:
59
60
61
Bolden-Barrett, V. (2018) ―Uber hires its first chief diversity officer‖ HR Drive, Available at:
https://www.hrdive.com/news/uber-hires-its-first-chief-diversity-officer/515437/
62
Clifford, C. (2017) ―Uber's new CEO: ‗I have to tell you, I am scared‘ CNBC, Available at:
https://www.cnbc.com/2017/08/30/new-uber-ceo-dara-khosrowshahi-i-am-scared.html
63
Khosrowshani, D. (2017) ―Uber‘s new cultural norms‖ Linked In, Available at:
https://www.linkedin.com/pulse/ubers-new-cultural-norms-dara-khosrowshahi
37
 We build globally, we live locally.
 We are customer obsessed.
 We celebrate differences.
 We do the right thing.
 We act like owners.
 We persevere.
 We value ideas over hierarchy.
 We make big bold bets.
13. Uber Corporate Ecosystem
Uber is working towards developing its own ecosystem in order to increase customer loyalty
with positive implications on company‘s revenues.
The development of Request API (application programming interface) has been viewed by
industry analysis as the first step towards developing Uber ecosystem. It has been noted that
―Request API gives third party developers the ability to integrate their application into Uber. So
if you're an airline or a restaurant booking application, you can create a situation whereby your
flight delay was automatically notified to your Uber driver so that your pickup is correctly
rescheduled.‖64
The update of app on November 2016 paved a way for further development of Uber ecosystem.
Nowadays, Uber app learns from routines of users and scrapes their calendars for the address of
their meetings across the town.65 Particularly, Uber Feed is an important feature and it intends to
gain customers attention during the ride.
Uber Feed presents a stack of services Uber thinks customers might find useful during their trip.
Customers can swipe left on Uber Eats to see which restaurants can delivery to their house in
synch with their arrival time. Alternatively, if customers are running late to their destination,
they can use Snapchat card with custom fields on Uber Feeds updates dinner data on their ETA.
64
Kepes, B. (2015) ―Uber Encourages Its Own Third Party Ecosystem, The Disruptor Disrupts‖ Forbes, Available
at: https://www.forbes.com/sites/benkepes/2015/04/08/uber-encourages-its-own-third-party-ecosystem-the-
disruptor-disrupts/#4c4fd66c7262
65
Gonzalez, R. (2016) ―A Radical Redesign Makes ‗Uber Feed‘ The Center of Your Ride‖ Wired, Available at:
https://www.wired.com/2016/11/radical-redesign-makes-uber-feed-center-ride/
38
There is an immense potential for the ride-hailing giant to further develop its ecosystem via Uber
Feeds and in many other ways.
14. Corporate Social Responsibility
Not paying due attention to CSR aspect of the business has been traditionally one of the
weaknesses associated with Uber. The ride-hailing giant has even lost its license to operate in
London in 2017 due to the lack of corporate social responsibility66. The company does not
release any CSR reports and there is a scarcity of information related to Uber CSR programs and
initiatives.
Uber CSR program integrates the following67:
Uber HUE: promotion of Black diversity, culture, and inclusion for all employees at Uber.
Women of Uber: to provide a channel that promotes women's inclusion for all employees at
Uber.
The global transportation technology company has pledged to dedicate USD 3 million over the
next three years to support organizations working to bring more women and underrepresented
people into tech. Moreover, Uber has been involved in the Grace Hopper Celebration of Women
in Computing.
Nevertheless, women represent less than 40% of total workforce.68 Black and Hispanic
employees together make up only about 15 percent of its ranks, while white and Asian
employees number around 80 percent.69
Los Uber: Creating a diverse and inclusive Hispanic and Latino experience for all Uber
employees
66
Schrieberg, D. (2017) ―Uber Loses License To Operate In London Over Its 'Lack Of Corporate Responsibility'‖
Forbes, Available at: https://www.forbes.com/sites/davidschrieberg1/2017/09/22/uber-loses-license-to-operate-in-
london-due-to-lack-of-corporate-responsibility/#17d9c0741018
67
How do we want Uberto look and feel? (2018) Uber Available at: https://www.uber.com/diversity/
68
69
39
UberVETERANS: to provide a channel that promotes the inclusion of veterans for all
employees at Uber
UberPRIDE: to promote LGBTQ inclusion and diversity here at Uber
UberABLE: to strengthen and sustain diversity and inclusion efforts for employees living with
and supporting those with physical, mental, and emotional disabilities
UberSages: to promote diversity and inclusion of all generations by celebrating and sharing
wisdom that comes with age
The company has earned a top score of 100 on the Human Rights Campaign
Foundation‘s Corporate Equality Index.
14.2 CSR Criticism
UBER has been involved in many controversies and scandals during the past years. The
Guardian lists the following timeline of some of the most consequential controversies70:
‘Boob-er’ backlash, February 2014
Uber CEO Travis Kalanick faced backlash for a sexist joke about his increasing desirability,
telling an Esquire reporter: ―We call that Boob-er.‖
Targeting the competitor, August 2014
Uber faced accusations that it booked thousands of fake rides from its competitor Lyft in an
effort to cut into its profits and services. Uber recruiters also allegedly spammed Lyft drivers in
an effort to recruit them away from the rival.
The ‘God View’ scandal, November 2014
Uber executive Emil Michael suggested digging up dirt on journalists and spreading personal
information of a female reporter who was critical of the company. He later apologized. It was
also revealed that Uber has a so-called ―God View‖ technology that allows the company to track
users‘ locations, raising privacy concerns. One manager had accessed the profile of a reporter
without her permission.
70
TLevin, S. (2017) ―Uber's scandals, blunders and PR disasters: the full list‖ The Guardian, Available at:
https://www.theguardian.com/technology/2017/jun/18/uber-travis-kalanick-scandal-pr-disaster-timeline
40
Spying on Beyoncé, December 2016
A former forensic investigator for Uber testified that employees regularly spied on politicians,
exes and celebrities, including Beyoncé.
Self-driving pilot failure, December 2016
Regulators in California ordered Uber to remove self-driving vehicles from the road after the
company launched a pilot without permits. On the first day of the program, the vehicles were
caught running red lights, and cycling advocates in San Francisco also raised concerns about the
cars creating hazards in bike lanes. The company blamed red-light issues on ―human error‖, but
the New York Times later claimed that the company‘s statements were false and that the
autonomous technology failed.
False advertising, January 2017
Uber was forced to pay USD20m to settle allegations that the company duped people into
driving with false promises about earnings. The Federal Trade Commission claimed that most
Uber drivers earned far less than the rates Uber published online in 18 major cities in the US.
#DeleteUber goes viral, January 2017
A #DeleteUber campaign went viral after the company lifted surge pricing during a taxi protest
at a New York airport against Donald Trump‘s travel ban. A total of roughly 500,000
users reportedly deleted accounts after the scandal erupted.
Trump ties, February 2017
CEO Travis Kalanick resigned from Trump‘s advisory council after users threatened a boycott.
Kalanick said: ―Joining the group was not meant to be an endorsement of the president or his
agenda but unfortunately it has been misinterpreted to be exactly that.‖
Sexual harassment scandal, February 2017
Former Uber engineer Susan Fowler went public with allegations of sexual harassment and
discrimination, prompting the company to hire former US attorney general Eric Holder to
investigate her claims. The story sparked widespread debate about sexism and misconduct across
Silicon Valley startups.
Google lawsuit, February 2017
41
Waymo, the self-driving car company owned by Google‘s parent corporation Alphabet, filed a
lawsuit against Uber, accusing the startup of ―calculated theft‖ of its technology. The suit, which
could be a fatal setback for Uber‘s autonomous vehicle ambitions, alleged that a former Waymo
employee, Anthony Levandowski, stole trade secrets for Uber. Uber later fired the engineer.
Deceiving law enforcement, March 2017
The New York Times reported that Uber for years used a tool called Greyball to systematically
deceive law enforcement in cities where the company violated local laws. The company used
Greyball to identify people believed to be working for city agencies and carrying out sting
operations, the Times reported. The revelations led to the launch of a federal investigation.
CEO caught yelling at a driver, March 2017
Kalanick was caught on camera arguing with his own Uber driver, who complained about the
difficulty making a living with the company‘s declining rates. The embattled CEO yelled at the
driver: ―Some people don‘t like to take responsibility for their own shit. ... They blame
everything in their life on somebody else. Good luck!‖ He later issued an apology and said he
intended to get ―leadership help‖.
Escorts in Seoul, March 2017
Tech news site the Information reported that a group of senior employees, including Kalanick,
visited an escort and karaoke bar in Seoul in 2014, leading to an HR complaint from a female
marketing manager. Patrons at the bar typically select women to sing karaoke with before taking
them home.
Spying on the rival, April 2017
News leaked of a secret program that Uber internally called ―Hell‖ that allowed the company to
spy on its rival Lyft to uncover drivers working for both companies and to help steer them away
from the competitor.
Underpaying drivers, May 2017
Uber agreed to pay drivers in New York City tens of millions of dollars after admitting it
underpaid them for more than two years by taking a larger cut of fares than it was entitled. The
average payout per driver is expected to be about USD900.
42
Twenty employees fired, June 2017
Uber revealed that it had fired more than 20 employees following an investigation into the sexual
harassment claims and workplace culture.
Questioning a rape victim, June 2017
Reports revealed that a top Uber executive had obtained the medical records of a woman who
was raped by an Uber driver, allegedly to cast doubt upon the victim‘s account. The executive,
Eric Alexander, was fired after journalists learned of the incident, according to tech website
Recode and the New York Times. The woman later sued the company for violating her privacy
rights and defaming her.
Kalanick takes leave of absence, June 2017
Kalanick announced that he would take an indefinite leave of absence as the company released a
damning report on workplace culture that recommended Uber ―review and reallocate‖ the CEO‘s
responsibilities.
Board member’s sexist joke, June 2017
David Bonderman resigned from Uber‘s board after he made a sexist joke during an all-staff
meeting about reforming the company and combatting sexual harassment. The venture capitalist
had joked that there was ―likely to be more talking‖ with another woman on the board. He
apologized and stepped down hours later.
Kalanick resigns, June 2017
Kalanick announced that he was formally stepping down, reportedly in the face of pressure from
five of Uber‘s largest investors. The resignation, just one week after announcing his leave of
absence, came after a group of investors who own more than a quarter of the company‘s stock
demanded his departure in a letter delivered to him in person, according to the New York Times.
He will remain on the board.
43
15. Recommendations
On the basis of discussions and analysis above, the following recommendations can be
formulated to Uber in order to address the current challenges faced by the business and increase
its long-term growth prospects:
1. A wide range of scandals Uber has been involved during the past few years emerged
partially as a result of poor organizational culture. Accordingly, Uber‘s new CEO Dara
Khosrowshani is recommended to focus on improving Uber organizational culture in
order to avoid such scandals in the future. Specifically, the values of transparency,
honesty and equality have to be placed at the core of the new organizational culture.
2. The global transportation technology company had to sustain considerable damages to its
brand image due to numerous corporate scandals discussed throughout this report. It is
critically important for Uber to improve its brand image via engaging in effective CSR
programs and initiatives. Moreover, the global taxi technology company is recommended
to release CSR report annually and the report should communicate CSR programs and
achievements initiated by the company.
3. In order to increase customer loyalty and long-term growth prospects of the business, the
ride-hailing giant is recommended to further develop its ecosystem of products and
services. The list of potential services that Uber can offer include, but not limited to
hospitality, cleaning and barbershop services. It is important for Uber to integrate its new
products and services to its core service of ride-hailing and form closed pattern of
ecosystem.
4. This report has identified low earnings by Uber drivers to be one of the main weaknesses
associated with the brand. The new management need to address this weaknesses through
increasing financial compensation for its drivers. By increasing earnings of its drivers,
the ride-haling giant can achieve more cooperation form drivers and ensuring the
adoption of new organizational culture would be easier. At the same time, it is
understood that implementation of this recommendation in practice is not easy, taking
into account the fact that Uber is yet to make a profit. Nevertheless, the company can be
profitable and increasing the wages of its drivers by developing its ecosystem as
discussed above.
44

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Uber Technologies Inc.

Table 1 Uber SWOT analysis .......................................................................................................... 8

Uber business strategy consists of the following 3 pillars:

Figure 1 below illustrates Uber organizational structure

SVP of Engineering Chief Financial Officer

Chief Technology Officer

Head of Uber General President

Figure 1 Uber Organizational Structure

6. Uber and Ansoff Matrix

1. Market penetration. Market penetration refers to selling existing products to existing

4. Diversification. Diversification involves developing new products to sell to new markets.

SWOT is an acronym for strengths, weaknesses, opportunities and threats related to

1. First mover advantage and global market leadership

1. Damaged brand image due to a series of various scandals

1. Increasing popularity of sharing economy

1. More legal actions in certain countries to ban Uber from operating

Figure 4 Valuation History for Selected Unicorn Startups21

Figure 6 Ride-Hailing Users Projections26

Figure 7 Worldwide internet user penetration from 2014 to 202128

8.1 Political Factors

 Who is responsible in case of car accident: Uber or the driver?

8.2 Economic Factors

8.3 Social Factors

8.4 Technological Factors

Being a global transportation technology company, Uber is impacted by a wide range of

8.5 Environmental Factors

8.6 Legal Factors

9.1 7Ps of Marketing

Generally, Uber pricing strategy integrates the following principles:

Segmentation involves dividing population into groups according to shared characteristics,

The following table 3 illustrates Uber segmentation, targeting and positioning:

Type of Segmen Uber target customer segment

9.3 Marketing Communication Mix

9.3.2 Sales Promotions

9.3.3 Events & Experiences

9.3.5 Direct Marketing

Personal selling is ―person-to-person communication with a prospective customer in order to

10. Porter’s Five Forces Analysis

Figure 8 Uber Porter's Five Forces

10.2 Bargaining power of buyers

10.3 Bargaining power of suppliers

10.4 Threat of substitute products or services

10.5 Rivalry among existing firms

Figure 9 Valuations of Learning Ride-hailing Companies, April 201752

11. Value-Chain Analysis

Figure 10 Uber Value Chain Analysis

11.1 Uber Primary Activities

11.1.1 Uber Inbound logistics

11.1.2 Uber Operations

11.1.3 Uber Outbound Logistics

11.1.4 Uber Marketing and Sales

11.1.5 Uber Service

11.2 Uber Support Activities

11.2.1 Uber Infrastructure.

11.2.2 Uber Human Resource Management

11.2.3 Uber Technology Development

12. McKinsey 7S Model

12.1 Hard Elements

Structure. Uber organizational structure can be classified as hierarchical. Accordingly, the

12.2 Soft Elements

13. Uber Corporate Ecosystem

14. Corporate Social Responsibility

Uber CSR program integrates the following67: