Uber Technologies SWOT & PESTLE Analysis
COMPANY PROFILE -Uber Technologies
Business Sector :Transportation, Delivery
Operating Geography :United States, North America, Global
About Uber Technologies :
Uber Technologies Inc. is an American multinational global service provider for transportation. UberCab was founded in year 2009 by Garrett Camp and Travis Kalanick, with a simple thought “is it possible to ride with the push of a button”. Its service products include the Uber application and the website. It provides a medium where customers can contact the drivers in their vicinity for a taxi service. Uber does not hold any cars or vehicles of their own. All its drivers are on contract worldwide and are not considered its employees. Today Uber not only offers transportation facility, but also provides food delivery service with Uber Eats, transportation services based on business needs with Uber for business and various other sundry services under the Uber company. Headquartered in San Francisco, U.S., it is a modern and new venture with fastest projected growth of $70 billion making it a #1 venture as of 2017. However legal suits and driver protests are some of its drawbacks worldwide but its robust technology and on-time, dedicated service in unparalleled and admirable. As of Dec, 2017 Uber has 12000 employees.The Disruptor 50 list by CNBC features private companies whose innovations are changing the world; In the 2018 Disruptor list, Uber leaped to 2nd position from 19th position in 2017.The USP or Unique Selling Proposition of Uber lies in their offer of seamless travel, with the rider walking away after arriving at his destination. Uber's mission statement reads “Uber’s mission is to bring transportation — for everyone, everywhere.” Uber’s vision statement reads “the company was founded on the grand vision of bringing people together and connecting cities.”
Uber Technologies Revenue :
$6.5 billion (excluding China) – FY ending Dec 2016
Post 2016, revenue figures have been kept private by the company.
Ownership / Major shareholders :
As of April 2018, the major shareholders of the company are as follows –
1) SoftBank (15%)
2) Benchmark (11%)
3) Travis Kalanick (2.52%)
4) Garett Camp (2.29%)
5) GV (2.08%) 6) Others (47%)
Competitive Analysis of Uber Technologies
Uber’s major weakness is having unprofessional and unethical drivers on board, their inappropriate professionalism affects the brand’s reputation as drivers are the face of the company. Sexual harassments of female riders have been a major issue to which the company is lacking a proper solution. Uber’s high dependency on technology limits the company to render services only to users who are smartphone savvy. Uber’s presence in highly digitized, developing and developed countries gives it scope for opportunities like an integration of logistics in the existing model, provision of other transport facilities, increasing smartphone users and internet invasion leading to further utilization of Uber. Increasing competition leads to switching of customers and drivers to other alternatives offering a monetary advantage and self-driving cars on the rental basis. Also people without technical knowledge opt for traditional transport facilities along with factors like unfavorable government policies are all major threats to Uber technologies.
The SWOT/TOWS analysis for Uber is presented below in the SWOT Matrix followed by detailed description:
| 1. Robust and easy to use platform and low operational cost. 2. Reasonable fares and timely service with many modes of payments 3. Varied services and vast fleet of vehicles with regular taxi rules and regulations not applicable 4. Drivers are on contract bases and not employed. 5. Hottest brand with good advertisement giving it a #1 unicorn image | 1. Relation between Uber and its drivers lack connection. 2. Top management issues 3. Poor image on work ethics 4. Uber is lagging behind competitors and is still in the red 5. Dependence on technology |
| 1. Potential in emerging markets 2. Increasing internet penetration and smart phone users 3. Car sharing, electric cars usage and other environment friendly methods. 4. Innovative and unconventional services | 1. Varied government rules and regulations due to vast area of operation and Legal cases with other companies. 2. Self- driving cars and autonomous cars in the near future. 3. Local players and Taxi drivers protest 4. Aged population still following the traditional taxi service. 5. Self-drive car rentals eating into call cab market shares |
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Detailed SWOT Analysis of Uber Technologies
Strength
1. Robust and easy to use platform and low operational cost: Uber has a robust app for almost every service it provides. It has an app for cab booking, another for logistics and UberEats. Recently, Uber launched Uber Freight, an on-demand service to connect truck drivers with cargo that needs to be hauled for long distances. The app uses GPS to track the location of both drivers and commuters to calculate accurate time of arrivals and journey time which makes the riding experience better and much more preferred by people. Amongst its services it has an application and a website whose maintenance cost is low. All its drivers use their own car or a rented one; hence Uber does not have to purchase cars nor maintaining them. Overall these factors make their operational cost very low.
2. Reasonable fares and timely service with many modes of payments: Uber has been focusing on price optimization for cab fares since the beginning. It has been charging the passengers far lower than was charged by traditional taxis which have led the business to shift sharply in its favor. Riders are charged on the basis of time and distance travelled. It provides many modes of payments for instance cash, debit or credit card and many e-wallets. The riders are quoted an estimated fare before the start of the journey. Other than that its timely pickup and drop facility has gained customer confidence and loyalty. It has business in over 600 cities across the world and has been a welcome change for people in those countries who had been grappling with arbitrary fares and long wait times for their transport needs. Uber has significantly gained customer base all over the world and has emerged as the preferred service provider.
3. Varied services and vast fleet of vehicles with regular taxi rules and regulations not applicable: Uber offers diversified modes of transport to serve the indigenous needs of the country or region at large. Some of its services include UberX for private ride in luxury cars, SUVs. UberGo in India with hatchback cars, UberAuto with auto rickshaw in India, Pakistan etc.; and UberBoat providing Beneteau boats to travel in Istanbul. In India it has more than 200,000 cars running. In Nov 2017 the Company has announced to purchase 24,000 Volvo cars designed to integrate autonomous features. Since Uber is only a medium where drivers and riders collaborate with each other hence it is not bound by any government rules and regulations applicable for taxis.
The remaining section under "Strength" is available only in the 'Complete Report' on purchase.
Weakness
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Opportunity
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Threat
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Major Competitors :
- Public Transport
- Ola cabs
- Curb
- Grab
- Lyft
- Local Taxis’s
- DidiChuxing
Major Brands :
- Uber Eats
- Otto
Key Business Segments / Diversification :
Recent Acquisition / Mergers / Alliance / Joint Ventures / Divestitures :
Open Table Preview| Grab | Transportation | 2018-Underway | Merger | With this strategic merger retreat, Uber would get a 27.5% stake in its rival’s business and would shift its 500 employees and customers over to the Grab app. |
| Toyota | Automobile | 2018 | Alliance | With this alliance Uber aimed to create a self driven shuttle that would expand the capabilities of its ride sharing app. However, it is not yet clear which company will own the cars. |
| Jump | Bike share startup | 2018 | Acquisition | This deal was valued at around 200 million. This deal allowed Uber to start up its section Uber Bike which will allow app users to book a JUMP bike the same way they would book a cab. |
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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
2. The SWOT analysis report comprises of all the factors that describe the major strengths and weaknesses of Uber company
3. The report confers intelligence on the external analysis, comprising the opportunities which can be incorporated to achieve worldwide growth and expansion. It also talks about some pertinent threats to the company that threatens to impede growth.
4. Core competitive advantages enjoyed by Uber over its rivals and competitors from the transportation industry
5. Pestle analysis of the transportation industry gives a detailed picture of the external factors and its influences on the industry and largely on Uber technologies.
6. A detailed interpretation of how influencers like political, economic, social, technological, legal and environmental factors have impacted Uber ’s innovative business model.
7. The SWOT and PESTLE report helps track key facts like, market value, market segmentation, diversification, mergers and acquisitions etc. about the Uber Co.
8. A brief overview of Uber’s founders, its corporate headquarters, owners & stakeholders, and revenue jumps. Concurrently with the overall company analysis to gain acquaintance about company information, company profile, business model, business plans and marketing strategy.
9. Interpretation of Uber ’s USP or unique selling proposition, mission statement and vision statement that has set a benchmark in the transportation industry
10. Intelligence on Uber's share price, mergers and acquisitions, strategic partnerships and alliances, that Uber subscribed with deal valuations and the business objectives or synergies that were achieved with them.
11. Insights into Uber’s business model, along with further breakdown and analysis of key business segments and business case study.
12. A glimpse into the Uber’s key performance indicators, success factors, value proposition and core competencies
References used in Uber Technologies Analysis Report
1. Uber reports full year 2018 financial results - https://www.cnbc.com/2019/02/15/uber-2018-financial-results.html
2. Uber's Fourth Quarter Financials Are Out, Here's what we're seeing - https://news.crunchbase.com/news/ubers-fourth-quarter-financials-are-out-heres-what-were-seeing/
3. Uber's Latest Financials Reveal Slowing Growth - https://www.forbes.com/sites/jilliandonfro/2019/02/15/ubers-latest-financials-reveal-slowing-growth/#312083c3609a
4. Uber IPO : Uber unveils IPO with warning it may never make a profit (the Economic Times) - https://economictimes.indiatimes.com/markets/ipos/fpos/uber-unveils-ipo-with-warning-it-may-never-make-a-profit/articleshow/68843418.cms?from=mdr
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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Uber Technologies SWOT and PESTLE analysis has been conducted by Tapan Aggarwal and reviewed by senior analysts from Barakaat Consulting.
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