The Uber story shows how a company employing a unique online distribution strategy has disrupted an entire industry and become the dominant market leader.
Uber Online Distribution Strategy Discussion
“The Uber story shows how a company employing a unique online distribution strategy has disrupted an entire industry and become the dominant market leader. Uber took on an industry of well-entrenched competitors (such as taxis and buses) by breaking ranks from the standard industry distribution model of renting cars, calling taxis, or riding buses. It recognized a gap in the market and targeted customers with unmet needs through a series of totally new distribution approaches.
In just seven years, Uber has revolutionized the urban transportation industry. Once the domain solely of taxicabs, car services, and public transportation, such as trains and buses, Uber allows passengers to call for a ride, choose the driver and type of car, know the fare in advance, and track the vehicle as it approaches. Uber now books more than $10 billion in rides, and operates in hundreds of cities in 67 countries. In addition to traditional competitors, Uber’s success has attracted numerous other ride-hailing services, but Uber is taking full advantage of its first-to-market leadership position. Traditional transportation services are known for the close relationship between cab companies and local governments, high fares, poor service, and little accountability. Uber’s model is changing the transportation industry. Uber’s CEO sees other applications in the company’s future, which may provide the opportunity for growth beyond Uber’s ride-hailing origins.” (Pearson, online)
How did Uber become the leader in the urban transportation business?
What has been the secret of its distribution strategy? How has Uber managed to provide value to its clients and stay ahead of the competition?
How does Uber adding delivery services fit into its distribution strategy?
Do you believe that Uber will be successful in the long term? Why or why not?
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