Executive Summary – this should include a summary of the problem/opportunity, your solution to it, how much it will cost, how much new revenue it will generate,

Executive Summary Uber’s app service leads the rideshare market, providing opportunities for increased safety precautions, effective driver retention, & conscious order pricing. Doing annual background checks, implementing a more secure rider/driver verification system, covering 50% of driver gas costs, increasing driver pay by 10% per minute, & launching new services, Uber will be able to increase sales by $10,000 million. While overall costs will be $10.5 million, overall benefits will be $118,000 million, allowing for a $12,200 million increase in income, therefore getting the company out of the red. Company Description

o Rideshare service company founded in 2009 (originally called UberCab) o International launch 2011, employs drivers worldwide o Now considered technology platform for people and things mobility with restaurant

delivery service launch in 2014 (UberEATS) Vision & Mission

o Vision: We ignite opportunity by setting the world in motion o Mission: Smarter transportation with fewer cars & greater access. Transportation that’s

cheaper, safer, & more reliable. Opportunities

I. Safety II. Driver Retention III. Service Growth

Analysis Internal

o Core Competencies: Strong brand image, good customer understanding, ride options o Competitive Advantage: First mover, service innovation & development, algorithm o Resources: Network effect, worker skills, R&D, eco-friendly app based, & global,

financial debt o Capabilities: User friendly, practical, comfort, “tap & ride” o VRIO (Figure 1)

 Uber has a sustainable competitive advantage from their innovation & a temporary competitive advantage from their network effect

External o PESTEL

 Political: Government regulations in some countries  Economical: Cost efficient rides, several pricing models, financial issues (debt)  Social: International operations  Technology: Innovation in apps, progress with self-driving cars  Environmental: Carpool service  Legal: Safety issues & improper treatment of employees

o Strategy Canvas (Figure 2) o Perceptual Map (Figure 3)

SWOT Analysis (Figure 4) o Uber should take a COMPETITIVE strategy approach to achieve better performance

Value Proposition o Customers: cheaper than taxis, comfortable, free rides/promotions, efficient o Drivers: flexible schedules, can be second source of income, provided benefits

Target Market Description o Current customers are in middle 50% income, 25-45 years old, & equally split between

male & female, & urban & rural locations o Potential users are 15-24 & 45+ years old, developing communities, lost clients o Target users are cost efficient, those who cannot drive, tourists, partygoers, as well as lost

customers from past mistakes, pet families, & people who are too busy to shop Marketing Program Product

o Smartphone apps for consumers to download & request rides o Ability to contact driver, track their nearby location, & get notifications o Various services for customer preference

 Cars: UberX (most popular), UberTAXI, UberBLACK, UberSUV, UberLUX, UberXL, UberPOP, & UberPOOL

 Others: UberRUSH, UberFRESH, & UberEATS o Introduce additional services, such as pet transportation, single item delivery, retail or

grocery delivery, & tour guides to reach more customers & maintain competitive advantage

Place o 700 active cities (50+ countries) o Provide drivers additional funds for gas costs & increase wages to incentivize more

people to drive, creating more availability for location expansion Price

o Upfront; App determines pricing o Cost leadership (cheaper than taxis)

Promotion o Advertising through social media & streaming programs & word of mouth o Strategic partnerships with other companies o Rider & driver benefit discounts, free rides & rewards program o Implement more background checks for drivers, & better verification systems for safety

of riders & drivers to regain customer & employee trust Implementation

o December, 2020: Office personnel are increased & background checks on all drivers, new & existing are required & driver behavior is monitored annually

o Spring 2021: Text message verification system between rider & driver are used from app & sent through Uber extension number to direct phone number of each party

o October 2021: Driver wages are increased by 10%, per minute, per ride o February 2021: UberQUICK is launched for people to place orders for few items with no

minimum purchase requirement o Fall 2022: Gas funds are 50% covered for each app ride logged by drivers & are

monitored through app tracking software. UberTOUR is launched for tourist visits. o December 2022: UberPET & UberSHOP is introduced for pet transportation & shopping

delivery & will be available through the app stores on smartphones Costs of Solution (See Figure 5 & 6)

o Overall Cost: $10.5 Million o Overall Benefits: $118,000 Million o $12,200 Million debt recovered

Figure 1

Valuable Rare Difficult to Imitate Organized Pricing Strategy Yes No No Yes Innovation Skills Yes Yes Yes Yes Network Effect Yes Yes No Yes

Figure 2

Figure 3

Figure 4

Strengths: – Low operation

costs – High Service

Standards – Strong

Recognition

M 2

3

2

I 3

3

3

R 6

9

6

Opportunities: – Utilization of more

drivers – Additional services – Exploitation of

new markets

M 2

3

3

I 2

3

3

R 4

9

9

Total 21 Total 22 Weaknesses:

– Scandals & Issues – Financial losses – Increasing

competition

3

3

2

3

3

3

9

9

9

Threats: – Easily imitated – Excludes older

generation – Developing legal

regulations

3

2

2

3

2

3

9

4

6

Total 24 Total 19

Figure 5

Safety Driver Retention Market Growth Costs New Software: $10,000

Marketing: $1 Million Lawyers $20,000

Pay Increase: $975,000 Gas Coverage: $2 Million

R&D: $4 Million Advertising: $2 Million

Benefits Customer Increase: $83 Million

Driver Reliability: $15 Million

Increased Sales: $20 Million

Figure 6

2017-2020 2021 2022 Units (Rides) 5.5 Billion 1.9 Billion 2 Billion Net Revenue $33,349 Million $18,000 Million $20,000 Million

COGS $16,991 Million $8,000 Million $8,500 Million Gross Income $16,358 Million $10,000 Million $11,500 Million SGA Expenses $23,117 Million $7,300 Million $8,000 Million

Operating Income -$15,709 Million $2,700 Million $3,500 Million