While going through the postings for transition from Development to Implementation, the idea of having a concrete Value, Mission and Strategy made me think of one and only one company: UBER. As rightly mentioned, a company's mission, strategy and value must be clear before stepping into the market.
Uber stepped into the market in March 2009, in San Francisco, to solve the in-situ public transportation problem. Travis Kalanick and Garrett Camp placed the company in the market as a private taxi company providing black cabs at an affordable price to daily commuters. Consumers could simply download the application on their phones and request a ride and a driver was sent to their location to pick them.
But in recent times, trying to throw competitors out of the market, Uber started the price fight with local taxi providers. Uber lowered their prices and started offering cabs in all types of segments with different pricing. Recently, the company reported that their lower-cost UberX rates are on “average 20% lower than a New York Taxi”. Uber is now fighting with their drivers too regarding their wages. By cutting down prices for customers, Uber is also cutting down the driver's shares and thus jeopardizing their budgets too.
But in this process, Uber is also jeopardizing one more thing: MARKET IMAGE AND POSITIONING. In the public eye, the company is seen as a cheap, easy option for a ride around their city. However, on their website, Uber presents a completely different image. With black cars roaming around on their website, Uber seems to be trying to fill the role of luxury car service. The problem here though is, there are many other competitors, like Lyft. trying to exploit this market share.
Uber already has an established market. So, it would be better for the cab company to drop the already saturated "low cost cab" idea and go for their original idea of "luxury experience". Uber should use its already established market position to try and exploit the bounty of consumers who are looking to enjoy a luxury experience. In cities such as New York and San Francisco, there are many consumers, as well as respected businesses, who could pair up with Uber to make this brand successful.
Uber stepped into the market in March 2009, in San Francisco, to solve the in-situ public transportation problem. Travis Kalanick and Garrett Camp placed the company in the market as a private taxi company providing black cabs at an affordable price to daily commuters. Consumers could simply download the application on their phones and request a ride and a driver was sent to their location to pick them.
But in recent times, trying to throw competitors out of the market, Uber started the price fight with local taxi providers. Uber lowered their prices and started offering cabs in all types of segments with different pricing. Recently, the company reported that their lower-cost UberX rates are on “average 20% lower than a New York Taxi”. Uber is now fighting with their drivers too regarding their wages. By cutting down prices for customers, Uber is also cutting down the driver's shares and thus jeopardizing their budgets too.
But in this process, Uber is also jeopardizing one more thing: MARKET IMAGE AND POSITIONING. In the public eye, the company is seen as a cheap, easy option for a ride around their city. However, on their website, Uber presents a completely different image. With black cars roaming around on their website, Uber seems to be trying to fill the role of luxury car service. The problem here though is, there are many other competitors, like Lyft. trying to exploit this market share.
Uber already has an established market. So, it would be better for the cab company to drop the already saturated "low cost cab" idea and go for their original idea of "luxury experience". Uber should use its already established market position to try and exploit the bounty of consumers who are looking to enjoy a luxury experience. In cities such as New York and San Francisco, there are many consumers, as well as respected businesses, who could pair up with Uber to make this brand successful.
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