Asa service-based and software-based company, Uber is limited in thedistribution strategies it can employ. The firm employs technologythrough smart phones (iPhone, blackberry and android) applications toconnect drivers and riders through the company platform. This givesthe firm access to a wider population with 50% of Americans usingsmart phones and over 80% living in urban areas where the service isavailable. Today the service is available in numerous cities aroundthe world. The service enables consumers to obtain for-hire andcarpooling services on demand in a more convenient manner thantraditional taxis while also enabling drivers and taxi owners tomaximize trips and earnings. The app automatically detects locationof client and the nearest driver and connects them.1The firm obtains retains a 25% of payments made which is throughcredit card only via the app.2
Thefirm operates mainly in urban centers where there are highpopulations. A significant percentage of its users operate in citieswith 20% of clients in 2013 utilizing the service in more than onecity.3This ensures proximity to markets and also brand awareness throughreferrals. To showcase its products, the firm employs social mediasuch as Twitter and Facebook. It has also sought celebrityendorsements including NFL teams and players. Another report claimsthat the firm targets party goers and too-drunk-to-drive peoplearound entertainment spots.4Consequently, it is growing its client list by over 6000-7000 permonth. The firm also avails different services from which consumerscan chose. Currently there are six calluses of cars. Drivers are alsoranked on safety and professional data which is available to clients.The firm has made binding deals with limousine companies that ensurethe firm has a wider product range. As a firm that targets driversand passengers, more effort is directed toward recruiting driverseven going as far as offering iphones to newly enlisted drivers togive them access to the application. The application is necessary topick passengers and also process payments.
Badger,Emily. Uber is tapping into the too-drunk-to-drive market, user datasuggest.
Boucher,Spencer. Uber Around the World. Uber.https://blog.uber.com/uber-jetsetters
Carney,Michael. Consumer spending data indicates Uber is far larger andgrowing faster than
Voytek,Optimizing a dispatch system using an AI simulation framework. Uber.2014.
1 Voytek, Optimizing a dispatch system using an AI simulation framework.
2Michael Carney Consumer spending data indicates Uber is far larger and growing faster than Lyft. On September 11, 2014. 2014. http://pando.com/2014/09/11/consumer-spending-data-indicates-uber-is-far-larger-and-growing-faster-than-lyft/
3 Spencer Boucher Uber Around the World. https://blog.uber.com/uber-jetsetters
4 Badger, Emily. Uber is tapping into the too-drunk-to-drive market, user data suggest. Washington Post. http://www.washingtonpost.com/blogs/wonkblog/wp/2014/07/21/uber-is-tapping-into-the-too-drunk-to-drive-market-user-data-suggest/