Uber pricing strategies and marketing communications
1. Uber started up as a private luxury car service catering to Silicon Valley’s top executives. The service were access by a particular code via Uber app. They were convinced that the concept of technology bring drivers and passengers together efficiently could scale globally. Uber serve as a platform between drivers and passengers, using there electronic dispatcher connected digitally through its proprietary software. It is different from their competitors and traditional livery service and is able to attract investors to help them rapid expansion.
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If there are more drivers, there will be shorter pickup times and result in more usage, lead to more geographical coverage. When Uber expand into more cities, greater usage will lead supply to reach saturation of one city. Due to the saturation, pickup times will start to drop. Therefore will trigger more demand and result in more positive feedback. There is an increasing in demand and supply of this platform. With such positive feedback loop, Uber is not losing its growth momentum.
3. Uber is a new way in livery business. It matches passengers and drivers for rides. Its profits are growing in different areas, such as safety part like select licensed drivers and payment system. Uber’s success can be associated with the ability to do the right things and it’s capable of attracting high-profit investors. Uber can generate greater value and revenue by entering into a variety of services that all leverage their existing platform.
4. Fares increased based on peak demand periods and adjusted by algorithm. According to the case, many drivers can complete their target income before finish their shift. This appear that its and successful pricing police.
5. Uber depended on social media for most of its promotional and branding actives. The reason why they failed in Seattle market is because of regulation difficulties. The Seattle government restricts the...