Why Uber needs a new mission statement
Companies are facing tough competition with the current fast
pace of change in markets trends, technology customer choices and engagements,
which results in exploring new Business Models in order to sustain. A mission
statement, which is purpose of existence of a business also needs to be changed
with time, to justify its purpose and set its future direction. This vision and mission embeds in itself the core values of the company and creates coherence within the
organization, required by the business to function. In this regard a new proposed
mission statement of Uber is,
“Bringing value and convenience using technology that
creates a win, win, situation for our Customers and Partners, and ensures
reliability, efficiency, affordability and safety centered around best customer
experiences”
This new mission statement seems to justify Ubers purpose of
existence while Uber is exploring new Business Models like Uber Eats and Uber
Freights, Uber Business Uber Works and Uber Health. With the diversification in
Uber Works, Uber intent does not seem to limited to Transportation, so this vision and mission ensures to support
Uber in its exploration in the innovations in Business Models, revenues
models, realization of revenues and scope.
Uber Business Model V.A.R.S Analysis:
Value proposition:
Uber business model canvas adds value by allowing the users
to get an affordable ride of choice on a single click, minimizing customer
waiting time, by connecting users and drivers using a mobile app and reducing
the costs by outsourcing its fleet of cars, while paying the drivers good rates/rewards
(around 80% or Charged amount) and compensation. Using the intelligent,
algorithm-based server platform, to incentives drivers to move into high
service demand areas. It is good for people who want to earn extra cash or
socialize, they can easily join uber as drivers in part time due to flexibility of
work hours, while customers can easily get an affordable easy way to commute, without worrying about parking issues and driving stress etc.
Uber Activities, Resources and Capabilities:
Uber works through a mobile app that uses internet to
connect to back-end online servers that manages users their logins, payments and
billing, rewards and offers and a number of different activities. Drivers also
called partners are also managed in the similar way, but with a different mobile
app having difference in services, for example hours worked, earnings and uber
commissions, incentives to move to more in high demand areas, peak hours
driving and holiday season driving. All this is spread across 67 countries
around the world. Uber also need Cars that should be available on time when the
customer requests the Cab via mobile app. All this needs a verified, stable,
low latency mobile apps with location based services, servers and software that make the mobile app
functional with low response time, high availability. In addition to what is mentioned before Uber also needs local presence(offices), having human resources
that are aware of local market conditions, cultural values and ethics, so that Uber
can adapt locally towards providing the services in different parts of the world, while supporting drivers/partners in their respective countries. It also needs a fleet of cars with drivers to
be used as taxis. Uber reduced the cost by out sourcing this part of the
business, a car with complete maintenance and fuel costs is needed to be
provided by the partner/Driver who want to work with uber and in return Uber
provides them with good per hourly rates, rewards and incentives that is required
to maintain the operational excellence.
Uber Realization of Value (Uber’s Revenue Model):
Uber realizes value by two side markets business model where
by it provides customers an efficient way to commute on a single click, from
anywhere in its coverage area, from one place to another without worrying about
parking issues, driving stress and other possible problems. In return Uber
charges affordable amount from the customers for this service provided to them,
considering the demand for the service, time of commuting etc. A major part(80%)
of charged amount goes to the Drivers/Partners and Uber takes it’s commission
as a percentage of total amount charged. This amount can be paid in cash, through
credit card can be put in customers wallet and used as necessary. Affordable
monthly subscription plans with monthly per Kilometer limit are also available
to attract customers where user is charged less per kilometer of travel, but
they pay the subscription amount in one go before start to use the subscription
service.
Uber’s Scope:
Customer Segments:
Uber want to serve a broad range of customers in different
markets, either it’s an individual customer, a business customer (Uber
Business), a Traveler, Freight (Uber Freights), Health (Uber Health).
Horizontal Scope:
Ubers Horizontal Scope was initially focused on
Transportation industry which is also reflected in its current mission
statement. Still Uber major businesses revolve around transportation services
like Uber eats, Uber Health. Recently Ubers has introduced Uber Works app,
which shows the intent to broaden its horizontal scope by providing a different
service which is to connecting people who want to work part-time, with their
prospect employers keeping in consideration, their schedules and availability
etc.
Vertical Scope:
Uber's Vertical scope involve the mobile app and server
platform as it prime assets that are in sourced, in addition to marketing,
finance, billing and other core areas needed for the business to keep it
working at operational excellence, with the best customer experience. Uber has
outsourced the fleet of Cars, that is provided and maintained by its
partners/Drivers, with strict compliance of quality.
Allowing the users to get an affordable ride of choice at a
single click, by connecting Users and Drivers using an mobile app, and reducing
Operational cost by not owning a car, no operational cost in car maintenance,
while paying the drivers well using the platform recommendation system for the
driver to move into the area where there is high requirement of service. People
who want to earn extra cash or socialize can easily join Uber as drivers in
part time
References :
[1] https://www.uber.com/
[2] https://www.businessinsider.com/amazing-life-of-uber-new-ceo-dara-khosrowshahi-2017-8
[3] https://www.theatlantic.com/technology/archive/2019/05/how-uber-justifies-its-ipovaluation/
588979/
[4] https://www.uber.com/cities
[5] https://investor.uber.com/news-events/news/press-release-details/2019/Uber-Reports-Second-
Quarter-2019-Results/default.aspx
[6] https://www.nytimes.com/2019/10/11/technology/uber-cornershop-grocery-delivery.html
[7] https://www.cbsnews.com/news/uber-unveils-new-feature-samantha-josephson-death-asrideshare-
industry-faces-scrutiny-over-passenger-safety/
[8] https://www.npr.org/2019/10/03/766861700/uber-launches-an-app-to-connect-job-seekers-withgig-work
[9] http://www.uberpartnerschicago.com/uber-xxl/
[10] http://www.cnet.com/news/uber-drivers-kick-off-global-day-of-protest/
Parecki. A. (2015). On January 13, 2015, around 70 of Portland‘s 460 Taxi cabs protested fair taxi laws by parking in Pioneer square. [Online image]. Retrieved from
https://commons.wikimedia.org/wiki/File:Uber_Protest_Portland_(16089442207).jpg
• Parecki. A. (2015). On January 13, 2015, around 70 of Portland‘s 460 Taxi cabs protested fair taxi laws by parking in Pioneer square. [Online image]. Retrieved from
https://commons.wikimedia.org/wiki/File:Uber_Protest_Portland_(15655460313).jpg
• Núcleo Editorial. (2016). Uber and Taxi in São Paulo, Brazil. [Online Image]. Retrieved from
https://commons.wikimedia.org/wiki/File:Uber_e_t%C3%A1xis_em_S%C3%A3o_Paulo_(26094517575).jpg
• Spur. (2013). Lyft. [Online image]. Retrieved from https://flic.kr/p/hvgyTB
• Taylor, D. (2013). Travis KalanickLeWebDay [Online image]. Retrieved from
https://en.wikipedia.org/wiki/Uber_(company)#/media/File:Travis_Kalanick_LeWeb.jpg
• TechCrunch. (2014). Uber CEO Travis Kalanick speaks onstage at TechCrunch Disrupt at Pier 48 on September 8, 2014 in San Francisco, California. [Online image]. Retrieved from https://flic.kr/p/p6A3jU
• TechCrunch. (2018). Uber CEO Dara Khosrowshahi speaks onstage during Day 2 of TechCrunch Disrupt SF 2018 at Moscone Center on September 6, 2018 in San Francisco, California. [Online image]. Retrieved from
https://commons.wikimedia.org/wiki/File:Dara_Khosrowshahi_speaks_onstage_during_Day_2_of_TechCrunch_Disrupt_SF_2018_(775208326GB00039).jpg
• Torrenegra, A. (2013). On my first @Uber ride in Bogota heading to a Startup Weekend. [Online image].
Retrieved from https://commons.wikimedia.org/wiki/File:Uber_ride_Bogota_(10277864666).jpg
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