Uber-Case Write-Up

1. Uber has become popular among consumers in a short period of time. What is Uber’s value proposition for Consumers? How has the company achieved such disruption? Is the value proposition for consumers sustainable? Justify your answers. Uber has become popular among consumers in a short period of time by providing exceptionally good services in minutes. Uber has connected almost all the dots and has reached nook and corner of the areas in which it serve. Uber has created value for anyone who wants to go from one location to another within a city. Uber’s value propositions for Consumers are: 1. No need to wait for a cab for long times. Uber reaches to people in minutes because of its huge presence and better market penetration 2. Free rides on certain occasions and discounts from time to time. 3. Less pricing than the normal taxi fares. 4. Fixed prices for some places such as Airport. 5. Cashless and no tip required from customers which saves time. 6. Variety of services such as UberXL, UberBlack according to customer needs and demands. The services from cab and other taxi agencies were very poor as experienced by people. Besides, the people felt frustrated about the lack of ability to change anything and were eager to find something better for their convenience. Uber tapped into the frustration of people and performed extremely well. This way Uber has become popular among consumers. Uber used innovation and created demand for the customers to disrupt the business. Besides it has used technology expertise and technological gadgets to achieve disruption. Uber disrupted the business by being the dispatcher and on performing all other functions of taxi companies such as provider of payment mechanism. However,the difference is that Uber uses the disruptive effects of the network such as mobile GPS to become the dispatcher for all customers. There is the second vector of disruption – the network effect which potentially removes all other taxi companies from the competition by making Uber available to everyone. With this accessibility in every nook and corner Uber leveraged other benefits for the customers and reap the rewards. The value propositions for consumers are sustainable because Uber is delivering best services to its customers without much wait times. Customers want fast and reliable services without spending too much. This is what Uber has provided to its customers. It has enhanced its services for people hailing from different categories and provided them with services such as UberBlack, UberXL. 2. What is Uber’s value proposition for Drivers? What are the compliments and complaints that drivers have about driving for Uber? Is the value proposition for drivers sustainable? Justify your answers.Uber’s value propositions for drivers are: 1. Additional s