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Service Marketing UBER Technologies

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Question:

Discuss about the Service Marketing UBER Technologies.
 
 

Answer:

Company profile:

UBER technologies are the company that is headquartered at San Francisco, California. It is the company that deals with transport network services. This company has started its business by developing a mobile application (Cramer & Krueger,  2016). This application is used by the customers to book or request the ride that is being transferred to the drivers who are using their own cars to conduct the trip. As per the data, the company operates its business in 58 countries and 300 cities in the entire world. After UBER, many companies have tried this business idea and launched their own taxi services for the customers. The ear is known as “Uberification”. This business was founded by two people named Travis and Garrett in May 2009 and they released the app for UBER in June in the same year. In 2012, UBER took the initiate to expand its business at international level (Creighton, 2017). In the year of 2014, the innovation of carpooling is initiated by the business and the company reached at the position of 48th among the most powerful companies of America. As far as the business UBER is Australia it considered, it has been analyzed that the business has started in 2012 may. In Australia, it has been observed that the market share of the company is rising day by day.

UBER has started its business by launching Uber black that includes only the black cars as the cabs by the chauffeurs. This initiative of the business takes up around 3% of the total industry market (Amin & Radhakrishnan, 2013). After that Uber taxi has been launched that allow the taxis to work under Uber as Uber cars. This strategy allows the company to earn more 2% of the market share. As the company has experienced success with these strategies then it started launching the UberX and captured around 22% of the electronic payment market.

 

Customer analysis:

The above figure clearly describes the spending of the people in Australia on UBER in the electronic payment industry. This suggests that UBER is doing great with its business in Australia and there are more opportunities for the company to grow (Chen, Mislove & Wilson, 2015). as far as the customers and the target market of the company is considered, it has been analyzed that target market of the company are the smartphone users along with the internet access on their phones. They are considered as the potential customers because they are the prospects that can easily be converted into customers. The riders who want to ride are not only the target for the company (Cannon & Summers, 2014). The company also targets the drivers and the car owners. This is because UBER does not have its own cars and employs the individual who are the car owners.

Competitor analysis:

As far as the competitors of UBER in Australia are considered, the recent news suggested that Hi Oscar is the company that is taking over the market of UBER. This company has been launched by Perth locals Daniel and Jeremy. It has been analyzed that, may be UBER is cheap and provide convenient rides but still there are many reasons on that the business is replaced by another local company. some of the reasons are surge pricing, internal toxic culture, bad behavior of the drivers etc. the company has attracted around 330 drivers in Perth and then planning to launch its business in Sydney and Melbourne as well (Rogers, 2015). There is several strength of this business over UBER. The first strength or the advantage sis that it is a local company so can attract large number of local people towards it. In terms of income it charges only 15% of the total income from the drivers while other international; brand like Uber charges 25% of the income. This suggests that even if the local company is charging, the economy is remaining in the nation only. Strength is that the company is registered with GST (Wheeler IV, 2009). This company allows the users to select their driver and favorite those for future so that in future if they wants to take a ride they can select their driver. The company provides the rating system of thumbs up and thumbs down that help in removing the dilemma of average rating. Another major advantage of the ride from Oscar is that the women customers have the opportunity and chance to select for the women driver. Other than Oscar, GoCatch is another company that has launched its business in taxi industry (Mulley, Nelson, Teal, Wright & Daniels, 2012). Increasing number of companies in the industry is taking over the share of UBER in Australia and becomes a threat for it. The company has launched its services with lower prices than UBER by 10-15%. This is really an alarming stage for UBER to bring innovation in the business of Australia.

 

Customer service strategies:

UBER is observed to be the company that is very much focused for customer service. The company is customer oriented in nature. The major strategies that support the company cater the customer such great services are as follows:

Simplicity: Uber app is very much easy and simple to use. It is a user friendly app that supports the customers to operate it easily without being much techno savvy. Even the drivers that are not so much educated can handle the app. it is not only for the users of smartphone but the customer those who are not having nay smartphone can also book their rides by messaging (Australia, 2017). This simplicity is the strategy of customer service by UBER. This is because of the pap is complicated then it cannot be used by nay of the uneducated person.

Convenience: Taking ride from UBER is very convenient for the customers. Even if the customer does not know the location where he or she is standing, they can book a ride by sending their location and the driver can pick them up from there. As the company also deal with private cars so they are more comfortable and clean then the cabs or taxis. The payment method for paying for the rise is also very easy (Hall, 2017). It is not necessary to carry the cash all the time to take a ride from Uber. The app can manage the payments by themselves; the customer just need to associate his debit or credit cards with the app and the money will automatically gets deducted.

Speed: Speed is another strategy of the company to provide great service to the customers. In any of the city where the UBER serves its customers, they can easily get the UBER cars nearby. This is because there are a lot number of Uber cars available and the system is such that distributes the drivers and the cars according to the demand of the cars at the place. As soon as the customer books the ride, the driver approaches to the customer in lease of the time.

 

Service environment:

Service environment can be defined as the physical environment of the business. All the tangible things that are associated with the firm’s service and provide the proof of the quality of the services form the service environment.

After booking the ride: As soon as the customer books the ride with UBER, the driver calls the customer and asks them about the location and tells them about the limit within which they can reach on the location (Tucker, 2017). This helps the customer to know about the waiting time.

After pick up: It has been observed that all the Uber cars are very well managed as after the pickup, the driver greets the customer with poise and ask them if they are comfortable or not. The cars smell good and provide the customer the feel of sitting in his own car rather than a taxi.

After the drop: As soon as the driver drops the customer, the customer provides rating to the driver and vice versa. Driver also helps the customer to lift up their luggage if it’s heavy.

All the above discussed points provide the information about the service environment of UBER.

 

Recommendation:

As discussed in the above section that even if UBER is performing well in its business but facing some of the issues in Australia. The main issue is the issue of surge charging. This is the major issue faced by the company as the local competitors in the place are not charging the surge prices with the customers and thus gaining the higher customer as then UBER. Another issue that has been analyzed with UBER is that most of the drivers do not know how to read the navigation properly. This is to be recommended to UBER that they should concentrate on providing training to their drivers about the application and the navigation app. They should also manage the surge pricing system so that they cannot lose their customers.

Conclusion:

It has been concluded from the above study that UBER is the company that deal with transportation service in many countries and also in Australia. The Australian business of the firm is doing well but still facing some of the competition from the local competitors such as GoCatch and Oscar. As far as the customer is considered, they have the target market of people those who are using smartphones and have internet connection. The service environment of the company suggests that the services of the company are very much convenient for the customers and provide a good experience of the rides. Some of the issues have also been faced by the company which can be overcome by taking the recommended actions.

 

References:

Amin, S., & Radhakrishnan, M. (2013). U.S. Patent Application No. 13/672,658.

Australia. (2017). Australia. Retrieved 11 May 2017, from https://newsroom.uber.com/australia/

Cannon, S., & Summers, L. H. (2014). How Uber and the sharing economy can win over regulators. Harvard business review, 13, 1-4.

Chen, L., Mislove, A., & Wilson, C. (2015, October). Peeking beneath the hood of uber. In Proceedings of the 2015 ACM Conference on Internet Measurement Conference (pp. 495-508). ACM.

Cramer, J., & Krueger, A. B. (2016). Disruptive change in the taxi business: The case of Uber. The American Economic Review, 106(5), 177-182.

Creighton, D. (2017). Uber competitor launches in Brisbane. Brisbane Times. Retrieved 11 May 2017, from https://www.brisbanetimes.com.au/queensland/uber-competitor-launches-in-brisbane-under-new-laws-20160904-gr8bcs.html

Hall, B. (2017). Uber has new competitors in Australia. Uber Drivers Forum. Retrieved 11 May 2017, from https://uberpeople.net/threads/uber-has-new-competitors-in-australia.150636/

Lovelock, C. (2011). Services Marketing, 7/e. Pearson Education India.

Lusch, R. F., & Vargo, S. L. (2014). The service-dominant logic of marketing: Dialog, debate, and directions. Routledge.

Mulley, C., Nelson, J., Teal, R., Wright, S., & Daniels, R. (2012). Barriers to implementing flexible transport services: An international comparison of the experiences in Australia, Europe and USA. Research in Transportation Business & Management, 3, 3-11.

Rogers, B. (2015). The social costs of Uber. U. Chi. L. Rev. Dialogue, 82, 85.

Tucker, H. (2017). GoCatch is launching Australia's first Uber X competitor. Business Insider Australia. Retrieved 11 May 2017, from https://www.businessinsider.com.au/gocatch-is-launching-australias-first-uber-x-competitor-2016-2

Wheeler IV, G. Y. (2009). U.S. Patent Application No. 12/453,780.

Wilson, A., Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2012). Services marketing: Integrating customer focus across the firm. McGraw Hill.

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