UberCheng Perng Phoo (cpphoo)

Problem

● Getting reliable and reasonably-priced transportation service is hard● E.g difficult to find transportation at certain places● E.g unreasonable taxi fares

Solution to Difficulty in Finding Transportation

Make a request

Notify drivers nearby

A driver responds

Notify requester

Solution to Unethical Transportation Service Providers/Expensive Transportation● Upfront pricing / taximeter● Different services to cater different needs

○ UberPool○ UberX○ UberXL○ Others...

Business Model

● Commission per ride (or booking) - 15 to 20% depending on area● Surge Pricing - different pricing depending on demands● Different car models to cater different need - UberXL is more expensive than

uberX

Finances● Lost approximately $3 billions in 2016

○ Fierce competition from competitors in different areas○ Multiple lawsuits

● Had to sell its China’s operation in July 2016○ Chinese biggest ride-hailing company - Didi Chuxing

● Profitable? No● Revenue from bookings hit $5.5 billion in the Q3 2016● Still has 85% of US market share

Competitions

Area of Focus Most major cities around the world US Southeast Asia Everywhere

Upfront Pricing/ Taximeter Yes Yes Yes Not Always

Car PoolingUberPool No No No

Food DeliveryUberEats No No No

Secret Sauce- Large user base- Reasonable pricing- Different services - UberPool, UberRush

History

● 2009: Founded by Garrett Camp and Travis Kalanick (named UberCab)● 2010: Beta Launch in San Francisco● 2011: Changed name to Uber● 2012: Introduced UberX● 2014: Introduced UberPool● 2015: Started Research in autonomous car● September 2016: Launched first self-driving car services in Pittsburgh● December 2016: Started testing autonomous car in San Francisco but was

stopped due to a few car accidents and moved to Arizona

Prediction

- Short term: Will not fail. Profitability?- Long term: Hard to say. Advancement of autonomous car?

Questions?

References● https://en.wikipedia.org/wiki/Uber_(company)● https://www.grab.com/sg/● https://en.wikipedia.org/wiki/Lyft● http://nextjuggernaut.com/blog/how-uber-works-business-model-revenue-ub

er-insights/● https://www.quora.com/What-percentage-cut-does-Uber-take-from-the-total-f

are-cost-of-a-ride● https://www.forbes.com/sites/shlomofreund/2016/08/15/a-short-history-of-

uber-in-china-was-it-a-failure/#682c65223386● https://www.bloomberg.com/news/articles/2016-08-01/uber-said-to-merge-c

hina-business-with-didi-in-35-billion-deal

More References

● http://www.geekwire.com/2016/uber-reportedly-on-track-to-post-a-3b-loss-for-2016-as-revenue-and-bookings-continue-to-grow/

● https://skift.com/2016/12/21/uber-isnt-profitable-in-the-u-s-and-is-on-track-to-lose-3-billion-in-2016/