UberPool mkt plan final paper
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Transcript of UberPool mkt plan final paper
2014
UberPool Marketing Consulting Team
Phuong Pham, Atish Shah, Setawut Phannara (Jay)
[MAKETING PLAN FOR UBERPOOL]
UberPool Marketing Consulting Team 2
TABLE OF CONTENT
Executive Summary .......................................................................... 3
Marketing vision .............................................................................. 3
Purpose (Mission) .................................................................... 4
SWOT analysis ........................................................................ 4
S.M.A.R.T Goals ...................................................................... 4
Strategies and Tactics ............................................................... 4
Situation Analysis ............................................................................. 5
Market Description................................................................... 5
Market analysis .............................................................. 5
Decision process of customers ............................................ 5
Competitive environment .......................................................... 6
Ideal Customers ...................................................................... 7
Market Strategy .............................................................................. 7
Target customers .................................................................... 7
Remarkable difference .............................................................. 7
Marketing Materials .................................................................. 8
Marketing Mix Strategies .................................................................... 8
Product strategy ..................................................................... 8
Branding strategy .................................................................... 8
Pricing strategy ..................................................................... 9
Positioning/Distribution............................................................. 9
Promoting strategy ................................................................. 10
Advertising .................................................................. 10
PR plan ...................................................................... 10
Online marketing strategy - Social media plan ................................. 11
Interpersonal relationship .................................................................. 12
CRM Plan ...................................................................................... 13
Marketing Expense Budget ................................................................. 13
Table: Marketing Expense Budget ....................................... 13
Chart: Monthly Expense Budget .......................................... 14
Implementation of the campaign ......................................................... 14
UberPool Marketing Consulting Team 3
EXECUTIVE SUMMARY
Uber is transportation startup, which provides an App-Powered on-demand ridesharing
service for smartphone users. Uber service is currently available in 129 cities in entire the
United States and more than 100 cities in the globe. Moreover, Uber has been competing for
market share from traditional transportation companies and also other on-demand ridesharing
companies. The growth and success of Uber have helped the company to become new
attraction for investors. Currently the company is worth around $18 billion (Mark Rogowsky,
2014).
Uber continues to be the premier on-demand transportation provider of exceptional
convenient experiences, and seeks to make this experience more affordable and accessible
for all riders. Ongoing efforts are in place to continue to improve the quality of existing
service and to develop new service, namely, UberPool for more options.
As known, UberPool has been challenged by ridesharing competitors and law issues,
this paper will provide details about various strategies and tools that allow Uber to maintain
its position as the leader of car service application. This is a direct marketing plan for
UberPool to grow widely outside of San Francisco Bay Area.
The campaign will come throughout two of biggest holidays of the year, which are
Christmas 2014 and New Year 2015. Along with the implementation timetable, we will
continuously check outcomes and monitor our KPI’s to ensure that our campaign is performing
efficiently and we are getting highest ROI.
MARKETING VISION
Uber is built around the belief of seamless transportation platform/system. By
connecting riders to drivers through mobile apps, they make cities around the world more
accessible. It also opens up more business for drivers.
This marketing plan is a means for Uber to refocus its identification as differentiated
from competitors in its market. This will include developing new marketing products,
improving social media plan, competing pricing strategy and enhancing promotion plan.
This marketing plan will allow Travis Kalanick, the CEO, to focus his marketing efforts
by taking the long view, and looking for results on a daily and weekly basis to see that the
chosen tactics are successful.
UberPool Marketing Consulting Team 4
1. Purpose
We want people to have more inexpensive, reliable, and on-demand convenient
transportation. At the same time, the main purpose is to drive more users to Uber in even
greater numbers as the business creates more opportunities for riders getting around, inbound
and outbound of the city with their friends.
2. S.W.O.T. analysis (See Exhibit 1)
Based on our SWOT analysis and research, we’d like to propose a marketing plan that will
reach the following goals:
3. Goals
- Specific: UberPool will be able to approach more riders in the next quarter and
the same time get a higher market share of taxi services industry.
- Measurable:
a. Increase new customer account by 20% of existing Uber’s account
b. Achieve 15 % of market share in taxi services industry
- Achievable: Conducting an assessment of situation every month
- Relevant: match to the company’s vision that is building seamless
transportation platform
- Timeline: by end of February 2015
4. Strategies and Tactics
We focus on differentiation while keeping low-cost transportation for riders. In other
words, we offer a new service, which is UberPool. With UberPool, you share a ride and split
the cost with another person who just happens to be requesting a ride along a similar route.
Since the service is based on a mobile application, we believe digital marketing strategies and
social media boosting are the main keys of our marketing plan.
SITUATION ANALYSIS
1. Market description
UberPool Marketing Consulting Team 5
a. Market Analysis
The idea behind UberPool is to attract more users by offering reduced price. The
existing service by Uber that is UberX provides about 40% less cost fare to users than normal
taxi services. By launching UberPool services the prices were reduced even more. For
example, UberX would cost about $10 from one place to another; UberPool will only cost $6
(Uber, 2014). Further, to find out the popular places from which most of customers prefers to
use Uber service, the company launched UberData project. The project analyzed 3000 users
in San Francisco randomly to find out the popular places users like to visit (Lu, 2014). The
final result showed the most popular places customers visit using car services are restaurants,
nightlife, hotels and shopping. However, the result showed that 80% users most likely prefer
to select pick up and drop off destination few steps further than the original destination. This
data helped to improve the services as proper allocation of Uber cars was reorganized and
drivers were able to save more time by assuming the final location of a users bit further than
requested.
b. Decision process of customers
As UberPool is in initial stage, not many people know about the services provided. So, we
conducted a small survey randomly selecting Uber users and asking few questions (See Exhibit
2). The final survey included of 34 people from different cities of the United States, most of
the people were from San Francisco bay area. Only 71% of the people who took the survey
knew about UberPool services. Furthermore, only 18 percentages of the Uber users were
totally familiar with the UberPool concept and 59 percentages partially understood. The
survey indicated that 65% of people have never used UberPool service. When comparing the
Uber services, 24% said they prefer UberPool service that was only 50% less than UberX. The
overall experience ratio showed that about 60% of the users were satisfied with their
experience. The overall rating for the riding experience, condition of car and individual
comfort level sharing car showed that about 40-45% rated very good. In addition, 47% users
said they would surely recommend this service to others. This shows every category had not
more than 50% of positive result. However, considering UberPool as a new service the results
are really good.
2. Competitive environment
UberPool Marketing Consulting Team 6
The main competitors of Uber Company are Lyft and Sidecar. In term of new carpooling
service like UberPool, their competitors have the market covered by Lyft Line and Sidecar
Shared Rides. In this part we are summarizing a competitive analysis of UberPool versus
those two competitors. Since UberPool is a new service for users sharing cars through mobile
application, we are not including Taxicab companies as UberPool’s competitors. We are
analyzing the UberPool’s competitors by 3 aspects: their products and services, their
strategies and an overview of the futuristic market.
The first main competitor of Uber is Lyft, a startup first started in 2008. Back to the end
of Summer 2014, Uber and Lyft both released new car-sharing services, which are UberPool
and Lyft Line. Lyft Line was launching before UberPool based on timeline, and another
startup company called Hitch first embraced this Lyft’s new service. Hitch was built to fill a
dream of shared rides with strangers in June 2014; however, the scary competition of new
transportation startups lead Hitch become one of Lyft’s acquisitions. Since then, Lyft Line has
been developing by Hitch’s founders and their drivers.
About Lyft Line, as Lyft’s brand image, its main differentiator is community oriented.
While running its own form of surge called “prime time”, they also offers discounts during
“happy hour”. In term of brand image, Lyft has been noticed by their “Pink Mustache” which
is attached in front of driver’s car; while Uber has been slightly noticed by a black sticker. In
term of labor, Lyft has a better ranking for their drivers’ working condition because they keep
driver pay high by reducing its commission share to 0%, while Uber’s is around 20-25%, which
is high.
Another competitor of Uber is Sidecar, the latest entrance that was launched in 2012.
While Uber’s vision is to provide medium-high standard services, Sidecar targets in narrower
audience, who care about lowest fees, larger cars and the price of the trip upfront. One
differentiator of SideCar is that it allows users to choose drivers from a list of rides, while
Uber’s drivers are chosen randomly. In term of new carpool service, Sidecar offers a cheaper
way to share a ride comparing to Lyft Line and UberPool, when their official banner of the
service informs directly a comparison of prices among those companies. This latest service
was first announced in May 2014, and it is also expanded in Chicago and San Francisco, while
UberPool is limited in San Francisco to SFO airport.
3. Ideal customers
UberPool Marketing Consulting Team 7
As the company’s product is designed for mobile application, their customer segmentation
is determined to be technology oriented. In other words, Uber targets is young, urban,
smartphone-owning individual. Specifically for new feature UberPool, their ideal customers
are metropolitan people who need on-demand and regular rides to their office, or to several
public events. By sharing a ride with other people on a same route during peak hours, this
service is a solution for high cost transportation, hectic traffic and also pollution.
MARKET STRATEGY
1. Target customers
Uber started as a service provider to all kind of users with UberX and Uberblackcars. After
three and a half years of the company’s existence it launched UberPool (Brustein, 2014).
The purpose of introducing UberPool service late was to have enough users to attract new
services. This was a smart way by which Uber created a whole market. Futhermore, before
officially launching UberPool in August 15, 2014, Uber had a trial run. The trial run was for
only Google employees, to use the service to evaluate and rectify all the errors. This way of
improvising was called as Beta. This was the plan of Uber to have enough users for its future
services and improvise as much possible before allowing for public use. In my opinion, I would
consider target customer for UberPool as a small group or individuals between the ages of 16-
30 in major cities. The people, who most likely go out very often, meet friends and
colleagues at a location and return back home alone.
2. Remarkable difference
The remarkable difference of Uber is its positioning to serve exceptional convenience, as
they believe that all users’ expectation is value, less-time-waiting, easy-to-use, and
legendary service. All of Uber’s service offerings include this convenience aspect, and they
are better compared to other competitors. For example, Uber has higher number of drivers,
so it mostly take just few minutes-waiting when it is on demand. This connects to one of core
slogans of Uber which is “Getting more time, value, and conveinince - you can have it all”
(Uber, n.d.).
Even though, the services of UberPool is not unique from other ride-sharing companies,
they are all positioned as convenience leadership plus new feature which means that riders
UberPool Marketing Consulting Team 8
that take UberPool will obtain high-end service with extra low-cost while sharing experience
with other riders.
3. Marketing materials
Marketing materials for UberPool include:
● Website
● Facebook ads
● Twitter - customer service
● Marketing emails
● Online ads via partnering
The website offers a full instruction of UberPool service and all current activities,
promotions and also upcoming events. Twitter will be a place for questions, concerns and also
complaints from users. Marketing emails need to be accurate with ongoing and upcoming
activities in order to keep customers on track. Partnering with other event planners is a great
strategy that Uber has been working on: guests from selective events are able to get
promotion to use UberPool for the route from and to the event location.
MARKETING MIX STRATEGIES
1. Product strategy
UberPool is a real time carpooling service that works by using Uber application. The
objective of the product is to boost demand for paid rides by decreasing fare cost, change
transportation belief of people and benefit Uber drivers. Normally, driver of UberX service
will pick up a passenger and drop to their destination and end the trip as shown in exhibit
10.3. The fare does not start until another request comes and drive picks up a new passenger.
However, UberPool service has a different concept. Exhibit 10.2 shows that the driver will
pick up multiple passengers along the way and will be paid. It will eliminate the unpaid
period-spent waiting for another request. This was example of how the drivers will be
benefited by UberPool, but it is also beneficial for customers. The service will help to reduce
cost by splitting with other rider. The concept is to push a button on Uber application, a car
comes and picks you up and while on the way, another passenger joins you who are going in
the same direction but final destination might be different.
2. Branding strategy
UberPool Marketing Consulting Team 9
Uber brand communicates our complete commitments to serve riders an exceptional
riding service that is reliable low-cost and convenient. The brand embodies the values that
we believe in seamless transportation platform. Also, Uber’s value is responsible to
community due to the fact that Uber’s service could reduce traffic, pollution, and rate of
driving under the influence (Chris, 2014). For example, the number of DUI arrested dropped
by 10% after Uber entered in Seattle.
In addtion, Uber brand has several types of services to satisfy different rider’s
expectation. Uber’s services include Black Car, UberX, and UberPool, which is the latest
service. For example, Black Car service focuses on high-end experience and special moment.
On the other hand, UberPool emphasizes on extra low-cost riding within the same quality of
service compared to UberX.
To improve its brand, Uber not only continues to enhance quality of its services and
offer new reliable service, but it also pursues promotion strategy and online marketing to be
more engaged with both current users and potential users.
3. Pricing strategy
The fair set for UberPool is the same as UberX. However, the concept of UberPool is to
split fare charged with other rider helps the customers to pay less. The purpose of the
company is to reduce 40% of the fare paid by a rider using UberPool. This kind of pricing
strategy is called penetration pricing. To gain market share with new service, Uber is
charging less. The pricing strategy will help the new service to spread widely and more
quickly. The mindset of customers is fixed in a way that they are always seeking for some
kind of deals to reduce their spending. As a result, the main goal of marketers when
planning any marketing plan involves pricing strategies to attract more users. Same way,
Uber is offering low price with its new service that is UberPool to gain market share. In
addition, Uber is also providing promotional discounts for first time users.
4. Positioning strategy
In fact, market positions are rarely permanent due to competitive activity, new
technologies, and internal changes (Mahapatra, 2013). In recently, Uber’s major competitor
was planning to launch new service. To ensure that we will remain attractive to current
customer and appeal to potential customers, Uber determined on strengthening present
position with competitors by releasing new service, namely, UberPool. Here, Uber simply
UberPool Marketing Consulting Team 10
keep its vision and enhance major attributes which is low-cost, reliable and on-demand
convenient transportation without changing the positioning. With our strong position and
strategies, Uber believes that UberPool will be successful above competitors.
5. Promoting strategy
a. Advertising
UberPool is a new service, and carpooling is also a new term. Consequently, it will be
necessary to build awareness of the company’s concept. The role of advertising within the
communications mix would be:
● To increase awareness of Uber and its new service: UberPool
● To encourage non-users to sample UberPool
● To develop the belief among both users and ideally, non-users that Uber is technically
superior to competitors
● To attract more investors
First, we would recommend recruiting College Ambassadors. Especially at several schools
located in Downtown, or Financial District (like GGU), parking and traffic is extremely hard
and tricky. UberPool needs to be more reachable for graduate students, then a representative
of Uber would be the person who explains and helps promote the concept. The program
should be taken for one to two months and promotions are needed for specific schools in
order to encourage new users to try the service. The student segmentation might be small,
but significant.
During holidays such as Christmas and New Year, we would recommend launching
“UberRedAhead” campaign. Especially at Christmas Eve and New Year Eve, riders are
recommended and encouraged to drop a pin and a specific time (5-10 mins approximately) to
show where they’d like to be picked up from. By this way, the process would be less hectic
and ease the pressure on city’s cabbies by pre-booking their ride. This campaign also helps
drivers to have a better route to pick up the second customer.
b. PR Plan
The primary role of the public relations strategy is to create an image of community
involvement by UberPool, which is embracing a sustainable environment for new logistic,
transportation systems. Projecting this community involvement image is important to ward
off any attempt by environmentalist groups to create negative publicity or to boycott Uber. It
UberPool Marketing Consulting Team 11
is true that Uber has been facing plenty of social and legal issues, so it is important that Uber
needs to work out with their brand’s image in order to promote, not only UberPool, but all of
their services in general.
One component of the public strategy will be to partner with other sustainable
businesses. By emphasizing the importance of being a green startup in an environment-
friendly city like San Francisco, the brand’s image will be improved. Hosting a discussion
group to explain how the service helps to reduce greenhouse gas emissions from
transportation is another move for PR plan. This will give the company an opportunity to, at a
same time, improve company’s brand and gain trust from customers. Uber spokesmen need to
build better relationship and connection with reporters. Along with advertising campaigns,
press releases should have deeper stories and ahead other competitors.
6. Online marketing strategy – Social media plan
While advertising will be used to develop the high quality image of the brand, promotions,
sponsorships and social media platforms will be used to generate customer traffic, especially
to the website’s blog, where customers get official announcements.
● Facebook - main face: This will be the main channel for new users and current users to
look for information, any new features and new promotions. Facebook advertising is
also a useful tool for any marketing campaigns since Facebook’s active users have
been highly increasing.
● Twitter - customer service: Uber has been doing great with their Twitter channel.
They do not only use it to stay connected with customers, but they also use their
Twitter page as an online customer service. Gone are the days people would call up a
company and complain. That’s why customer service is becoming increasingly
important on social media platforms like Twitter. It is necessary to be close with
customers by replying their tweets, messages directly to Uber account.
● Instagram contest - tell audience stories: It has been convinced that Instagram’s
engagement levels are blowing Facebook and Twitter engagement out of the water. By
using a shortlink from an Instagram account, you will be amazed of result of ROI and
visits. One of the most effective marketing concept on Instagram is reactive
storytelling. We would recommend launching a contest of telling a story while riding
UberPool Marketing Consulting Team 12
with Uber. It could be a picture of a couple at pre-party, or of two strangers in the car
going to a same party, etc. By promoting hashtag #UberStory, for instance, the
contest will be technically influenced by Uber, but done so in a unique, compelling
way. It will be a great opportunity to broaden the reach of Uber image.
● Google plus: Google plus might be a small tool for a marketing plan, it is still one of
the fastest growing social media platforms right now. After taking a look at Uber
account on Google Plus, we found out that they have stopped updating news and
features since December 2013. We would recommend updating information of the
company, and creating viral concepts for Google Video Hangouts, a feature of Google
Plus, which is considered the most useful for on-demand quick conference. UberPool
needs a short video clip to show basic instruction on YouTube, and also real-time Q&A
sessions for nowadays technophiles.
INTERPESONAL RELATIONSHIPS
In this paper, we are analyzing and recommend developing the two personal
communication methods most widely adopted are direct marketing and interactive marketing.
Since Uber is a high-technology, B2C company, we believe direct marketing channels will be
more effective than other channels (such as sale forces) because the company is able to reach
the appropriate customers. “Wakeup emails” are an efficient tool for UberPool that Uber has
done pretty well already. Before launching new promotion or new feature, a quick, creative
email to inform customers is always a good way to remind customer about the service. A
creative online greeting cards, or a letter from Uber to Santa Clause would be a nice way to
put holiday spirits into marketing campaigns.
The second method is called interactive marketing. We strongly believe a stable online
customer interface is very important. Going through the main website of Uber, we have seen
a site for selling products and services, but missing a connection to customers. Although we
are controlling social communities through social media platforms, it is important to provide a
sense of community for customers, with other users. UberPool is well explained and
illustrated on Uber’s blog, but has not been well demonstrated within the official website of
Uber. In general, Uber’s website has completed main features, such as Context, Content,
Customization, Communication, Connection, Commerce but there is a lack of community.
Building strong social media channels is important, but creating good interpersonal
UberPool Marketing Consulting Team 13
relationships from the original website is indispensable. Although Uber is willing to provide a
high-end brand image, UberPool, however, is targeting big fast technophiles. As a result, a
convenient communication for community is necessary.
Another technique we would highly recommend is viral marketing. Creating buzz
about the service by using word of mouth or Internet social networks is a creative and
productive way to market UberPool. A viral advertising will be useful for spreading the words.
Since Uber has been partnering with the San Francisco Society for the Prevention of Cruelty to
Animals (SF SPCA), we would recommend creating an online advertising, which showed a short
duo trip of two pets or more. By spreading the love, encouraging donation, at the same time,
those adorable pets could be a big plus for UberPool.
CUSTOMER RELATIONSHIP MANAGEMENT
Uber is totally customer-oriented company providing services from real-time cab
location display to user-friendly transactions (Minsker, 2014). The application has capability
of showing efficient and timely car locations. The best part of the service is that a customer
does not have to book a car priory for travel. A rider can request for car any time unlike other
cab services. It only takes few taps on the application to order a car, pay for the ride and
track the car in real time. In addition, after a request has been send the user will get the
information of the car, driver and its rating.
Uber should consider focusing on its customers by keeping in touch. Uber on regular
basis should send information regarding service updates, deals and holiday greetings to not
only the new but old customers also. Uber needs to maintain all the data of its customers and
use promptly for the purpose of connecting to them.
BUDGETS AND FINANCIAL INFORMATION
The budget allocation of this direct marketing campaign is based on previous financial
information of Uber. According to our research, we came up with a forecasting of Monthly
Revenues and Requests. Based on these forecasted numbers, we have planned a Monthly
Expense Marketing Budget.
Table: Monthly Revenue Forecast
November Actual (November Forecasts (January
UberPool Marketing Consulting Team 14
2013 2014) 2015)
Requests 6,049,549 7,561,936 9,074,324
Completed 4,257,329 5,747,394 6,609,503
Completed request % 70% 76% 73%
Revenue per completed request $25.86 $23.27 $29.09
Revenue 110,087,432 133,756,230 192,274,581
Chart: Marketing Budget for UberPool
Based on the forecasted numbers from the Revenue, we came up with a specific
marketing budget for Uber (see Exhibit 3 for calculations). By taking 9.5% of revenue for
Marketing, we got a total spent on Marketing is $18,266,085 for this campaign. Among the
sharing budgets, we especially focus on Social Media (15%), Person-to-Person contact (15%)
and Events/Tradeshows (13%).
IMPLEMENTATION TIMETABLE OF THE CAMPAIGN
We are first launching the campaign in December, throughout two biggest holidays in
the United States, which are Christmas and New Year.
UberPool Marketing Consulting Team 15
CONCLUSION
UberPool is a very promising service which is able to resolve plenty of today’s
problems, such as pollution, traffic, etc. Uber has been known as a very creative technology
company, so spreading the vibe via their marketing moves is necessary. If this campaign is
successful, we will expect Uber to continue and improve the promotions to keep growing
customer loyalty and increase sales.
APPENDIX
Exhibit 1: SWOT Analysis for UberPool
Strengths
- Mobile platform: not the first in market
but they have filled a need of customers by
cutting the edge of technology (transaction
convenience – mobile payments; GPS and
mapping technology)
- Well established logistics network (start
from SF and now they are trying to cover all
major cities)
- Lean and flexible (they do not own theirs
Weaknesses
- Reliable on smartphone technology (there
are another part of the world where people
don’t live in high-tech platform)
- Doubt about standard insurance and
liability questions (most start-ups offering
services have to face it)
- Lawsuits charging illegal cab practices (at
some cities like NYC); difficulty of dealing
with taxi companies.
UberPool Marketing Consulting Team 16
cars)
- Got big investors (funds got raised nearly
$50M, biggest deal was with Google
Ventures)
- Great branding, good promotion (partnered
with various event planners in order to
broaden new service)
- Cut off transit time, pollution, gas costs,
etc.
- Safety for customers is questioned since
drivers got recruited through easy process.
- Legal issues from previous services have
not been resolved; a new service still gets
doubt from customers in general.
Opportunities
- International opportunities (they have
been expending their services to overseas
with regular service UberX)
- Potential market expansions (moving
trucks, party buses, water taxis…)
- An increase of potential customers since
the riding cost is apparently cheaper
Threats
- Regulatory backlash (from other cab
companies and from users). Anti-Uber
protests are everywhere.
- New competitors (iGo, ZipCar).
- Diversity of cultures might affect the using
of customers (not everyone is willing to
share a car with strangers)
Exhibit 2: Survey (via Google Survey)
UberPool using experience summary (question 1 to 3)
UberPool Marketing Consulting Team 17
Exhibit 3: Marketing Budget for UberPool
Percentage Share Budget Note
Social media 15.00% 2,739,913
Person-to-person contact 15.00% 2,739,913 Get more partners, launch college ambassador
Events/Tradeshows 14.00% 2,557,252 Instagram contests
Email Mkt 13.00% 2,374,591
UberPool Marketing Consulting Team 18
Print ads 11.00% 2,009,269 Car stickers
SEO 8.00% 1,461,287
Online display ads 8.00% 1,461,287
Direct Mail 5.00% 913,304
Television advertising 3.00% 547,983
Radio advertising 3.00% 547,983 Ads on Spotify, Pandora, Songza, etc.
Display ads like billboards and signs 3.00% 547,983
Other 2.00% 365,322
Total 100.00%
Total spent on Marketing 18,266,085
Company Revenue Forecasted 192,274,581
Marketing as a % of revenue 9.50%
UberPool Marketing Consulting Team 19
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