Uber in South AfricaJMSB ConsultingGeorge EmeryCinzia RubertoEliane RoyJonathan Suprovici
Recommendation Analysis Road Map Financials
Uber will be South Africa’s safe ride• Additional driver background checks• Emergency alert on Uber app• Payment options via debit card, top-card, remove cash
Improve safety features
• Incentives to switch for taxi drivers• Community involvement, sponsorship of soccer teams• Lobbying local authorities
Taxi driver & the community
• Marketing campaign to promote safety (social media, billboards)
Branding and marketing
Uber can adapt to local needs for long term success
Analysis
Recommendation Analysis Road Map Financials
South Africa will be a challenging market
Economic divide between minority rich and majority poor
Public transportation is main line of transport
High crime and unemployment rates
Uber can grow with an adaptive and innovative offering
Recommendation Analysis Road Map Financials
Items that directly need to be addressed
Addressing these key concerns will allow for growth
Safety
Taxi turf wars
Increased competition
Cash payments
Recommendation Analysis Road Map Financials
Transportation statistics show clear market opp.
Q1 to Q4 = PREFER TAXI
Recommendation Analysis Road Map Financials
Transportation statistics show clear market opp.
Q5 = PREFER PRIVATE CARS
Q1 to Q4 = PREFER TAXI
Recommendation Analysis Road Map Financials
Transportation statistics show clear market opp.
Q5 = PREFER PRIVATE CARS
Q1 to Q4 = PREFER TAXI
UBER USERSCLEAR MARKET IN Q1 – Q4
UBER DRIVERSMARKET FOR Q1 – Q4
ENTREPRENEURS
Q5 CAR OWNERS
Recommendation Analysis Road Map Financials
Transportation statistics show clear market opp.
Q5 = PREFER PRIVATE CARS
Q1 to Q4 = PREFER TAXI
UBER USERSCLEAR MARKET IN Q1 – Q4
UBER DRIVERSMARKET FOR Q1 – Q4
ENTREPRENEURS
Q5 CAR OWNERS
Market opportunity will allow Uber to grow
Recommendation Analysis Road Map Financials
Competition in South Africa can be navigated
• Slow• InconvenientPublic transportation
• Safety concerns• Cash paymentsTaxi service
• Local heritage, cater to woman• Debit swipes and cash paymentsZebra Cabs
With competition navigated and mkt. opportunity, Uber can succeed
Recommendation Analysis Road Map Financials
Leverage Uber’s core strengths
Technology play
Financial backing
Focus on safety
Innovative offering
Combine core strengths and market opportunity will provide success
Road Map
Recommendation Analysis Road Map Financials
Road Map at a GlanceShort Term (0-3 months) Medium Term (6-12 months) Long Term (12+ months)
Improved driver background checks
Incentives for drivers to switch
Community Involvement
Lobbying authorities
Additional payment options
Development of a Top Up Card
Marketing Campaign
Introduce Top Up card payment
Explore Uber Eats
Recommendation Analysis Road Map Financials
Improved Safety Features
Driver background check
All drivers to be verified
Follow-up on driver every year
No tolerance for driver reported incidents
Emergency Alert on App
Sending authorities driver and/or customer location
Alternative Payment options
App to be upgraded to include Debit
Eliminate reliance on cash with a Top Up card
Uber as the safest ride option for South Africans
Recommendation Analysis Road Map Financials
Top Up Card
Uber card that can be reloaded with Cash
Drivers to scan card with Uber app to collect payment
Uber card can be reloaded at convenience stores & grocery stores
Reducing the reliance on cash
Recommendation Analysis Road Map Financials
Incentives for Drivers to Switch
Free smartphone if they switch
No exclusivity required
Higher bottomline
Safer option
Uber is an attractive option for drivers
Recommendation Analysis Road Map Financials
Community Involvement
Free first rides after community
events
Lobbying with local authorities
Sponsorship of local soccer
teams
Uber needs to make a name for itself in the Johannesburg community
Recommendation Analysis Road Map Financials
Marketing Campaign
• Promote added safety features via Facebook, Twitter, Instagram
• Build an Uber experience communitySocial Media
• Billboards at major intersections promoting the new safety features
• Encouraging women & young adults to use UberBillboards
We heard you South Africa: we want to get you home safe too!
Campaign Message “Uber: Your Safe Ride”
Financials
Recommendation Analysis Road Map Financials
Project cost
Application Update
Safety Feature Update: 2.5 MTop-up Card Implementation: 2.5 M
Community Involvment
Free Rides After Events: 100 K (20 events)
Local Team Sponsorship: 500 K (50 teams)
Taxi Incentives
Free Smartphone: 120 K (50$ x 2,400 drivers per year)
Recommendation Analysis Road Map Financials
Project cost
Lobbying Safety Feature Update: 2 M
Marketing Public Image: 10 M
17.7 M INVESTMENT
Recommendation Analysis Road Map Financials
Project cost
17.7 M INVESTMENT
5,000 Drivers10 Rides per day6 Days a Week
52 Weeks per Year1$
15,6 M per Year
Recommendation Analysis Road Map Financials
Project cost
YEAR 1
17.6 MCOST
REVENUE 15.6 M(5000 drivers)
NET -2 M
YEAR 2+
12.6 M
31.2 M(10,000 drivers)
18.6 M
Recommendation Analysis Road Map Financials
Uber will be South Africa’s safe ride• Additional driver background checks• Emergency alert on Uber app• Payment options via debit card, top-card, remove cash
Improve safety features
• Incentives to switch for taxi drivers• Community involvement, sponsorship of soccer teams• Lobbying local authorities
Taxi driver & the community
• Marketing campaign to promote safety (social media, billboards)
Branding and marketing
Uber can adapt to local needs for long term success
Questions?
Top Related