The evolution of Uber
Uber is now dominating the taxi industry, which for decades had been led by local cab companies in countries around the world. How did the megacorporation completely change the industry in just a few short years?
The proactive entrepreneurs Travis Kalanick and Garrett Camp continuously sought sources of investment for their app prior to and during its launch in 2010 – raising $44.5 million for international development. Their quick expansion worldwide allowed them to quickly gain an audience before any competition could develop.
Launching in San Francisco was not by chance either. The taxicab market in the area was performing poorly, with the lowest taxi usage rates in all of the US. However, due to San Francisco’s highly interactive tech community who are eager to discover the next new trends, Uber quickly gained notable recognition.
Following international expansion, Uber continued to partner with and gain investment from big brands such as Budweiser. This partnership resulted in positive recognition for both companies. The strategy behind the collaboration was praised for the forward-thinking drink driving awareness initiative in which Uber users were given a free ride on New Years Eve 2016. Alongside the promo-codes offered by Uber which gave users the ability to offer their friends free rides, it is easy to see how the app’s usage rates have sky rocketed over time.
Uber have also capitalised on global marketing strategies in order to widen their customer base. The app functions differently in different countries, such as in Africa whereby Uber allows customers to make cash payments due to it being culturally unusual to use card. This also allows many African customers to try Uber before opting in for the card payment option.
A key element behind the success of Uber’s marketing plan is their B2B and B2C marketing strategy. The opportunity to become a self-employed cab driver, earning above minimum wage as a career option or even as a form of part-time employment in order to make some extra cash, is an appealing prospect for many people. This job opportunity is particularly popular in areas heavily populated by immigrants looking for work, such as in London. Uber loses no profit from gaining drivers as a greater number of drivers means more people using the app, thereby increasing Uber’s B2C revenue. This innovative type of marketing has never been seen before in the mobile app industry.
Successful marketing involves continuous development and implementation of new and cutting-edge initiatives. Companies that wish to expand should continue to widen their audience, through word of mouth, sponsorships, investments, and partnerships with other companies and brands. With the development of ‘Uber eats’ having come into play, Travis and Garret have shown how a small idea can be turned into so much more.
Market analysis and globalising your brand can make all the difference in making your company a success or a failure. Do you think you could launch the next global trend?