Question

1. Task description:

Sharing economy has developed significantly over the past few years. Ridesharing services such as Uber have been praised for transforming the traditional transportation industry. Though it has also received some criticism over its business model, Uber has a worldwide presence and is available in more than 900 cities.

In this assessment task, identify and evaluate the sustainability issues in relation to Uber’s marketing strategy (focusing on ridesharing services) in Asia Pacific.

2. Tasks:

Market analysis: market segmentation, market trends and size/growth, and target market

A summary of marketing mix elements (4Ps): Product, Price, Promotion and Place strategies

Economic, environmental and social/ethical implications of Uber’s marketing strategy

Recommendations

• For Uber’s senior management
• For public policy makers/regulators

Answer 1

Uber is the ride hailing giant in the market, now established in over 65 countries across the world. Uber segmentation, targeting and positioning is the essence of Uber marketing strategy.

Segmentation means to divide the population to various groups as per their similar characteristics. Market segmentation helps to reach out to various groups through different services. Like Uber has Uber X, Uber XI, Uber Pool for people that are cost conscious and it has Uber Premium of luxury rides for luxury loving people.

The segmentation can be done geographically based on regions of service, demographically based on the life style of customers and behavioural based on the personality, education and social class of group.

Thus, its target market mostly includes 18+ age, female and male and fir students, employees and professionals. It decides its marketing strategy based on its target market. Marketing mix elements can be studied and more appropriate marketing strategies and decisions can be made

Product - It is a service providing company. Uber X, UberXI, Uber Pool, Uber Premium are all different kinds of services they provide. Uber rides are designed in such a way that mostly every person can afford rideride.
Place - Uber has spread its services in more than 900 cities. It does not have many offices because of its business model. But anybody can avail their services just by downloading their app.
Price - Uber pricing can be said as a type of geographical pricing. The price of ride depends on the base rate, estimate time, distance and demand surges are there if the demand of rides is more in the area then. It is a dynamic pricing based on demand and supply.
Promotion - Uber has a unique marketing strategy that create loyal customers. Free rides, low price rides, discounts and referral benefits are their top strategies
Now, talking about their marketing strategy, word of mouth has been very helpful to the business. Apart from all advertising, it gives free rides. There are people who have earned $50,000 as referral credit.

Then it launched groups of millennial cheer where they have delivered kittens and sometimes some people got to travel with famous singers and vocalists. Uber has tactics to bring in new customer as well as to keep the old loyal customers. Loyal customers who have taken more than 100 rides are given Uber VIP. Uber has also partnered with Facebook Messenger to let customer request a ride from within the messaging app. Along with all these strategies, Uber ia thriving to give an environmentally-friendly ride to customers. It has helped many drivers to change their batteries to environment friendly ones.

Though the marketing strategies have been apt, there have been many criticisms it has faced. Lack of proper leadership was a problem for them at a time that caused poor corporate culture. Serious scandals of mobbing, sexual harassments and discrimination were raised. The company has been facing ethical dilemmas and issues like passenger safety, driver safety and even protecting the privacy of its customers.