By Shannon Warner, CIO
The main business for Uber is providing rides to consumers via contracted drivers. An app is used to schedule a ride and pay the fare for that ride. Rides can be booked for any reason – to get to and from the airport, to get to and from a bar if the consumer is drinking that evening, etc. Uber also provides food delivery, couriers, freight transportation, and package delivery. Uber currently operates in 71 countries and more than 890 cities. They complete, globally, over 15 million rides per day. Uber is one of the biggest providers in the current gig economy and is headquartered in San Francisco, CA, USA.
The value that Uber brings to the consumer is an easy, relatively cheap way to get to and from locations where consumers may have previously struggled to get to. It can be used to get to and from doctor appointments, work, airports, and also used to obtain packages and food. The value is in the convenience. Consumers can easily use the app to use any of the above mentioned features.
The new product being proposed is UberKids. This would be a service for parents to provide rides to children to and from school, after school programs, to and from a grandparents house, or anywhere else they need to provide a ride to their child when they are not available. This is especially important in our current economy where many parents are having to choose between work and their children because they cannot be in two places at once. Parents need help with transportation for their children from a multitude of activities that they cannot do while they are working either from home or from an in-person job.
As of Q3 2021, total revenue for Uber was at $4.84 billion. Unfortunately, this does mean that the company is not currently profitable though revenue is up considerably from the $1.91 billion revenue in Q2 of 2020 at the height of the pandemic.
Uber SWOT Analysis
The strengths that can be leveraged for the UberKids program would be the Integrated Technology Platform and the Robust Network. The app is already built and could be tailored to the UberKids experience without much in the way of extra cost to the company and no extra cost to the consumer. This is a service that all parents could use to make their lives and the lives of their children more convenient and less hectic while using already existing technology which will save the company time and money. The new service could be advertised directly through the app as well which would cut down on advertising costs.
Product or Service Singularity:
This is not a service than any other business currently offers which makes this a unique opportunity for growth for Uber. While parents can utilize public transit and school busses already for their children, this is not a dedicated service to kids and isn’t always available. Public transit is not safe for a child to utilize alone as there is no oversight and no way for parents to ensure where their children are dropped off or when or at all. There is no way to verify that their child got to the correct location. Busses only run at certain times and if a child misses the bus, many parents are faced with the choice of either keeping them home or taking time out of their schedule to drive them to school themselves. Not all parents can take the time to drive their child to school in this case which would lead to un-necessary absences for their child.
With the UberKids program, parents would use the app to schedule a ride for their child. The drivers for the UberKids program would go through extensive background and driving record checks and each car would be equipped with live feed webcams so that parents can keep an eye on their children. The app also allows parents to track the vehicle that their child is riding in in real time. Parents would be able to ensure that their child was dropped off at the correct location at the correct time. The parents would also be given information on the driver and the type of car the driver is driving. This would all be using already existing technology except for the live feed webcam in the car that would need to be bought at the expense of the driver.
UberKids would be tapping into a brand new market thus making projections on profitability difficult. However, Uber has had a 0.91 billion increase in revenue from Q2 of 2021 to Q3 of 2021. There has been a consistent climb in revenue since Q2 of 2020. With the introduction of UberKids, and the fact that there is no service currently that compares to what is being proposed, we can increase the number of current users and increase revenue to either make Uber a profitable company or at least get them closer to that finish line.
Thank you for your time and consideration.
Iqbal, M. (2021, December 16). Uber Revenue and Usage Statistics (2021). Business of Apps. Retrieved January 7, 2022, from https://www.businessofapps.com/data/uber-statistics/
MarketLine. (2021, December 9). MarketLine. Retrieved January 7, 2022, from https://advantage-marketline-com.ezproxy.snhu.edu/Company/Summary/uber-technologies-inc_2303956?fbclid=IwAR1Rn_l-3DpWe5NZ9VrfpflGXO6JHboEz7C9mnNut98YYGkzWZzI8d1Wqks
MarketLine. (2021b, December 9). Uber Technologies SWOT Analysis – MarketLine. Retrieved January 7, 2022, from https://advantage-marketline-com.ezproxy.snhu.edu/Company/Profile/uber-technologies-inc_2303956?swot