With Uber already operating in nearly 200 cities around the world, it’s clear that they have a very competitive advantage over other services. There are many reasons why Uber has been so successful, but the main one that we’ll focus on in this article is the company’s competitive advantages and the benefits that it provides to drivers and riders.
Uber Unique Competitive Advantage
Uber has many unique competitive advantages that other taxi companies do not have. Uber can provide a better experience for customers because they don’t have to wait on taxi drivers to show up, instead, customers are paired with available Uber drivers in their area who can pick them up immediately.
Uber also provides a service called uberPOOL where groups of people going in similar directions can carpool and share an Uber driver instead of taking separate Ubers. This allows consumers to save money when traveling from point A to point B as well as reduce traffic congestion due to multiple Ubers stopping at each destination.
The last major advantage that Uber has over taxi services is convenience; passengers can book an Uber from anywhere with internet access, even if they don’t have a smartphone. Uber uses apps on both iOS and Android operating systems. Uber is simply more convenient than other transportation options available today making it harder for competitors to compete with Uber in terms of cost or performance.
Larger scale and a high rate of market acquisitionBrand recognition is high. Uber does not own any vehicles that might lower its costs. Provide Service that is both safe and affordable. Provide cutting-edge services such as uberPOOL and Uber sharing. A solid financial foundation.
Uber Great Marketing Strategy
Uber’s marketing strategy is to get people hooked on a product before it even exists. Uber does not have any vehicles or employees in most of its locations yet its app has been downloaded more than 10 million times and its users are signing up for service at a rate faster than 500 new members per day. Its early success comes from a truly uber-competitive advantage: word-of-mouth marketing.
Using social media and strategic promotions, Uber is creating an army of evangelists who are going out of their way to promote Uber’s service instead of conventional taxi cabs. Uber allows users to share credits with friends via Twitter and Facebook as well as allows them to invite friends through email and SMS text messages.
Uber is rewarding its early adopters with discounts, incentives, free rides, and by showing off other aspects of its business model which some call uber-competitive advantages. The platform that Uber offers makes cabs appear antiquated; if Uber can capture even 10% of cab ridership they will be in over 100 cities worldwide competing against entrenched competition while having reduced costs, higher margins, and greater flexibility and all without owning cars or employing drivers!
Uber Highly Innovative Product
Uber’s highly innovative product allows drivers to pick up and drop off riders quickly and easily, whether they want a ride for themselves or are providing a taxi service for others. Uber’s system also links directly to a customer’s bank account and alerts them when their fare has been paid, so riders never have to worry about carrying cash on them—or paying in person with credit cards, which saves time.
Passengers don’t have to worry about tips because Uber automatically adds one (it can be adjusted, though). Finally, Uber’s system is designed with passenger safety in mind; drivers face criminal background checks before being approved as drivers and once on their way, all drivers are constantly monitored by GPS systems.
Uber Well Positioned in the Market
Uber has already cemented itself as a leader in its market. The company has grown to over 3,000 employees and just raised $1.2 billion from investors, giving it a valuation of $17 billion. Uber will soon be operating in over 100 cities worldwide, with dozens more launching within months. It’s safe to say that Uber is already on top of its game; it should have no trouble building upon and maintaining its current success.
Uber Customer-Centric Company
Uber is all about its customers. The ridesharing app makes it easy for people to get a ride and make money in their spare time. Uber has created a platform that makes it incredibly easy for drivers to sign up, become certified, and start making money by giving them access to Uber’s network of potential customers.
This is great for riders because they can enjoy lower fares without worrying about surge pricing or other things that could complicate their ride experience with a traditional taxi service. Uber’s customer-first focus is really what sets it apart from every other transportation app out there, and ultimately why it has become so successful. At Uber, you do business with your friends instead of strangers. It doesn’t get much more convenient than that!
Conclusion
Many of these uber-competitive advantages are centered around Uber’s operational efficiency, which has been optimized over time. This means that every part of Uber’s business functions in unison to create an efficient, seamless ride-hailing experience. With competitive advantages like these, there is no question why Uber has dominated so quickly and decisively.
F&Q
How did Uber become so popular so quickly?
Uber’s rapid growth is because it does not have the same overhead expenses as traditional cab firms. Companies can react to changes more rapidly with a less sophisticated infrastructure, avoiding some of the challenges that might otherwise stymie expansion.
What distinguishes Uber from the competition?
Customers who use Uber often get where they’re going faster or for less money than those who use taxis. Late-night party-goers may count on being able to find available Uber drivers.
How does Uber make money?
Uber saw itself as a technology firm rather than a cab service. Their competitive advantage came from their smartphone application, which included an algorithm that used GPS signals to link Uber drivers with consumers.
