Uber SWOT Analysis, Competitors & USP

Published by MBA Skool Team, Last Updated: August 25, 2021

SWOT analysis of Uber analyses the brand by its strengths, weaknesses, opportunities & threats. In Uber SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like Uber to benchmark its business & performance as compared to the competitors. Uber is one of the leading brands in the IT & Technology sector.

The article below lists the Uber SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Uber SWOT Analysis:

SWOT Analysis of Uber

For Uber, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.

Uber Strengths

The strengths of Uber looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Uber :

1. Uber has global player with presence in over 50 countries and 200 cities

2. Serves as a market place for cab drivers and customers to connect, hence fixed investment is less

3. Gained a premium brand image especially in developing countries where public transportation was well complemented by Uber cabs

4. Enhanced user experience & higher customer satisfaction through usage of technology

5. First mover advantage globally by launching app based taxi services

6. Uber tweaked its international strategy as per the local markets for maximum customer experience

7. High awareness due to excellent advertising and marketing

8.  Deep pockets & hence can burn cash heavily to acquire market share

9.  Innovative features like UberPool helped make carpool mainstream and helped the customers and the company alike

10. Innovative pricing mechanisms and payment options make the journey as smooth as possible

11. Innovative safety features has helped Uber to strengthen its market position

12. Strong Brand image and recall across countries makes Uber a pioneer in the industry

13. Launch of services like UberEats has helped the brand a a lot in diversifying itself

14. Uber adapts itself well to changing market dynamics and consumer behaviour 

Uber Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Uber SWOT Analysis:

1. Drivers are the face of the company and hence their behavior directly affects the brand image

2. While the demand is huge, amount of cash burning is huge and monetization is very difficult currently

3. Surge pricing can sometime lead to customer dissatisfaction

4. People without smartphones or internet connection cannot use Uber


Uber Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Uber SWOT Analysis:

1. Unorganized market is huge in developing countries and hence huge potential is there for Uber

2. Uber can look at increasing internet penetration & smart phone users through tie-ups with smartphone makers

3. Rising disposable income can help people chose cabs like Uber rather than traditional transportation

4. Shifting of consumers towards convenience creates huge demand for companies like Uber which is all about making the customer journey more easier and accessible as compared to existing options

Uber Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Uber are as mentioned:

1. Rising competition from local and similar cab aggregators

2. Presence of many existing traditional national players

3. Absence of clear government regulations in developing countries

4. Future for cab aggregator platforms like Uber is unclear due to lack of regulations

5. Customer loyalty is less in this industry as it is mostly dependent on price


Uber Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 7 competitors of Uber:

1. Lyft

2. Curb

3. Sidecar

4. Kuaidi Dache

5. Didi Dache

6. Ola cabs

7. Meru cabs

Hence this concludes the Uber SWOT analysis.

Continue reading more about the brand/company.

About Uber

Uber Overview
Parent Company

UberCab

Category

Service provider for taxi hiring(aggregator)

Sector

IT & Technology

Tagline/ Slogan

Where lifestyle meets logistics

USP

Offering seamless travel with the rider walking away after arriving at his destination

Uber STP
Segmentation

People who mobile from one place to another for any purpose

Target Market

Customers who are in need of cabs instantly & Early and late majority of business professionals

Positioning

Evolving the way the world moves; Making cities more accessible; Bringing people and their cities closer


This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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