Uber Marketing Strategy & Marketing Mix (4Ps)

Marketing Strategy of Uber analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Uber marketing mix, help the brand succeed in the market. Let us start the Uber Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:

Uber Product Strategy:

The product strategy and mix in Uber marketing strategy can be explained as follows:

Uber is a global leader in app based cab booking systems having a strong global reach and increasing penetration. Uber provides an app and a web based application, which is the product in its marketing mix, that can be used for booking cabs based on the location of the user. Uber offers different levels of services for its customers. Uber provides cab sharing services under the name “UberPOOL”. It is the least expensive of all the services offered by Uber. UberGO and UberX offers the user a private ride where the user need not share the ride with anyone. UberGO offers ride in hatchbacks. UberAUTO is another option that is offered in Pakistan where consumers can book an auto instead of a cab.

There is also UberTAXI allows users to book a taxi for a whole day for long distance, outstation trips. This has reduced the churn and opposition that Taxi drivers had earlier shown towards Uber drivers. Uber launched a Boat service in Istanbul and Croatia where customers can book water rides using the app. Uber also offers UberRUSH and a courier package service and UberEATS which allows customers to order food on the go. Uber also provides the user with an option to track rides and Wifi services on its premium cabs. The brand has also expanded its services under food delivery, courier delivery & transport of goods. Uber has also partnered with Walgreens to provide rides for Covid vaccinations to the needy.

Image: flickr.com/photos/alper/

Uber Price/Pricing Strategy:

Below is the pricing strategy in Uber marketing strategy:

Uber offers different pricing strategies in different countries. Uber offers promotional ride schemes in many countries.

Promo codes are distributed to the users, availing these codes resulted in discounts. Uber also provides a ride estimate, where the user can check before booking, the cost of travel. This is called upfront pricing. The fares are dynamically calculated by considering different factors. When the demand is very high and the number of available cabs are limited, Uber charges a premium (peak time surcharge) for the rides. There are various payment options available for Uber like using Uber wallet, money and even credit cards. This gives an insight in the marketing mix pricing strategy of Uber.

Uber Place & Distribution Strategy:

Following is the distribution strategy in the Uber marketing mix:

Uber is present in over 40 countries and over 600+ cities worldwide. Uber, being a smartphone app, can be downloaded at any time. Uber can be used by downloading and installing the app from Playstore (For Android) and App store for iOS phones. Web version of Uber is also available. Location of the cabs can be tracked over the mobile phone.

Uber booking stations and help desks are also available at centres like Airports and malls.

Uber Promotion & Advertising Strategy:

The promotional and advertising strategy in the Uber marketing strategy is as follows:

Uber relied heavily on word of mouth publicity to gain market share. Its initial expenses on advertising and promotional activities were very low. They relied through referral marketing and convinced corporate clients into accepting their free rides and services. The free rides scheme worked pretty well for Uber and lot of people started availing the service. Uber used simple localized marketing techniques globally. Uber promotes early adoption, rewards through referrals & promotes its rides after online reviews. The company invests heavily on digital marketing to boost its online presence further. The users of the brand are engaged via the mobile apps or even via the social media platforms.

Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Uber.

People:

Uber, being a services company in the can segment, knows the importance of people strategy in its marketing mix. Uber drivers are subjected to stringent background checks to ensure that they put the right person for the job. Customer service at Uber is good as they know that people would travel only when they have a good experience. Uber company has more than 20,000+ employees all over the world.

Process:

Uber as a company has several processes in place. The different stages involved in availing a cab service on Uber are:

• Go to Uber app and turn on your device GPS (Location settings)

• Check for cabs available and select the ride of your choice

• Check for ride estimate, type of car and driver details, comments and rating.

• Book the ride and track the ride

• Make payment through any of the preferred means of payment when you get down.

Uber uses the latest technologies to track the position of its cabs. Sometimes drivers must even click selfies on the Uber provided Smart phones/tabs and confirm their identity when Uber conducts its random driver checks. Other processes involve payment to cab drivers from the company, customer/driver service centre helplines etc.

Physical Evidence:

Uber cabs which come for customer pickup is the biggest physical evidence of the company. Also, the app on smartphone handsets becomes the physical evidence of the user interface of the Uber brand. Uber does not offer hard copies of travel receipts. The ride history is made available on the App’s dashboard and can be viewed from an online account too. Hence, this concludes the Uber marketing mix.

About Uber:

Uber is an American multi-national company that operates the Uber car transportation and food delivery mobile apps. The name typically is derived from the German word “Uber” for the Topmost or the most superior. Uber offers an online and app based taxi booking service that has revolutionised the way people travel across countries. It has been a champion of sharing services and the sharing economy is hence referred to as “Uberification”. Uber was launched in the year 2009 as Uber cab.

It slowly expanded its operations from outside of US to other countries. It currently operates in 633 cities worldwide across 14 different countries.

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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