uber presentation
TRANSCRIPT
ADDRESS 182 HOWARD STREET # 8
SAN FRANCISCO, CA 94105
WEBSITE WWW.UBER.COM
SECTOR RIDE SHARING
INDUSTRY VEHICLE LIVERY
TABLE OF CONTENTS
I. Introduction Summary.………………………………………………………………………………………………………………………………………………………………………… 3
Company History
II. External Analysis…………............................................................................................................................................................................................ 5
Industry Overview
Porter Five Forces
III. Internal Analysis…...................................................................................................................................................................................................... 9
Most Important Executives
Drivers
Product Diversification
Strategic Alliances
Other Resources and Competencies
IV. Financial Analysis..................................................................................................................................................................................................... 15
Uber’s Funding
Comparable Financial Metrics
V. Recommendation...................................................................................................................................................................................................... 18
Competitors’ Funding
Other Services
Uber Legislation
International Expansion
Reward Program
INTRODUCTION
SUMMARY
3
4
INTRODUCTION SUMMARY: COMPANY HISTORY
Aug 2008:
Inspired by the difficulties to find
a taxi in Paris, Travis Kalanick
and Garrett Camp invented
UberCab.
Jul 2010:
UberCab went live as a
luxury private transportation
between San Francisco and
Silicon Valley.
May 2011:
Uber expanded domestically
to major cities, including New
York City, Chicago and Los
Angeles.
July 2012:
Uber started to expand
internationally.
Nov 2016:
Uber is currently in 70
countries with over 10
million users and 200
thousands drivers.
“Where does Uber go from here?”
EXTERNAL
ANALYSIS
5
EXTERNAL ANALYSIS: INDUSTRY OVERVIEW
SOURCES: CIA FACTBOOK, THE FEDERAL RESERVE BANK
18.8%
13.5%
39.6%
12.9%
15.3%
0% 10% 20% 30% 40% 50%
0- 14 Years
15- 24 Years
25- 54 Years
55- 64 Years
65 and Over
2015 POPULATION AGES DISTRIBUTION (U.S.)
CURRENT STATE
• Vehicle Livery is a class of privatized point to point transport requiring
one driver and at least one customer.
• The industry is in a period of transition with regulatory reform either
occurring or being reviewed.
• Ridesharing is the newest component of this industry.
FUTURE DEVELOPMENTS
6
• The ridesharing encourages consumers to use more services in the point
to point market. These rideshares can replace the needs for car in some
urban areas.
• Price and services differences have pushed consumers to switch from
traditional services taxi services to ridesharing platforms.
• The regulation environment will decrease and accept the shift in the
industry.
Vehicle
Livery
Taxi Cab Ride sharing
Vehicle for Services
VEHICLE LIVERY SUMMARY CHART
7
EXTERNAL ANALYSIS: PORTER FIVE FORCES
INTENSITY OF RIVALRY
(HIGH)
THREATS OF NEW ENTRY
(MEDIUM)
THREAT OF SUBSTITUTION
(HIGH)
• Rivalry is more rampant than ever, after
decades of virtually none
• The number of vehicle livery drivers is at an
all-time high, with a relatively low number of
firms, thus increasing intensity
• Individual participating firms have taken
heavy legal action against competitors, and
sabotage is not unheard of
• There is a little of differentiation in service,
though the importance of superficial
qualities has become a more critical element
of industry vehicles
• Vehicle livery competes against public
transportation, private transport ownership,
and pedestrian locomotion
• Switching costs are low or nonexistent
between vehicle livery and other forms of
transportation
• Urban public transport in particular has
consistently lower costs than most vehicle
livery providers
• Barriers to entry are prevalent in this
industry.
• Individual vehicle livery providers have a high
cost of capital requirements, including
vehicles, maintenance costs, driving
technology platforms, and vehicle operators
• Government policy varies upon location, but
is powerful. Special licenses and background
checks can be required. Some cities limit the
number of certain vehicle livery operators
through caps on licenses granted and/or
number of vehicles for this purpose
• Launched in 2012
• Operates internationally
• Valued at $5.5 Billion
• Available on iPhone and Android
• Launched in 2012
• Operates in South East Asia
• Valued at $1.8 Billion
• Available on iPhone and Android
• Launched in 2006
• Operates in Western Europe
• Valued at $1.5 Billion
• Available on the Web
• Launched in 2011
• Operates in major cities in the West Coast
• Valued at $0.5 Billion
• Available on iPhone and Android
EXTERNAL ANALYSIS: PORTER FIVE FORCES (CONT.)
SOURCES: BUSINESS INSIDER
MAJOR RIDESHARING PLAYERS
8
BUYERS POWER (MEDIUM)
SUPPLIER POWER (LOW)
47.9%
32.1%
20.0%
Taxi Cab
Uber
Lyft
MARKET SHARE COMPARISON (U.S.)
• There are ample suppliers of drivers, and if applicable, vehicles to
operate
• Drivers’ margin of profit vary across the industry, with established
competitors generally providing a smaller margin
• Wider breadth of industry members makes prices more competitive
• Customers have ability to select perceived less expensive competitors,
but are usually locked into whatever rate is charged
INTERNAL
ANALYSIS
9
10
INTERNAL ANALYSIS: MOST IMPORTANT EXECUTIVES
TRAVIS KALANICK
(CEO)
GARRETT CAMP
(CHAIRMAN)
GAUTAM GUPTA
(CFO)
THUAN PHAM
(CTO)
BRIAN MCCLENDON
(VP)
• CEO and Co-Founder of Uber.
• Invented 5 successful start ups in the technological area.
• Graduated from MIT with a degree in Computer Engineering.
• Chairman and Co-Founder of Uber.
• Has 20 years of experience working with and inventing startup companies such as Stumble Upon, and Expa.
• Received the Top Innovator Award from MIT.
• CFO of Uber since March 2015.
• Previously worked at Goldman Sachs as Vice President in Technology Group.
• Graduated from MIT with a degree in Computer Engineering.
• CTO of Uber since April 2013.
• Oversees the technology division of over 400 people.
• Held a Bachelor and Master Degree in Computer Engineering from MIT.
• Vice President of Uber Product since June 2015.
• Previously worked at Google, GET IT Mobile, Keyhole. Assisted in developing key products such as Google Earth,
Google Map and Google Ad.
SOURCES: WIKIPEDIA
11
INTERNAL ANALYSIS: DRIVERS
Hours/ Week 1 to 15 16 to 34 35 to 49 Over 50
ProductsPercent of
Drivers
Earnings per
Hour
Percent of
Drivers
Earnings per
Hour
Percent of
Drivers
Earnings per
Hour
Percent of
Drivers
Earnings per
Hour
UberBlack 29% 20.87 32% 20.85 19% 21.67 20% 20.76
UberX 55% 16.89 30% 18.08 10% 18.31 5% 17.13
SOURCES: UBER CASE STUDY
ACTIVE U.S. UBER DRIVERSDRIVERS BENEFITS
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15
UberX UberBlack
12
INTERNAL ANALYSIS: PRODUCTS DIVERSIFICATION
Service Description
UberBlack and UberSUV
Uber luxury service. Commercially registered and insured livery vehicles, typically black luxury sedan or SUV. Drivers
must be professional livery drivers – they must have a commercial license, commercial insurance- and must own a high
–end black sedan or SUV.
UberX
Uber’s low-price service. Drivers are not professional livery drivers and a commercial license is not required. Drivers must
be 21 or older with a clean driving record ,and must own a model 2000 car or newer. Driver must pass a background
check.
UberXLSlightly higher fare price than UberX. Vehicles seat at least six passengers. Vehicles are ordinary minivans and SUVs.
Driver requirements are the same as for UberX.
UberSelect
Only available in some cities. Uber’s mid-luxury service. Prices are lower than UberBlack, but higher than UberX. Drivers
are not professional livery drivers and a commercial license is not required, but they must own a luxury sedan that seats
up to four riders.
UberPOOLOnly available in some cities. Passengers share rides with other passengers and split the cost. Because of the carpooling
nature of the ride, passengers may not be picked up first or dropped off first. An even cheaper option than uberX.
SOURCES: UBER CASE STUDY
13
INTERNAL ANALYSIS: STRATEGIC ALLIANCES
HOTELS INDUSTRY
FINANCIAL SERVICES
CUSTOMER INTERFACE
AUTO MANUFACTURERS
SOURCES: UBER NEWS
14
INTERNAL ANALYSIS: OTHER RESOURCES AND COMPETENCIES
DESCRIPTION COMPETENCIES
Provides an international recognition
Is known for safe and reliable services
An edge on their competition
Allows them to regulate commission for the drivers
Surge Pricing Model incentivizes drivers to work challenging
hour of the day
Uses aggressive tactics to competition and entry to new
locations
Costly to imitate
Stapled as primary provider
RESOURCES
Brand
Recognition
Business ModelHave least amount of wait time for the consumers in the industry
Has the majority of shares in the ridesharing
First Mover
Advantage
Spearheads the vehicle livery industry
Possess industry patented technology
Captures loyalty customers from the beginning
Has a strong loyal consumers base
Can set the trend within the industry
FINANCIAL
ANALYSIS
15
FINANCIAL ANALYSIS: UBER’S FUNDING
SOURCES: UBER WEBSITE
0.2 1.3 11.0 37.0
258.0
1,200.0
600.0
1,600.0
1,000.0 1,000.0
100.0
1,200.0 1,200.0
2,000.0
0
500
1,000
1,500
2,000
2,500
Seed Angel Series A Series B Series C Series D Series E Debt
Financing
Series E Series F Private
Equity
Private
Equity
Private
Equity
Private
Equity
52 Investors
Aug. 2009 Oct. 2010 Feb. 2011 Dec. 2011 Aug. 2013 Jun. 2014 Dec. 2014 Jan. 2015 Feb. 2015 Jul. 2015 Aug. 2015 Sep. 2015 Oct. 2015 Jan. 2016
$6.61 Billion Raised
12 Rounds
16
17
FINANCIAL ANALYSIS: COMPARABLE FINANCIAL METRICS
Company Estimated Value Gross Booking Revenues Operating Profit or
Loss # Cities Served # Rides # Drivers
Uber $51,000 $10,840 $2,000 ($470) 300 1,460,000 800,000
Lyft $2,500 $1,200 $300 ($100) 65 156,000 100,000
Ola $2,500 $1,200 $150 NA 85 100,000 250,000
GrabTaxi $1,500 $1,000 $50 NA 26 300,000 75,000
BlaBlaCar $1,600 $600 $72 NA 100 NA NA
Sum $59,100 $14,840 $2,572 ($570) 576 2,016,000 1,225,000
Company Value/Gross Billing Value/ Revenues Value/ City Value/ Ride
Uber 4.70 25.50 $170.00 $0.03
Lyft 2.08 8.33 $38.46 $0.02
Ola 2.08 16.67 $29.41 $0.03
GrabTaxi 1.50 30.00 $57.69 $0.01
BlaBlaCar 2.67 22.22 $16.00 NA
Average 2.61 20.54 62.31 $0.02
Median 2.08 22.22 38.46 $0.02
SOURCES: PUBLIC NEWS REPORT
RECOMMENDATION
18
RECOMMENDATION: COMPETITORS’ FUNDING
Didi Kuaidi,
$4,200.0
Yidao Yongche,
$790.0
GrabTaxi, $680.0
Lyft, $1,010.0
Other, $1,254.0
Ola Cabs,
$1,180.0
Companies Raised
Blablacar $336.5M
Shenzhou Zhuanche $250.0M
Gett $220.0M
Hailo $110.6M
Easy Taxi $77.0M
Careem $71.7M
Meru $50.0M
Via $37.1M
Sidecar $35.0M
Flywheel $34.9M
INGOGO $31.3M
19SOURCES: PUBLIC NEWS REPORT
RECOMMENDATION: OTHER SERVICES
Brand Name Services Description Locations
uberFresh Groceries delivery Los Angeles
uberEats Restaurants delivery International
uberBike Motorcycle as transportation Asia
uberChopper Private helicopter as transportation New York City, Dubai, Abu Dhabi
uberRush Bicycle messenger for quick delivery New York City
uberKittens On demand kittens to play with North America
20SOURCES: UBER WEBSITE
RECOMMENDATION: UBER LEGISLATION
USA
Anchorage, AK; San Antonino, TX;
Panama City Beach, FL
India
Maharashtra, Hyderabad,
Telengu, Karnataka, New Delhi
Australia
Queensland, Western Australia,
Victoria
Netherlands Germany Spain Taiwan South Korea Thailand
South Africa
Cape Town
Japan
Fukuoka
Brazil
Rio de Janerio
SOURCES: UBER WEBSITE 21
RECOMMENDATION: INTERNATIONAL EXPANSION
Uber Dominated Area
Other Competitors
US
Lyft, Via, Sidecar,
Flywheel, Curb
Colombia, Brazil
Easy Taxi
Nigeria, Kenya,
South Africa
Easy Taxi
Australia
Ingogo, Gocatch
Singapore, Malaysia,
Philippines, Thailand,
Vietnam & Indonesia
Grab Taxi, Easy Taxi
SOURCES: DELOITTE, JP MORGAN
India
Ola Cabs, Meru
South Korea
Hailo, Easy Taxi
China
Didi Kuaidi, Yidao
yongche, Shenzhou
Russia
Gett
Germany, France
Blablacar
UK
Gett, Hailo
Spain
Cabify
Israel
Gett
22
23
RECOMMENDATION: REWARD PROGRAM
BENEFIT FOR THE CUSTOMERS
• Loyalty program offered to customers allowing them to accumulate
points for trips taken.
• Members may redeem their accrued points for free Uber trip or for other
products and services available through a network of commercial
partners.
• Members may be recognized for their long term relationship with Uber
and be rewarded for the loyalty.
BENEFIT FOR UBER
• Company can increase the loyalty as a mean to differentiate.
• The coalition program offers commercial partners the ability to acquire
and retain customers at lower cost.
• Commercial partners can collect data on customers, allowing them to
optimize their marketing campaigns.
• The companies can also increase the exposure of their individual brand
through network association.
• The reward program offers Uber possibility to increase their pricing
margin.
Accrual of points for purchase
Redemption for free products
REWARD PROGRAM STRUCTURE