Uber Marketing Mix and 7Ps (Updated 2024)

The Marketing mix of Uber analyses the 7Ps of Uber, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Uber. The Uber marketing mix has helped to align the business and marketing tactics so that the Uber Company can gain market share and a competitive advantage in these competitive times. The marketing strategy focuses on product strategy, upfront pricing policy, distribution strategy, network, and promotional planning.

The marketing mix of Uber Technologies has led to effective marketing of Uber service as an easily accessible, user-friendly, low-cost option to the target audience as it will attract customers and eventually lead to customer retention and a solid customer base.

Introduction of Uber Technologies Inc.

#Uber

• Origin Country: United States of America
• Founders: Garrett Camp, Travis Cordell Kalanick
• Founded: 2009
• Headquarters: San Francisco, California, U.S.
• Employees in 2023: 32,800
• Annual Revenue in 2023: 31.877 billion USD
• Net Income in 2023: -9.141 billion USD
• Market Cap in 2023: 63.87 billion USD

Based in San Francisco, Uber Technologies Inc. is a world-renowned tech company offering transportation services. The company provides various services, including ride-hailing/mobility as a service, freight transport, package delivery, food delivery, and couriers. Products include mobile apps and a website.

Uber was launched by its founders Garrett Camp and Travis Cordell Kalanick as UberCab in 2009. The name was later changed to Uber. The company went public in 2019 and is listed on the New York Stock Exchange.

Uber Product Strategy

Uber’s marketing strategy for its product element is prominent. Uber offers the best possible taxi services to Uber customers to ensure customer retention. Uber’s marketing mix and strategies have set the groundwork for better customer experience and led to high demand for Uber’s premium products and services.

Uber has become a global leader in car booking and has increased its operations far and wide because of its market-penetration pricing policy. Uber offers transportation services with a few clicks on your mobile or desktop at the doorstep so that customers can travel safely and without any hassles from one location to another.

Uber started its journey as UberCab in 2009 but had to change its name to Uber in 2011 after facing complaints from taxicab operators. Later, users could book Uber drivers or regular taxis via their mobile app. Uber launched its app in 2011. This application allowed users to book Uber rides in a luxury vehicle at a price 1.5 times that of the regular taxi services.

The new Product Mix of Uber in 2024 is as follows (Source).

1. Ride-Hailing Services: Uber’s core service allows customers to book rides through the app. Different service levels include UberX: Standard rides; UberPool: Shared rides with other passengers; UberBLACK: Luxury rides; UberSUV: Premium SUV rides for larger groups; UberXL: Rides in larger vehicles for groups; Other specialized options like UberASSIST for riders with mobility issues.
2. Uber Eats: A food delivery service allowing customers to order food from local restaurants and have it delivered by Uber drivers.
3. Freight and Logistics: Uber Freight connects truck drivers with shipping companies, streamlining the freight transportation process.
4. Advanced Technologies Group (ATG) Focuses on developing autonomous vehicle technology.
5. Uber for Business: Tailored business solutions, including employee transportation, customer rides, and freight.
6. Uber Health: A service for healthcare organizations to arrange rides for patients to and from their appointments.
7. Bike and Scooter Rentals: In some markets, Uber offers electric bike and scooter rentals.
8. Public Transportation Integration: In certain cities, Uber integrates public transportation schedules and routing into its app.
9. Air Transportation Initiatives: Projects like Uber Elevate aim to develop urban air transportation solutions.
10. Financial Services: Such as Uber Wallet, which helps drivers manage earnings, and Uber Credit Card.
11. Delivery Services: Beyond food, Uber has explored delivery services for groceries and other goods.

Uber Pricing Strategy

Uber’s pricing strategy is a sophisticated blend of market-driven dynamics and technological innovation tailored to maximize customer satisfaction and revenue generation. Here are critical aspects of their upfront pricing strategy and model:

1. Dynamic Pricing (Surge Pricing): Uber employs an algorithm-driven dynamic pricing model called “surge pricing.” This strategy adjusts real-time ride fares based on immediate supply and demand conditions. During peak hours or in areas with high demand and limited driver availability, prices increase to balance the market and encourage more drivers to become available.
2. Competitive Pricing: Uber’s pricing is strategically designed to be competitive with traditional taxi services and other ride-hailing competitors. By maintaining a competitive edge, Uber attracts a broad customer base looking for affordable and convenient transportation options.
3. Tiered Service Levels: Uber offers multiple service levels at different price points – from budget-friendly options like UberX to premium services like UberBLACK. This tiered structure caters to a diverse customer base, allowing users to choose a service that fits their needs and budget.
4. Geographical Pricing Variations: Uber’s pricing is not uniform across all locations. Instead, it varies geographically to reflect local market conditions, cost structures, and regulatory factors. This approach ensures pricing is optimized for each specific market.
5. Promotional Pricing and Discounts: Uber frequently uses promotional offers, discounts, and loyalty programs to attract new users and retain existing ones. These strategies are designed to increase market penetration and encourage frequent usage.

Uber’s pricing strategy is a critical component of its market success. It reflects a deep understanding of consumer behavior, market dynamics, and the leveraging of technology to create a flexible and adaptive pricing system. This approach maximizes profitability and enhances customer satisfaction with low-cost rides that provide value and convenience.

Uber Place Strategy

Uber has captured an estimated 68% of the total share in the market and is available in nearly 10,500 cities across 70 countries. The service company generates 23 million trips on average daily and boasts 5.4+ million active drivers and 131 million active users monthly.

Uber has been expanding its services worldwide by opening too many offices in its operating countries. It offers different types of vehicles and ride options where the customer can track the ride, own car, or the delivery person easily.

Uber was launched in India in 2013, and within a short time, with too many offices in several locations, it has been able to leave a positive mark on customers.

Here’s the place strategy of Uber.

1. Global Expansion: Uber has strategically expanded its operations to over 70 countries and hundreds of cities worldwide, adapting its services to local markets and regulatory environments to maximize its reach.
2. Partnerships with Local Entities: In many regions, Uber forms partnerships with local businesses, governments, and transport authorities to integrate its services smoothly and adhere to local regulations and cultural norms.
3. Urban Focus: Uber primarily targets urban areas with a high demand for transportation services, especially in major cities where public transport may be limited or congested.
4. Airport Transportation: Uber has made concerted efforts to establish a presence in airports, providing easy and reliable transportation for travelers, often in partnership with the airports.
5. Diverse Service Locations through Mobile App: The convenience and accessibility of the Uber mobile app allow the company to offer its services in a wide range of locations without needing physical infrastructure, adapting quickly to changing market demands.

Uber Promotional Strategy

The Uber marketing strategy for promoting products and services depends heavily on mouth promotion. Initially, the budget for promotion was relatively low as the company wanted to focus on penetration in new markets. Still, with time, it has understood that effective marketing of its services is as important as the services and products themselves.

The promotional mix in the Uber marketing strategy includes-

Mouth Marketing

Uber’s marketing mix initially depended on mouth publicity to promote its products and services. People liked the concept of doorstep taxi service and booking with a few clicks from the comfort of their home or office and shared their experiences with others. Later incentives like free rides and discount coupons also led to an increase in brand awareness amongst customers.

Referral Marketing

Uber’s marketing mix focused on referral promotion to convince corporate clients to accept various services and free rides. The free-ride scheme was successful as many people rode bike rides using Uber services.

Social Media Marketing

Uber uses social media platforms to provide customer support systems and increase brand visibility. It invests in digital marketing and promotes various services with offers of free rides and rides at discounted prices.

Loyalty Program

Uber wanted to show its appreciation to its loyal users through a loyalty program of their own. After a minimum of one hundred rides, the loyal customers could access the highest-rated drivers. From time to time, Uber also offers other incentives through its loyalty program.

Some Recent Video ads and Print ads for Uber are:

Uber People Strategy

The “People” aspect of the service marketing mix for a company like Uber is crucial because it directly influences customer satisfaction and loyalty. Here are key points regarding the “People” element of Uber’s service marketing mix:

1. Diverse and Global Workforce: Uber operates in numerous countries worldwide, requiring a diverse and multicultural workforce. This diversity helps Uber better understand and cater to the needs of different markets and customer segments.
2. Driver Partners: Uber’s driver-partners are the frontline representatives of the brand. Their professionalism, behavior, and customer interaction significantly impact Uber’s reputation and satisfaction. Uber invests in training and support to ensure drivers provide excellent service.
3. Customer Service Teams: Uber’s customer service teams are vital in resolving issues, providing support, and ensuring customer satisfaction. These teams are accessible through the app and are crucial for handling complaints, refunds, and service-related inquiries.
4. Technology and Support Staff: Behind the scenes, Uber employs a wide range of technology and support staff, including engineers, data analysts, and IT specialists, who ensure the smooth functioning of the Uber app and services. Their work directly impacts the customer experience by ensuring reliability, ease of use, and innovation.
5. Corporate Employees: Uber’s corporate employees, including management, marketing, HR, and finance teams, contribute to the strategic direction of the company, brand image, and overall service quality. Their decisions impact how Uber operates in various markets and its service offerings.
6. Training and Development: Uber invests in training and development programs for its employees and driver partners. This includes onboarding sessions, safety training, customer service excellence, and new features or policy updates. Continuous learning and improvement are emphasized to maintain high service standards.
7. Feedback Mechanism: Uber has a robust feedback mechanism allows customers to rate their ride experience and comment on the driver’s service. This feedback is crucial for Uber to assess driver performance, reward high-quality service, and address any areas of improvement.
8. Innovation and Adaptability: The people at Uber are encouraged to innovate and adapt to changing market trends and customer needs. This innovation culture helps Uber continuously improve its services and stay ahead in the competitive ride-sharing market.
9. Community Engagement: Uber’s employees and driver partners often engage in community service and social responsibility initiatives. This engagement helps build a positive brand image and strong community relations.
10. Safety and Security: Uber prioritizes its riders’ and drivers’ safety and security. This includes background checks for drivers, in-app safety features like emergency buttons and ride tracking, and ongoing safety education. The commitment to safety is critical to Uber’s service delivery and brand promise.

Uber Process Strategy

The “Process” element of Uber’s service marketing mix focuses on the procedures, mechanisms, and flow of activities by which its services are consumed. This element is crucial for ensuring customer satisfaction and efficiency in service delivery. Here are key points regarding the “Process” aspect of Uber’s service marketing mix:

1. User-Friendly App Interface: Uber’s process begins with its app, which is designed to be intuitive and user-friendly, allowing users to book rides with just a few taps. The app includes fare estimates, driver information, and live tracking features.
2. Ride Matching Algorithm: Uber’s sophisticated algorithm matches the user with a nearby driver once a ride is requested. This process considers location, driver availability, and the type of service requested (e.g., UberX, UberPool) to ensure quick and efficient matching.
3. Dynamic Pricing Model: Uber uses a dynamic pricing model (surge pricing) to manage demand and supply. Prices may increase during high-demand periods to encourage more drivers to be available. This process is transparently communicated to users through the app.
4. Payment Processing: The payment process is seamless and cashless, handled entirely through the app via stored payment methods like credit cards or PayPal. This convenience enhances user experience and safety by reducing the need for cash transactions.
5. Rating System: After the ride, customers are prompted to rate their experience and provide feedback on the driver. This process is crucial for quality control, as it helps Uber monitor driver performance and ensures a high standard of service.
6. Customer Support and Dispute Resolution: Uber has an in-app support system for customers to report issues, file complaints, or seek assistance. This process includes automated solutions for everyday problems and access to customer support representatives for more complex issues.
7. Driver Onboarding and Training: The process for onboarding new drivers includes background checks, vehicle inspections, and an introduction to Uber’s policies and customer service expectations. This ensures that all drivers meet Uber’s standards for safety and professionalism.
8. Safety Protocols and Procedures: Uber has implemented safety processes, including in-app emergency buttons, ride-sharing details with friends or family, and continuous safety education for drivers. These measures are designed to ensure riders’ and drivers’ safety and security.
9. Continuous Improvement: Uber constantly analyzes customer feedback, ride data, and operational metrics to refine and improve its processes. This includes updates to the app, changes in policies, and enhancements to driver and customer support.
10. COVID-19 Response and Health Safety Measures: In response to the COVID-19 pandemic, Uber introduced additional processes such as mandatory mask-wearing policies, health safety checklists before each ride, and distributing health and safety supplies to drivers. These measures aim to protect riders’ and drivers’ health and safety.

Uber Physical Evidence Strategy

The “Physical Evidence” element in the service marketing mix refers to the environment in which the service is delivered and any tangible components that facilitate the service or help customers evaluate the service beforehand. Physical evidence might not be traditional for a digital platform like Uber, but it’s still essential to the service experience. Here are key points regarding Uber’s “Physical Evidence”:

1. Branding and App Interface: The Uber app itself is a significant piece of physical evidence. Its design, usability, and functionality reflect the brand’s quality and reliability. The app’s interface, including the logo, color scheme, and layout, creates a first impression and is crucial for user experience.
2. Vehicle Standards: The cars used by Uber drivers are part of the physical evidence. Uber requires that vehicles meet specific age, condition, and cleanliness standards. This ensures customers have a comfortable and safe ride, directly impacting their perception of the Uber service.
3. Driver Presentation: How drivers present themselves, including their professionalism and attire, contributes to the physical evidence. While Uber does not enforce a uniform, it does expect drivers to be neat and professional, affecting customer perceptions.
4. In-Car Experience: The cleanliness and amenities provided in the car (e.g., water bottles, chargers, air conditioning) serve as physical evidence. These aspects can enhance customer satisfaction and differentiate the service experience.
5. Ride Receipts and Email Communication: Detailed receipts and communications sent to customers after their rides provide tangible evidence of the service. Receipts detail the route taken, fare breakdown, and driver information, serving as a record of the service provided.
6. Rating and Feedback System: The ability to rate and review the service is evidence of Uber’s commitment to quality and customer satisfaction. This system also allows potential customers to evaluate the service based on previous customers’ experiences.
7. Safety Features: Tangible safety features, such as the in-app emergency button, ride tracking, and the “Share My Trip” feature, are physical evidence of Uber’s commitment to rider and driver safety.
8. Uber Signage: In some regions, Uber provides drivers with signage, such as decals or lights (e.g., Uber Beacon), to be displayed on the vehicle. This helps riders identify their ride, provides physical evidence of the service, and enhances safety by ensuring they get into the correct vehicle.
9. Marketing Materials and Promotions: Physical promotional materials, such as discount coupons, branded merchandise, and advertisements, also constitute physical evidence. They help create brand recall and reinforce service quality in the minds of current and potential customers.
10. Corporate Identity and Offices: While customers might not visit Uber’s offices, the company’s corporate identity and the appearance of its offices contribute to its brand image. For stakeholders, such as employees, investors, and partners, these physical spaces represent the company’s culture and operational efficiency.

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