Uber Brand Positioning
Brand positioning for Uber is pertinent as it is a process that is observed by new brands and services in order to distinguish those brands and services from other competitors. Cautious brand positioning helps in smooth penetration in a target market.
Uber entered in Australia in October 2012 with the concept of ridesharing in which the customer connects with local rider and driver through uber application, therefore, its brand positioning should be attempted in such a way that the impression of this unique concept gets imprinted in the mindset of the customer (Chassin and Msaid, 2016).
The main brand positioning strategy used by uber is price positioning strategy. If any service that can let consumers cut down their daily travel expenses will surely become their favorite. Uber brand positioning if based around economy will surely make a positive and huge difference in the minds of the customer and compel them to prefer the service over other means of transportation available to them, which ultimately is the goal (Walker, 2016). This aspect of Uber brand positioning will articulate the reasons in customer’s mind as to why uber is more beneficial and better service available to them against others.
Market Information
Market research and gaining information is crucial to brand positioning. While launching Uber, it is very significant to study the market so that a potent and compelling brand position can be sustained which will make a huge difference in the success of its launch.
Market Leaders of Transportation Industry – Competitors of Uber
When Uber penetrated in Australian transportation market, there were already quite a number of market leaders present offering traditional ways of transportation. The services like trains, public buses, taxi and few other ridesharing platforms were dominating the market. Moreover, there were several similar apps like Uber such as OLA, DIDI, Shebah, GoCatch, Bolt/taxify are also present in Australia. However, when Uber came to Australia, with its innovative purpose and intention it became quite popular despite the presence of various competitors (The Economist, 2015).
Ola, an Indian ridesharing company was launched in Australia in March 2018 and claims to have destroyed the monopoly of Uber in Australia. According to Fowler (2019) Ola has 75,000 while Uber has 63,000 drivers on its book. Didi, after China has entered Australia and trying to offer competitive pricing for rides. Bolt, a European ridesharing app is working in Australia offering similar prices as Uber but have potentially lower cancellation fees along with other in-app discounts codes. Shebash is a new entrant in this industry as its positions its service as an all-female network of drivers and passengers (Chassin and Msaid, 2016).
However, Uber has a lot to compete from but still all the other market leaders have something or the other lacking. Therefore, the brand position in the market needs to be maintained by Uber through differentiation and effective strategies (Almondo, Et al, 2016)). This is the only way to stand out in this crowded industry of ridesharing. Brand image should be improved through targeted marketing and offering fair pricing, a transparent system of refunds, and impactful social media campaigns.
Identified Niche for Uber
It is very pertinent to identify niche markets while positioning any brand, product, or service. In the case of Uber, demographic and geographical segmentation is used for identifying the niche market for the level of services and its respective fare pricing. In Australia the level of services uber provides are uberx, uberXL, uber black, having different level of comfort and features (Prasai et al, 2017). Rates offered by uber will be different in certain regions of Australia because the operating cost of uber is different. As Uber will work on demand transportation service therefore, both of these segments will be considered.
According to population statistics, the age range from 20-40 years comprises the majority of the world population. Uber has wisely targeted this age group by introducing uber mobile applications with compatible features that can easily be understood and accessible. The uber focuses on this niche market outreaching youth to the best of their convenience by launching different payment options and handy features.
Uber as a Challenger to Other Means of Transportation
In the transportation market, Uber is definitely going to be a challenger to the transportation services available for the public. The most commonly transportation system used by Australians are Taxi services. Therefore, this service has most to fear from uber. A number of high-profile protests and strikes as displayed by taxi industry is definite proof that Uber has captured their market and appeared as a challenger. The fast pace with which uber is attracting customers has impacted the patronage of other transportation services like trains and public buses around Australia.
Not only the service the uber provides is reason of its fast adoption but other factors like hassle free mode of payments, identity of driver, tracking of routes have contributed significantly. Not only in one part of Australia but throughout the region, has uber posed as challenger to other modes of transportation used by customers on daily basis. The adoption rate in Western Australia was 23.9, Victoria 21.8, NSW and QLD at 17 percent.
The platform used by uber to tender its service is up to date and hence maintains an upper hand from its rivals. Uber poses a significant challenge to its competitors as uber services are not general, but it varies and offer differentiated services which caters to every transportation needs of its users. The pricing strategy of uber is very dependable as it offers various services according to their pocket. Like uber premium is for elite class which is expensive and luxurious. Whereas it also offers scooter service for less privileged to fulfil their need adeptly.
Consumer Adoption Process
As significant as it is to identify the target segments and position of brand, it is equally significant to estimate and study the consumer adoption process and its factors. Current era is driven by technology and Uber is a mobile application-based service therefore it is expected that Consumer adoption process for it will be relatively easy. Booking a car through your phone that can take you to your destination safely is an idea expected to be cherished by the customers.
As consumers notice the compatibility, observability, advantage, and convenience to adopt a new service and these factors even affect the adoption process positively (Raybould, 2016). As the Uber app is quite user friendly with a simple interface, getting accustomed to it will not be a problem. On the other hand, if consumers find it difficult to use the Uber application the impact would be adverse in the consumer adoption process.
Social influence is a factor that has a near meaning to social pressure and subjective norm, which describes the degree of tendency for an individual to be in their social group. Along with advertisement techniques, the consumer will get to know about the app through social media and this would also evaluate to what extent the mobile app of Uber is being seen (Min, Jeong and So, 2018).
Targeted Customers
The target customers are the total population of Australia ultimately but in the initial plans to make the service operations potential heavy users and early adaptors first because they are more active on social media and are risk takers. Early adaptors for now are taken as those potential customers in need of a ride who are relatively more active on social platforms. Moreover, as it is technology-based service, therefore targeting such an audience seems fair as well who are close to technology. The effect can be enhanced by introducing unique features to the mobile application such as more precise GPS location information, further reducing the response time for consumer pick up etc. Late majorities will be targeted in the second phase. The reason for this is to reduce the adoption process time. Tech events and free rides will be conducted so that the early adaptors get to know about this service.
Estimated Time of Full Adoption
Early adaptors are expected to adopt it in days whereas for others the process could take a few months but the results could serve the purpose well.
Pricing Strategy Decisions
The brand positioning of Uber based on pricing strategies makes pricing decisions regarding the service ever so critical. It is important to mention that the Uber application does not charge any fee for downloading and installation. Uber is targeting all cost-conscious customers requiring different levels of services therefore the pricing strategy followed will be dynamic (Deohans, et al, 2019). Unlike taxi service, public buses’ prices for every ride will be different depending upon the route, time, and traffic congestion during the ride. Moreover, since the private cars working for Uber belong to different categories from being simple hatchbacks to luxury cars, a pricing strategy will be designed keeping this fact in mind as well. This dynamic pricing strategy will help Uber to maintain a strong position and stand out in the crowd of competitors. In the second phase Uber also plans to include promotional pricing strategies for its regular customers.
Being a customer-focused service, Uber designing their brand positioning strategy around the pricing factor will also include the convenience of payment methods as well like cards, paypal and cash payment convenience.
Location, Hour of Operations and Demand Capacity Issue
Uber is available throughout Australia. Hours of Operation of Uber are available 24/7 meaning that you can call a ride at any time of the day. However, the pickup time will depend on the location of the nearest driver available to your pickup location.
Uber is a technology based ridesharing service therefore demand capacity issues will be tackled through a proper digital supply management system. The application will accept and translate the demand by getting the geolocation of the customer requesting a ride along with the kind of service he needs (UberX, premium service etc) and will check upon the supply of nearest driver capable of offering its required type of service. Demand and capacity issues will be dealt with in a real time manner.
References
Almondo, M., Jin, F., Malacrino, S., Rizzo, M., Tedeschi, L., Sofia, L. T. (2016) Uber-Strategic analysis, data retrieved from https://www.academia.edu/30096187/Uber_-_A_Strategic_Analysis
Chassin, Y. and Msaid, Y. (2016) UBER AND TAXIS: AUSTRALIA OPENS THE DOOR TO REFORMS, data retrieved from https://www.iedm.org/files/lepoint0216_en.pdf
Deohans, A., Kumari, A., Saha, A., JayaKalyani K. Sharma, S. (2019) Management Analysis of Uber, Department of Aerospace Engineering.
Fowler, E. (2019) Ola rivals Uber’s market dominance, data retrieved from https://www.afr.com/technology/ola-rivals-uber-s-market-dominance-20190717-p527xr
Hall, J. V. ,. Horton, J. J., Knoepfle, D. T. (2019) Pricing Efficiently in Designed Markets: The Case of Ride-Sharing, data retrieved from https://john-joseph-horton.com/papers/uber_price.pdf
Min, S., Jeong, M., So, F.K. K. (2018) Consumer Adoption of the Uber Mobile Application: Insights from Diffusion of Innovation Theory and Technology Acceptance Model, data retrieved from https://www.researchgate.net/publication/326847397_Consumer_Adoption_of_the_Uber_Mobile_Application_Insights_from_Diffusion_of_Innovation_Theory_and_Technology_Acceptance_Model
Prasai, J., Robinson, A., Rosales, A. and Radcliffe, C. (2017) Integrated Marketing Communications Plan for Uber Technologies Inc., data retrieved from https://jacquelineprasai.files.wordpress.com/2017/10/prasai_imc.pdf
Raybould, G. (2016) Uber consumer behaviour report, data retrieved from https://guyraybouldsguide.files.wordpress.com/2017/10/uber-cb-report-final-gr.pdf
The Economist, 2015. Taxis v Uber Substitutes or complements?, data retrieved from https://www.economist.com/graphic-detail/2015/08/10/substitutes-or-complements.
Walker, S. J. (2016). The Uber-All Economy of the Future. The Independent Review,20(3), 383-390.
