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UBER IN SOUTH AFRICATHE WAY FORWARD
Asper School of BusinessDestination Consulting
Jeremiah KoppArly AkerstreamMatt SchaubroeckDevin McManus
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KEY ISSUE
How should Uber proceed in South Africa?
Analysis Alternatives Implementation Financials
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STRATEGIC DIRECTION
Withdraw from South
Africa?
Business as usual?
Change local
strategy?
Analysis Alternatives Implementation Financials
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RECOMMENDATION
Reposition Uber with a public relations and augmented
services strategy
Analysis Alternatives Implementation Financials
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MARKET OPPORTUNITYTransportation Choices
Train Bus Taxi Car Walking
18%
51%
Analysis Alternatives Implementation Financials
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PUBLIC TRANSPORTATION CONSUMER BEHAVIOUR
Safety Convenience Price
Analysis Alternatives Implementation Financials
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PUBLIC TRANSPORTATION CONSUMER BEHAVIOUR
Safety Convenience Price
Analysis Alternatives Implementation Financials
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STAKEHOLDER MANAGEMENT
Influence
Interest
Taxi board
Government
Insurance providers
Public
Analysis Alternatives Implementation Financials
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ENVIRONMENTAL ANALYSIS
Strengths:-international brand
-easy to use, well-developed platform-market disrupting technology
Opportunities:-reposition UBER relative to competitors
-produce augmented services-improve image on safety
Concerns:-established taxi drivers
-recent negative PR-high barrier to successful entry
Threats:-threatened stakeholders-further negative press
-new competitors
Analysis Alternatives Implementation Financials
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ALTERNATIVES
1: Business as usual
2: Complete withdrawal
3: Reposition Uber with a PR and augmented services strategy
Analysis Alternatives Implementation Financials
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ALTERNATIVE 1: BUSINESS AS USUAL
Allowing for organic growth without
intervention
Strengths Weaknesses
Analysis Alternatives Implementation Financials
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ALTERNATIVE 2: COMPLETE WITHDRAWAL
Remove all Uber
services from South Africa
Strengths Weaknesses
Analysis Alternatives Implementation Financials
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ALTERNATIVE 3: REPOSITION UBER WITH A PUBLIC RELATIONS AND AUGMENTED SERVICES STRATEGY
Demonstrate Uber’s value within
a local context through expanded
services
Strengths Weaknesses
Analysis Alternatives Implementation Financials
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DECISION CRITERIA
Customer experience• Ensures customer experience high through policy adherence
Maintains brand integrity• Low cost, safe, and convenient alternative for urban transportation
Public perception• Sound cultural integration with positive local and global image
Increased market share• Increased South African market share relative to overall industry
Analysis Alternatives Implementation Financials
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ANALYSIS OF ALTERNATIVESAlternative 1:
business as usualAlternative 2: exit
marketAlternative 3:
augment services
Customer experience
Maintains brand integrity
Public perception
Increased market share
Analysis Alternatives Implementation Financials
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RECOMMENDATION
Reposition Uber with a public relations and augmented
services strategy
Analysis Alternatives Implementation Financials
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PUBLIC RELATIONS CAMPAIGN
Stakeholder relations
Promotion of augmented
services
Allay public concerns
Uber needs to reposition its
brand perception within the South African
population
Analysis Alternatives Implementation Financials
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HIRE LOCAL PR FIRM
Hire South African PR
firm
Specialization in stakeholder management
Proactive outreach
Direct and constant
feedback mechanisms
Analysis Alternatives Implementation Financials
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PUBLIC RELATIONS: STAKEHOLDER MANAGEMENT
• Uber as benefit to local and national economy
Government
• Uber as a partner in taxi industry, not industry disrupter
Taxi boards• Uber as safe
alternative to impaired, unsafe driving
Insurance providers
Analysis Alternatives Implementation Financials
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GET THE PUBLIC EXCITED ABOUT UBER
Uber
Safe
Convenient
Accessible
LocalBrand
association with
keywords will drive Uber’s
success
Analysis Alternatives Implementation Financials
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COMPETITIVE ENVIRONMENT
• Contrasting against local companies is against ‘local is lekker’ movement
No aggressive competition
• Review competition’s offerings, match or improve
Provide superior service
Analysis Alternatives Implementation Financials
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CUSTOMER-FOCUSED SERVICE ENHANCEMENTS
Customer feedback system
• Reach out directly to dissatisfied customers
Multi-passenger rides
• Reduce individual fares, increase convenience
Women-only ride option
• Female drivers for female passengers
Analysis Alternatives Implementation Financials
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PARTNERSHIP-FOCUSED SERVICE ENHANCEMENTSUberPay: prepaid
fare cards
• Partner with national convenience store chain
• No reliance on credit cards, but safer than cash
UberGrocer: grocery delivery
• Partner with national grocery store chain
• Groceries delivered to your door
UberSafeDrive: impaired driver
program
• Partner opportunity with bars or nightclubs
• Participants get fare coupon in lieu of driving home
Analysis Alternatives Implementation Financials
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UBER’S LONG-TERM STRATEGY
South Africa as test market
Incorporate and review feedback
Possible introduction into new Uber markets
Analysis Alternatives Implementation Financials
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TIMELINE &INVESTMENTS
Analysis Alternatives Implementation Financials
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RISK EXPOSURE
Analysis Alternatives Implementation Financials
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PERFORMANCE METRICS
Analysis Alternatives Implementation Financials
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CONCLUSION
Reposition Uber with a public relations and augmented
services strategy