UBER IN SOUTH AFRICATHE WAY FORWARD

Asper School of BusinessDestination Consulting

Jeremiah KoppArly AkerstreamMatt SchaubroeckDevin McManus

KEY ISSUE

How should Uber proceed in South Africa?

Analysis Alternatives Implementation Financials

STRATEGIC DIRECTION

Withdraw from South

Africa?

Business as usual?

Change local

strategy?

Analysis Alternatives Implementation Financials

RECOMMENDATION

Reposition Uber with a public relations and augmented

services strategy

Analysis Alternatives Implementation Financials

MARKET OPPORTUNITYTransportation Choices

Train Bus Taxi Car Walking

18%

51%

Analysis Alternatives Implementation Financials

PUBLIC TRANSPORTATION CONSUMER BEHAVIOUR

Safety Convenience Price

Analysis Alternatives Implementation Financials

PUBLIC TRANSPORTATION CONSUMER BEHAVIOUR

Safety Convenience Price

Analysis Alternatives Implementation Financials

STAKEHOLDER MANAGEMENT

Influence

Interest

Taxi board

Government

Insurance providers

Public

Analysis Alternatives Implementation Financials

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

ALTERNATIVES

1: Business as usual

2: Complete withdrawal

3: Reposition Uber with a PR and augmented services strategy

Analysis Alternatives Implementation Financials

ALTERNATIVE 1: BUSINESS AS USUAL

Allowing for organic growth without

intervention

Strengths Weaknesses

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ALTERNATIVE 2: COMPLETE WITHDRAWAL

Remove all Uber

services from South Africa

Strengths Weaknesses

Analysis Alternatives Implementation Financials

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

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

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

RECOMMENDATION

Reposition Uber with a public relations and augmented

services strategy

Analysis Alternatives Implementation Financials

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

HIRE LOCAL PR FIRM

Hire South African PR

firm

Specialization in stakeholder management

Proactive outreach

Direct and constant

feedback mechanisms

Analysis Alternatives Implementation Financials

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

GET THE PUBLIC EXCITED ABOUT UBER

Uber

Safe

Convenient

Accessible

LocalBrand

association with

keywords will drive Uber’s

success

Analysis Alternatives Implementation Financials

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

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

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

UBER’S LONG-TERM STRATEGY

South Africa as test market

Incorporate and review feedback

Possible introduction into new Uber markets

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TIMELINE &INVESTMENTS

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RISK EXPOSURE

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PERFORMANCE METRICS

Analysis Alternatives Implementation Financials

CONCLUSION

Reposition Uber with a public relations and augmented

services strategy