Uber SA LCG. Lund Consulting Group. How to successfully integrate Uber in the South African market. Consultants Andreas Lampeitl Ermelinda Nici

Transcription

1 LCG Lund Consulting Group Uber SA How to successfully integrate Uber in the South African market Presenting to Uber s South African Division Manager Consultants Andreas Lampeitl Ermelinda Nici Daniel Granath Jenny Holmgren

2 Challenge How to get a disruptive business idea such as Uber s to be accepted in South Africa

3 South Africa is a complex market with social and economical challenges - Most economically developed country in Africa - Huge gap between rich & poor - Public transportation is effectively used, 62 % of transportation is effectively - High crime & unemployment - Population are proud and supportive of local driving industry and businesses - Few people own credit cards Uber needs a strategy to tackle the local challenges in order to secure safety and acceptance

4 Uber s Brand Identity

5 External VALUE PROPOSITION Affordable transportation in an innovative way RELATIONSHIP Close, friendly & sharing relation POSITION Innovative EXPRESSION Logotype & App CORE VALUES Safety, Simple & pleasant transportation PERSONALITY Vibrant, young & tech savy Internal Mission Connect drivers & riders Vision Make taxi affordable for everyone CULTURE Friendly, open & transparent CORE COMPETENCE IT Technology

6 Assessing the seriousness of the news attention brought forward related to Uber Related to the Essence of the brand 1. Close to the essence of the brand (YES) - A person shot Perceived safety - Robbery due to cash payment system Safety - Anger from metered taxi drivers WARNING 1 - The issues reported by media touches on the essence of the brand

7 Assessing the seriousness of the news attention brought forward related to Uber Is the threat external or internal? 1. Close to the essence of the brand (YES) 2. Problem is internally rooted Internally rooted problem Need to adapt the business model to not compromise on the core value Safety. For both drivers & customers WARNING 2 Big part of the problem comes from the organizations choice of providing cash payments

8 Assessing the seriousness of the news attention brought forward related to Uber How impactful is the harm? 1. Close to the essence of the brand (YES) 2. Problem is internally rooted 3. The impact is large to the current core activities of Uber The problem is hitting our core activity The situation is affecting our core business and needs to be handled. WARNING 3 The impact is big on Ubers main activities on the market when consumers & drivers does not feel their service

9 Trustworthiness Customers not safe CORE VALUE Safety Compromised Drivers not safe RELATIONSHIP Close, friendly & sharing relation CORE VALUES Safety, Simple & pleasant transportation CULTURE Friendly, open & transparent Responsibility Internal problem with Cash Payment Has due to external factors in South Africa Compromised the core value Safety

10 Key success factors Safety Local Government Acceptance Competition

11 Current alternatives 1 Business as usual for Uber 2 Withdraw from South Africa 3 Change Business Strategy

12 Assessing the seriousness of the news attention brought forward related to Uber 3 Change Business Strategy

13 Act! Safety No cash Competition Find new segments Unwelcomed Give back to society

14 Remove cash to mitigate safety risks Holding cash exposes drivers to robbers Back to core business model! Use SMS and Prepaid cards to pay for fare - Purchase prepaid cards - Cards can be bought at kiosks or supermarkets - Use with Uber drivers Near Field Communication to top up balance - SMS adds cost on phone invoice Without cash several risks are mitigated

15 A new segment of customers will mitigate the hostile competitors B2B Courier services Target companies & cater express delivery needs Pick up and courier services Target tourists Offer Uber Tours where tourists can book an experience Leverage on heritage from local drivers Company fares Target businesses & the need for transportation Establish relationships with companies Keep core but extend services and scope of Uber

16 A new segment of customers will mitigate the hostile competitors B2B Courier services Target companies & cater express delivery needs Pick up and courier services Target tourists Offer Uber Tours where tourists can book an experience Leverage on heritage from local drivers Company fares Target businesses & the need for transportation Establish relationships with companies Keep core but extend services and scope of Uber

17 A new segment of customers will mitigate the hostile competitors B2B Courier services Target companies & cater express delivery needs Pick up and courier services Target tourists Offer Uber Tours where tourists can book an experience Leverage on heritage from local drivers Company fares Target businesses & the need for transportation Establish relationships with companies Keep core but extend services and scope of Uber

18 Establish a relationship with the local government Add 10 % on fare price for Uber to sponsor Give back and become partners to local community Become part of the government efforts for entrepreneurial development in the public transportation system Integrate the disruptive model in the society by working WITH the government to fight unemployment Establish a relationship by promoting benefits provided by Uber to South Africans Working with the government will enable Ubers opportunities in the market & become accepted

19 Uber to address the problems Questions to be addressed Operate where undercutting is not welcome Cater customers without the cash risk Safeguard Uber driver Driver and passenger safety Competition from Zebra & Other Overall strategy for Uber Solutions Give back to society No cash No cash No cash Extended Focus Alternate business strategy