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TONE CE Section The COMPULSORY and we Uhr The demand the one . USA Www www. TEATS Sport S. . Win where WSP way S2000 1000000 dow www over Po Awwwww www Wap ng Uber www. Www wand MIRROR werd . 11 CSU-TIME ZONE ONE Section A: This section is COMPULSORY and is worth 75 marks, Uber's ubiquitous business model The on-demand transportation service that has revolutionised the taxi Industry With an estimated market value of between $70 and 100bn Uber has been predicted to become the world's dominant transportation company without owning a single verde, after its start in San Francisco in 2000 it has quickly expanded to over 78 countries and 600 cities worldwide Uber only employs 12,000 but has over 7 million drivers and 50 milion users and generates over four billion rides a year. The company is growing exponential rates and in May 2019 the company was valued at over $80 billion in an IPO Uber's smartphone app is at the centre of their business model customers download the app, create an account and put in their credit card Information. By tapping the app they request a car and a notification is sent to the nearest driver who can accept of reject the ride and if rejected it is sent to another driver in the area Customers can track the estimated time of amal and the meter via the app. Payment is made to Uber via the app with a later payment to the deliver the customer gets an option to rate the driver and the driver also has the option to rate the customer ubery The basic resource of Uber include their technological pladon and app, but they do not own any cars or employ ay drivers Drivers own the cars and are soll employed and apply to Uber to become a driver Uber's activities are configured to match customers with a nearty driver and car. In addition to matchmaking the platform and e include pricing and payment wing and review systems. Thus ructures the value o tom customers and drivers through the development of sophisticated software and algorithms that optimismatchmaking pricing and review for differenties and local markets. Uber captures the profit and value by typically taking a 20-25 per cent out on alles encept for special promotions to comes andlor drivers and in areas where they face competition from similar services. Besides genesing a margin these revenues should cover the expenses to cover RSD Sacology development, marketing, local structure and own local employees in hoty Even though the business model has been there were significant challenges. The UPOP service hood regulatory pushbacks in several En countries and even been forced to shut down smarts Uber is 2-202122 Page 2013 C19BU - TIME ZONE ONE facing an increasing number of competitors with similar business models: Lyft is a significant competitor in the USA and in China they were defeated by Didi Chuxing, which acquired their operations. However, the CEO Dara Khosrowshahi has expanded their food delivery UberEATS further and entered into new services such as bike- and scooter-sharing with a vision to be present in all the different ways people move within an urban environment: 'we want to be the Amazon of transportation" Source: Whittington, R., Regner, P., Angwin, D., Johnson, G., and Scholes, K. (2020) Uber's ubiquitous business model: the on-demand transportation service that has revolutionised the taxi industry, case study in Exploring Strategy 12th ed. Harlow. Pearson, Pg 222 Answer the following questions: 1. Using the Ansoff matrix analyse Uber's growth over time. What do you notice about its pattern of expansion? (20 marks) 2. Using evidence from the case examine the reasons for the success of Uber. Use relevant theories to support your answer. (25 marks) Examine the challenges facing Uber in expanding using market development and product development as a strategy. (30 marks) 3. TONE CE Section The COMPULSORY and we Uhr The demand the one . USA Www www. TEATS Sport S. . Win where WSP way S2000 1000000 dow www over Po Awwwww www Wap ng Uber www. Www wand MIRROR werd . 11 CSU-TIME ZONE ONE Section A: This section is COMPULSORY and is worth 75 marks, Uber's ubiquitous business model The on-demand transportation service that has revolutionised the taxi Industry With an estimated market value of between $70 and 100bn Uber has been predicted to become the world's dominant transportation company without owning a single verde, after its start in San Francisco in 2000 it has quickly expanded to over 78 countries and 600 cities worldwide Uber only employs 12,000 but has over 7 million drivers and 50 milion users and generates over four billion rides a year. The company is growing exponential rates and in May 2019 the company was valued at over $80 billion in an IPO Uber's smartphone app is at the centre of their business model customers download the app, create an account and put in their credit card Information. By tapping the app they request a car and a notification is sent to the nearest driver who can accept of reject the ride and if rejected it is sent to another driver in the area Customers can track the estimated time of amal and the meter via the app. Payment is made to Uber via the app with a later payment to the deliver the customer gets an option to rate the driver and the driver also has the option to rate the customer ubery The basic resource of Uber include their technological pladon and app, but they do not own any cars or employ ay drivers Drivers own the cars and are soll employed and apply to Uber to become a driver Uber's activities are configured to match customers with a nearty driver and car. In addition to matchmaking the platform and e include pricing and payment wing and review systems. Thus ructures the value o tom customers and drivers through the development of sophisticated software and algorithms that optimismatchmaking pricing and review for differenties and local markets. Uber captures the profit and value by typically taking a 20-25 per cent out on alles encept for special promotions to comes andlor drivers and in areas where they face competition from similar services. Besides genesing a margin these revenues should cover the expenses to cover RSD Sacology development, marketing, local structure and own local employees in hoty Even though the business model has been there were significant challenges. The UPOP service hood regulatory pushbacks in several En countries and even been forced to shut down smarts Uber is 2-202122 Page 2013 C19BU - TIME ZONE ONE facing an increasing number of competitors with similar business models: Lyft is a significant competitor in the USA and in China they were defeated by Didi Chuxing, which acquired their operations. However, the CEO Dara Khosrowshahi has expanded their food delivery UberEATS further and entered into new services such as bike- and scooter-sharing with a vision to be present in all the different ways people move within an urban environment: 'we want to be the Amazon of transportation" Source: Whittington, R., Regner, P., Angwin, D., Johnson, G., and Scholes, K. (2020) Uber's ubiquitous business model: the on-demand transportation service that has revolutionised the taxi industry, case study in Exploring Strategy 12th ed. Harlow. Pearson, Pg 222 Answer the following questions: 1. Using the Ansoff matrix analyse Uber's growth over time. What do you notice about its pattern of expansion? (20 marks) 2. Using evidence from the case examine the reasons for the success of Uber. Use relevant theories to support your answer. (25 marks) Examine the challenges facing Uber in expanding using market development and product development as a strategy. (30 marks) 3