Uber’s Secret to Success; Analyzing the company’s marketing strategy~

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Ever had a trouble getting a taxi? Well, Uber is your best solution. All you have to do is install the app and request the driver to pick you up at your current location using GPS. If the driver confirms your request, your task becomes easy and simple: just hop onto the car and you will arrive at the destination in no time.

Ever since the rapid growth of smart phone ownership, it has become more convenient for people to move from one place to another in today’s highly globalized society. In fact, the abundance of technology has eliminated the need for the individuals to wait around for the taxis to show up anymore.

Thanks to the company’s successful marketing strategy and user experience, Uber has become one of the most well-known and well-used ride-sharing services around the world. According to Launcheers, Uber is now being utilized at 300 cities in 60 different countries and corporate value has reached 5 trillion yen in five years since its founding. Let’s take a look at how Uber has captured and retained such a large number of customers by analyzing their marketing strategy.

Uber’s Business Model

Essentially, Uber is a platform service that matches the need of users who want to go to their destinations and drivers who want to make money in most time/cost effective manner. The app has benefited both parties greatly by providing convenient ride-sharing services around the world.

Launcheers explains that Uber memorizes the users’ payment record and route history on GPS upon utilizing the service, so the users do not have to bear the burden of re-entering these data when they utilize the service again. In this way, the company successfully retains its users who they once captured. Meanwhile, the drivers also benefit greatly from the service because they do not have to waste a huge amount of time looking for the customers like they did in traditional taxis. Accordingly, their business model indicates that the integration of the app in their marketing strategy has ensured time/cost efficiency among the users and the drivers.

Statistics in the U.S. and Japan

Now that we have introduced Uber’s business strategy, let’s take a look at the app’s user demographics to measure how successful they are in implementing the service to different countries.

Statistics from App Ape indicate that the service is most popular in the U.S. as it is ranked No.1 in Maps & Navigation category. The MAU of the app shows an upward trend which allows us to safely say that the strategy is working well and the future of the app seems bright in the country.

Meanwhile, Japan has witnessed a slightly different trend among the users even though they have adopted a similar business strategy as the American counterpart. Compared to the U.S., Uber is ranked No.26 in terms of MAU, and the number of active users has been increasing at a much slower rate.

This trend may be explained by the fact that it is more convenient for people to utilize trains instead of waiting around for the Uber to show up because the Japanese subway system is well organized compared to other countries. In addition, according to App Ape’s HAU data, the peak hour of the service is 3:00 AM. This indicates that Uber is mostly utilized late at night when people do not have an access to the train system.

Although countries social attributes play a role in attracting the users, it is safe to say that Uber has a successful business strategy to capture and retain an adequate number of users by offering them profitable services. The simple two-step service has provided an excellent user experience which may be the answer to the company’s secret to success.

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