Uber in South Africa - John Molson MBA International Case ... · Recommendation Analysis Road Map...

Uber in South AfricaJMSB ConsultingGeorge EmeryCinzia RubertoEliane RoyJonathan Suprovici

Recommendation Analysis Road Map Financials

Uber will be South Africa’s safe ride• Additional driver background checks• Emergency alert on Uber app• Payment options via debit card, top-card, remove cash

Improve safety features

• Incentives to switch for taxi drivers• Community involvement, sponsorship of soccer teams• Lobbying local authorities

Taxi driver & the community

• Marketing campaign to promote safety (social media, billboards)

Branding and marketing

Uber can adapt to local needs for long term success

Analysis


South Africa will be a challenging market

Economic divide between minority rich and majority poor

Public transportation is main line of transport

High crime and unemployment rates

Uber can grow with an adaptive and innovative offering


Items that directly need to be addressed

Addressing these key concerns will allow for growth

Safety

Taxi turf wars

Increased competition

Cash payments


Transportation statistics show clear market opp.

Q1 to Q4 = PREFER TAXI



Q5 = PREFER PRIVATE CARS






UBER USERSCLEAR MARKET IN Q1 – Q4

UBER DRIVERSMARKET FOR Q1 – Q4

ENTREPRENEURS

Q5 CAR OWNERS





UBER USERSCLEAR MARKET IN Q1 – Q4

UBER DRIVERSMARKET FOR Q1 – Q4

ENTREPRENEURS

Q5 CAR OWNERS

Market opportunity will allow Uber to grow


Competition in South Africa can be navigated

• Slow• InconvenientPublic transportation

• Safety concerns• Cash paymentsTaxi service

• Local heritage, cater to woman• Debit swipes and cash paymentsZebra Cabs

With competition navigated and mkt. opportunity, Uber can succeed


Leverage Uber’s core strengths

Technology play

Financial backing

Focus on safety

Innovative offering

Combine core strengths and market opportunity will provide success

Road Map


Road Map at a GlanceShort Term (0-3 months) Medium Term (6-12 months) Long Term (12+ months)

Improved driver background checks

Incentives for drivers to switch

Community Involvement

Lobbying authorities

Additional payment options

Development of a Top Up Card

Marketing Campaign

Introduce Top Up card payment

Explore Uber Eats


Improved Safety Features

Driver background check

All drivers to be verified

Follow-up on driver every year

No tolerance for driver reported incidents

Emergency Alert on App

Sending authorities driver and/or customer location

Alternative Payment options

App to be upgraded to include Debit

Eliminate reliance on cash with a Top Up card

Uber as the safest ride option for South Africans


Top Up Card

Uber card that can be reloaded with Cash

Drivers to scan card with Uber app to collect payment

Uber card can be reloaded at convenience stores & grocery stores

Reducing the reliance on cash


Incentives for Drivers to Switch

Free smartphone if they switch

No exclusivity required

Higher bottomline

Safer option

Uber is an attractive option for drivers


Community Involvement

Free first rides after community

events

Lobbying with local authorities

Sponsorship of local soccer

teams

Uber needs to make a name for itself in the Johannesburg community


Marketing Campaign

• Promote added safety features via Facebook, Twitter, Instagram

• Build an Uber experience communitySocial Media

• Billboards at major intersections promoting the new safety features

• Encouraging women & young adults to use UberBillboards

We heard you South Africa: we want to get you home safe too!

Campaign Message “Uber: Your Safe Ride”

Financials


Project cost

Application Update

Safety Feature Update: 2.5 MTop-up Card Implementation: 2.5 M

Community Involvment

Free Rides After Events: 100 K (20 events)

Local Team Sponsorship: 500 K (50 teams)

Taxi Incentives

Free Smartphone: 120 K (50$ x 2,400 drivers per year)


Project cost

Lobbying Safety Feature Update: 2 M

Marketing Public Image: 10 M

17.7 M INVESTMENT


Project cost

17.7 M INVESTMENT

5,000 Drivers10 Rides per day6 Days a Week

52 Weeks per Year1$

15,6 M per Year


Project cost

YEAR 1

17.6 MCOST

REVENUE 15.6 M(5000 drivers)

NET -2 M

YEAR 2+

12.6 M

31.2 M(10,000 drivers)

18.6 M


Uber will be South Africa’s safe ride• Additional driver background checks• Emergency alert on Uber app• Payment options via debit card, top-card, remove cash

Improve safety features

• Incentives to switch for taxi drivers• Community involvement, sponsorship of soccer teams• Lobbying local authorities

Taxi driver & the community

• Marketing campaign to promote safety (social media, billboards)

Branding and marketing

Uber can adapt to local needs for long term success

Questions?

Uber in South Africa - John Molson MBA International Case ... · Recommendation Analysis Road Map...

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