Uber Ansoff Matrix

By John Dudovskiy
July 19, 2021

Uber Ansoff Matrix is a marketing planning model that helps the ride-hailing giant to determine its product and market strategy. Uber Ansoff Matrix illustrates four different strategy options available for the business.  These are market penetration, product development, market development and diversification.

Uber Ansoff Matrix

Uber Ansoff Growth Matrix

Within the scope of Ansoff Matrix, Uber uses all four growth strategies in an integrated manner:

1. Market penetration. Market penetration refers to selling existing products to existing markets. Uber engages in market penetration via application of various sales promotions techniques. These include distributing promo codes to allow users to have a discount for their next ride and “Uber VIP” loyalty program that rewards riders with special access to highest-rated drivers. Moreover, users can earn free rides by inviting their friends to sign up and ride with Uber.

2. Product development. This involves developing new products to sell to existing markets. The global transportation technology company consistently increases its service range. Currently, its extensive range of services include Uber X, Uber XI, Uber Pool, UberGO, Uber AUTO, Uber Access, Uber MOTO, Uber Premium and Uber Rush. Importantly, each new service introduced by the ride-hailing giant utilizes the same technological platform and competitive advantage of the business.

3. Market development. Market development strategy is associated with finding new markets for existing products. Launched only in San Francisco in 2009, the company currently operates in approximately 10000 cities worldwide. The global transportation technology company takes into account important aspects local culture when pursuing expansion strategy. The largest mobility platform in the world is expected to further engage in new market development business strategy.

4. Diversification. Diversification involves developing new products to sell to new markets. This is considered to be the riskiest strategy. Initially launched only as a taxi company, the ride-hailing giant has entered takeaway food delivery segment with Uber Eats.

Previusly, the largest mobility platform in the world has attempted to develop and commercialise autonomies driving technologies through its Advanced Technologies Group (ATG) segment. However, this project proved to be costly and ATG was eventually sold to Aurora Innovation Inc. in January 2021.[1]

Uber Technologies Inc. Report contains the above analysis of Uber Ansoff Matrix. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on Uber. Moreover, the report contains analyses of Uber leadership, business strategy, organizational structure and organizational culture. The report also comprises discussions of Uber marketing strategy, ecosystem and addresses issues of corporate social responsibility.

Uber Technologies Inc. Report 2021.

[1] Korosec, K. (2020) “Uber sells self-driving unit Uber ATG in deal that will push Aurora’s valuation to $10B” Tech Crunch, Available at: https://techcrunch.com/2020/12/07/uber-sells-self-driving-unit-uber-atg-in-deal-that-will-push-auroras-valuation-to-10b/

Category: Strategy