Uber Marketing Mix (Uber 7Ps of Marketing)
Uber marketing mix (Uber 7Ps of marketing) comprises elements of the marketing mix that consists of product, place, price, promotion, process, people and physical evidence.
Product Element in Uber Marketing Mix (Uber 7PS of Marketing)
Uber is a service company and it does not sell products. Uber has clear advantages over regular taxi. These include clear overview of pricing prior to booking, one-tap rides, following drivers on map, cashless convenience and fare splitting, as well as feedback options.
The range of services offered by Uber with brief descriptions is illustrated in table below:
| Service | Descrption |
| X | Low cost option for the passengers looking for low cost rides for up to 4 riders |
| XL | Low cost option for the passengers looking for low cost rides for up to 6 riders |
| Pool | Car sharing: riders can bring one other person with them, thus saving on travel costs |
| GO | Ride in a hatchback |
| Comfort | Newer cars with extra legroom |
| Flash | Match with closest Uber Taxi or UberX |
| AUTO | Ride in Auto rickshaws, currently available in Bangalore and Pune only |
| Access | Taxi service with wheelchair access to cater to the need of elderly and people with disabilities. |
| MOTO | Booking bike rides around the city |
| Premium | A fleet of stylish vehicles to choose from. Uber Premium comprises Uber SELECT, Uber BLACK, Uber SUV and Uber LUX |
| Green | Sustainable rides in electric vehicles |
| Scooters | Electric scooters to help people to get around a city |
| Transit | Real-time public transit information in the Uber app |
| WAV | Rides in wheelchair-accessible vehicles |
| RUSH | Courier Package Service |
| EATS | Allows customers to order food on the go |
Uber services and descriptions
Place Element in Uber Marketing Mix (Uber 7PS of Marketing)
Uber is available in 71 countries around the globe.[1] The service has a high level of geographic concentration. In 2020, Uber derived 22% of its Mobility Gross Bookings from five metropolitan areas—Chicago, Los Angeles, and New York City in the United States, Sao Paulo in Brazil, and London in the United Kingdom. [2]
Despite being active in approximately 10000 cities globally, Uber does not have too many offices due to network nature of its business model. Anyone can become an Uber customer at any time, simply by downloading Uber app. The five top countries where Uber is the most active are US, Brazil, China, Mexico and India.
In May 2020, Uber closed its Eats operations in eight smaller markets. Specifically, specifically Eats operations were ceased in Czech Republic, Egypt, Honduras, Romania, Saudi Arabia, Ukraine, and Uruguay. In UEA the company transferred its operations to Careem, its wholly-owned subsidiary.[3] The ride-hailing giant made these changes as part of its global competitive retooling initiative.
Price Element in Uber Marketing Mix (Uber 7PS of Marketing)
Uber pricing strategy can be described as geographical pricing. The cost of riding with Uber depends on three factors – a base rate, rate for estimated time and distance and the demand for rides in that area. Moreover, Uber pricing strategy can be classified as a dynamic pricing that is based on the basic economic principle of demand and supply. At any given time and given location, the higher the demand for taxi services, the higher the prices.
Generally, Uber pricing strategy integrates the following principles:
Economy pricing. A range of Uber services such as Uber-Moto, Uber Pool and Uber Go offer no-frills rides for competitive costs.
Upfront pricing. Customers are quoted estimated costs, before confirming their order.
Surge pricing. During times of high demand for rides, fares will increase, sometimes multiple times.
Penetration pricing. When entering new markets, the global taxi technology company sets its prices artificially low in order to gain market share.
The ride-hailing giant offers a range of payment methods to customers such as Uber wallet, money and even credit cards.
Uber Technologies Inc. Report contains a full analysis of Uber marketing mix (Uber 7Ps of marketing) and Uber marketing strategy in general. 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, Ansoff Matrix and McKinsey 7S Model on Uber. Moreover, the report contains analyses of Uber leadership, organizational structure and organizational culture. The report also comprises discussions of Uber business strategy, ecosystem and addresses issues of corporate social responsibility.
[1] Annual Report (2020) Uber Technologies Inc.
[2] Annual Report (2020) Uber Technologies Inc.
[3] Lomas, N. (2020) “Uber Eats exits seven markets, transfers one as part of competitive retooling” Tech Crunch, Available at: https://techcrunch.com/2020/05/04/uber-eats-exits-seven-markets-transfers-one-as-part-of-competitive-retooling/