Session 5 Uber Business Model

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Questions and Answers

Which company was founded first among the ones listed?

Both were founded the same year

Lyft

Not enough information to determine

Uber (correct)

What information does the data compare between Uber and its competitors?

Only the amount raised in funding

Number of trips and riders only

Number of drivers and valuation only

Number of drivers, riders, and valuation (correct)

What was the valuation of Uber in 2018?

$75 million

$21 billion (correct)

$62 billion

$4 billion

In 2017, how many trips did Uber facilitate?

4 billion Signup and view all the answers

How much funding had Uber raised by 2018?

$21 billion Signup and view all the answers

What plays a role in determining the rider's fare?

Trip length and distance Signup and view all the answers

What percentage of a trip's gross fare is retained by Uber?

25% Signup and view all the answers

Which feature is NOT included in the driver app?

Passenger feedback tool Signup and view all the answers

What dynamic pricing variation is used by Uber?

Surge pricing Signup and view all the answers

Which vertical does NOT fall under Uber's product team organization?

Customer service Signup and view all the answers

What is the median hourly earning range for Uber driver-partners as per the company's own research?

$15 to $30 Signup and view all the answers

What does the marketplace vertical primarily manage?

Product pricing and vehicle matching Signup and view all the answers

Which of the following services is NOT offered by Uber?

Uber Rentals Signup and view all the answers

What was one of the key strategies employed by Uber in launching new products?

Use a minimum viable product and iterate based on feedback. Signup and view all the answers

By 2018, how many driver-partners were utilizing the Uber platform?

3 million Signup and view all the answers

What was the estimated valuation of Uber by 2018?

$62 billion Signup and view all the answers

Which ride-sharing company is specifically mentioned as a competitor to Uber?

Lyft Signup and view all the answers

How did Uber's financial performance vary in different markets?

It was thought to be profitable in more mature markets. Signup and view all the answers

What technology powered Uber’s ride-sharing service?

Point-to-point software and GPS mapping Signup and view all the answers

What aspect of Uber's growth strategy reflects its culture?

Rapid experimentation and market entry. Signup and view all the answers

What factor contributed to the competitive nature of the ride-sharing industry?

High concentration of service availability in urban areas. Signup and view all the answers

Which company raised $1.5 billion in February 2018 to enhance its ride-hailing market presence?

Go-Jek Signup and view all the answers

What was the valuation of Careem after its $500 million raise in June 2017?

$1 billion Signup and view all the answers

Which of the following companies is associated with a mobile payment business acquisition in December 2017?

Go-Jek Signup and view all the answers

Who led Taxify's $175 million funding round in May 2018?

Daimler Signup and view all the answers

Which company became the most valuable startup in Southeast Asia by December 2017?

Grab Signup and view all the answers

What event took place on April 23, 2018, involving the company Careem?

Data breach revelation Signup and view all the answers

Which company's valuation reached $1 billion according to a May 2018 report?

Taxify Signup and view all the answers

What was a common challenge faced by Ola and Uber mentioned in the content?

High attrition rates Signup and view all the answers

What was the main concern regarding user experience after launching the Express product?

There were no major problems reported regarding user experience. Signup and view all the answers

What was a significant external factor affecting the adoption of the Express product in Boston?

Adverse weather conditions during the winter. Signup and view all the answers

What was the duration of the total wait time in the treatment group during the switchback experiment conducted in Boston?

Five minutes. Signup and view all the answers

What was the purpose of the five-week freeze period implemented after the launch of the synthetic control experiment?

To allow for clean data interpretation by data scientists. Signup and view all the answers

How many U.S. cities were involved in the synthetic control experiment launched on February 19, 2018?

12 cities. Signup and view all the answers

Which experimental process was used to evaluate riders' willingness to wait in Boston?

A switchback experiment. Signup and view all the answers

What was the status of the POOL product in the 12 cities before launching the Express product?

It was already offered in all 12 cities. Signup and view all the answers

What impact did the Express product launch have on the volume and costs experienced by Uber?

There was an increase in volume and cost savings. Signup and view all the answers

What innovation did Uber launch that aimed to make travel more affordable?

Express POOL Signup and view all the answers

Which statement is true regarding Uber's platform expansion?

Uber opened its platform to non-limo vehicles. Signup and view all the answers

What was the valuation of Uber as of May 2018?

$62 billion Signup and view all the answers

How much did Uber report in sales growth for the first quarter of 2018?

$2.5 billion Signup and view all the answers

Which app feature was introduced in 2018 to assist drivers in managing multiple ride requests?

Competing Rides Signup and view all the answers

What challenge was highlighted regarding Uber's financial performance?

Uber struggled to break even financially. Signup and view all the answers

What was emphasized about the usage of Uber in relation to traditional transport options?

Uber is designed to reduce reliance on personal vehicles. Signup and view all the answers

What was the primary strategy behind launching the Express POOL service?

To provide a lower-cost travel option for users. Signup and view all the answers

Study Notes

Uber's Express POOL Launch

Uber launched Express POOL in 2018, a ride-sharing product offering cheaper rates for riders willing to walk/wait.
Express POOL contrasted with traditional carpooling, prioritising efficiency through matching riders heading in same direction.
Initial wait times were capped at two minutes for quick matches.
The company ran experiments to understand rider tolerance for waiting, balancing efficiency with experience.
Early results suggested that longer wait times reduced ride costs but increased cancellation.

Uber's Data-Driven Approach

Uber utilized data science extensively to develop and refine products.
Experiments were conducted in Boston and San Francisco cities to test various improvements to Express POOL.
Data scientists monitored ride-related metrics such as cancellation rates and costs per ride in relation to wait times.
A 5-week moratorium on market changes was implemented to ensure stable data collection.
Various methods were used to test product and technological changes, including A/B testing and switchbacks.

Uber's Product Offerings and Platform

Uber's platform included various ride-sharing options, catering to different needs & budgets.
Offerings ranged from basic UberX to premium UberLUX vehicles.
The company utilized a dynamic pricing model, adjusting fares based upon demand and supply.
Its products included UberPOOL, UberX, UberXL, UberSELECT, UberBLACK, UberSUV, and UberLUX.
Uber’s rider and driver apps facilitated the ride-sharing process, providing real-time updates during the ride(s).

Uber's Organizational Structure

Uber's organization involved teams focusing on different product and operational aspects.
Product managers, engineers, data scientists, and designers/marketers collaborated on product development.
Teams aimed for products that were user-friendly & profitable.
Key role of product managers in communication and coordination to improve product functions.

Express POOL (Project)

Initially, a 'greedy' algorithm coordinated matches based on riders' routes.
Express POOL's efficiency improved using a two-minute waiting period and walking to fixed locations.
This allowed for more matches and reduced costs.
An adjusted pricing strategy aimed to make Express POOL attractive relative to existing services.

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Description

Test your knowledge on Uber's business model, funding, and overall performance compared to its competitors. This quiz covers important statistics and strategies related to Uber's operations up to 2018. Challenge yourself with questions on valuation, pricing strategies, and driver earnings.