Marketing Mix of Uber : Detailed 4P’s Explanations

Updated on: Apr 10, 2023

Uber is an American tech company. The company provides ride-hailing and food delivery services in around 900 metropolitan areas. It is a market leader in the U.S. with a 71% market share.

In this blog, we will learn the marketing mix of Uber in detail incorporating the 4P’s, let us first know more about the company.

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About Uber

Uber Logo | Marketing Mix of Uber (4P’s) | IIDE

 

Uber is a private company based in San Francisco, California that provides transportation facilities online by their site or mobile app. The company was founded by Garrett Camp and Travis Kalinick in 2009. It has a huge consumer base with around 100 million users.

Uber came to India in 2013 as the country has a huge consumer base for the company and comfort transportation is a need. The company is doing well with a 17 million user base and it is expanding continuously in various cities.

Now that we have a clear idea about the company, let us see the target audience for Uber.

 

Target Audience of Uber

The target customer segment that Uber is trying to attract to its company are people who do not have a car, don’t like to drive themselves, or people who don’t want to go themselves to a party, want to travel in style, or want a cost-efficient cab waiting for them at their door. People who don’t like travelling in public transports like taxis and metros but have limited income also come under the target segment of the company. The majority of Uber customers are between the ages of 20 and 40. In addition, for Uber Eats the defined target market will be bachelors who don’t have time for cooking, people who don’t know how to cook, and occasionally everyone beyond that.

Now as we have a clear idea of the company, let us dive into the marketing mix of the company.

 

Marketing Mix of Uber

Marketing Mix is a set of actions or tactics used by any business company to promote their product or services and to reach out to the customer and create a strong market position.

There are 4P’s in a marketing mix namely product, price, place and promotion. Let us see each one of them for Uber.

 

1. Product Strategy of Uber

Uber has majorly 3 different services available which are-

1. Uber Ride– In this they provide transportation services through which anyone can travel to any location by booking a cab with a few clicks. The company ensures the safety and hygiene of the cabs. 

It provides different rides worldwide, such as:

  • UberX, 
  • Uber Pool, 
  • Uber Comfort, 
  • Uber Green/ Black, 
  • Bikes and Scooters, 
  • UberXL/ Transit/ SUV
  • Uber Taxi or Uber auto

2. Uber Eats- The company also provides food delivery services by which you can order food and get it delivered to your place from your favorite restaurants with a minimal delivery fee.

3. Uber Freight- In this Uber provides a parcel transportation service, by which you can send any kind of parcel with different customizable packings anywhere.

All these services are available in a single app that is user-friendly and easily accessible.

 

2. Pricing Strategy of Uber

Uber defines its prices according to the country and the area it is working in, it has different charges for every country. The company also uses an upfront pricing strategy under which it provides promotional codes and offers to customers and creates a strong customer base.

There are several kinds of cabs available of different sizes for every number of customers and the prices are charged accordingly. The prices also fluctuate with demand-supply conditions and premium charges are collected in peak hours. 

 

3. Place and Distribution Strategy of Uber

Uber is expanding its services in different regions, it provides its services across the world in over 40 countries and 700 plus cities. They distribute their services through their websites and the mobile apps that are available both on Android & IOS.

You can enjoy the rides and meals at any place by just tapping the rides of your comforts and ordering from your favourite restaurants. Customers can easily track their cabs and food delivery person from the Uber app. 

The app also has a customer support system, where customers can post any kind of complaints or difficulties faced.

 

4. Promotional Strategy of Uber

Uber has done many things to promote the brand to grab the attention of the customer through referral and convincing strategy by giving free rides, coupon codes to existing users to get discounts up to 25% on Uber trips.

Initially, giving a free ride was a loss for the company, but it worked very effectively with time as it grew the customer base for the company. It also acted as a great promotional tool for the company as customers gave a mouth of the word for the company to other people and shared their experiences. 

In 2023, Uber launched a new marketing campaign for its Uber Intercity service, which is designed for outstation travel. The campaign was launched just in time for the summer travel season, with a focus on easy booking, doorstep pick-ups, and affordable one-way fares. The digital campaign included multiple videos.

Check it out –

Uber doesn’t spend much on advertising, it believes in simple yet effective marketing, they believe in using offers and giving free rides on different occasions as their promotional stunt.

 

 

 

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Conclusion

 

Currently, Uber is doing well in the market with its effective pricing strategy. The company has expanded its zone of services which has helped it gain market share. The company should work more on the promotional element to eliminate competition in the industry as free rides are a common tactic used by several companies. They should increase their promotional sources and invest more in advertising costs. The company has a good product mix and offers various offers and services to customers which gives it customer retention. Overall, Uber is doing good and needs to sustain its position by bringing in new features and facilities for consumers.

Thank you for reading the blog. Do share it with your friends and let us know your views on the same in the comment section.

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Author's Note:

My name is Aditya Shastri and I have written this case study with the help of my students from IIDE's online digital marketing courses in India.

Practical assignments, case studies & simulations helped the students from this course present this analysis.

Building on this practical approach, we are now introducing a new dimension for our online digital marketing course learners - the Campus Immersion Experience.

If you found this case study helpful, please feel free to leave a comment below.

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Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

2 Comments

  1. Rinn

    this got me a good grade on my project so thank you <3.

    Reply
  2. Priya Saladi

    Reading case studies helps me to learn something new every time. Likewise through this blog I have understood and identify the marketing mix of Uber 4ps. Amazing content!

    Reply

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