Ground Transportation Uber Service

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The delivery of services is quite different from the sale of goods. The obvious difference between the two is that services are intangible whereas goods are tangible. When it comes to marketing, the two are treated differently due to their nature. The 7 P’s of the marketing mix, that is, product, price, place, promotion, people, process, and physical evidence apply differently for services. An analysis of Uber Transportation Service revealed unique service demands that service providers and marketers consider if success is to be achieved.

Operating a transportation service in the nature of taxis necessitates a calculated approach in delivery and marketing. Uber transformed the nature of its delivery such that it is different from the usual taxis. The resort to mobile application as a means of attracting customers and enhancing convenience greatly put the company above rivals. As evidenced in the articles, competitors flocked courts in suits against Uber whereas the local authorities claimed Uber was violating taxi regulations (Wharton University, 2012).

Uber transformed the service to suit customer needs. Most customers have in the past been frustrated by taxi delays and unavailability at the required time. With an online platform, a customer simply touches a button of the mobile phone and the taxi comes to his or her location. This is convenience at its peak. In terms of pricing, Uber reflected the price of the service and associated convenience in the final bill paid for a trip. The comfort of the cars and the reliability of the drivers were among factors taken into account in determining the price. As spelt out clearly in one of the articles, the fares varied depending on the distance covered and the demand for the cabs.

Uber realized that online presence would be a sure way of tapping customers as opposed to taxi ranks on the streets. The number of customers Uber commands has since shocked competitors who, out of malicious intent, cite outrageous considerations as a reason to kick Uber out of business. The customer ratings were a sure way of promoting the service. When customers have the opportunity to rate a service, they present their level of satisfaction, which can be used to determine whether such a customer will come a second time.

Uber’s move to bring independent contractors on board was a good one. However, the company lost its grip on supervision and control of the drivers, because an independent contractor is as independent as the name suggests. The quality of service deteriorated due to the lack of driver control. This is one sure way to drive down the demand for the service because customer satisfaction will go down as well.

Uber’s mobile app platform was a process easier to master for most customers. The mode of payment and the customer ratings were routine steps that a customer had to go through during the consumption of the service. This move made Uber a taxi service provider of a kind. Customers easily related with the company just by conducting these routine steps. Moreover, the ability of a customer to request the service through the mobile app gave the service a tangible aspect and helped cement customer loyalty.

If Uber is to enhance its strategy for greater success, it must consider certain factors. Firstly, the use of independent drivers should be stopped. Instead, the company should employ its drivers and invest in its cars that have similar standards. This way, there will be uniformity in service provision. Secondly, Uber should be careful in its pricing strategy to avoid the impression of exorbitant prices. The company could have even a greater edge against its competitors if it charges moderate prices almost equal to its competitors (Business Case Studies, 2015). With a level playing ground in terms of pricing and difference in service quality, Uber will be the talk of the taxi market. Lastly, Uber should give its service an extra touch, including the offering of free drinks to customers on board and rewarding loyal customers with free rides. Such refined touches add value to the service and help cement customer loyalty.

References

Business Case Studies (2015). The extended marketing mix (7Ps). Retrieved 9 February 2015

from HYPERLINK “http://businesscasestudies.co.uk/business-theory/marketing/the-extended-marketing-mix-7ps.html” l “axzz3RMeY6vIz” http://businesscasestudies.co.uk/business-theory/marketing/the-extended-marketing-mix-7ps.html#axzz3RMeY6vIz

Wharton University (2012). An Uber Problem for Cities: Balancing Innovation with Regulation.

Retrieved 9 February 2015 from HYPERLINK “http://knowledge.wharton.upenn.edu/article/an-uber-problem-for-cities-balancing-innovation-with-regulation/” http://knowledge.wharton.upenn.edu/article/an-uber-problem-for-cities-balancing-innovation-with-regulation/