Innovation at Uber: The Launch of Express Pool

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Innovation at Uber:

The launch of Express


Pool

Group 10
Akanksha Gaikwad(2011074)
Avom Goyal (2011298)
Siva Brahma Madras Kesava Kumar (2011124)
Sai Jyothi Battagiri (2011299)
Marmik Upadhyaya (2011329)
Vineeth Pachava (2011274)
Komal Agarwal (2011111)
Yashwanth Chowdary (2011101)
5C Analysis

Customer Company Collaborators


Founded by Travis Kalanick & - Drivers - Partners
Geographic: North and South America Garrett Camp in 2009 - Data Scientists
Behavioural: People who are
environmentally conscious and regular Products/Services:
users of Cab Carpool Options - Express and Pool
Psychographic: People who willing to Economy Options - UberX, UberXL &
car pooling and walk to a specific point UberSelect
and drop at a specific point Premium Options - UberBLACK,
UberSUV & UberLUX

By 2018, 75 million riders and 3 million


driver-partners used the platform.
Employees are 16000+ and is valued at
$62 billion

Dynamic pricing model


5C Analysis

Competitors Context
Political - Investors appeared bullish on ride-sharing companies.
- Lyft
- Ola Economical - Dynamic Pricing model
- Didi Chuxing
- Grab Social - Access to ride sharing platforms are concentrated in urban areas only
- Local cab services
Technological - Increasing internet penetration and smartphone users

Environmental - Uber pool services is an eco-friendly initiative

Opportunities - Only 3% of surveyed used a ride-share service at least once


per week. Also, ride sharing companies accounted 1% of total passenger miles
traveled in U.S
-Increase in internet penetration and smartphone users
increase in car sharing users

Threats - 70% of people driving for U.S based ride-sharing companies drove
for at least two companies
Problem Problem Statement: Team has to decide
whether to over-rule the 5-week freeze and

statement
increase the wait time in the 6 treatment cities
of synthetic experiment from 2 min to 5 min or
continue the experiment for remaining 3
and weeks.

Alternatives Alternatives:
• Let the synthetic experiment continue in 6
treatment cities for remaining 3 weeks
• Over-rule the five week freeze and increase
the wait time to 5-min in the six treatment
cities.
Increase the waiting time from 2 min to 5 min in the
Criteria For evaluation Continue the experiment without any changes
synthetic experiment

By overruling the 5-week freeze might impact the


Company Culture Will help maintain the culture
culture of experimenting.
Short term:
Short Term:
- Data collection would be clean
Data Collection Impact - Impact data collecting of current
Long term:
experiment.
- another experiment might be required to test
5 min wait rule, given the unavailability.
Internal Factors Short term :
Short term impact:
- Will help save costs
Financial Impact - loose around 1.6 million
Long term:
Long Term:
- If experiment fails they would lose business
- Based on results can have positive effects
opportunity of express pool

Continuing experiment will help get better results.


Might lead to inconclusive results. In long run
Business Impact Might give conclusive decision on express pool
affecting the business opportunity
business oppurtunity
-Around 5% of the pool trips were cancelled
- Around 4% of the pool trips were cancelled
Customers - Customers might perceive the wait time to be
uncertain and could move to competitors,

External Factors -Average pay out for drivers is 28428, lower than 2
-Drivers have average payout of 31198. which is min wait time.
Driver-Partners higher. -Drivers might observe the decrease in pay and
could revolt
•Recommendation:
Recommended • Continue the experiment without
interruptions
&
Action Plan •Action Plan:
• Let the team continue the synthetic
experiment without interruptions
• Analyse the results to validate whether
the Expresspool is viable or not
• Run another synthetic experiment to
validate if the 5 min wait time is
beneficial
• Based on the results make the decision
whether to roll out in other cities or not
Action Plan to •
handle Action plan to handling negatives:
negatives • Make plans to conduct another
experiment to validate the 5 min wait
time in different cities
•Based on results of current experiment
of express pool on 2 min wait time
make a decision to conduct 5 min wait
time experiment.
THANK YOU

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