HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES -

INFORMATION TECHNOLOGY
FACULTY OF INTERNATIONAL BUSINESS ADMINISTRATION

INTERNATIONAL BUSINESS
Group 3
Nguyen Ngoc Phuong Anh - 19DH481002
Nguyen Thi Ngoc Dung – 19DH480723
Huynh Ngoc Diem Huong – 19DH480727
Bui Xuan Nghi – 19DH481029
Bui Huu Nghi – 19DH480929
Vo Thanh Thang – 19DH481028
Cao Minh Tien – 19DH480850
Le Tan Khanh Toan – 19DH480048 Lecturers: Ph.D Nguyen Nhat Tan
 UBER
GOING GLOBAL FROM DAY ONE
UBER HEADQUARTERS
San Francisco, California

Uber was founded in 2009 & is

headquartered in San Francisco.
Uber’s strategy has been to focus
on major metropolitan areas
around the world.
Uber is used through a smartphone
app. This application notifies the
driver when a car is on the way and
tracks the progress of the car on
screen using GPS mapping.
 The driver takes 80% of the
fee & Uber 20%.
If customer demand is too
high, the price of the ride
will increase.

The rider pays via the

app using a credit
card.
 TIGHT REGULATIONS ON
TAXI

Historically, taxi markets around the globe

have been tightly regulated by metropolitan
authorities for a variety of purposes.
Restrictions on the issuance of taxi licenses
have created a shortage of taxis in many cities.
Uber's
Strategy

Uber often uses riders’ support through social media to

pressure local governments to change regulations and allow
Uber to continue providing services.
UBER'S DIFFICULTIES
 Reflect on the purpose & practical application of taxi market
regulation by city authorities. What does this type of
regulation accomplish? What are the drawbacks?
How has this allowed Uber to successfully enter markets?
The regulation
accomplishes:

Allowing
licensed
taxis to 4
Limiting offer
the sup- rides 3 Guarantee
ply of a
taxis reasonable
2 Ensuring
rate of
the prices
charged return
1
are “fair”
 The number of licenses increased
18000

15900
16000

14000
14000 13437

12000 11787

10000

8000

6000

4000

2000

0
New York (1945 - 2014) Paris (1937 - 2014)

69 years 77 years
Uber break these
regulations

Establishing a service first

Fighting at-tempts

Used social networks

How have local authorities and competitive
actors responded to Uber's market entry
strategies???
 THE LOCAL AUTHORITIES RESPONDED

The government of
Vancouver, Canada, reacted
to the unauthorized entry of
Uber by banning it outright.
A

So did the local authorities

in Brussels in Belgium,
Delhi in India, and a host of
other cities around the
globe.
THE LOCAL AUTHORITIES RESPONDED

A In Paris, the government

has tried to limit Uber
by imposing several
restrictions that make it
harder for Uber to do
business there.
COMPETITIVE
ACTORS
RESPONDED
Uber is also witnessing
the emergence of local
rivals in some countries,
such as India and China.

In China, local rival Didi

Kuaidi has raised $4
billion in venture capital
and claims that by mid-
2016, it will be operating
in over 400 cities in
China.
THANKS FOR
YOUR
ATTENTION
GROUP 3