Marketing Strategy and Competitive Positioning pdf ebook

Figure 15.4 
Uber’s network organisation
Taxi
passengers
Freelance
taxi
drivers
Uber
2. Uber promotes
the service via
its smartphone
app
3. Customers
order via the app,
pre-pay and
track car online
4. Uber deducts
commission
and pays
driver
1. Uber recruits
and prepares
driver network

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CHAPTER 15 STRATEGIC ALLIANCES AND NETWORKS
to connect passengers to pre-existing fleet and car owners through its smartphone app. 
Uber started with $307 million from a group of backers including Google Ventures and 
Jeff Bezos, founder of Amazon. The Uber concept is to make booking a taxi as easy as 
making an online dinner reservation or checking a price on Amazon. By 2014, Uber was 
operational in 246 cities in 46 countries, and was valued at $40 billion. Models like Uber 
are springing up in many sectors – people can rent out spare rooms or holiday homes on 
Airbnb or HomeAway, and get Gesty or UrbanBellhop to welcome the guests and clean 
up after them. There are Uber-type models for laundry (Washio), massages (Zeel), alco-
hol (Minibar) and many more – the network concept is a powerful response to escalat-
ing customer demands. That said, concerns are growing that the model, while great for 
consumers, has negative effects on workers. It is likely that what is now known as ‘the 
gig economy’ will be a central battleground of the next decade in terms of employment 
policy, workers’ rights, and the like. It’s worth bearing this in mind, particularly as the 
world (or at least large parts of it) appears to be moving more towards a ‘sustainability’ 
and ‘purpose-driven’ model.
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