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U B E R Consultants: Jonathan Beatty, Yasmine Creese-Brown, Nkem Chukwuma, Heidi Friedrich

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Page 1: Uber Case Comp

U B E R

Consultants:Jonathan Beatty, Yasmine Creese-Brown, Nkem Chukwuma, Heidi Friedrich

Page 2: Uber Case Comp

Your Everyday Ride

Page 3: Uber Case Comp

Current Process

Page 4: Uber Case Comp

Recommendation

Value Proposition|

Organic Growth

Gain | Quality Drivers &

Client Reach

Resonate | Launch Price

TrackerRetain |

Launch Loyalty Reward System

Page 5: Uber Case Comp

Critical Issues

|Liability|

|Regulation|

|Driver Requirements|

|Pricing|

|Client Retention|

Page 6: Uber Case Comp

Recommendations

Gain - Enhance Customer Service

Resonate - Implement Price Tracker

Retain - Create Loyalty Program

Page 7: Uber Case Comp

New Process

Page 8: Uber Case Comp

5 Year Plan

‘15 Gain | New Drivers

Resonate | Launch Price Tracker

Retain | Launch Loyalty Reward System

Evaluate | Assess Outcomes of 3 Step Plan

Results | $4+ Million Saved Annually

‘16

‘17

‘18

‘19

Page 9: Uber Case Comp

QUESTIONS?

Page 10: Uber Case Comp

Financial DataFinancial StatementsRevenue Generated in One Month5 Year Revenue Projection

Credits + PromoCustomer Acquisition CostReferral Credit ExpenseApp Redesign Budget

Loyalty ProgramLoyalty Program ExpenseLoyalty Program Level QualifiersNew Program Savings

Surge DataSurge Rides Per Week

AppendixRidership DataAverage Mileage Calculation

Active Weekly Users

Average Weekly Trips

Other Strategic AnalysisUberMove Revenue

UberMove Capacity Constraint

Internal ControlsInformation Controls

Uber’s Flow Chart

COSO Pyramid

Competitor Analysis

References

Page 11: Uber Case Comp

Financial Statements

Page 12: Uber Case Comp

Revenue Generated in Month

Business Insider

Page 13: Uber Case Comp

5 Year Revenue Projection

Page 14: Uber Case Comp

Customer Acquisition Cost

Page 15: Uber Case Comp

Referral Credit Expense

Page 16: Uber Case Comp

Application Redesign Budget

Position Adjusted Hourly Wage

Intern $24

Full Time Employee $69.70

Hire Top-Tier Information Technology InternsSavings• 3 Interns for 16 hr/wk• Total Cost: $4,608/mo

Page 17: Uber Case Comp

Loyalty Program Expense

Calclulated:Adjust. 9.8% Growth Per YearRate Differental Among Levels

Page 18: Uber Case Comp

Loyalty Program Qualifiers

Page 19: Uber Case Comp

New Program Savings

Page 20: Uber Case Comp

Surge Rides Per Week

Business Insider

Page 21: Uber Case Comp

Average Mileage Calculation

Page 22: Uber Case Comp

Active Weekly Users

Business Insider

Page 23: Uber Case Comp

Average Weekly Trips

Business Insider

Page 24: Uber Case Comp

UberMove Revenue

Page 25: Uber Case Comp

UberMove Capacity Constraint

Bellhops Partnership

Page 26: Uber Case Comp

Information Controls

Page 27: Uber Case Comp

Uber’s Flow Chart

Page 28: Uber Case Comp

Distrust of DriversControl Environment

Risk Assessment External | Market ResearchInternal | Analytical Procedures

Information & Communication External | Fare Quotes

and Split FareInternal | All Electronic

Monitoring Feedback within appOperational Audits

COSO Pyramid

Page 29: Uber Case Comp

Competitor AnalysisFeature Uber Lyft Hailo

Commercial Auto Liability/Comprehensive

✓ ✓ ✓

Inspection/Background Checks ✓ ✓ ✓Two Way Reviews ✓ ✓Surge Pricing ✓ ✓Easily Calculable Pricing ✓ ✓Luxury/Family Vehicles ✓Referral Credit ✓ ✓

Page 30: Uber Case Comp

ReferencesAmerican Express and Uber Launch First-of-Its-Kind Mobile Loyalty Program. (n.d.). Retrieved February 5, 2015, from http://about.americanexpress.com/news/pr/2014/amex-uber-mobile-loyalty-program.aspxBadger, E. (2015, January 22). Now we know how many drivers Uber has - and have a better idea of what they’re making . Retrieved February 5, 2015, from http://www.washingtonpost.com/blogs/wonkblog/wp/2015/01/22/now-we-know-many-drivers-uber-has-and-how-much-money-theyre- making /Beatty, J., Creese-Brown, Y., Kast, J., & Hughes, E. (2014). Accounting Information Systems Presentation - Uber. Fall 2014 Accounting Information Systems Course.Chalmeton, S. (2015, February 4). Disrupt Or Be Disrupted. Retrieved February 5, 2015, from https://www.linkedin.com/pulse/disrupt-disrupted-sebastienchalmetonDelo, C. (2014, January 17). In Quest for Ride-Sharing Supremacy, Uber Takes on Lyft with Facebook Ads. Retrieved February 5, 2015, from http://adage.com/article/digital/uber-takes-lyft-facebook-attack-ads/291158/ Eliminating Ridesharing Insurance Ambiguity. (2014, March 14). Retrieved February 5, 2015, from http://blog.uber.com/uberXridesharinginsurance Frizell, S. (2014, September 27). Uber Driver Arrested in San Francisco for Hammer Attack. Retrieved February 5, 2015, from http://time.com/3436848/uberhammer-attack/Griswold, A. (2014, September 11). How Uber and Lyft Stack Up in the United States. Retrieved February 5, 2015, from http://www.slate.com/blogs/moneybox/2014/09/11/uber_vs_lyft_futureadvisor_study_compares_revenue_users_growth_at_the_companies.h tml MacMillan, D. (2015, Jan 26). Corporate news: Uber touts its employment opportunities for drivers. Wall Street

Journal Retrieved from http://search.proquest.com/docview/1648007805?accountid=8285 MacMillan, D., & Fleisher, L. (2015, Jan 30). U-turn: Hard-driving uber gives compromise a try. Wall Street

Journal Retrieved from http://search.proquest.com/docview/1649045476?accountid=8285 Noble, A. (2014, October 28). D.C. Council approves rideshare regulations as taxi drivers protest. Retrieved February 5, 2015, from http://www.washingtontimes.com/news/2014/oct/28/dc-council-approves-rideshare-regulations-as-taxi-/ Rusli, E. M., & MacMillan, D. (2014, Jun 07). Uber fetches $18.2 billion valuation --- car-service app worth more than hertz. Wall Street Journal Retrieved from http://search.proquest.com/docview/1533546527?accountid=8285 Shontell, A. (2014, November 20). LEAKED: Internal Uber Deck Reveals Staggering Revenue And Growth Metrics. Retrieved February 5, 2015, from http://www.businessinsider.com/uber-revenue-rides-drivers-and-fares-2014-11?op=1#ixzz3QoavvF36 Social tracker: What effect has upstart cab service uber's use of social media had on consumer sentiment? (2014, 10). Marketing, , 18. Retrieved from http://search.proquest.com/docview/1568314153?accountid=8285 Taxi Dreams - Facts & Figures. (n.d.). Retrieved February 5, 2015, from http://www.pbs.org/wnet/taxidreams/data/ Uber Software Developer Salary. (n.d.). Retrieved February 5, 2015, from http://www.glassdoor.com/Salary/Uber-Software-Developer-Salaries-E575263_D_KO5,23.htm Transportation Statistics - Licensed Drivers - Total Number (Most Recent) by State. (2004,). Retrieved February 6, 2015, from http://www.statemaster.com/graph/trn_lic_dri_tot_num-transportation-licensed-drivers-total-numberZauzmer, J., & Aratani, L. (2014, July 9). Man visiting D.C. says Uber driver took him on wild ride. Retrieved February 5, 2015, from http://www.washingtonpost.com/blogs/dr-gridlock/wp/2014/07/09/man-visiting-d-c-says-uber-driver-took-him-on-wild-ride/