The Situation Analysis of Uber and GoCatch Services in Australia - Case Study Example

Uber and GoCatch Services in Australia By Executive Summary Uber entered the Australian transport industry in 2014 while threatening to outdo indigenous companies such as GoCatch. However, the fact that they are both using applications to direct their operations form a basis of competitiveness since each should develop outstanding marketing strategies. GoCatch should invest more in buying new cars, which would be fully operational on the roads. Also, the company could reduce the commission chargeable to the drivers. Such a move would be a better step towards motivating the drivers to offer better services. The company could also take an initiative to pay for the insurance services covering third party and the drivers. The report deals with the situation analysis of Uber as a new entrant in the Australian market and GoCatch as the indigenous taxi company. Introduction The transport sector has turned digital with firms gearing up to win more customer base. Since it is a primary need for many people across the world, coming up with comfortable services is one of the best solutions to ensure the company gains a competitive advantage over the other firms offering the same services. Uber is one of the most sophisticated transportation company specializing in taxi operation. If a customer wants to travel to a particular destination, he or she sends a request for a cab, which is then directed to taxi drivers who in turn use their cabs to facilitate the transportation. Companies and governments around the world have complained about the use of technology, which threatens to trounce its indigenous firms. However, it’s important to understand the functioning of Uber and GoCatch taxi systems in Australia to understand the threat that the former has staged to taxi market. Background Information Uber Technologies is a transport company, which came into existence in March 2009 in America. The founders were Gareth Camp and Travis Kalanick. Its headquarters are located in San Francisco, California. It has spread its services to many parts of the world, including Australia, India, and African countries. The success can base on the sound marketing strategies and the use of digital applications to ensure accessibility by the customers. On the other hand, GoCatch is a digital transport company, which stages a competition to the Uber one. Uber’s Situation Analysis Analysis of Uber’s Internal Environment Mission Statement Uber has an attractive statement that gives it the directions in gaining a competitive advantage in the taxi transportation market. The statement is “Transportation as reliable as running water, everywhere, for everyone”. The transportation company seems to attain this because whenever they set up their digitized services, they run chills down the spines of the opponents. Australia is not an exception in this case. An indigenous based company such as GoCatch is complaining of the way Uber, an American-based company has taken over the market by storm (Haider, 2015). Resources Uber has many drivers spread around Melbourne and other towns of Australia. The drivers harbor considerable knowledge in technology by using Uber app, which directs the clients to them. Unlike other taxi companies, they can operate on any route while harboring high flexibility rate. As far as the customer is in an accessible way, the drivers would ensure they attend to them in time. Such situation earns them a higher notch as far as competitiveness is concerned. The finances of the company are also on point since it can remunerate their drivers at the right time to enhance continued operations. Information Passage of information is sufficient. The use of mobile apps ensures that the drivers and clients stay tuned and updated on issues in the market. Uber is one of the companies, which has successfully integrated the use of technology in its operations hence staying on top of other competitors offering the same services. Current Offerings The core services that Uber is offering are the transportation of people from one place to another. For instance, from Melbourne to its outskirts. The chargeable amount varies depending on the distance. However, it stays lower than the fares of its competitors in Australian Taxi market. Wee furnished cabs fit well to the Uber’s mission statement as far as offering quality transportation services is concerned. Customers Customers are from all over Australia. The customer base for Uber has drastically expanded over the last two years due to the use of technology in offering transportation. Most of the competitors in taxi transportation industry use local forms of communication and routing hence may not provide a bigger threat to Uber. The customers are from various cultural backgrounds. Some of them are indigenous people while the others are not. The way customers increase day in day out indicate the need for many customers to adopt a high technological means of transportation that would increase efficiency and availability of the taxi services. The lifestyle of the customers does not necessarily have to be an upper class because the services are affordable. However, those who cannot access smartphones may be left out in the service. The customers highly depend on the transportation services from one destination to another. Uber is just like any other transportation company although it operates in a digitized manner whereby a customer would locate the nearest cab while asking for its services. The convenience makes it stand out in the transportation sector. The number of clients, as at 2014, rose swiftly only some few months after entering the Australian market. UberX had made up to four million rides compared to the collective 227 million by other indigenous taxi operators in Australia during the same period. The way customers view the services by Uber makes them continue inquiring for the services. They slowly ditch the indigenous taxis system while welcoming the new hi-tech transportation system. The Uber market, just like the one for taxis, has got varied customers forming market segments. The customers have different preferences. Different economics also contribute to the various client needs hence market segments. There are four market segments for the Uber’s market. They include cruising, pre-book, rank-stand, and contracts. The parts are also typical for the indigenous taxis operators in Australia. However, with the use of technology, such market segments may just be theoretical because of the use of Uber apps in accessing the services. In taxis, cruising involves the customers who flag the cabs long streets hence obtaining their services (Lubian, 2015, p. 45). Competitiveness The product that Uber offers is different from the taxi system because of the use of technological applications to direct its operations. Uber customers perceive them as the best transportation partner. On the other hand, the competitors view them as the primary threat and disruption of the regular transport network in Australia. The governments of many countries try to resist the entrance of Uber to the transportation industry. However, they do not seem to succeed because of the legal fight that they engage in. One of their reasoning to bar Uber is that it disrupts the normal taxi operations while rendering many indigenous people jobless. Based on Porters Five Forces, one can acknowledge that the power of Uber lies on the use of sophisticated technology, which makes it easier to operate in the vast geographical area. The supply power is on point as the company uses digital applications to connect with the customers. Also, the customers in Australia access internet and mobile application easily compared to developing countries. The government of Australia bars new taxi cab owners to enter the market freely by issuing licenses. Competition is tight in the transport sector while most of the ones with commanding market share are the Uber owners. Marketing Objectives Uber aims to attain the highest level of revenue to remunerate its drivers. Uber drivers earn thrice salary compared to the taxi drivers in Australia. Uber also targets to achieve a larger market share each year so as to spell greater command in the transport sector in Australia. It plans to trounce its competitors as a matter of fact. When it comes to the products and services, which are transportation, UberX seems to be on the frontline while many customers are drawn from many places across Melbourne and other places of Australia. Plans are underway to drum up support for some services so as to raise the client base while offering a higher competitive advantage to the company at large. The objectives of Uber are Specific, Measurable, Attainable, Realistic, and Time-bound. Such a case gives them an upper hand in the transport market. Marketing Strategies Target Markets The Uber’s market is divided into segments such as the ones who can access mobile phones that they can install Uber applications. It may not target customers who cannot access the internet because the company aims at digitizing its services. Also, geographic segmentation comes into place whereby the drivers select locations, which are accessible by car. Some areas may be detrimental to transportation because of the terrain and road systems. There is also the use of differentiated marketing mix strategy. Finally, niche market is one of the viable options that the company adopts in gaining consumer base in Australia hence giving its competitors, who have been in existence in the market for extended, hard time. Products The primary product that Uber deals with is cars, which deal with transportation. They value their customers while they give them the best out to ensure that they come back for more. The packaging of the products is tricky because they use well-structured vehicles, which are attractive to the customers. One could be comfortable getting into one of the cars belonging to Uber. However, they ensure that the drivers are free to suggest any vehicle that they perceive it would help attract more customers. The products are different from the original taxi operating vehicles because of the better comfort and the use of digital applications to route the vehicles running from to various destinations in Australia just like in any other countries like India. Brand The company works on unique brands, which include UberX and many others. They win the attention of the customers while increasing the revenue. One cannot compare regular or indigenous taxis with the Uber ones. Another factor that sets out the Uber brand is the use of downloaded app by the customers. After one has downloaded the app, he or she would be accessing their services from any place so long as there is internet connectivity. Prices The prices are affordable hence winning more customers. They are equal to the services that Uber offers. One cannot get disappointed after digging his or her pocket for the fare of such an exemplary transport system (Allsop, 2014, p.14). Communication The management plan of Uber sets aside a good communication structure. Effective communication contributes to the success of a company while the customers feel part and parcel of the business’s operations. GoCatch Situation Analysis GoCatch is staging a serious competition on Uber in Australia. However, it is important to understand how such an indigenous company carries out its products as it aims at taking a larger market share. Analysis of Internal Environment Mission Statement “With more taxis on the road, goCatch will get you there fast.” The mission statement shows that goCatch may be a big contender for the market apart from the American-based company, Uber. It tries to draw the attention of customers who would instead prefer other taxi services in Australia in operating from one point to another (Tan, Tan, and Land, 2015, p. 1199). Resources GoCatch has various drivers. Compared to Uber, anyone can use his or her car to earn money. The vehicle does not have to be purposely for taxi transport. For instance, if one is coming from workplace while he is alone, he can pick any other person and drop him or her at designated point. It works on the use of a downloaded app called GoCatch while the cars used are called GoCars. Customers The company draws customers from many towns in Australia. It competes with Uber for the customer base. In a real sense, Gocatch has an upper hand because it is Australian-based. Some people argue that it has copied Uber. Such a claim may not be true because of the different way of approaching taxi operations. The customer base is a differentiated one while market segments are present. The sections include geographical and demographic ones. The challenge with the transport is that the use of technology entails that all the customers need to conform to them. Otherwise, they would be finding it hard accessing a transport system. Some places are inaccessible due to poor transportation systems. The company is about to introduce posh cars meant for transportation of clients while ditching the criterion in which they advocated for the use of personal vehicles (Daley, 2012, p. 78). Competitiveness The company faces stiff competition from Uber because of the use of digital means of reaching the customers. Digital applications, which a customer installs in a mobile phone or tablet directs them to the nearest taxi cab. One would then request such a driver to offer his or her service so as to transit from point A to B. The customers view the taxi company, based on product reviews, as among the best in Australia because it reaches many people. They also see it as affordable and available at any particular time of the day. Marketing Objectives The company targets to be the leading taxi operator in Australia while drawing customers from all over the country. The company understands the threat that Uber and other competitors pose. Consequently, the management comes up with marketing objectives, which are SMART (Specific, Measurable, Attainable, Reliable and Time Bound. The objectives are contained in the overall marketing plan hence giving the intended direction to achieve the best in the Australian market. Instead of GoCatch charging the drivers higher commission, it only charges 15 percent. Drivers also pay such amount daily instead of weekly hence they are motivated to work hard to save for themselves larger sums of money. Marketing Strategies Target Markets The taxi company in Australia targets customers from every part of the country including Sydney, Melbourne, and many other towns. The cars spread all over Australia. The taxi system targets customers with smartphones who can access the internet. People without smartphones or tablets may be left out of the business. Such description forms a basis for segmentation. A good taxi system operates the whole day to enhance the accessibility and availability to customers who are in dire need for affordable transport. GoCatch understands the need and preferences of the customers hence gearing up to quench such thirst (McDuling, 2015, p. 200). Products The taxi company works with car owners whose cars are not older than nine years in the market. Insurance is also another aspect that the management checks to ensure that the services offered to the customers are up to date. The company values its customers hence work hard to make them happy. Brands There are no unique names although the management works with drivers who are willing to use their cars to earn extra income. In future, GoCatch focuses on coming up with strong brand name, which would send shivers down the spines of its competitors. Communications The communication platform for the company bases on the use of mobile applications to connect to the customer base. The response is which hence winning the hearts of many clients. Recommendations For the GoCatch Company to stage a better competition in the taxi market, it should advocate for the use of newer cars in the market. Targeting vehicles older than eight years may chase away customers from seeking services from the company. It is better to set higher amount to finance new vehicles so as to offer better services to the customers. Furthermore, reducing the commission chargeable to the drivers would be a better step towards motivating the drivers to offer better services. GoCatch could also take an initiative to pay for the insurance services covering third party and the drivers. However, to enhance competitiveness, the company has introduced the use of digital gadgets to pass information from one point to another. One can connect various cabs while at any particular point courtesy of the mobile app. It should focus on coming up with a tool such as Google map to direct its drivers well so as to better their services. Bibliography Allsop, R., 2014. Shock of the new: How government holds back technological change. Review-Institute of Public Affairs, 66(2), p.14. Daley, T., 2012. We're now officially in the Post-PC era. Haider, M., 2015. To Uber or Not to Uber: That is the Question. Lubian, F., 2015. Uber and the Law. Available at SSRN 2723988. McDuling, J., 2015. goCatch speeds up but Uber roars in. Tan, F.T.C., Tan, B. and Land, L., 2015, January. The Affordance of Gamification in Enabling a Digital Disruptor: A Case Study of the goCatch Taxi Booking App. In System Sciences (HICSS), 2015 48th Hawaii International Conference on (pp. 1197-1206). IEEE. Tan, F.T.C., Lu, A., Land, L., Choi, B. And Unsw, A.B., Collaborative Consumption On Mobile Applications: A Study Of Multi-Sided Digital Platform Gocatch. Read More