Uber in South Africa. JMSB Consulting. George Emery Cinzia Ruberto Eliane Roy Jonathan Suprovici

Transcription

1 Uber in South Africa JMSB Consulting George Emery Cinzia Ruberto Eliane Roy Jonathan Suprovici

2 Uber will be South Africa s safe ride Improve safety features Taxi driver & the community Branding and marketing Additional driver background checks Emergency alert on Uber app Payment options via debit card, top-card, remove cash Incentives to switch for taxi drivers Community involvement, sponsorship of soccer teams Lobbying local authorities Marketing campaign to promote safety (social media, billboards) Uber can adapt to local needs for long term success

3 Analysis

4 South Africa will be a challenging market Economic divide between minority rich and majority poor Public transportation is main line of transport High crime and unemployment rates Uber can grow with an adaptive and innovative offering

5 Items that directly need to be addressed Safety Taxi turf wars Cash payments Increased competition Addressing these key concerns will allow for growth

6 Transportation statistics show clear market opp. Q1 to Q4 = PREFER TAXI

7 Transportation statistics show clear market opp. Q1 to Q4 = PREFER TAXI Q5 = PREFER PRIVATE CARS

8 Q5 CAR OWNERS Transportation statistics show clear market opp. Q1 to Q4 = PREFER TAXI Q5 = PREFER PRIVATE CARS UBER USERS CLEAR MARKET IN Q1 Q4 UBER DRIVERS MARKET FOR Q1 Q4 ENTREPRENEURS

9 Q5 CAR OWNERS Transportation statistics show clear market opp. Q1 to Q4 = PREFER TAXI Q5 = PREFER PRIVATE CARS UBER USERS CLEAR MARKET IN Q1 Q4 Market opportunity will allow Uber to grow UBER DRIVERS MARKET FOR Q1 Q4 ENTREPRENEURS

10 Competition in South Africa can be navigated Public transportation Taxi service Zebra Cabs Slow Inconvenient Safety concerns Cash payments Local heritage, cater to woman Debit swipes and cash payments With competition navigated and mkt. opportunity, Uber can succeed

11 Leverage Uber s core strengths Technology play Financial backing Focus on safety Innovative offering Combine core strengths and market opportunity will provide success

12 Road Map

13 Road Map at a Glance Short Term (0-3 months) Medium Term (6-12 months) Long Term (12+ months) Improved driver background checks Lobbying authorities Introduce Top Up card payment Incentives for drivers to switch Community Involvement Additional payment options Development of a Top Up Card Explore Uber Eats Marketing Campaign

14 Improved Safety Features Driver background check All drivers to be verified Follow-up on driver every year Emergency Alert on App Sending authorities driver and/or customer location Alternative Payment options App to be upgraded to include Debit Eliminate reliance on cash with a Top Up card No tolerance for driver reported incidents Uber as the safest ride option for South Africans

15 Top Up Card Uber card that can be reloaded with Cash Drivers to scan card with Uber app to collect payment Uber card can be reloaded at convenience stores & grocery stores Reducing the reliance on cash

16 Incentives for Drivers to Switch Free smartphone if they switch No exclusivity required Higher bottomline Safer option Uber is an attractive option for drivers

17 Community Involvement Free first rides after community events Lobbying with local authorities Sponsorship of local soccer teams Uber needs to make a name for itself in the Johannesburg community

18 Marketing Campaign Campaign Message Uber: Your Safe Ride Social Media Promote added safety features via Facebook, Twitter, Instagram Build an Uber experience community Billboards Billboards at major intersections promoting the new safety features Encouraging women & young adults to use Uber We heard you South Africa: we want to get you home safe too!

19 Financials

20 Project cost Application Update Safety Feature Update: 2.5 M Top-up Card Implementation: 2.5 M Community Involvment Free Rides After Events: Local Team Sponsorship: 100 K (20 events) 500 K (50 teams) Taxi Incentives Free Smartphone: 120 K (50$ x 2,400 drivers per year)

21 Project cost Lobbying Safety Feature Update: 2 M Marketing Public Image: 10 M 17.7 M INVESTMENT

22 Project cost 17.7 M INVESTMENT 5,000 Drivers 10 Rides per day 6 Days a Week 52 Weeks per Year 1$ 15,6 M per Year

23 Project cost YEAR 1 YEAR 2+ REVENUE COST 15.6 M (5000 drivers) 17.6 M 31.2 M (10,000 drivers) 12.6 M NET -2 M 18.6 M

24 Uber will be South Africa s safe ride Improve safety features Taxi driver & the community Branding and marketing Additional driver background checks Emergency alert on Uber app Payment options via debit card, top-card, remove cash Incentives to switch for taxi drivers Community involvement, sponsorship of soccer teams Lobbying local authorities Marketing campaign to promote safety (social media, billboards) Uber can adapt to local needs for long term success

25 Questions?