What’s next for Uber! Next biggest location based marketing platform.
Uber, ride hailing app which is valued more than General Motors and Ford in 6 years according to Forbes is facing tough time in earning profits.
Uber generated $6.5billion in revenue in 2016 and its gross booking doubled to $20 billion. Though with such gigantic numbers, Uber declares its adjusted loss of $2.8 billion except the China venture which it sold last year.
Facing hard time to earn profit for a company which is present in more than 450 cities, serving 1 million rides daily (as per 2014) and dominates US market by capturing 84–87% seems incomprehensible. (Source)
If we dig inside of Uber’s offering, there are a lot of products and services where Uber spent a large amount of money: UberX, UberXL, UberSelect, UberBlack, UberSuv and UberLux and UberPool. It takes talented team to develop and deploy such products; I must mention Uber’s expensive global expansion and fortune spent by Uber for giving away free rides to its first time customers and financing cars to its drivers.
I write here, how Uber can be even more exciting product for its customers.
My idea is: Uber can be the next biggest marketing platform in location based marketing world. If Uber introduces a new product under its app which provides Uber’s rider an exclusive offer, only one offer for every ride, super customized for him by analyzing his data, location and destination.
Let me discuss some crucial concepts with simplest definitions!
- What is marketing? Making people aware of your product and services.
- What is location based marketing? Targeting potential customers from particular location to convert them as your returning customers.
- What is the best time to market your brand to a potential customer?
I believe when the target customer’s majority of attention is on your efforts to sell him the product, i.e. your advertisement, which requires your target to be in somewhat in ideal condition.
Uber has it all, Uber has its app to push special offer to make people aware of any specific product; Uber has location of rider to target him nearby offerings and Uber has his target in Ideal condition, most of us stare our phones or have regular chat with Uber.
So how can this work? Consumer books an Uber from Milpitas to San Jose downtown at 7pm Friday, Uber analyzes rider’s pick-up location and destination plus enormous data about his likes, dislikes and frequently visited places. As soon as rider complete ¼ of his journey he gets a notification from Uber about a special offer for him according to his likings. Or if his destination is a restaurant in downtown San Jose, he gets an offer from nearby florist to buy some fresh flower for his date and if his destination is a pub, he gets tempting offer from near-by pub with better offerings. This type of real time customer acquisition can make Uber to be favourite for marketers.
Precise offerings from Uber can provide huge advantage for businesses, customers and Uber itself as a new stream of revenue and profits. Additionally, Uber can create value for its customers by providing such offers which really matters. Such valuables can create an exciting experience for rider before a new ride, which subconsciously relates to loyalty, likeliness towards brand and thrill factor which keeps brand exciting “What Uber has to offer this time”!
I believe that, such products can emerge as high conversion rate marketing product. By targeting consumers with offering from specific location and his likings can give a new shape to marketing industry and change the way brands advertise and consumer’s purchase.