UBER a synonym to taxi!
Uber entered Indian market and currently is the leading cab facilator here. So, what are concepts that uber used to get hold in this transportation market. Let's have a look :
1. PEOPLE RESPOND TO INCENTIVES
People tend to compare cost and benefits. And uber is a classic example of how their customer respond to the Promo codes and referral codes. Consumer themselve promote uber by referring the app so as they can have free rides.
2. CONSUMER SURPLUS
Now in situations like heavy rain, the need for a cab increases. As the number of cab or the supply of cab at that particular locality is less or constant. It results in price surge. At that point of time consumer is ready to pay more than the market price in order to get a ride.
3.OPPORTUNITY COST
In short opportunity lost is what we can conclude as opportunity cost. Uber facilitate it's customer with this economic principle. People waiting for taxi on the go, using bus or their personal transportation results in loss of their valuable time. Uber triggers this point at brings you a cab which is just a click away.
4. MONOPOLISTIC MARKET
There are number of seller providing relatively close substitute to what they provide but uber sustain in this market of unrestricted entry of new firms by using product differentiation. Uber has many facilities like rental service, cab service, bike service, food delivery service, ride sharing services.
5. INCOME AND SUBSTITUTION EFFECT
Substitute to uber are Ola auto and bikes, Jugnoo, swiggy, Zomato. There is a relation of income with this substitution effect and uber plays upon that. Uber tries to keep the rates nominal and has divided its services according to income group for example, UberGo, UberX . With increase in income level of customer he will opt for a sedan whereas in case of lower level of income one will opt bike or uber pool.
Uber entered Indian market and currently is the leading cab facilator here. So, what are concepts that uber used to get hold in this transportation market. Let's have a look :
1. PEOPLE RESPOND TO INCENTIVES
People tend to compare cost and benefits. And uber is a classic example of how their customer respond to the Promo codes and referral codes. Consumer themselve promote uber by referring the app so as they can have free rides.
2. CONSUMER SURPLUS
Now in situations like heavy rain, the need for a cab increases. As the number of cab or the supply of cab at that particular locality is less or constant. It results in price surge. At that point of time consumer is ready to pay more than the market price in order to get a ride.
3.OPPORTUNITY COST
In short opportunity lost is what we can conclude as opportunity cost. Uber facilitate it's customer with this economic principle. People waiting for taxi on the go, using bus or their personal transportation results in loss of their valuable time. Uber triggers this point at brings you a cab which is just a click away.
4. MONOPOLISTIC MARKET
There are number of seller providing relatively close substitute to what they provide but uber sustain in this market of unrestricted entry of new firms by using product differentiation. Uber has many facilities like rental service, cab service, bike service, food delivery service, ride sharing services.
5. INCOME AND SUBSTITUTION EFFECT
Substitute to uber are Ola auto and bikes, Jugnoo, swiggy, Zomato. There is a relation of income with this substitution effect and uber plays upon that. Uber tries to keep the rates nominal and has divided its services according to income group for example, UberGo, UberX . With increase in income level of customer he will opt for a sedan whereas in case of lower level of income one will opt bike or uber pool.
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