Uber, an app-based driver service, was first launched in 2009 as a way to solve the taxi problems of San Francisco. In an effort to combine style, comfort and convenience, the company was created as an affordable black car service in major cities around the country. Consumers simply download the Uber App, input credit card info, and type in their location. A driver is immediately sent to them and they are billed via the app.
At first glance, Uber service appears as if it would work well for average city-dwellers. Recently, the company reported that their lower-cost UberX rates are on “average 20% lower than a New York Taxi,” which has sent the state of New York into an outrage. While consumers are excited to be keeping extra dollars in their pockets, taxi-cab drivers have been protesting the unfair rates.
Although Uber has their own battles to fight regarding drivers’ wages, it seems that they have another problem on their hands: their brand positioning. In the public eye, the company is seen as a cheap, easy option for a ride around their city. However, on their website, Uber presents a completely different image. With sleek black and white photos rotating on the home page (such as the one seen below), and upscale vehicle options like Cadillac SUV’s and Mercedes, Uber seems to be trying to fill the role of luxury car service.
It would be wise for Uber to drop the over saturated ‘low cost/convenience’ idea and roll with the luxury experience. Their competitor Lyft is already offering a cheap, fun approach to rides in the city. Uber would be smart to capitalize on the bounty of consumers who are looking to enjoy a luxury experience. In cities such as New York and San Francisco, there are many consumers, as well as respected businesses, who could pair up with Uber to make this brand successful.
For now, we will have to wait and see how Uber will move with their recent troubles, we hope for their sake it’s a dive into the luxury-experience market.