uber referral program case study

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Uber Referral Program Case Study

Uber’s referral program is among the most well-known and often-referenced programs in the business world. The company did not slack at harnessing the power of referrals to achieve tremendous growth and success.

In this post, we’ll discuss how the Uber referral program worked both for riders and drivers, why it proved so successful, and some of the things the company could have done to make it more attractive.

How does the program work?

Uber has two separate referral programs for riders and drivers.

For riders , once you sign up for an Uber account, you receive cash credits that can be enjoyed on your first set of rides. In addition, riders receive a unique referral code for referring their friends to sign up for an Uber account. Once that person uses your referral code, both of you receive Uber credit rewards.

For drivers, once you sign up to drive with Uber, you are eligible to earn bonuses as long as the person you referred completes a certain number of trips. At one point, the rewards for referring drivers were determined by the referral’s status. Thus Uber drivers could earn up to $500 if the driver they referred to signed up with their own car. If they referred a driver who signed up with a rental car, they could earn as much as $1750.

Rewards were automatically added to either driver or rider accounts after their referred friend completes their first specified number of trips and meets the requirements of the offer.

Both riders and drivers were eligible for one referral reward per individual.

What are the good things about the program?

Uber’s referral program for both riders and drivers was so successful because of several factors. When the app started its referral program, it first offered a $10 dual-sided incentive redeemed in Uber credits. It later upgraded it to $20 and $30 dual-sided Uber credit rewards. While Uber has halted its referral program as of this writing, there are still valuable lessons to learn on why it worked so well. Here are some of the great things about the program:

Ease of Access

One of the key characteristics of a good referral program is its ability to be easily accessed by customers. Uber did a great job by making the referral program easily accessible to all its riders and drivers in their apps. Riders could tap on the “free rides” button in the app’s menu to access the referral program. Again, the concept of using “free rides” as the program’s call-to-action rather than the usual “refer a friend” was an excellent move by the company. Riders were easily enticed by getting free rides and would tap to refer their friends so they can enjoy free rides.

Dual-sided incentives

Another great thing about Uber’s referral program was that both the referring customer and their referrals could earn rewards. The program was designed so that when the referred friend rides for the first time with Uber, the rider who referred them instantly receives Uber credit equivalent to a free ride. At the same time, the referred friend enjoys free ride credits spread across their first number of rides. This dual-sided approach served as a great motivator to urge riders to keep referring friends to enjoy the experience. Since both parties view it as a win-win situation, they become more loyal to the brand, and the referral cycle continues.

Mobile-friendly Program

A vital advantage of the Uber referral program was how mobile-friendly it was. Since Uber is fully app-based, the referral program was easy to manage as well. Sending a referral was as easy as tapping a few buttons on one’s mobile phone. Again, the app provided several sharing options which could also be easily managed on any mobile phone. Customers could share their referral codes via email, SMS, social media platforms such as Facebook or Twitter, or copying and pasting them to share directly. The mobile-centric nature combined with the multiple sharing options made promoting the referral program highly convenient.

Separate referral program interfaces

While Uber incorporated a referral program for both their riders and drivers, the company employed a tactful strategy by providing separate interfaces for riders and drivers. Each of these interfaces was tailored to the needs of the two distinct customers. Thus each customer was given a unique referral code. Riders and their referrals earned Uber credits, while drivers also had the opportunity to earn bonus rewards when they successfully referred another driver. The driver referral program was also dual-sided. Hence, drivers could earn as much as a $300 bonus, and at a point, as much as $1,500 while the new driver earned a $500 bonus. Thus, the Uber referral program was highly beneficial to riders, drivers, and all new customers from all angles.

How could they have made their rewards program more attractive?

Undoubtedly, Uber’s referral program was a no-brainer for its customers. However, like many other referral programs , they could have made few adjustments to make it more attractive to customers.

The most notable would be the complexity of their driver referral program. While Uber’s driver referral program offered attractive incentives to drivers who referred new drivers, the program became complicated with the introduction of certain requirements. These requirements classified the incentives based on the status of the referred driver. Although generally, the company stated that drivers could earn up to $1,500 in cash bonuses for referrals, the amount earned was largely dependent on the new driver’s status. So, for referring new drivers who rent cars from LCR, drivers could earn between $500 and $1500 in bonus rewards, depending on how long they had been renting with the company.

Meanwhile, if a driver referred another driver using their own car or other rental company, the rewards were usually $200. On the other hand, the newly-referred friend could earn way more rewards in their first month. While this arrangement seemed fair and transparent on the surface, it complicated a straightforward referral program and demotivated a section of drivers from referring more new drivers. Uber could have made the program more attractive by simplifying the program and leveling the rewards for drivers who signed up with their own cars.

Wrapping Up

Uber’s referral program achieved tremendous success due to its excellent product, dual-sided rewards, easy accessibility, and high value. Though the company may have halted it for a future revamp, it remains an exemplary referral program for businesses to emulate.

Similar Readings

10 Best Referral Programs to Learn from

If you’re considering setting up a referral program, it is prudent to look at some brands that have already set the pace and achieved immense success from implementing referral strategies. This post will look at 10 of the best referral programs.

Are Two-sided Referral Incentives More Effective?

Two-sided referral programs reward both existing and newly referred customers. It is a great way to keep customers motivated to share word-of-mouth and offers a chance to endow their family and friends with value through a reward. But are they more effective than other types of referral programs?

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How Uber's Referral Program Drives Radical Growth

When Uber was born, the newest wave of transport innovation took to the streets. Since then, Uber Technologies has been on quite the ride as the world was introduced to a revolutionary service that brought the sharing economy to the transportation industry – without owning any vehicles of its own.  These innovative twists on the traditional taxi business model are characteristic of Uber’s rise to prominence and the company shows no signs of hitting the brakes.

A number of factors have fueled the rideshare company’s rapid growth. Features like the quality of their service and viral promotions have helped propel Uber to its current heights, but nothing has had as direct of an impact as their referral program. Uber has used referrals consistently since the very beginning and has reaped the benefits of referrals done right. While it may seem like a simple system, Uber’s referral program is one of the most powerful engines that continues to drive growth for the company year after year.

So what makes Uber’s referrals so strong? Buckle up because we’re about to take a look under the hood of the program to see how it works and how Uber has leveraged referrals to grow their brand.

Uber’s Referral Program is a Passenger’s Ticket to Ride

While both riders and drivers are essential to Uber, the brand’s revenue stream is largely based on its riders. These are the individuals who actually pay to use the company’s services and who ultimately provide Uber with its financial stability. Wooing these riders is easier said than done, as there are a wealth of competitors vying for their limited attention. Taxis, public transportation, carpooling and even walking are all viable substitutes – and Uber knows it.

With such fierce competition it’s no surprise Uber offers a free ride (around $20 depending on the city) to both a referrer and a new rider upon a successful referral. This program gives frequent riders all the incentive they need to convert their friends and family into Uber customers while giving new customers the perfect introduction to the service.

A free ride is valuable to customers who use the service often as they know they’ll actually be able to put that reward to use. Frequent users are also the most qualified to explain the value of Uber as they have the most experience with it. Providing these users with a valuable referral reward is the definition of a win-win.

Giving a free ride to the new user makes sense because customers frequently have many doubts and uncertainties that stop them from trying a new experience. The free ride tears down any objections a new user may have because the referral bonus allows them to try Uber risk free. A new rider taking part in Uber’s referral program gets to experience the benefit of Uber without having to shoulder any costs until they are sure the service works for them.

This strategy may seem like it costs Uber more than it is worth but the opposite is actually true. When attracting customers, a brand has to balance two competing factors: customer acquisition cost (the cost a business bears to gain a new customer) and customer lifetime value (the money a customer will return to the business over the total time they remain a customer).

It’s easy to see that if a business’s customer acquisition cost is larger than their customer lifetime value they will run themselves into the ground. Each customer costs more to acquire than they will ever pay back to the business. When this is reversed, however, a business is in good shape.

With a $40 customer acquisition cost ($20 to the existing customer and $20 to the new rider) Uber this is where we find Uber. A frequent Uber customer will spend an average of $95 a month on the service and 25% of that fee is Uber’s to keep . This means that in less that 2 months the initial acquisition cost has been paid off and Uber can benefit from an entire lifetime of customer purchases created by their initial one-time referral investment.

Getting in the Driver’s Seat With Uber’s Referrals

Uber’s service relies on a two sided network effect ; the more passengers there are seeking rides through Uber, the more appealing it is to be an Uber driver. Conversely the more drivers there are on the road, the better the service is for riders. Businesses that involve a two sided network effect must effectively manage the growth of their partners because if this demographic slips the end consumers are sure to follow suit. In other words, Uber must ensure that their drivers grow proportionally to their riders or both segments (and the brand) will eventually suffer.

Uber’s driver referral program shows a keen understanding of the important role drivers play in the Uber network. It is designed to reward existing drivers substantially for the act of bringing a new driver onto the platform.

If you thought the rider referral was powerful, you haven’t seen anything yet. Uber pays out somewhere in the neighborhood of $200 for a driver referral depending on the city (paid to both the referrer and the referee)! I can’t think of a better example of a brand putting their money where their mouth is. Uber could tell new drivers how lucrative it is to drive for them or they could just show them with a signing bonus that lives up to the brand promise.

The financial compensation isn’t the only strength of Uber’s driver referrals. The program is structured so that the bonus doesn’t get paid out unless the new driver completes more than 25 trips in their first 30 days.

This mandatory minimum strengthens the referral program because by getting the new driver to complete 25 trips, Uber begins recouping their investment in that driver immediately. This ensures  that by the time Uber actually pays out the bonus, the driver has already made a non-trivial contribution back to the company’s bottom line.

Additionally, requiring 25 trips in 30 days exposes the new driver to the value of driving for Uber by forcing them to give the service a genuine chance. A driver who completes an average of almost a trip a day for a month is going to have a much more accurate impression of what it is like to drive for Uber long term. This realistic job preview leads to less churn from unsatisfied drivers who never gave the service a fair shake.

Personalized Referral Codes Give Customers A Voice

A critical mechanic in Uber’s referral program is the fact that drivers and riders alike are able to create their own custom codes when they refer an individual to the service. Instead of generating a random string of letters, numbers and special characters that would have as much personality as a piece of gum, Uber referrers are encouraged to personalize the code that they share with friends and family as they recruit future Uber users.

While this may seem like a trivial detail I can assure you it isn’t. A personalized referral code puts the “word” back in word of mouth marketing by allowing riders and drivers to communicate the brand in a way that is natural to them.

The benefit of this organic communication is twofold. First, because the referral code is something they have created themself, the referrer is more comfortable sharing this code in both public and private spaces. The simple act of personalization makes the referral an extension of their personal brand which is easier to share in one to one conversations as well as on public forums like social media.

Secondly, a personalized code is more approachable for the new user. When you see a referral code that has been personalized to your friend or family member you are more likely to associate it with the person (who you are familiar with) than the brand (which you are a stranger to). This association effect removes resistance from the registration process by borrowing familiarity from the person and using it to combat the discomfort that usually accompanies trying new things. Mechanically it is also much easier to correctly type in a conversational code like “RideWithDemi” over a generic scramble like “S9e@4rR45”.

Uber’s Referral Program is a Roadmap for Growth

Uber’s referral program is a great example of how to use referrals to drive growth in a hyper-competitive market. Creating a value proposition that is appealing to riders and compelling for drivers has allowed Uber to beat out taxis and other traditional competitors as well as newer rivals like Lyft. Allowing these users to personalize their referral codes has helped to fuel the viral growth that has made Uber the billion dollar venture it is today. So whether you’re driving across town or driving growth for your small business , you might have a lesson to learn from Uber.

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Last Updated: 4 February 2018

Most of you have must have encountered this scenario before:

You're in a big city, and you're running late. You try to hail a cab, but all of them are busy. After 15 minutes, you either get one or give up trying.

As origin stories go, Garrett Camp and Travis Kalanick were having that exact same problem 10 years ago in Paris. They "vowed then and there to solve the problem with a revolutionary new app."

That app would eventually be called Uber.

In early 2012, Uber started expanding outside of the US. Since then, Uber has since expanded to more than 60 countries and 400 cities.

So how did Uber set out to solve the taxi crisis, and expand their user base so quickly?

( NOTE: Want to set up a referral program like Uber? Then try ReferralCandy free today .)

Uber started off with a product that addresses a deep-seated problem.

Uber has two mobile apps: one for Uber passengers, and another for Uber drivers.

For the passenger app, users simply create an account using thier email , enter their credit card details in advance, and they'd good to go. To book a cab, they simply press a button, and an Uber car will soon arrive.

For Uber drivers, they can use the app to pick up customers with the press of a button too. Simply go "online" and they're ready to pick up passengers.

What Uber did was provide a fuss-free solution for customers and drivers. By being able to provide a solution to such a widespread problem, they were able to strike the hearts of many, and get them to try it out.

As Bill Gurley of Benchmark, investor for Uber and eBay says ,

The product is so good, there is no one spending hundreds of thousands of dollars on marketing.

Let's take a look at Uber's referral program:

1: they have two separate referral programs for drivers and riders.

Because of Uber's unique position as a middle-person connecting crowdsourced drivers and passengers, they have two separate different referral programs.

For riders, the referral program is fairly straightforward: sign up for an Uber account, and you'll receive cash credits you can enjoy for your first ride. Refer your friends to sign up for Uber using your code, and the two of you will each enjoy a referral reward in credits.

At one time, Uber offered $30 in referral credits, which was enough to cover multiple rides. (It now offers $5 for a referral .)

However, in order to combat the demand-supply issue, you need more drivers. As such, Uber's strategy for attracting more drivers is very special:

A. Referral rewards for referring other drivers (and even riders)

[caption id="attachment_18897" align="aligncenter" width="450"]

Image: Uber San Diego[/caption]

Look at the above picture. Uber now has a complex referral program that offers different rewards depending on who is referred to become a driver. If a driver signs up using his own car, Uber drivers can earn up to $500. If a driver signs up with a rental, he can earn up to $1,750! (That's a LOT of money!)

Driving is their job, so rewarding Uber drivers with cash is a no-brainer. However, giving Uber riders ride credits incentivizes their next trip, ensuring that they'll return to use it.

They can even order their own customized Uber business cards:

Personally, I think it's a smart move to include a referral reward for drivers to refer riders. It is almost certain that drivers will have both potential Uber riders and drivers in their circles.

Having another referral system to refer potential Uber riders ensures that you leave no stones unturned.

B. Referral rewards for being an ex-Lyft driver

Lyft is one of Uber's biggest competitors, and Uber offers a referral reward for drivers who used to drive for Lyft.

Uber has understood that customers belonging to your competitors are still potential customers. All they need is proof that your company is better.

However, there is a way to game to system. Lyft drivers can sign up for Uber, earn the rewards, then go back to driving for Lyft.

But it might not matter that much for Uber, as their aim is to let as many drivers try out Uber as possible. They trust that the drivers will be able to tell which company is better for them.

This suggests the amount of confidence Uber has in their product.

2. Being aware of the nuances of specific cities and time periods

The taxi problem varies from state to state and between countries. Hence, the referral incentives for one state might not be sufficient in another state with a greater need for Uber drivers.

So, it makes sense for Uber to tweak their referral rewards and referral rates to suit the unique demographics for each state and country.

Uber's attention to the unique complexities of individual cities also allows them to be the first response when the need for their services arise.

During the Boston bus strike in 2013, Uber offered free rides for Boston Public School students to travel to and from school. They got a lot of positive publicity from it, and their popularity soared soon after .

This is also evident from Uber's local blogs and referral marketing . There are blogs focusing on every state and country that Uber is in, providing them with exclusively local events, deals, and special offers.

Stuff to note:

• Understand what your target customers are like, and how they behave – Uber has done what it has done because they have a deep understanding of their consumers' behaviors, demographics, and reviews . This allows them to tailor their referral programs in many ways that exceed more generic referral programs.
• Generosity goes a long way – The referral rewards for new Uber rider signups may vary, but they usually allow for more than one free ride. This amount of generosity can be easily felt, and they'll much more likely to boast to their friends about you.

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As a finalist in Esquire's Best Dressed Real Man contest, Samuel is ReferralCandy's fashion eCommerce expert and resident sartorialist. He is obsessed with human behavior, social psychology, and handstands. He is also the lead calisthenics trainer at Weightless.

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THE UBER WAY: AN ONLINE RETAILER'S SOLUTION TO DECREASING COSTLY CAC

As E-Commerce executives consider the meteoric rise of consumer companies such as Airbnb , Dropbox , and Uber , it can be easy to overlook two important facts:

• These companies felt the same user acquisition challenges as you do today. These challenges pushed them to innovate new social sharing mechanisms using technology; and
• The strategies these companies used are not exclusive to their business model. In fact, they would work just as well for online retailers.

E-Commerce brands have the same opportunity to take advantage of referral marketing. Marketing executives are aware that Refer a Friend can be profitable.

It's true that some brands aren't benefiting from great returns for a few reasons:

• Their product might not be a great fit for social sharing (while most are)
• Poor attention to design
• Use of sub-optimal technology
• A lack of knowledge surrounding viral user acquisition

However, most brands are seeing promising results - even from in-house efforts. This is the case because for online retailers, Refer a Friend is attractive because it rhymes with lower CAC and more bang for the buck. 

For a VP Marketing or a CMO who's behind on acquisition goals, this can become a new secret weapon. 

Though today's marketing executives are fully aware of the benefits of referral programs, the purpose of this post is to highlight just how much impact the scale of a successful referral program can bring to a company -- as can be seen in the cases of Airbnb, Dropbox, and Uber.

For example, a Sociable Labs case study found that Beyond The Rack's original in-house program delivered great ROI, but fell woefully short in producing real impact for one simple reason: scale. 

After all, what is the point of a referral program if it cannot scale across your marketing mix?

The problem is that until recently, referral programs have been fairly inaccessible for E-Commerce brands who are most concerned with protecting their core competency: selling.

In spite of the technical challenge involved in building a best-of-class Refer a Friend program, which isn't solved via traditionally-priced SaaS vendors due to a lack in ROI clarity, brands choosing to build their own referral programs face the same challenges Airbnb, Dropbox and Uber did on their journey to atmospheric growth.

To prevent you from reinventing the wheel and going through the same painful lessons along the way, we've prepared a few essential examples and lessons to keep in mind as you embark on your referral marketing journey. 

But before we get started...

REFER A FRIEND: MORE THAN A NICE-TO-HAVE

Companies fail to see impact from their referral programs for a variety of reasons. One of these reasons is both one of the most powerful and most basic:

At the core, Airbnb, Dropbox and Uber's refer-a-friend programs are far more than nice-to-have assets. In fact, referral marketing is driving a large percentage of new user acquisition, yielding customers with lifetime and average order values many times greater than customers acquired via traditional paid media.

Here's the kicker:   

These companies aren't using referral as one-off campaigns. Instead, they leverage social sharing to amplify the rest of their marketing mix. The result? More bang for each acquisition dollar spent across the board. 

Let's take a quick look at how these consumer brands are driving social selling using Refer a Friend. Following these examples are seven best practices you can leverage today to reduce your customer acquisition costs, get more customers and reach your E-Commerce revenue acquisition goals with greater impact.

Dropbox's referral story came from a higher sense of necessity than from an interest in testing Refer a Friend as a marketing channel. As PPC ads became more and more expensive, the cost of a new customer began to create serious business model problems that threatened the success of the then young startup.

In light of this, Dropbox launched a double-sided reward program incentivizing both the referrer (parent) and the referred (child) to take immediate action -- in this case, inviting additional people to use the service in exchange for additional storage space to both the referral parent and child.

The result? Dropbox increased user signups by 60% permanently.

Because as a product, Dropbox is so shareable, referral marketing allowed the company to bypass a previously unprofitable paid user acquisition model in favor of an approach that took advantage of the organic signups their referral program generated.

Thus, Dropbox's initially abysmal CPA, which ranged between $233-$388 for each customer acquired via traditional paid media, now fell dramatically as 35% of daily signups originated from their referral program.  

While reducing the cost per acquisition proved to be a big win, the biggest impact on Dropbox's business came from the scale their referral program enabled, which Dropbox rightfully leveraged to its full extent.

As of today, Airbnb's valuation has soared to over $25 Billion , generating annual revenues in excess of $900M. Even more impressive, that valuation is more than double that of last year. A large portion of Airbnb's initial (and current) user acquisition success is due to the impact delivered by their Refer a Friend program.

Once again, the key here for Airbnb wasn't positive ROI - it was scale.

Airbnb's referral approach relied on sending email invitations to existing participants. That offer was compelling: referrers receive a $25 travel credit when new members take their first trip. Additionally, they would receive an additional $75 credit when they hosted a guest for the first time.

From Airbnb’s perspective, the Refer a Friend program was obvious. After all, they only paid for referrals after new users made a purchase. This ensured that they weren’t wasting any money on unprofitable referrals. The program worked and still does to this day.

Airbnb's growth came not from the profitability of their ongoing referral campaign, but from the sheer scale at which they could apply the program across the rest of their marketing activities, including PPC - producing huge incremental user acquisition gains - to the tune of propelling them into never-before-seen growth rates.

This was made possible because Airbnb's referral program was baked into Airbnb's product at various trigger points, leveraging the company's user experience to incentivize profitable social sharing at scale.

You can learn more about how Airbnb used this approach in the video below, where Airbnb's Jimmy Tang and Gustaf Alstromer discuss Airbnb's growth strategy.

It isn't recommended to copy another company's referral program for the simple reason that each referral program pertains to a particular use case. Analyzing other referral programs should hopefully create a sense of awareness for what will work best for your customers.

Identify which customer segments are most likely to refer (net promoter score is a great indicator here) and offer appropriate, double-sided benefits to both referral parent and child. 

Additionally, focus on streamlining your calls to action by integrating them as much as possible into your overall user experience. Your referral program is the sum of its parts; moving parts you have the power to optimize on a continuous basis.

But companies are busy. They want results and don't have the time, resources or justification to build, launch, manage and optimize a best-of-class Refer a Friend program. So they wait.

"It's not the right time," they say. "Maybe next quarter," they say.

I n spite of this, many leading online retailers are moving to build referral programs in-house and are going through the growing pains we've described above. Sometimes, ROI is great but the scale is just not there. Such is the case of Beyond the Rack, who initially fielded an in-house referral program before choosing a different route offering them a managed service guaranteeing both scale and ROI. 

Read the full Beyond The Rack case study on how BTR ended up leveraging social selling to optimize their ad spend and achieve 12X ROI while also increasing user registrations by 8%.

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Referral Program Case Study To Drive More Sales In 2024

One of the most successful referral programs in the world is the Uber Referral program. Not only did it engage its riders, but it also has a separate referral program for drivers. The company offered some incentives to get drivers and riders to recommend their service to the people they know. It is because of this strategy that Uber can expand to the whole world.

In this article, you’ll learn the secrets behind Uber’s success. You will discover the unique approach that Uber has taken in its referral marketing efforts and how they approach success with their business’s nature.

Origins of Uber

Uber started with a problem. When Uber owners Garrett Camp and Travis Kalanick encountered a problem when hailing a cab in Paris, they thought it would be great to celebrate some cars to help them reach their destinations. And that’s how the idea for Uber was born. It is a revolutionary system where you can hail a car to fetch you to your location and take you to your desired destination with a few minutes’ waiting time.

It has two versions. First, there is the app that is made for riders. This is the main Uber app, and users need to create an account to start booking cars. Second, it has the driver app. This app is made for drivers so that they can accept bookings and withdraw their payments. They may need to apply to Uber before they can be taken as a driver. From there, all they need to do is go online, so they can start accepting bookings.

The ZS EV has improved but not much changed in personality thanks to the minor improvements. It is positioned between more expensive models like the Compass and Tucson and top-spec compact SUVs like the Creta and Seltos. When looking for a high-end premium electric car , the MG ZS EV has to be at the top of your list because of its increased safety, longer range, and general upgrades.

What is Referral Marketing?

Referral marketing is the process of encouraging more people to try a product or service by referring family and friends. It is how companies encourage their customers and website visitors to promote their products and services to their inner circles.

What is the Uber Referral Program?

The Uber referral program started in 2012. It was the time when the app wanted to expand its services to territories in the US.

Primary Problem

The idea for the product was excellent. It solves a real problem for it helps people with their situation in hailing a cab.

However, there is a significant problem. In the beginning, the app needs to do everything it can to encourage drivers to share their cars and riders to book rides. Without this necessary infrastructure, the idea for the app will not work.

This was when the idea for the Uber referral program was born.

Why Is It Easy to Promote Uber Using a Referral Program?

Having a referral program is the natural route for Uber. Given that it has a product that solves a real-world problem, the company doesn’t need to convince people that they need the product. There is already an established need for it. Because of this, it comes naturally to users and drivers to promote the service.

How Uber Promoted Its Service

Now that you have seen that their marketing method is effective, it is time for you to take a closer look at how Uber promoted its service. In this section, you will find three reasons why Uber’s referral program is a notch above the rest.

1. They Incentivized Referrals

They know that no one would like to sign up for their app and use it if they don’t give them incentives. So they started their referral program by offering $30 for every referral. This $30 is a consumable amount that riders can use as they use Uber’s services. And it doesn’t stop there. Usually, Uber gives other bonuses so their users will continue using the app in the future. It establishes the habit so that users will not be able to live without it.

2. They Focused on Getting More Drivers

But it doesn’t stop there. The company also gives out bonuses for drivers who sign up.

As mentioned, the company is highly dependent on drivers. It is only able to take on more rides if it has enough drivers. This is the reason why they offer more incentives to encourage drivers to sign up. First, the driver gets a bonus of $500 when he signs up with his car. Then, he gets $1750 if he signs up with a rented car. The amount goes up if they are active in getting rides from users. There are also other bonuses if they meet a ride quota.

More than these, the company also provided business cards to all of their drivers. This allowed the drivers to promote the app and encourage other people to use it. By doing this, they utilized their drivers for word-of-mouth marketing. The drivers were also in charge of recruiting new riders for the app.

3. They Encouraged Drivers to Switch Apps

When Uber hit the scene, there was already another app in the US market – Lyft. But that did not prevent Uber from competing. Instead, they created a referral program that is made explicitly for Lyft drivers. Again, they incentivized the referral process. They offered a reward for past Lyft drivers so that they will switch to Uber instead.

However, some drivers exploited this. They sign up for Uber and then go back to driving for Lyft. Even if they did this, Uber continued to open the referral program. They are fixed on the idea of enticing more drivers into their platform.

4. They Study the Culture and Regulations Per Country

For the company to successfully operate in multiple countries, Uber has to know and adjust based on its regulations and culture. With every expansion comes the need to study the country’s culture and other nuances. In that area, Uber did its part.

Because of this, they can adjust the rates of their incentives based on the country.

More than merely creating a referral program, Uber sought to understand its customers before asking them for something. They are not only asking riders and drivers to promote them; they give them an enticing incentive to get things moving. And they did not just provide an incentive. They also did their research to provide a stimulus that is attractive to their target market.

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Uber CRM Case Study: Customer-Centric Strategies of the Tech Giant

• Category : Case Studies
• Last updated on June 17, 2024
• By Viktor. A
• No Comments

Uber was born from the question,  “What if you could request a ride from your phone?”

This question was from Travis Kalanick and Garrett Camp when they could not get a cab in Paris in 2008. Uber primarily focuses on perfecting the imperfect to meet customers’ needs.

Uber re-imagined the taxicab experience, making it more convenient, predictable, affordable, and fun. Its global ride-sharing app disrupted modern transportation as we know it, at one point making Uber the most valuable startup company in the world.

Uber has implemented different CRM strategies to strengthen their customer relationships. They don’t joke about the needs of their customers. They partnered with other businesses to execute a complex idea to satisfy their customers.  This is the powerful secret that fueled their popularity.

You’ve got to have a little hustle in you. I think that’s where the world is going. People will not own cars; they’ll have a service that takes them where they want to go, when they want to go there. And that’s what Uber is. – Travis Kalanick

In this Uber’s CRM case study article, we’ll discuss how Uber’s CRM strategies contributed to the company’s growth.

History of Uber, Timeline & Facts

2008: On a cold winter evening in Paris, Travis Kalanick and Garrett Camp couldn’t get a ride. That’s when the idea of Uber was born.

2009: Its global ride-sharing app was launched.

2010: The company received its first significant funding, a $1.3 million round led by First Round Capital.

2012: The company broadened its offerings by launching UberX, which provided a less expensive hybrid car as an alternative to the black car service.

2013: The perfect partnership with animal shelters across the US, we launched UberKITTENS. Riders requested 15 minutes of snuggle time with a furry friend, and all proceeds benefited local shelters.

2014: Spreading goodwill with #UberSpringCleaning, riders requested on-demand donation pickups and gave more than 5,000 pounds of clothes to Goodwill.

2015: Expanding opportunities for deaf and hard-of-hearing driver

2016: Uber then raised a further $3.5 billion from Saudi Arabia’s sovereign wealth fund. Also the self-driving pilot program was launched in Pittsburgh. Now local riders could get a self-driving vehicle when they request their next trip.

2017: $1 million for Meals on Wheels to help deliver even more meals to seniors, we provided free rides to the volunteers who bring food and friendship, and we also donated directly to the Meals on Wheels America organization.

2018: 10 billion trips and counting in more than 21 countries across five continents, 173 trips and deliveries started simultaneously. And the journey to our subsequent 10 billion visits began.

2022: Uber launched UberX share, which allows multiple customers to share a ride, saving them up to 20% on the standard fare.

2023: Khosrowshahi remains the CEO of Uber.

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Uber CRM Case Study: 4 Strategies Feuling Their Growth

Uber focuses more on their customers needs, and they use the following CRM strategies to satisfy them.

1. Partnerships

Uber has implemented several partnerships to entice both first-time and loyal customers to take a ride. They partnered with Starwood, Capital One, etc.

a) Uber and Starwood

Starwood is one of the world’s largest hotel companies. Uber is partnering with Starwood to broaden its app use and reach globally. Through the partnership, Starwood’s guest loyalty program members can link their accounts with Uber accounts and earn Starwood credits whenever they take an Uber ride.

Uber passengers earn one Starwood rewards point for each dollar they spend on a ride in a car. Free hotel nights start at 3,000 points for the lowest tier of hotels and can be as high as 35,000 points a night for high-end properties.

b) Uber and Capital One

Uber is teaming up with Capital One to offer Capital One SavorOne Cash Rewards Credit Card and Capital One Savor Cash Rewards Credit Card cardholders the following rewards;

• 10% cashback on Uber rides and Uber Eats purchases.
• Cardholders will receive a free Uber One membership for $9.99 a month.

The partnership will make the Uber experience better for riders, said Jonathan DiOrio, head of travel partnerships.

2. Introducing Uber Eats

Uber Eats is an online food ordering and delivery platform launched by Uber in 2014. It is an app for mobile devices that allows users to look through restaurant menus, pick out the food items they’d like, and have it delivered right to their door.

Once you place an order on Uber Eats, the restaurant will confirm your order and begin preparing it. An UberEats delivery driver will be matched to your order, and you’ll be able to track your order’s progress the whole time.

Once the driver has picked up your order, you can track the car on a map and estimate how soon the driver will arrive at your location with your food.

UberEats CRM strategy;

• Make it easy for their customer to pick up a meal without leaving the house.
• It enables customers to discover new restaurants around them so they can always try something new.
• Enables Uber customers to compare meal prices from different restaurants before ordering.

3. Customer loyalty

Uber has a loyalty program called “Uber VIP” for a selected group of users with specific American Express credit cards. These valued customers enjoy the following benefits;

• They are invited after taking a high number of rides in certain cities.
• Uber VIP members are matched only with the highest-rated drivers. This means that they will be compared with drivers with a rating of 4.8 stars or above and can feel assured that their ride will go smoothly and safely.
• Finally, Uber VIP users are the first to hear about exclusion promotions, deals, and discounts that Uber has to offer.
• An Uber VIP trip will cost the same amount as a regular one. That said, Uber VIP members are matched with better drivers and better vehicles without paying a higher price.

4. Referral program

Uber’s innovative referral program is the secret behind its rapid adoption. Riders and drivers can refer the app to their friends using their referral code. Once their friends join the app using the code, their friends get free or discounted rides while the drivers earn Uber credit.

What makes Uber so successful?

Since its inception, Uber has dominated the industry because it perfected a solution to meet customers’ needs. They re-imagined the taxicab experience, making it more convenient, predictable, affordable, and fun. They did this because they knew that an incomplete solution was an invitation to competitors.

Uber values their customers a lot. They also partnered with other businesses to meet their customers’ needs. This is the main secret behind Uber’s exponential growth and huge market share . They work with other companies to handle any technology that is difficult for them to take.

What CRM does Uber use?

Uber depends heavily on Salesforce CRM technology for its growth. Salesforce helps extract data from its customers’ engagement with its brand on social media; then, Uber can track and respond to customers’ concerns swiftly.

Uber uses CRM software to tailor offers, recommendations, and customer promotions based on past orders. Uber asks its customers to register for an account to ensure consistent contact with their customers.

It also makes it easy for customers to reorder so that customers can pay with a click and get a better Uber experience.

Conclusion :

To build a scalable business, it’s best to emulate the strategies used by top business owners. Customer relationship management is the primary factor considered by significant companies and Uber is not excluded. They use SalesForce CRM software to streamline their business processes.

SalesForce CRM enables Uber to tap into its customers’ behaviors and riding habits. From the customer’s side, they get a superior, more tailored service – and will be more likely to use Uber again.

Viktor. A is a writer and researcher with experience writing about various topics, including CRM software, SaaS, finance, and technology. When he's not writing, he's swimming and travelling

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Strategies Driving Uber’s Successful Journey: A Case Study

by PanGrow | Nov 6, 2023

Uber, the global leader in ride-hailing, is a universally recognized brand. We all know it as the platform that seamlessly links passengers with drivers for convenient transportation. However, what often escapes notice is that beneath the surface, Uber is more than just a transportation facilitator; it’s a formidable force in data and analytics. On a daily basis, countless riders engage with the Uber app, unwittingly feeding into a sophisticated network of data-powered insights and choices.

Uber stands as a dominant force in the transportation and delivery industry, boasting operations in over 72 countries and catering to more than 110 million active monthly users.

The remarkable triumph of Uber has spurred numerous entrepreneurs to venture into the realm of ride-hailing and delivery services. Let us get familiarized with Uber’s marketing strategies through this guide.

Revenue Model & Pricing Strategy

Uber makes money in a few different ways. Its a commission based system, where it takes a percentage of the total fare. There are various elements of its revenue model.

First, they take a part of the money you pay for your ride. This is called a commission, and it’s usually about 20-30% of the total cost. Sometimes, when a lot of people need rides, Uber might charge a bit more. This is called surge pricing. It helps encourage more drivers to be available when it’s really busy, and Uber makes extra money from it.

They also have other fees, like a booking fee or an airport fee. These are extra charges for specific situations. Some people pay a subscription fee for a service called Uber Pass. It gives them discounts on rides and other perks, and Uber makes money from these subscriptions.

Uber does more than just rides. They also deliver food (Uber Eats) and help ship goods (Uber Freight). They make money from fees they charge restaurants, riders, and other partners for these services. Businesses can pay Uber to advertise on their app, which brings in more money.

So, in short, Uber mainly makes money by taking a piece of the fare from each ride. They also have other ways of earning, like subscriptions, fees, and advertising. They’ve expanded into different services to bring in even more money.

Navigating Marketing Strategies

Uber, a trailblazer in the ride-sharing industry, owes much of its success to a well-crafted marketing strategy.

Customer at the Center Stage

A cornerstone of Uber’s strategy is its unwavering focus on the user. The company places a premium on delivering a seamless, hassle-free experience. This commitment is evident in their user-friendly mobile app and straightforward booking process. By prioritizing customer satisfaction, Uber has built a loyal and trusting customer base.

Dynamic Pricing Feature

Another standout tactic is Uber’s dynamic pricing, known as surge pricing. This strategy, allows Uber to adjust fares based on demand and supply. While it can be a topic of debate, surge pricing effectively balances ride availability during peak times, ensuring a reliable service.

Referral Program: A Win For All

Uber’s referral program is a brilliant move in customer acquisition. By encouraging existing users to refer friends and family, the company taps into the power of word-of-mouth marketing. This not only brings in new customers but also fosters a sense of community and trust among users. Incentives like discounts on future rides create a win-win situation, driving platform growth.

Data-Driven Approach

Data is a powerful ally for Uber. The company leverages analytics to gain insights into customer behavior and preferences. This data-driven approach informs decisions on pricing, routes, and service expansion, keeping Uber attuned to evolving customer needs.

Enhancing Experience

In addition to customer-focused strategies, Uber places significant emphasis on driver satisfaction. Recognizing drivers as integral to the service, Uber implements initiatives to enhance their experience. Offering flexible earning opportunities, access to support, and performance incentives are among the ways Uber keeps its driver base motivated and engaged.

Multichannel Marketing

Uber’s marketing efforts span various channels. The company invests heavily in digital marketing, utilizing social media, email campaigns, and targeted ads to engage with users. This multi-channel approach ensures Uber maintains a strong online presence and remains top-of-mind.

In summary, Uber’s success hinges on its dedication to user satisfaction, data-informed decision-making, and a comprehensive approach to the ride-sharing ecosystem. By focusing on user experience, implementing dynamic pricing, leveraging referral programs, and using data analytics, Uber has established itself as a dominant force in global transportation.

Additionally, the company’s attention to driver satisfaction and robust digital marketing efforts further contribute to its triumph.

Brand Building & Customer Loyalty

A key element of Uber’s success lies in its strategic use of social media platforms like Instagram, Facebook, and YouTube to connect with a diverse user base, including passengers, drivers, food enthusiasts, and partners. This concerted effort is central to building a strong brand identity and fostering lasting customer loyalty.

Through engaging content on platforms like YouTube, Uber shares driver stories, customer feedback, road safety tips, and updates on initiatives. This content not only informs and educates but also reinforces the brand’s commitment to safety, innovation, and community.

Uber excels at customer service on social media, promptly addressing feedback, suggestions, and concerns. With a dedicated customer service account, the company builds trust and reliability among its users.

Campaigns like the #WhyIRide initiative in 2016, encouraging users to share their motivations for choosing Uber on social media, have been highly successful in generating organic word-of-mouth marketing and user-generated content. This has significantly increased brand awareness and customer engagement.

Uber also strategically partners with influential figures, celebrities, and organizations that align with its values. Notable collaborations, like pledging to create one million job opportunities for women as drivers in partnership with UN Women in 2015, underscore the brand’s commitment to inclusivity and empowerment, garnering widespread recognition and praise.

Challenges and Future Prospects

Uber serves as a pivotal platform connecting drivers and passengers across cities globally. The company’s forward trajectory appears promising, owing to its astute consideration of critical factors such as regulatory dynamics, fierce competition in the transportation and delivery sector, ongoing innovation in products and services, and unwavering commitment to customer satisfaction.

This success has piqued the interest of entrepreneurs, leading to an uptick in the development of Uber-like clone apps for taxis and delivery services, potentially expanding to incorporate various modes of transportation like bikes, motorbikes, trains, scooters, buses, and even futuristic prospects like flying taxis. However, adherence to local laws and regulations is paramount in implementing Uber’s marketing strategies, as stringent rules governing safety, labor, and taxation may influence the company’s profitability and growth.

In the face of its accomplishments, Uber grapples with a set of formidable challenges that could impact its operations, financial performance, and overall prosperity. Foremost among these are regulatory hurdles. Many cities and countries contend that Uber’s business model clashes with existing legal frameworks, resulting in bans and limitations on its operations in certain locales.

Legal entanglements also pose a significant obstacle. Disputes with drivers seeking reclassification as employees rather than independent contractors, along with allegations of inadequate safety measures against harassment and assault, have landed Uber in the courtroom.

Furthermore, Uber contends with fierce competition in a cutthroat industry, contending with rivals like Lyft and Didi Chuxing, some of whom boast strong affiliations with local authorities and transportation entities.

Safety constitutes a paramount concern for Uber, encompassing both rider and driver well-being. The company has faced scrutiny for perceived inadequacies in safeguarding its stakeholders, prompting substantial policy adjustments to address these anxieties.

Finally, despite its lofty valuation, Uber’s profitability remains elusive. Pressured by investors to demonstrate sustainable financial viability, the company has undertaken substantial modifications to its business model and cost structure in a bid to achieve profitability. Balancing these challenges against its well-established strengths, Uber’s trajectory in the transportation and delivery sector will hinge on its ability to navigate these hurdles and capitalize on its innovative and customer-centric approach.

Lessons Learnt

Uber employs a distinctive marketing approach to cultivate a loyal user community. By offering complimentary rides, discounted fares, and referral perks, the company effectively lures in customers. The exceptional quality of the ride experience fosters a desire for repeated use, ultimately creating a habitual and revenue-generating pattern for the company.

To ingrain this novel mode of transportation in the public consciousness, Uber has made substantial investments in marketing efforts, generously providing free rides on a global scale. Moreover, the company leverages its competitive pricing structure as a significant selling point, further solidifying its appeal.

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How Uber Disrupted An Industry With An Explosive Approach

Table of contents.

In this strategy study, we’re going to delve into a company that impacted everything from people’s everyday lives and entrepreneurial dreams to the startup world and city legislature.

Its story and strategy are fascinating, often problematic, and definitely worth exploring. So let’s embark on a different kind of Uber ride.

Despite disrupting transport around the globe, Uber defines itself as a technology company , not a transport company - hence their legal name Uber Technologies Inc. It was one of the first companies to embrace and define “the sharing economy” concept and created a two-sided digital marketplace for drivers and riders.

Uber’s mission was to make transportation as easy to access as running water and they wanted to do it in a different way - without owning its own vehicle fleet like your regular taxi company. 

That asset-light strategy is what makes Uber so incredibly scalable and it proved to be a huge draw for investors. Since Uber’s launch in 2010, the company has attracted over $25 billion in VC funding.

Their business model and immense financial backing helped Uber achieve:

• Present in 10,500+ cities across 70 countries
• 131 million monthly active platform customers
• Nearly 23 million rides per day worldwide
• Over 5 million drivers worldwide
• 118 million users in 2021
• Annual revenue of $17.4 billion in 2021
• A 68% share of the US rideshare market .

Uber’s numbers are astronomical and the company is a perfect example of a disruptive and transformative brand. However, as we dive deeper into Uber’s strategy, you’ll see that Uber faced and is still facing many challenges - the biggest one among them being its (un)profitability.

But let us start at the very beginning...

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It all began on a cold night in Paris...

It was a snowy winter night in Paris in 2008. Two friends and successful startup founders, Travis Kalanick and Garrett Camp, were attending the annual tech conference LeWeb. More importantly, they were trying to get a cab but couldn’t find one.

What if you could just request a ride from your phone?

This idea, based on a very real need at that moment, is what sparked the creation of Uber.

After the conference, the entrepreneurs went their separate ways, but when Camp returned to San Francisco, he continued to be fixated on the idea and bought the domain name UberCab.com. 

In 2009, Camp was still CEO of StumbleUpon, but he began working on a prototype of UberCab as a side project. At the time, UberCab was still an idea for a shared luxury cab service that could be ordered via an app.

Camp had managed to persuade Kalanick to join UberCab in an advisory role and on July 5, 2010, the first Uber rider requested a trip across San Francisco. Kalanick became Uber’s CEO in December 2010, while Ryan Graves, Uber’s first CEO, assumed the role of the COO and board member.

Uber’s app, enabled its users to order a ride with a tap of a button . A GPS identified the rider’s location, and the cost was automatically charged to the card on the user account. Uber’s simplicity fueled its early popularity among users as well as investors and the startup quickly became one of the hottest companies in San Francisco.

By October 2010, the company received its first major funding of $1.25 million and in 2011 its growth skyrocketed. Early in the year, the company raised $11 million and went on to expand to New York, Seattle, Boston, Chicago, Washington D.C. as well as abroad in Paris.

Yes, just a year after the first Uber ride was requested, Uber had already launched internationally in Paris, where the idea for Uber first took root.

In December at the 2011 LeWeb Conference, the very conference “responsible for Uber’s inception”, Kalanick announced that Uber raised another $32 million in Series B and that investors like Jeff Bezos and Goldman Sachs got on board.

In 2012, Uber launched its arguably most popular service UberX. UberX provided an option of ordering a more affordable car as an alternative to its original black car service. That’s when Uber became really appealing to the mass market.

Behind Uber’s explosive growth are an innovative business model and growth strategy that we must explore before diving into Uber’s global expansion.

Key takeaway #1: build solutions for real-world problems

Successful products and services identify real problems and figure out how technology can be leveraged to solve them. Uber’s founders made sure they’re going to be able to get a ride during a cold winter night by using mobile technology to transform on-demand transportation.

All about Uber’s scalable business model

When talking about Uber’s business model, we need to mention that since its launch, Uber has expanded and diversified its services. It’s no longer just a ride-hailing service - it also offers food delivery (Uber Eats) and trucking (Uber Freight).

However, for the sake of simplicity, we’ll mostly focus on Uber's core business of ridesharing and the business model revolving around it. 

The basic idea behind Uber is to connect riders that need to get somewhere with drivers that are willing to take them there. Riders create the demand while drivers provide the “supply” and Uber acts as the marketplace where both parties can seamlessly connect.

As you can see, Uber has two key users and it has to provide strong value propositions for both drivers and passengers in order to attract enough users for the platform to function as intended.

Let’s see why passengers and drivers use Uber.

Uber’s value propositions

• Convenient on-demand ride bookings
• Real-time tracking
• Cheaper rates compared to taxis
• Accurate estimated time of arrival
• Automatic credit card rides
• Lower wait time for a ride
• Upfront pricing
• Multiple ride options

For drivers

• Highly flexible source of income for people who own (or are willing to loan) a car
• Completely flexible working hours
• Good trip allocation
• Assistance in getting vehicle loans
• Weekly or even daily payments

Uber’s target market

While the appeal of Uber is quite obvious, who exactly do they target?

As evident from the value propositions, Uber has two main target segments - passengers who want a fuss-free experience ride from A to B and drivers that want flexibility and some extra income, usually on the side.

When it comes to passengers, Uber’s website’s headline for a long time was: Everyone’s private driver . That instantly lets us know that Uber’s target market is very, very wide. It’s everyone who needs a ride .

While targeting several customer segments with different cost-conscious and more luxurious service options, what’s perhaps more important is how Uber reached its audience at the very beginning as you can’t just target everyone from the get-go.

It’s all about passionate early adopters

Uber did a masterful job attracting its first users - passengers as well as drivers. When it comes to launching a marketplace the first few weeks are absolutely crucial as there needs to be enough supply and demand for service to feel worthwhile.

Uber developed a highly targeted and localized early adopter strategy in the Silicon Valley area. They knew that launching there meant that the company will be interacting regularly with the tech community who are continually looking for new tools and services that improve their quality of life. People there were ideal early adopters and Uber reached them by sponsoring tech events, providing free rides, and in general driving awareness among this audience.

San Francisco also has notoriously spotty cab service which was perfect for Uber. As early adopters, completely fed up with the taxi situation in the city, tried Uber, they took to blogs, social media and every other way possible to tell their friends about this new way to ride.

The Uber experience became a vector for growth as early adopters impressed their friends with the ability to call a black car from their phone with a couple of taps. These new riders were immediately wowed by the experience and became new users and advocates within the span of a single car ride.

Uber also knew that attendees of their sponsored events were well connected and highly likely to share their experiences with friends, tech press, and social media audiences after trying Uber.

By seeding this audience, they were able to create a growth engine that hinged not just on word of mouth, but by showcasing the service to one's friends which quickly led to a growing network of passionate customers.

Uber combined that initial campaign with its referral marketing strategy where users can give friends free rides while earning credits themselves. This “give money-get money” program gave first-timers a more concrete reason to try the service. It’s been massively successful both for Uber and for certain “superfans”, one of whom earned over $50,000 in referral credits . Drivers also get referral incentives, thereby making acquisition on both driver and rider sides faster and easier.

That’s how Uber quickly got a lot of passionate users who were actually Uber’s first target market. Of course, every company wants passionate users, but as you’ll see, Uber needed them to win against the myriad taxi regulations in major cities.

Uber’s early adopters were people that weren’t happy with the existing state of the transportation industry in their cities. They quickly became advocates for the company in various forums as Uber fought against old regulations. It was a very clever move to identify and cultivate these customers early on. By making customer convenience and service a priority, Uber took the role of “disruptor” and turned it into a part of the company’s image and brand. They joined a broader socioeconomic movement towards changing old industries in ways that benefited consumers. 

It’s safe to say that if Uber wasn’t backed by its passionate users, it wouldn’t be able to expand nearly as fast as it did. In fact, the disruptive socioeconomic movement became a key part of Uber’s early business model.

Adapting to local markets

Despite targeting everyone, Uber still takes into account local experience. As Uber expanded it segmented its audiences and precisely targeted them by region and immediate needs.

For example, in countries like India and Thailand, the average customer must deal with higher traffic congestion and reduced purchasing power than a North American city. In these regions, Uber expanded its offerings with a rickshaw and motorbike service, which are more affordable and often faster transport options.

What enables Uber to adapt its services to the local condition? It’s arguably the most important part of Uber’s business model and quick expansion...

An asset-light strategy

As we said Uber is not a transport company and therefore does not need the assets a traditional taxi company requires.

By being “just” an online platform connecting drivers with passengers via their smartphones eliminates Uber’s need to establish a brick and mortar presence in each new city to which it expands operations. This model eliminates many barriers to Uber’s growth and drastically increases its scalability. It also unlocks the potential for Uber to expand into contiguous service segments such as food delivery (Uber Eats) without drastic changes to the company’s operating model. 

The majority of Uber drivers use their own cars which means that Uber doesn’t need to invest in a fleet of company-owned vehicles or the insurance and repair costs that come with it. It also doesn’t need dispatchers or call centers as the whole process of hailing a ride takes place on their app. 

So, compared to a traditional cab company, Uber doesn’t have to deal with:

• servicing and maintaining a fleet of taxis,
• call center agents,
• administration,
• parking fees,
• recruiting and training drivers and issuing permits.

This means massive savings in fixed and variable costs as well as the agility to respond more quickly and effectively to market changes relative to its competitors.

That’s why Uber was able to expand extremely quickly and in a span of 10 years appeared all over the globe. No taxi or transport company is able to achieve that.

Their lack of assets shows how they save money and expand at relatively low costs - but how does Uber actually make money?

How does Uber make money?

You can probably guess that Uber’s ridesharing service makes money by taking a cut of each ride that happens through their platform. While this is correct, Uber’s revenue model consists of more than just trip commissions - even without taking into account its other services like Uber Eats and Uber Freight. Let’s take a look at other revenue streams their business model enables.

Trip commissions and surge pricing

Uber provides the drivers on its platform with a robust supply of ride requests to accept, fulfill, and make income. When passengers pay for the ride through the app, Uber takes their commission and transfers the rest to the driver. Uber claims that they charge their drivers a 25% fee on all fares, yet reports vary.

However, Uber’s trip rates are not always the same. Uber utilizes a surge pricing model , which is also a cornerstone of Uber’s business model.

It takes advantage of the dynamic relationship between supply and demand and willingness to pay. When there are more passengers than available drivers in a given area, the algorithm increases rates in order to equilibrate this discrepancy. The first benefit of this model is that it attracts drivers to areas offering higher rates, thus increasing their numbers in regions of high demand. Second, it narrows the initial pool of potential passengers based on how much they value a ride, allowing Uber to more accurately segment their customer base and satisfy those users who need their service the most. 

Thus the surge pricing model serves the purpose of capturing the highest possible margins for the company and its drivers while establishing a targeted base of users that value Uber rides the most. These users might also be enticed to upgrade their chosen option to a premium one the next time they use Uber, which is considerably more profitable for the company.

Leasing to drivers

Uber runs a vehicle leasing program in many of its target countries to help new drivers get onboard faster. Drivers have to pay an upfront security deposit for the vehicle and payments are automatically deducted on a weekly basis from the driver’s earnings.

Advertising

There are millions of people around the world that interact with Uber cars every day. Not just the ones who use it for rides but also the ones who see them. That’s a huge opportunity for local as well as global brands that can take advantage of Uber’s on-car advertising .

Brands can advertise on cartop video screens, car wrappings, or car stickers. All three ways display ads on the car and are a fairly traditional form of advertisement, yet Uber with their huge number of drivers can get some money out of it. Of course, drivers that are willing to use their cars as moving ads also earn some additional income.

Understanding Uber’s business model is important if we want to understand the company’s extremely fast and aggressive global expansion, which is something Uber is quite famous for.

Key takeaway #2: plan for scalability

Building a scalable business model is critical, especially if the company’s revenue depends on the quantity of its service. Uber has built its platform in such a way that it is easy for it to expand to new markets and serve millions of users at the same time without a significant increase in its operational costs.

Uber expansion strategy

Uber’s initial global expansion it’s an amazing showcase of the company’s “ask for forgiveness instead of permission” approach . As we’ll see later, Uber’s culture has completely changed since then, but its early expansion is what brought the company mercurial success as well as plenty of backlash and issues of all kinds.

Uber employed an almost warlike mentality when going into a new market and the company’s sole focus was winning. This was first visible in San Francisco even before it went global.

Uber received a cease and desist order in San Francisco soon after its launch in 2010. It ignored it and issued the following response , that might be seen a bit on the arrogant side:

“UberCab is a first to market, cutting edge transportation technology and it must be recognized that the regulations from both city and state regulatory bodies have not been written with these innovations in mind. As such, we are happy to help educate the regulatory bodies on this new generation of technology and work closely with both agencies to ensure compliance and keep our service available for our truly Uber users and their drivers.

Our commitment is to facilitate an improved transportation option that provides safe, reliable, and convenient travel. That will not change. We will continue full speed ahead with the mission of making San Francisco city a great place to live and travel.”

They were relying on their passionate supporters and on their lobbying efforts to put things in order. Not just that, while this is playing out, they're continuing to push forward and expand into other parts of the world. That’s how aggressive they were from the get-go.

Going to Paris - because they can

Uber recognized early that international expansion should be a priority if the company wanted to achieve exponential growth and made Paris its 3rd launch city and 1st city outside the US.

In fact, when they launched in Paris, they launched as sort of a prototype, just to show that they can do it without too much difficulty. 

As Mina Radhakrishnan, Uber’s first Head of Product said in a blog post :

“At Uber, we launched our first international city, Paris, in 30 days. There was a lot of manual work to continue launching in other countries and languages while we didn’t have a core set of international systems  – we had to charge everyone in US dollars for several months. In parallel, we built out the foundations and kept moving pieces onto the new infrastructure, which allowed Uber to keep momentum and still scale.”

While Paris served as an enticing showcase for new investors it also made Uber realize they need an expansion playbook.

Uber’s unusual expansion playbook

At first Uber treated each city as an individual project. They would investigate what needed to be done on a case-by-case basis, and it involved a whole lot of work manpower. 

However, there was a market that needed to be monopolized and they needed to act quickly.

Uber soon realized that looking at each city as a project was too slow. Instead, they developed a process based on the lessons learned from their initial projects and created their aggressive expansion playbook.

Here’s Uber’s plan when expanding to a new city:

• Secretly enter a new market. Recruit drivers and customers through company ambassadors who gain commission and Uber credit. Offer first-time customers free rides to create a strong customer and to exploit a legal loophole for promotion. 
• Ignore threats of legal action. Make a case that customers want Uber to be there. 
• Ignore government sting operations. When the government threatens Uber’s drivers with fines, reassure them that Uber will cover any penalties, legal costs or other repercussions using the massive sums of money invested in the company.
• Start lobbying the state government. Start pushing for regulations that legalize its operations. Create a positive public image and gain the support of influential local charities and other key community stakeholders. Involve customers in petitions.
• Monopolize the market. Hire more drivers, pour more money into promotion, and manufacture PR stunts like delivering puppies or ice cream.
• Undermine the competition. Recruit drivers from competitors by offering them high sign-up fees and often employ other tactics to disrupt their services.

This was the overarching process, and there is obviously a multitude of smaller processes within each of the six steps. The playbook was implemented by a new, local team with a separate entrepreneurial manager who was overseen by Kalanick, the CEO at the time.

While the process was extremely aggressive it’s also how Uber increased its valuation from $3.7 to $41.2 billion in just 15 months. 

The main thing Uber did with this playbook was to launch its service seemingly out of the blue which gave the authorities no time to react before it was firmly established in the city.

While this playbook is responsible for Uber’s early success the approach was often challenged and frowned upon.

War on all fronts

Unsurprisingly Uber has been heavily criticized for aggressively lobbying, following unfair labor practices, jeopardizing the security of passengers and drivers, and playing with local laws by requiring no permits. There were too many scandals and issues to cover them all.

Uber’s warlike approach worked better in countries with legal systems based on common law. In common law countries like the US, Canada, and the UK, laws and regulations are more flexible and subject to judicial interpretation. Uber was therefore afforded greater latitude when arguing the legality of its case in the courts of law. 

In the U.S., Uber used consumer enthusiasm for its service to bring pressure on local politicians to develop rules that allow it to operate. However, such an approach is difficult in civil law countries like China, France, Germany, Spain, and much of continental Europe.

This resulted in plenty of bans, penalties, and losses on various markets .

Uber has been banned from operating in parts of France, Germany, Spain, the Netherlands, and Belgium. It has been accused of willfully ignoring and breaking the law, placing both drivers and riders in peril. In the Netherlands, the company had to pay around 2.3 million euros to settle a case, after being accused of operating an illegal taxi service from 2014 to 2015. 

Uber also faced issues in countries where the relationship between Uber and its drivers meets the definition of the employer-employee relationship. This is one of the reasons why the app was temporarily banned from operating in Colombia and faced similar legal issues in Chile and Argentina.

Its presence in various countries has generated an incredible backlash – protests, riots, and clashes with angry labor unions - especially cab drivers.

Uber also completely mismanaged their launch in China and lost billions trying to establish themselves on the Chinese market. Here’s where their process completely failed them.

When Uber came to China, it didn't fully anticipate all the changes it would have to make. In China, besides having an established competitor in Didi, Google Maps didn't work, so Uber had to completely redo their location services.

Uber also relied on credit cards for payments, and in China, consumers increasingly used apps to do their payments. However, the main apps consumers used ( WeChat and Alipay), were owned by parent companies of the rival ridesharing company, so Uber had to essentially negotiate with its rivals in order to have consumers pay for their ridesharing services.

The Chinese policy regarding competition is also very different from the policy in the United States and much of Europe. The Chinese government wants to promote domestic firms and aggressive tactics are not really an option, because when push comes to shove, the government is likely to come down on the side of the domestic company.

Despite many problems and failures, Uber made impressive headway in foreign markets. But their success also made them a target. Well-funded local challengers soon replicated and improved upon Uber’s model and quickly limited Uber’s market share or pushed them out of their markets.

Tactical retreat from some markets

After Uber hired a new CEO in 2017 and started cleaning house at the end of 2017 (more on this later), it switched to a much less aggressive expansion strategy. In 2018 they decided to retreat from some markets instead of trying to “win at all costs”.

While some may see retreat as a failure, Uber’s early and aggressively sought international position actually provided an opportunity. Instead of completely giving up on markets, Uber used its leverage as an established player to acquire stakes in local competitors . Uber acquired 15.4% of Chinese Didi, 38% of Russia’s Yandex Taxi, and 23.2% of Southeast Asia’s Grab. 

Uber also vowed to do a “reset” in Germany, where it operated a very limited service in Berlin. 

Uber is still left fighting in India against rival Ola where the two have been locked in a costly battle for years over dominance in India’s ride-hailing market. The rivalry is more awkward now that both companies share a mutual large investor: SoftBank. 

Uber’s early super aggressive expansion policies reflected its combative corporate culture which soon tarnished the brand’s image.

Key takeaway #3: being ultra-aggressive is a double-edged sword

There’s no denying that without its extremely fast expansion Uber wouldn’t be the brand that we know today. But as scandals mounted and as Uber lost millions and billions of dollars in certain markets, we should ask ourselves if things could have been done differently. Ignoring local regulations, while it did work in some cases and was extremely costly in others, was never ethical. And we can probably all agree that even if a company adopts an aggressive playbook, it should do all it can to act ethically as well.

Uber’s toxic culture comes to light

Uber needed three key elements in place if it wanted to thrive as a global business.

• A set of country managers who are responsible for their individual markets.
• An understanding of how those markets differ.
• A unified executive team, which creates a centralized command center.

Under Kalanick, Uber actually had the first two. There were strong regional managers and a decentralized command structure that allowed them to enthusiastically implement Uber’s playbook.

However, Uber was lacking a unified executive team to coordinate global operations, including the activity of the individual country managers.

Not just that, back-biting, undermining, and infighting were the rule, not the exception, and executive meetings were often canceled at the last minute.

When we look at Uber’s playbook, that’s not really surprising. Uber always played to win and they did a really good job at recruiting teams of people who really wanted to win as well.

One of the downsides of this course of action is that if you exclusively focus on winning and getting around the existing regulations it quickly blurs the line of what's ethical and what's not ethical - not just when expanding, but inside the company as well.

It also brings into the company a certain kind of people - people that enjoy treating every encounter as a confrontation . Constantly fighting skirmishes outside and inside the company is not just exhausting but affects the morale at the company and the corporate culture.

Uber’s cultural guidelines weren’t helping. They ranged from the sober “Be Yourself” to full-on bro-tastic maxims like “Superpumped” and “Always be hustling”.

As the company scaled rapidly, so did its toxic culture and questionable business tactics. These led to a constant stream of nasty and very public challenges. They included political infighting, allegations of corporate espionage, and criminal investigations.

Then there were the many run-ins with regulators, taxi firms, and even Uber’s own drivers. Uber saw a backlash in some of its key markets which came to a head with the #DeleteUber campaign.

The old Uber logo didn’t help either. It emphasized the public’s perception of Uber’s hostility, imposing itself on customers with all-caps on black background, reflecting Uber’s hyper-masculine attitude.

While Kalanick did build a hugely successful business, an increasingly toxic culture had become a poison and tarnished the brand.

“The radical scale success of Uber that was unprecedented at the time, I think, led to a culture that was highly confident, a culture that was confrontational, a culture that to some extent celebrated breaking the rules . All of which made possible what Uber built, but which created a blind spot as to individual's respect, respect for diversity of different viewpoints, et cetera, that led to Susan Fowler's blog – which by the way wasn't the only difficult occurrence happening at the company,” says Dara Khosrowshahi, the current CEO of Uber.

Exposed by a blog post

The blog post Khosrowshahi mentions was published by a former Uber engineer Susan Fowler in February 2017. She described a toxic culture at the company where sexual harassment was rampant and managers cannibalized each other. 

Her post received so much attention that Uber decided to respond by having the law firm Perkins Coie do an investigation into her allegations.

The CEO and co-founder of Uber, Travis Kalanick, began facing heavy scrutiny over Uber’s company culture. Earlier in 2017 Bloomberg also posted a video of him arguing with an uber driver over falling fare rates, which certainly didn’t help his case and further tarnished Uber’s brand.

The company finally recognized a crucial if simple truth: to maintain a sustainable brand long-term, Uber had to be honest about what it stood for. It postured itself as a cutting-edge, progressive company, yet its corporate culture was the opposite of progressive. The brand teetered on the brink of outright hypocrisy.

Kalanick resigned as CEO on June 20, 2017, and there were numerous other personnel casualties of Uber’s very public self-reflection.

The need to rebrand was clear: without a complete brand overhaul, Uber risked totaling its business and Uber decided to undergo a massive effort to restore its image and set itself up for the future.

Key takeaway #4: recognize when it’s time for a cultural shift

While the “always be hustling” mantra and “win at all costs” people might be required to succeed at a startup, there’s a time when such thinking should be left behind. As Uber grew and expanded it never really took a hard look at the corporate culture it created. It wasn’t a small startup anymore, it became a huge company and should’ve therefore acted more responsibly sooner. In the end, it was forced into an overhaul, but not before its toxic culture tarnished the brand.

Uber rebrands and goes public

When Uber decided to turn things around there were two major areas they focused on - one was their corporate culture and values and the other was their brand .

Khosrowshahi, the new CEO of Uber, said that they asked their employees what should represent the culture of Uber going forward.

He recaps the conversations and answers:

“We celebrate differences. We want to be a different company but we also celebrate differences and backgrounds and where you come from and religion and sexuality, et cetera, and we believe that no matter what you bring to the table, you should be able to contribute to what we call Uber.

The simplest answer that I hear repeated over and over is: We do the right thing, period. We didn't want to define to the employee what the right thing is. You know what the right thing is. Let's do that and, period, that's what we do.”

Listening, observing, and learning became the foundations of Uber’s cultural overhaul.

Since the change, some Uber executives even go the extra mile to participate as normal Uber drivers and experience what Uber’s drivers experience. The importance of getting one’s hands dirty is a part of the refreshed culture. 

They started calling their drivers “driver-partners”.

“Now we have a fundamental connection there that is reflected in the

organization, we have a driver product team, and we now fundamentally build our

product with the driver. We talk to them, we have a dialogue with them, and we build with

them. That kind of connectivity with our driver-partners, I think, creates a win-win and it

creates mutual respect,” says Khosrowshahi.

The current CEO also recognized that executives can get out of touch with reality and said that whenever he goes from city to city he meets with drivers and asks them what they like and what they don’t like.

Uber also changed its approach to communication with governments and regulators. Before all the conversations and the dialogue was happening through lawyers, now Uber is trying to talk about their requests and find a compromise wherever they can’t agree with authorities.

While Uber is still facing challenges and there are still many dissatisfied parties, the company has changed its warlike and aggressive approach and is trying to make things work in a different, more humane way.

A new, more emphatic brand

Uber also embarked on a major rebranding intended to capture an accessible, progressive style that reflected the best of the company. 

The company understood it faced a critical mission: it had to persuade customers that its lousy reputation left the building when its former CEO was replaced.

Uber opted for a complete redesign to overhaul the brand from the ground up. 

Their new logo is the foundation of a substantial rebranding effort – one that incorporates a sense of mobility, accessibility, and friendliness not found in previous iterations. The company’s goal was to create a cohesive brand system described as “instantly recognizable, works around the world, and is efficient to execute” .

The agency Wolff-Olins summed up the project goals on their case study site :

“The brand needed to work around the world. Its highest growth areas are in regions outside of the US, such as Latin America and India, where Wolff Olins has a considerable depth of experience. Instead of pursuing a complex identity system, localized through color and pattern, we moved towards a universal ‘beyond simple global brand. Teams in diverse markets can make it relevant to their audiences with culturally specific content.”

What began as everyone’s personal driver is now all about moving forward and moving together .

The fresh logo was supplemented by creatives that included photos of people from around the world — serving two purposes. Firstly, it represents Uber’s global market, and secondly, adding this human element made the brand a whole lot more relatable. It’s no longer just a tech startup in Silicon Valley — it’s also the drivers you meet every morning, the co-riders you pool with every evening.

Arguably the best example of Uber’s new branding direction is their marketing campaign What moves you, moves us . It’s a campaign that focuses on the drivers and is built on empathy. It acknowledges and shows appreciation for their drivers' hard work and shows the customers who and what they’re supporting when they choose to ride with Uber.

More recently, Uber acknowledged the hard work of frontline healthcare workers during the Covid-19 pandemic with a #GratefulUK campaign. The company offered them free rides and free meals during the Christmas period and encouraged people to share letters, drawings, poems, or doodles thanking the workers. 

Overhauling the brand’s image and corporate culture were not the only major changes that happened after Uber’s scandalous years and Kalanick’s resignation. Another major step towards the maturity of the company happened in 2019 when Uber decided to go Public.

Going public - to boost reputation, get more money, or both?

In less than two years after the rebrand began, Uber decided to go public. Filing for IPO was likely a part of Uber’s rebranding plan. 

Why? People tend to look at public companies as more mature. Going public also provides a sense of accountability because public companies have to report on a quarterly basis and are subject to the regulatory process. It opens the company up to an entire set of investors who drive transparency. That’s exactly what Uber needed after all the previous scandals.

Of course, the public market also provides greater liquidity and more readily available money, which Uber needed as well as it was losing billions of dollars on a yearly basis.

However, Uber's IPO didn’t go as well as expected. Uber’s valuation predictions hovered around $120 billion , which would’ve made it the most valuable company to ever go public. In the end, Uber priced its stock at $45 apiece for a valuation of $82.4 billion , which was lower than many expected yet it is still one of the most valuable exits in history. Uber’s stock began falling right away, but we won’t go further into that.

What’s more important - the company has become public which means new pressure from big investors and shareholders every quarter to stem their losses. And as we’ll see later on, Uber’s eventual profitability is not nearly guaranteed.

Before we dive into the questions of profitability, we should examine how Uber defined itself as an innovative company and how it evolved in the last 10 years.

Key takeaway #5: when you need to change, show dedication

Although the jury is still out on how successful Uber’s rebranding actually is, it’s clear that they’ve undergone major steps to repair their reputation. And there’s really no other way to do it. If you want to rescue a tarnished brand, you have to show that you’re truly dedicated to making it work and aren’t just trying to save face for your own sake.

Uber innovation & diversification strategy

Although Uber is known as the main disruptor in the transport industry, the company is actually not the ridesharing pioneer, but a fast follower in the sector.

Uber’s competitor Lyft and former competitor Sidecar (which shuttered back in 2015) are the ones that pioneered ridesharing as it is known today, which entails using non-professional, non-commercially insured vehicles and drivers. 

Uber initially worked exclusively with commercially licensed, insured, and regulated entities (known as Black Cars in many areas) before transitioning to the current ridesharing model.

While Uber was a fast follower, it expanded quicker and more aggressively and offered a better user experience which led to market dominance in many regions. 

In fact, Uber followed a market entry pattern that has proven successful for business entities in the past – Myspace preceded Facebook, Yahoo preceded Google, and Blackberry preceded Apple’s iPhone. Historical patterns of transformation suggest that being first does have its advantages, but entering the market early and iterating quickly is even more vital when it comes to dominating a market. 

Uber’s expansion playbook is a prime example of how quickly they adapted their model and grabbed the opportunity of extremely fast expansion which was possible because of the significant funding the company received.

Their activation of early adopters and passionate customers to support Uber via petitions and pressure on local authorities can also be seen as an innovative approach to one of the ridesharing market’s main challenges.

A flexible pricing model

Uber’s surge pricing model is another example of a simple yet ingenious solution to a very real problem of the taxi industry - how to get a ride when you simply can’t get a cab . That can happen during peak traffic times or during bad weather.

When Uber’s demand for rides is higher than the supply the prices surge. That means users can almost always get a ride if they’re prepared to pay enough. 

Researcher Oliver Senn analyzed satellite data on weather conditions over a two-month period, and he obtained 830 million GPS records of 80 million taxi trips. The data shows that it was not the high demand for taxis that resulted in a perceived shortage on rainy days; instead, it appeared that many cabbies simply did not pick up passengers, fearing accidents on the wet roads. However, Uber entices their drivers with higher prices and therefore higher earnings when there’s a shortage of rides. 

While plenty of users don’t like the surge pricing, it proved to be a way to get more drivers in the area to take advantage of higher earnings when there’s a shortage of available rides.

Reviews ensure a better service

Another massive differentiator between Uber and traditional taxis is that Uber has rating systems for both drivers and passengers. A review system by itself is nothing new, but it hasn’t been used in the transport industry before - especially not on an individual basis.

The system is a simple solution to the question: “How will drivers and passengers behave?”

It promotes trust in Uber and better behavior on the parts of both driver and passenger as it weeds out the bad users. 

More than just a ridesharing service

Over the years Uber has become more than just a ridesharing company. It’s leveraging its underlying technology to test new services that have the potential to generate additional revenue and fuel Uber’s ambitions.

By introducing new services that add incremental value for users, Uber creates opportunities to capture a larger share of their consumer’s wallets, while also retaining and generating additional income for drivers as well.

There are two main services that stuck around: Uber Freight and Uber Eats.

Uber Freight

Uber Freight is basically Uber for trucks. Uber launched its own on-demand trucking app in 2017 with the core idea of seamlessly matching shippers with carriers. 

In August 2018, it was spun off into a separate business unit, a move that simultaneously allowed it to gain momentum and burn more cash. After spinning off of Uber, the freight company underwent an expansion. 

In 2020 an investment firm Greenbriar Equity Group has committed to invest $500 million in a Series A preferred stock financing for Uber Freight. When announcing the investment Uber said it will maintain majority ownership in Uber Freight and will use the funds to continue to scale its logistics platform, which helps truck drivers connect with shipping companies.

Uber Eats food delivery service launched in 2016 and it was a logical next step for Uber as it aligns with its ridesharing business and helps it utilize its large fleet of drivers. It launched as a separate app and grew in popularity at a rapid pace.

Uber Eats ensured that Uber’s customers used the company’s services more often than ever before. Users who used both Uber and Uber Eats booked an average of 11.5 trips per month, versus only 4.9 trips for those using only a single Uber service.

Consumers benefited from an additional convenient service, and drivers gained a new source of trips which generated a more steady stream of bookings throughout the day, which in turn increased the overall supply of drivers.

With drivers now busier and making more consistent income, they have less reason to dual-app and drive for a competing service like Lyft.

Uber Eats was also huge for Uber during the Covid-19 pandemic. While Uber’s ride-hailing segment contracted by 24%, Uber Eats increased revenues by over 200% in 2020 and prevented a much higher loss of revenue that would have occurred if Uber hadn’t diversified its services.

Uber Revenue by Segment

YearMobilityDeliveryFreightOther2018$8.9 Billion$0.7 Billion$0.3 Billion$0.1 Billion2019$10.4 Billion$1.3 Billion$0.7 Billion$1.3 Billion2020$7.9 Billion$4.8 Billion$0.9 Billion$1.3 Billion

Dreaming of self-driving cars

You may have heard of Uber’s Advanced Technologies Group(ATG) which was established in 2016 with the purpose of developing self-driving cars. Kalanick, the CEO at the time, saw it as an essential investment and there’s no doubt that fully self-driving cars would immensely benefit Uber.

However, ATG brought high costs and safety challenges . Throughout the course of a pandemic-stricken year, Uber has made efforts to stem losses in its ride-hailing business and control business costs. That’s why at the end of 2020 ATG was acquired by its start-up competitor Aurora Innovation. In fact, Uber handed its equity in ATG to Aurora and then invested $400 million into Aurora, which will give Uber a 26% stake in the company. Uber CEO Dara Khosrowshahi will also join Aurora’s board.

“With the addition of ATG, Aurora will have an incredibly strong team and technology, a clear path to several markets, and the resources to deliver,” Chris Urmson, co-founder and CEO of Aurora, said in a statement. “Simply put, Aurora will be the company best positioned to deliver the self-driving products necessary to make transportation and logistics safer, more accessible, and less expensive.”

Uber positioned itself to be right there once Aurora develops their self-driving car, which just might be the key to Uber’s profitability in the future.

Looking towards the future

While Uber’s plans for the future after the pandemic are not set in stone, Khosrowshahi says that people should think about Uber not as a service but as a transportation platform or as an Amazon of transportation. He said that people will be able to take a bus, to take a car, to take a train or to take a taxi using Uber. It would be a win for the consumer because the more choices they've got, the more pricing they've got, the better the product is.

Uber is aiming to pivot their strategy so that it is more inclusive. How they are planning to do that is yet to be seen, but we can be certain they’re going to try and offer new services and further diversify their product as that might be their only option if the company wants to become profitable.

Key takeaway #6: keep innovating and evolving

Uber doesn’t rest on its laurels of being the first prominent rideshare app. Its founders understood really well that the competition will grow over time and they can only stay ahead if they evolve and diversify. They keep adding new features and new services while constantly looking to invest in new technologies.

Will Uber ever be profitable?

Although Uber claims that it will soon become profitable, there are many sceptics that think it won’t happen - and with a good reason.

Uber has been losing billions of dollars during the last few years. Although Uber losses improved in 2020 due to Uber Eats, the company still lost $6.77 billion . Uber plans to minimize losses in 2021, yet due to the ongoing pandemic, Uber had to spend hundreds of millions of dollars in incentives to get drivers back on the streets once the Covid situation improved and the demand increased.

Hubert Horan , a transportation industry expert who has published in-depth analyses of the company's financial outlook, has this to say about Uber’s profitability:

"Not only can I not imagine any remotely plausible explanation as to how Uber could suddenly become profitable after eleven years of massive losses, but absolutely no one has attempted to lay out a financial analysis making such a case. Not the company, not Wall Street analysts, not academics — no one."

In its S-1, a document that every company must file with the SEC if it wants to go public, Uber itself acknowledged and warned that it was possible it would never become profitable .

How come such a successful company that is a magnet for investors still struggles with such heavy losses?

The thing is Uber doesn't really have an edge over its competitors. A smartphone app that matches passengers with drivers can be — and has been — replicated by countless other companies. And once there are competitors, Uber doesn’t offer a service that would be that much more efficient. 

As it often does, it all comes down to costs-leadership . The need for human drivers that have to earn a living wage seems to be a vexing problem for the ride-hailing industry. It just costs too much. 

That's why Uber once staked so much of its future on self-driving cars, which could potentially reduce the company’s per-mile cost by 80% . But as you know, Uber has already sold its self-driving research center.

The typical explanation of the Uber model is that its focus has been on growth, not profit. Huge investments allowed Uber to keep scaling up until it was everywhere and ensured that the populace relied on its service. According to Horan, its plan was to "eliminate all meaningful competition and then profit from this quasi-monopoly power" in the exact same way that Amazon has managed to do for e-commerce. Except that it hasn't worked as competition is still here and Uber’s core service is not that different from it.

Uber’s push for profitability might be the reason that as of April 2021, the cost of a ride had increased by 40% as the New York Times reported . Why? The increase might be due to the shortage of drivers at the time. Uber is notorious for not paying drivers enough (according to the drivers), but that only works until the point that a critical number of them decide that it isn't worth any of their time. 

To counter that Uber has to raise fares, but then it runs the risk of losing a big part of their market and their revenue, even with higher per-passenger fares.

What’s the solution? That’s probably the most important question in Uber’s history and one that will define its future. It’s also the reason Uber is trying to position itself as a transportation platform and not just a ridesharing service as profitability continues to be an industry-wide problem.

Key takeaway #7: have a clear plan on how to become profitable

Although Uber is one of the fastest-growing and arguably one of the most successful companies in the last decades, it’s still not profitable and it’s a fair question if it ever will be. This shows that growth is not everything and if you want to run a sustainable business you have to know how it will eventually become profitable.

Uber’s SWOT analysis

Let’s recap everything we’ve covered during this strategy study in a concise SWOT analysis.

Global brand recognition

Uber’s brand is unmistakable and has become a synonym for “ridesharing.” Uber is present in over 60 countries worldwide and is the first ridesharing brand that comes to mind when new users are looking for ridesharing apps.

A strong market position

Uber is the largest ridesharing platform in the U.S. and worldwide. Currently, Uber’s market share in the US is 68% and 32,4% worldwide. In an industry that’s all about the quantity that’s extremely important.

Knows how to diversify

One of Uber’s key success factors is its ability to adapt and innovate to encompass changing needs. This can be seen in its diversification into logistics with Uber Freight and broadening its services to offer groceries and food delivery with UberEats. Diversification plays a huge part in Uber’s total revenue.

Dynamic pricing model

Uber’s surge pricing strategy has been good for its drivers. Drivers can earn more at night, in bad weather conditions, and during the holidays. This encourages more drivers to take ride requests to meet demand surges.

Low operational costs

Uber is based on low fixed investments and minimal physical assets. It has a fleet of cars they don’t actually own and no full-time drivers which helps to keep operational costs down. 

Convenient to use

That’s the whole point of Uber. Anyone can order a ride with a few taps on their screen, learn the price of the ride and pay it through the app.

More affordable than cabs

Uber was and still is more affordable than most cabs and its competition. However, that might change with the recent price surges.

Generally good service due to the review system

Uber riders have the ability to rate their trip and the driver. As drivers are always trying to improve their ratings, riders will most likely experience good service.

Bad publicity due to scandals

Despite Uber’s rebranding, stories of former sexual harassment scandals, driver fraud, and reports of very low driver’s wages reflect poorly on the company’s image and might alienate drivers as well as riders.

Substantial losses

Uber has lost billions of dollars year after year, which is starting to affect its image and spending. Nobody really knows if the company can become profitable and when or how it might happen.

Low-profit margins

Uber has to keep its fares low and can’t increase its commission per trip leading to low-profit margins. As we’ve seen, Uber's unprofitability has already prompted it to withdraw from China, Russia, and Southeast Asia. 

Dependency on their workforce

Uber is heavily dependent on its drivers. They are essentially Uber’s brand ambassadors 24/7. However, their behavior is unpredictable and the company’s image is hurt every time a scandalous story reaches the news. Many drivers have been accused of harassment and abuse.

The main service can be easily replicated

The ridesharing industry has a relatively low barrier of entry and Uber’s main functionality can be easily replicated by potential competitors which happened in Southeast Asia.

Opportunities

Further diversification

Uber Eats exploded during the recent Covid-19 Pandemic and significantly increased Uber’s revenue in 2020. Uber Freight also grew by 64% in Q2 of 2021 and earned $348 million. Further diversification might be one of the more viable paths towards Uber’s profitability.

Self-driving cars

While not there yet, driverless technology would significantly lower Uber’s operational costs while eliminating scandalous stories caused by their drivers’ bad behavior.

New markets

There are still many untapped growth opportunities in many countries. In fact, t he acquisition of Careem by Uber with $3.1 billion has opened the door to an incredible business opportunity for the company in the Middle East.

Local laws and regulations Uber has previously ignored

Increasing pressures from local authorities require Uber to comply with certain laws, which the company skirted when setting up in different countries. Non-compliance with local laws incurs fines and results in bad publicity. At the same time, the communities of traditional taxis are pushing heavily on the enforcement of some type of regulation. 

Low driver’s wages

Uber drivers reportedly earn less than minimum wage in many locations. Drivers have become more active in various locations in advocating for their “fair share” and are pressuring Uber to increase their wages, which would make it even harder to become profitable.

Employee retention

Unsatisfied drivers may switch to rival platforms due to better incentives from competitors from the ride-hailing market or from other parts of the sharing economy.

More and more competition

As the ridesharing market becomes more saturated, it will become more difficult for Uber to retain customers as shifting to other services if they offer lower prices is very easy. This goes for services like food delivery as well.

Final thoughts and key lessons

Uber is a fascinating company with a fascinating story. It’s one of the most famous disruptors in the last decade, yet its technology is not really disruptive. But the way it uses it and combines it with its business model certainly is!

If there’s one thing that defines Uber it’s determination .

Determination to stick to their brand strategy of a technological company and an industry disruptor. Determination to quickly expand across the globe even if it means taking on regulators and local authorities. Determination to right the ship and overhaul the culture once they recognized their mistakes.

What allowed Uber to do all of the above while adapting to different challenges and markets is its lack of assets . That’s where the company really shines - they solved a big real-world problem with the fewest possible assets. 

Uber is not a shining example of a company that did everything right. 

But no one can argue that it looked for an opening, grabbed the chance, and achieved amazing things. 

It’s a walking lesson that sometimes you have to grab the opportunity before it’s too late, learn on the flight, and do your best to correct your mistakes as you go .

In the end, Uber disrupted an entire industry and achieved a multi-billion-dollar IPO. Who knows what would’ve happened if they waited to have everything figured out?

Recap: Growth by the numbers

Uber’s 2020 data is skewed by the impact of the Covid-19 pandemic, that’s why we decided to use the data from 2019 instead.

The ultimate list of strategic takeaways:

• Create a flexible business model and stick to it.

Uber always identified itself as an asset-light technology company. That allowed it to quickly expand, adapt and diversify. Uber’s potential because of its scalability and flexibility is what made it so attractive to the founders.

• Recognize what you need to do to succeed and don’t waver.

Uber knew that it needed to scale and reach new users fast if it wanted to grab its market share before the competition. Their super aggressive expansion is controversial but it did achieve its goal and positioned Uber as the rideshare leader. 

• Don’t neglect your corporate culture.

Uber’s many scandals combined with its toxic corporate culture tarnished Uber’s image and almost ended in disaster. If your early dogma is to hustle, recognize when it’s time for a cultural shift and make sure your values, brand, and culture are in sync.

• Diversify and evolve to stay ahead of the competition.

Look for new opportunities and add new features or services to capture them. Uber’s asset-light flexible service allowed it to explore other complementary industries and Uber Eats significantly limited Uber’s losses during the pandemic. If there are low barriers to entry into the industry, the company should be proactive and take steps to stay ahead of emerging competition.

Referral program FAQ

Who can participate in the referral program.

All US-based Uber for Business customers that meet the eligibility requirements can participate in the referral program. By recommending Uber for Business to your friends and colleagues, you can earn up to $500 to use for personal rides, meal orders, and deliveries through Uber and Uber Eats.

Your referrals that meet the eligibility requirements can also earn rewards once their organization creates an Uber for Business account and spends $100 within the first 60 days.

What are the eligibility requirements?

A referrer must be a part of an Uber for Business organization located within the US and submit the referral before the offer deadline.

A referee must use the referral link sent by Uber to create a new US-based U4B account and spend at least $100 on their account within 60 days of its creation.

How do I submit a referral?

To submit a referral:

• Log in to your Uber for Business dashboard .
• Select your account profile from the menu. You’ll see a button to participate in the referral program. The referral form allows you to enter the contact information of the friend or organization you are referring to Uber for Business.
• Fill out the referral form, and we’ll send a signup link and instructions to the contact email you provided.

Who can I refer to the referral program?

You can refer anyone, so long as they create a US-based U4B account. Referral rewards are distributed in USD.

How much can I earn?

You can earn a $50 voucher for up to 10 referrals in a 3-month period—that’s a total of up to $500 in Uber credits that you can use for personal rides and deliveries.

When and how will I receive my rewards?

You’re eligible for rewards once an organization creates a new Uber for Business account using the referral link you provided and if the organization meets the eligibility requirements.

You and the contact you referred will then receive a $50 Uber voucher via email to use toward personal rides or deliveries in the Uber or Uber Eats apps by the end of the following month.

After you have received your voucher, you can follow these steps to redeem:

• Sign in to the Uber app or create an account at uber.com .
• Click the link in your email to claim the voucher.
• The voucher will automatically be added to your account and will apply to your next qualifying trip or order.

Questions? Learn more about business vouchers .

Can I track the status of my referrals?

We do not currently offer the ability to track referrals. However, we’ll notify you via your Uber for Business account email once a referral has qualified for rewards. You can always contact [email protected] if you need additional help.

Can I refer customers in any country?

Only organizations in the US can participate in this program at this time.

I or the person I referred didn’t receive the referral reward. What should I do?

You are eligible for a reward once an organization you refer meets the eligibility requirements.

Rewards are distributed via email the following month after you become eligible. If you can’t find your reward notification in the inbox of your Uber for Business registered email, please reach out to [email protected] .

My referral didn’t sign up using the email invite that was sent to them. How can I receive referral credit?

As long as your referral signs up for an account with the link in the email invitation, you’ll be able to earn a reward. They don’t need to use the email address that received the invite to sign up for Uber for Business.

If the person you referred receives referrals from multiple senders, only the first sender will earn a reward.

Someone other than the person I referred created the Uber for Business account. Will we both still receive a reward?

If the person you refer forwards the email to someone else to complete the signup process, you’re still eligible to receive a reward if they are part of the same US-based organization and use the referral link in the email invite. Only the contact you provided will receive the referee reward, not the person they forwarded the link to.

Can I receive rewards for previous customers I referred before the referral program started?

No. The referral program tracks referrals that are new Uber for Business customers. We’re unable to offer rewards to customers who have signed up before the program launched.

The Uber Referral Program: Why Is It So Successful?

• Last updated April 25, 2023
• By Megan Mosley

ON THIS PAGE

One of the most well-known referral programs out there is the Uber referral program . Uber has definitely used the power of referrals to build their business.

In fact, a substantial amount of their growth can be attributed to their referral program (although referrals aren’t the only reason for its success). Let’s break down why Uber’s referral programs, both for drivers and for riders, are powerhouses. We’ll also cover the elements of the Uber referral program you can apply to your own referral program.

Why is Uber so successful?

Before a company can build a successful referral program, they need to have a product or service worth sharing.

Uber tapped into an industry people need and use every single day: public transportation. By providing another way to commute – one that’s accessible and convenient – Uber filled an urgent need among commuters. Plus, the company provided the solution in a way that put the rider in control of their commute. They could easily find a car to take them where they wanted to go, when they wanted to go there.

Through Uber’s free downloadable app, a ride could be requested with just one tap, and even included an estimated timeframe for its arrival, so riders don’t have to waste time waiting outside. All riders need to do is enter their email and credit card information, and they’re all ready to book their first ride. (If you’re an Uber driver, it’s also easy to use the app to find driving opportunities in your area.)

Because Uber’s product is needed, wanted, and easy for both drivers and riders to use, it provides the perfect opportunity for a referral program. Mix the easy-to-use Uber app with a referral program (and a great reward), and success is bound to happen. Here’s more on the Uber referral program.

(Update: As of July 2020, Uber no longer offers a referral program for drivers and riders. However, there’s still  plenty to learn from this referral program powerhouse.)

Uber referral program for customers (riders)

Uber started back in 2009, and has since spread to over 65 countries and 10,000 cities and towns. It is easily one of the top-ranking ridesharing services of all time. When Uber first started, it used a $10 dual-sided referral incentive (paid in Uber credits) to attract new riders and encourage existing riders to share with their friends.

Later, they upped the ante and offered $20 and $30 dual-sided credit rewards. What makes this so attractive is the amount usually covers one free ride, which is how the referral program has typically been advertised for existing riders. Since then, the Uber referral rewards have fluctuated in amount, but Uber has consistently offered valuable, dual-sided Uber credits.

All someone has to do to earn the rewards is sign up and share. The referred friend then has to sign up and their first ride is free. Pretty easy. Here’s more on why the Uber referral program works so well.

• Easy to access and enticing: Uber riders can tap on the “free rides” option in the menu to access the program. The choice to use “free rides” for the call-to-action, rather than “refer a friend,” effectively catches a customer’s eye and makes them want to tap and learn more.
• Mobile-centric:  Since Uber is app-based, its referral program is extremely mobile-friendly . Sending a quick referral on the go is easy.
• Unique referral codes:  Each customer has a unique invite code for instant sharing with friends. This also makes tracking referrals and distributing rewards easy for Uber.
• Several sharing options: Customers can share via email, social media (Facebook, Twitter), SMS, or directly copying and pasting their personal referral code. Multiple options make sharing easy, accommodating all the ways a customer usually connects with their friends.
• Dual-sided rewards: Both the referring customer and their friend have the opportunity to earn rewards . When a referred friend takes their first ride with Uber, the person who referred them instantly earns credit equal to a free ride. The referred friend also gets ride credits spread across their first several rides, which encourages them to become a loyal customer .

Uber referral program for drivers

On top of a successful customer or rider referral program, Uber also created a driver referral program. Uber understood that with two separate interfaces for drivers and riders, it would have the most success by creating a separate, tailored referral program for drivers (similar to an employee referral program ).

When a driver refers someone by sharing their personal code, and the referred person becomes a new driver, the referrer earns a bonus reward. Just like the rider referral program, the Uber driver referral program also offers a dual incentive, which gives the new driver a “starting bonus” once they start driving for Uber.

The driver referral bonus has changed in the past (likely relative to how in demand drivers are). It typically ranged between $200 and $500 for each referral. But at one point, a driver could earn rewards as high as $1,500 (if they referred a friend who started driving for Uber with a rental car), while the friend earned a $500 bonus. At another point, Uber even offered a bonus for referring drivers who were already driving for Lyft, Uber’s main competitor.

Reviewing Uber’s referral success

Why has the Uber referral program been so successful? Most of its success is because it made referring so easy and enticing within both types of referral programs . With one click, you can share your referral code and earn money. And since the company relies heavily on its app and mobile riders and drivers, sharing with others is effortless even when you’re on the go.

The second reason for Uber’s referral success is its attractive dual-sided rewards. Both parties in the equation, whether you’re a rider or a driver. are incentivized to use the ridesharing platform. Plus, if you’re a rider, the incentive usually covers your entire first ride, making your first experience with the company essentially free.

No matter what industry you’re in, Uber’s referral program offers a lot of great tips to use when building your own successful referral program.

If you’re inspired by Uber and interested in creating a referral program of your own, check out these resources:

• Referral Marketing 101: How To Create a Referral Program That Wins More Customers 
• 21 Absolute Best Referral Program Ideas for Every Part of Your Campaign
• How To Build the Best Referral Marketing Strategy: Our Can’t-Miss Guide
• Create Stellar Referral Program Templates to Grow Your Business

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Uber Marketing Strategy 2024: A Case Study

Uber, the prominent player in the ride-hailing industry, has captured the attention of millions with its extensive transportation and delivery services. In this case study, we will delve into Uber’s marketing strategies for 2024, providing insights into their approach to ride-sharing dominance and user experience.

Key Takeaways:

• Uber operates in over 72 countries, serving more than 110 million monthly active users
• The company generated $32 billion in revenue in 2022, marking an 82% increase from the previous year
• Successful social media campaigns and contests, like the #WhyIRide campaign, have contributed to Uber’s viral marketing
• Collaborations with social media influencers, celebrities, and organizations strengthen Uber’s brand image
• Incentives and discounts, such as referral programs and loyalty schemes, attract and retain customers

Brand Positioning and Global Expansion

In the highly competitive ride-sharing industry, Uber has successfully positioned itself as a leading brand through its global expansion efforts. With operations in over 72 countries and serving more than 110 million monthly active users, Uber has established a strong presence worldwide.

To build brand awareness and loyalty, Uber implements a comprehensive marketing strategy that effectively utilizes social media platforms such as Instagram, Facebook, and YouTube. By leveraging these platforms, Uber showcases real-life experiences, testimonials, and engaging content to connect with their target audience and strengthen their brand image.

Uber also strategically partners with social media influencers, celebrities, and organizations to enhance its brand positioning. Collaborating with influential figures and reputable organizations helps Uber reach wider audiences and cultivates a positive brand perception among consumers.

In addition to social media marketing , Uber offers various incentives and discounts to attract and retain customers. These include referral programs, loyalty schemes, and promotional campaigns. By providing these incentives, Uber not only encourages customer acquisition but also fosters customer loyalty, which is vital for long-term success.

Furthermore, Uber collaborates with local businesses, sponsors, and events to provide convenient and affordable riding options. Integrating its ride-hailing services into popular food delivery apps and partnering with renowned fitness studios for discounted rides to and from classes enhances the overall user experience and expands Uber’s user base.

As Uber continues to expand into new markets and segments such as Uber Eats and Uber Health, the company demonstrates its commitment to meeting diverse user needs and extending its brand reach.

Furthermore, Uber’s focus on continuous innovation, regulatory compliance, and customer satisfaction ensures the company’s future growth and success. By investing in customer feedback, providing 24/7 support, and implementing necessary improvements, Uber strives to deliver an exceptional user experience and maintain high customer satisfaction levels.

In conclusion, through brand positioning and global expansion efforts, Uber has established itself as a dominant player in the ride-sharing industry. By effectively utilizing social media platforms, strategic partnerships, and attractive incentives, Uber has built a strong and recognizable brand, catering to customers’ needs while continuously expanding its market presence.

Market Segmentation and Competitive Analysis

In order to stay ahead in the highly competitive ride-sharing industry, Uber recognizes the importance of market segmentation and conducts thorough competitive analysis. By segmenting their target audience based on demographics, preferences, and needs, Uber is able to tailor their marketing efforts and provide personalized experiences to their customers. This strategic approach allows Uber to effectively target different consumer groups and cater to their specific requirements.

Uber’s market segmentation strategy enables them to identify and understand the diverse needs of their customer base. By analyzing data on customer preferences, habits, and interests, Uber can create targeted marketing campaigns that resonate with different segments of their audience. For example, in urban areas where ridesharing is prevalent, Uber can focus on convenience and accessibility. In contrast, in suburban areas, Uber can emphasize reliability and affordability.

Additionally, Uber conducts comprehensive competitive analysis to gain insights into the strategies and tactics employed by its rivals. This analysis helps Uber identify their competitors’ strengths and weaknesses, enabling them to refine their own marketing strategies and gain a competitive advantage. By understanding the competitive landscape, Uber can leverage its strengths and capitalize on market opportunities, while also addressing any potential threats.

Competitive analysis allows Uber to benchmark their performance against that of their competitors. By closely monitoring the market, Uber can identify emerging trends and shifts in consumer behavior. This knowledge enables Uber to adapt their marketing strategies in real-time, ensuring they remain at the forefront of the industry.

The table below provides an overview of key statistics related to market segmentation and competitive analysis in the ride-sharing industry:

Customer Segmentation

One of the key aspects of market segmentation for Uber is understanding the different customer segments they serve. By identifying and analyzing different segments, Uber can tailor their marketing strategies to effectively target each group’s specific needs and preferences. This includes factors such as age, gender, location, and usage patterns.

Uber’s Behavioral Segmentation indicates that it is the most downloaded travel app for iOS and Android, with a high level of customer loyalty and retention. This suggests that Uber has successfully implemented strategies to appeal to a wide range of customers.

Competitive Analysis

In a highly competitive market, Uber faces competition from companies such as Lyft and DiDi. Conducting competitive analysis allows Uber to gain insights into the strategies employed by their rivals. For example, Lyft generated revenue of $3.2 billion in 2021, showcasing the intense competition between the two companies in the ride-sharing market. Additionally, DiDi, Uber’s main competitor in China, holds a global market share of 32.4%, making it a significant player in the industry.

By analyzing their competitors’ strategies, Uber can identify areas where they can improve and stay ahead in the market. This analysis helps Uber identify emerging trends, customer preferences, and potential opportunities for growth.

Overall, Uber’s market segmentation and competitive analysis strategies play a crucial role in shaping their marketing efforts. By understanding their target audience and analyzing their competitors, Uber can effectively position themselves in the market and stay ahead of the competition.

Digital Marketing and Customer Acquisition

Digital marketing plays a crucial role in Uber’s customer acquisition efforts. With a user base of more than 110 million monthly active users globally, Uber utilizes various digital marketing techniques to reach its target audience and drive customer acquisition.

One key aspect of Uber’s digital marketing strategy is its presence on social media platforms. The company leverages platforms like Instagram, Facebook, and YouTube to create brand awareness, engage with users, and showcase its services. By sharing compelling content and engaging with followers, Uber builds a strong online presence and fosters a sense of community among its customers. The company strategically partners with social media influencers, celebrities, and organizations to enhance its brand image and reach new audiences.

Furthermore, Uber offers a range of incentives to attract and retain customers. The company’s referral program encourages existing users to refer friends and family, providing incentives such as discounted rides or credits for both the referrer and the new user. This approach not only drives customer acquisition but also helps to foster loyalty and generate organic word-of-mouth marketing.

To maintain a competitive edge, Uber also collaborates with local businesses, sponsors, and events to provide affordable riding options and increase brand visibility. By partnering with popular local establishments and sponsoring events, Uber expands its reach and offers unique experiences to its customers.

Customer Acquisition through Digital Marketing

Uber’s digital marketing efforts go beyond social media. The company utilizes email campaigns and targeted ads to reach potential customers. By personalizing messaging based on user preferences and behavior, Uber can effectively engage with its audience and drive customer acquisition.

Additionally, Uber invests heavily in customer feedback. The company provides multiple channels for customer support, ensuring that users can reach out for assistance 24/7. Uber also values user feedback, offering incentives and rewards to encourage customers to share their thoughts and experiences. By actively listening to its customers and making necessary improvements based on feedback, Uber enhances its services and attracts new users.

The Future of Customer Acquisition

As the transportation and delivery industry continue to evolve, entrepreneurs are increasingly interested in developing Uber-like apps to enter the market. With the rise of on-demand services, the potential for customer acquisition in this sector remains high. Uber’s success serves as inspiration for other businesses looking to tap into the growing demand for convenient transportation and delivery services.

However, Uber also faces significant challenges in its customer acquisition efforts. Legal challenges, regulatory hurdles, competition from companies like Lyft and Didi Chuxing, and concerns regarding safety can pose obstacles to Uber’s operations and growth. The company must navigate these challenges while continuing to invest in marketing efforts that promote its services and drive customer acquisition.

In conclusion, digital marketing plays a pivotal role in Uber’s customer acquisition strategy. By leveraging social media, offering incentives, partnering with local businesses, and investing in customer feedback, Uber effectively reaches its target audience and drives customer acquisition. As the market evolves and competition grows, Uber’s commitment to digital marketing will be vital in maintaining its position as a leader in the ride-sharing industry.

Rideshare Industry Trends

In an ever-evolving and competitive rideshare industry, staying ahead of trends is essential for success. Uber, with its strong market presence and commitment to innovation, continuously monitors industry trends and adapts its marketing strategies to meet the changing needs of consumers.*

Advancements in automotive technology play a significant role in shaping the future of rideshare services. Uber recognizes the importance of keeping up with these trends to provide a seamless and efficient user experience. Whether it’s exploring autonomous driving or integrating electric vehicles into their fleet, Uber is at the forefront of embracing new technologies that enhance safety, sustainability, and overall customer satisfaction.

Additionally, Uber has expanded its service offerings beyond transportation. The launch of Uber Eats, Uber Health, Uber Freight, and Uber Air demonstrates the company’s agility in catering to diverse market segments . By recognizing the demands of customers in various industries and markets, Uber has successfully positioned itself as a multifaceted platform for both transportation and delivery services.

Rideshare industry trends also encompass the rise of non-emergency medical transportation and food delivery services. Uber’s strategic entry into these sectors further highlights their commitment to meeting evolving customer needs. By leveraging their existing infrastructure and vast network, Uber extends its reach and establishes a presence in adjacent industries.

Partnerships and Collaborations

Beyond technological advancements, partnerships and collaborations are crucial in shaping the rideshare industry. Uber’s marketing strategy includes forming alliances with local businesses, sponsors, and events to provide convenient and affordable riding options for customers. By creating synergies with other brands and organizations, Uber delivers value-added experiences that go beyond basic transportation services.

Moreover, the battle for rideshare dominance between Uber and Lyft reflects in their branding efforts and marketing strategies. Both companies have undergone major rebrands to shape their brand perception and appeal to their respective target audiences. Lyft’s iconic pink mustache, later replaced by the “Amp” device, represents its commitment to providing a friendly and approachable carpool experience, particularly targeting younger generations. On the other hand, Uber’s focus on its name, the “U,” and the color black evokes a sense of luxury and exclusivity.

The Future of Rideshare

As the rideshare industry continues to evolve, consumers can expect to see Uber and Lyft expanding into new means of transportation like subway and sky transport. Venturing beyond ride-sharing, these companies aim to provide comprehensive mobility solutions that encompass various modes of travel. Additionally, the potential for partnerships with other industries and the integration of new technologies further indicate the extensive growth opportunities and evolving landscape of the rideshare industry.

As shown by the market share data, Uber and Lyft dominate the ground transportation industry, outperforming traditional options like rental cars and taxis.* This significant market share is a testament to the popularity and widespread adoption of rideshare services.

The battle between Uber and Lyft shapes the perception and strategies within the rideshare industry.*

User Experience Optimization

Uber understands the importance of prioritizing user experience optimization to provide a seamless and convenient service to its customers. By investing in customer feedback and services, Uber ensures that it continuously improves and meets user expectations. The introduction of the Consumer Communication Gateway (CCG) has allowed Uber to deliver more personalized and optimized push notifications to its users, enhancing their overall experience.

The optimization framework used by Uber takes into account potential combinations of push notifications and delivery times over a fixed time horizon. This framework resolves the factorial growth in the number of possible schedules, allowing Uber to effectively manage and streamline its push notification strategy. The linear program formulation encodes various business logic constraints, such as push expiration time, daily frequency cap, and minimum time difference between notifications, ensuring that users receive timely and relevant notifications.

Uber utilizes advanced machine learning models, like the XGBoost model, to predict user order conversion probabilities. These models consider various features such as time, push category, user history, and engagement to accurately forecast conversion rates. The high predictive power of these models is reflected in the higher predicted conversion rates corresponding to higher true conversion rates, enabling Uber to optimize its push notification campaigns.

Uber’s Push Intelligence system consists of various components, including the Persistor, Schedule Generator, Scheduler, and Push Delivery. These components work together to ensure the efficient and fault-tolerant delivery of push notifications to users. With the system designed to handle tens of thousands of triggers per second, Uber can effectively reach its users and provide them with timely information.

Reduced Opt-outs and Improved Relevance

Initial results from early experiments reveal promising outcomes, demonstrating a reduction in opt-outs and increased relevance of the notifications. This indicates a positive impact of the new user experience optimization system implemented by Uber. By delivering more personalized and targeted notifications, Uber has successfully engaged users and increased their satisfaction with the app.

Looking to the future, Uber plans to continue improving its core models and expanding across various channels like email. The aim is to extend the intelligence gained from user experience optimization to other Uber platforms, such as the Uber (Rides) app and Postmates. By doing so, Uber seeks to enhance the user experience across all its services, providing a seamless and convenient experience to its global user base.

To maintain efficient and fault-tolerant delivery of push notifications, Uber’s user experience optimization system is designed to handle tens of thousands of triggers per second. This ensures that users receive notifications in a timely manner, enhancing their overall experience with the app.

The Future of Uber

Uber is a pioneering force in the ride-hailing industry, and the future looks bright as the company continues to innovate and expand its services. With operations in over 72 countries and serving more than 110 million monthly active users, Uber has solidified its position as a leader in the market.

Looking ahead, Uber is committed to exploring new markets and segments to provide more transportation options to its customers. The company has already expanded its services beyond ride-hailing with the launch of Uber Eats, Uber Health, Uber Freight, and Uber Air. These ventures allow Uber to tap into new opportunities and cater to different verticals.

One exciting aspect of the future of Uber is the potential inclusion of various modes of transportation. In addition to cars, users may have the option to choose bikes, motorbikes, and even flying taxis for their transportation needs. This expansion will not only offer more convenience and flexibility to customers, but also contribute to reducing traffic congestion and carbon emissions.

Uber’s marketing approach has been a key driver of its success, extending beyond ride-hailing to provide solutions for various industries and markets. By addressing different verticals, Uber aims to tap into new avenues for growth and expansion. This strategy, coupled with a user-friendly application interface and consistent marketing efforts, has enabled Uber to retain existing users and attract new ones.

Another crucial element of Uber’s future success is its commitment to user feedback and customer support. The company invests in 24/7 customer support to ensure a seamless experience for riders and drivers. User inputs and feedback are vital in improving the overall service and addressing any issues that may arise.

Furthermore, Uber’s partnerships with local businesses, sponsorship of events, and promotions for rides to popular destinations are all aimed at enhancing the overall customer experience. By engaging with the community and providing exclusive offers, Uber fosters stronger relationships with its users and builds brand loyalty .

In conclusion, the future of Uber is marked by continued innovation, expansion into new markets, and the integration of various modes of transportation. With a focus on customer satisfaction, cutting-edge technology, and strategic marketing efforts, Uber is well-equipped to maintain its position as a leader in the ride-hailing industry.

Social Media Marketing

Social media marketing plays a vital role in Uber’s overall marketing strategy. With the aim of enhancing brand awareness, fostering customer loyalty, and driving user engagement, Uber strategically leverages various social media platforms.

Uber actively engages with users on popular social media platforms such as Instagram, Facebook, and YouTube. Through these channels, the company shares engaging and informative content that resonates with its target audience. By utilizing visually appealing images and videos, Uber effectively captures the attention of users, showcasing the unique experiences and convenience it offers.

In addition to content creation, Uber also actively responds to user feedback and concerns on social media platforms. By addressing customer queries and issues in a timely and transparent manner, Uber builds trust and demonstrates its commitment to ensuring a positive user experience.

To further enhance its social media presence, Uber runs campaigns and contests to encourage user-generated content. These initiatives not only drive engagement but also help in creating a sense of community among users. By involving their audience in their marketing efforts, Uber fosters a deeper connection with its customers.

Furthermore, Uber strategically partners with influencers, organizations, and high-profile events to expand its reach and engage with a wider audience. Collaborating with influencers helps Uber tap into their followers and benefit from their credibility and influence. By associating with organizations and participating in events like CES, Uber showcases its innovative and cutting-edge services, generating buzz and attracting attention from high-status individuals.

Overall, Uber’s social media marketing strategy is characterized by a customer-centric approach. By leveraging social media platforms, engaging users through captivating content and campaigns, and actively responding to feedback, Uber strengthens its brand presence, fosters customer loyalty, and drives user engagement.

Incentives and Discounts

Uber’s success can be attributed to its effective use of incentives and discounts to attract and retain customers. As part of its marketing strategy, Uber understands the value of providing attractive incentives to encourage customer engagement and loyalty.

One of the key incentives offered by Uber is its referral program. This program encourages existing users to refer friends and family to the platform by offering discounts or free rides to both the referrer and the referred. This creates a win-win situation, where both parties benefit from the referral.

In addition to the referral program, Uber also leverages discounts and promotional codes to entice new customers to try their services. These discounts can include discounted fares for first-time riders or limited-time promotions during holidays or special events. By providing these discounts, Uber aims to attract new customers and showcase the value of their service.

Furthermore, Uber strategically partners with local businesses, sponsors, and events to provide convenient and affordable riding options for its customers. Collaborating with food delivery apps or fitness studios, for example, allows Uber to offer discounted rides to and from these establishments, promoting a healthy and active lifestyle while enhancing the overall customer experience.

Uber’s use of incentives and discounts is not only limited to customer acquisition but also plays a vital role in customer retention. By implementing loyalty programs and offering rewards to frequent riders, Uber encourages customer loyalty and incentivizes riders to continue using their service.

Overall, Uber recognizes the importance of incentives and discounts in attracting and retaining customers. By offering these benefits, Uber not only generates more revenue but also establishes itself as a leading player in the transportation industry, continually improving its brand image and enhancing the overall customer experience.

Partnerships and Sponsorships

Uber understands the importance of collaboration and strategic alliances to enhance its services and provide added value to its customers. Through partnerships with local businesses, Uber offers exclusive discounts, promotions, and convenient riding options to users in various cities and countries. By working together with event organizers and sponsors, Uber actively promotes its services during major events, such as concerts and festivals, ensuring a seamless and enjoyable experience for attendees.

In addition to offering discounts and promotions through partnerships, Uber also runs referral programs where both the referrer and the new user receive discounts on rides. This incentivizes existing users to refer their friends and family to the platform, expanding Uber’s customer base and fostering customer loyalty.

Furthermore, Uber recognizes the importance of rewarding its loyal customers. The company offers loyalty programs, promotional codes for discounted rides, and collaborates with various brands to provide additional rewards and exclusive discounts. These partnerships not only benefit Uber users by offering them more value for their money but also enhance Uber’s brand image by aligning with reputable companies and providing a wide range of options and benefits.

Customer Service and Feedback

At Uber, we prioritize providing exceptional customer service and valuing user feedback. We understand the importance of promptly addressing our customers’ concerns and ensuring their satisfaction with our services.

To achieve this, we have invested in a comprehensive customer support system that operates 24/7. Our dedicated team is available via multiple channels, including phone calls, emails, chats, and social media platforms. You can reach out to us at any time, and we will assist you with any inquiries, issues, or feedback you may have.

As part of our commitment to enhancing the Uber experience, we actively encourage and value user feedback. We believe that our customers’ perspectives are invaluable in helping us improve our services. Whether it’s positive reviews, suggestions for improvement, or highlighting areas of concern, we carefully listen and act on your feedback.

We have implemented various mechanisms to collect feedback from both drivers and riders. These include in-app rating systems, surveys, and direct communication channels. By actively engaging with our customers, we gain valuable insights that drive our decision-making and enable us to make necessary enhancements to our platform.

Our user-centric approach also extends to our drivers. We believe that happy and satisfied drivers lead to better experiences for our riders. Therefore, we offer incentives and rewards to our drivers to recognize their contributions and retain their commitment to delivering exceptional service.

By providing exceptional customer service and incorporating user feedback into our decision-making, we strive to continuously improve our products and services. At Uber, your satisfaction is our top priority.

Customer Service Channels:

To reach our customer support team, you can use any of the following channels:

• Phone calls
• Social media platforms

User Feedback:

We welcome and value your feedback, whether it’s about your ride experience, app usability, or any suggestions for improvement. You can provide feedback through:

• In-app rating and feedback systems
• Direct communication channels

In conclusion, Uber’s marketing strategy for 2024 is a well-rounded approach that encompasses various elements, including understanding their business model, utilizing technology, leveraging word-of-mouth marketing, forming strategic partnerships, and implementing effective crisis management. These efforts have contributed to Uber’s immense success in the ride-sharing industry.

Uber’s business model centers around connecting riders with drivers through a technology-based platform, offering seamless ride booking, transparent pricing, and real-time tracking to enhance user experience. The use of user-friendly app interfaces, electronic payment systems, and efficient matching algorithms further solidifies Uber’s position as a leader in the industry.

Moreover, Uber’s unique value proposition, which includes reliability, convenience, and affordability, has resonated with millions of users worldwide. The company’s embrace of word-of-mouth marketing, social media engagement, and successful referral programs has also fueled its rapid growth.

Through strategic partnerships with local businesses, Uber has expanded its reach and improved its service offerings, providing customers with a seamless and convenient experience. By leveraging digital marketing and social media platforms, Uber has successfully acquired and retained customers, while their commitment to continuous innovation keeps them ahead of the curve in an ever-evolving industry.

What is Uber’s marketing strategy for 2024?

How does uber position its brand and expand globally, how does uber segment its target audience and analyze competitors, what digital marketing techniques does uber use for customer acquisition, how does uber stay up to date with rideshare industry trends, how does uber optimize user experience, what does the future of uber look like, how does uber utilize social media marketing, what incentives and discounts does uber offer, how does uber collaborate through partnerships and sponsorships, how does uber prioritize customer service and feedback, related posts:.

• Latest Marketing Trends Shaping the Industry
• Essential Steps for a Comprehensive Marketing Plan
• Toyota Marketing Strategy 2024: A Case Study
• Tailoring Industry Marketing to Specific Needs

Nina Sheridan is a seasoned author at Latterly.org, a blog renowned for its insightful exploration of the increasingly interconnected worlds of business, technology, and lifestyle. With a keen eye for the dynamic interplay between these sectors, Nina brings a wealth of knowledge and experience to her writing. Her expertise lies in dissecting complex topics and presenting them in an accessible, engaging manner that resonates with a diverse audience.

GoPro Marketing Strategy 2024: A Case Study

Primark marketing strategy 2024: a case study.

10 Best Referral Program Examples in 2024 [What You Can Learn]

Welcome to ReferralHero , the go-to place to 2X your business through referrals. ReferralHero has been used to scale 1000s of businesses by turning current customers into brand ambassadors. Are you ready to 2X your business?

In this article, we’ll cover:

10 Successful Referral Program Examples

Referral program key takeaways.

As of 2017, Uber had over 75 million users worldwide, and their referral program has been credited for a large part of this success. Uber’s referral program offers referral bonuses to customers who invite their friends where both the referrer and referral earn credits toward free rides. This really encourages existing customers to recommend Uber to their friends since they will both benefit from the incentive.

What worked well: i. Ease of access : Uber did a great job by making the referral program easily accessible in their apps with a “Share with Friends” section ii. Dual-sided rewards: this is a win-win approach as riders are motivated to continue referring friends to enjoy the benefits iii. Mobile-friendly program: being fully app-based makes it very easy to manage the referral program for all parties involved iv. Separate referral program interfaces: Uber’s customer referral program interface is completely separated from their driver referral program, making the experience unique to each group of users. 

Over the years, Tesla has run multiple referral programs rewarding their customers with exclusive content and experiences when they refer their friends. 

Tesla referral program v1: double-sided rewards

Tesla’s initial referral program went with double-sided rewards, where both the referrer and the new customer got $1,000 in Tesla credit. 

Double-sided rewards are often seen as the best strategy to test the waters when you are trying referral marketing for the first time.

Tesla referral program v2: reward top referrers

Tesla kept the credit for new customers at $1,000, while providing additional rewards for top referrers by location. Rewards included a new Tesla P90D Model S, a home charger, and a trip to the grand opening of Tesla’s Gigafactory for each geographical region: North America, Europe, and Asia.

Tesla’s referral program v2 introduced non-monetary rewards and the top referrer of the program made 188 successful referrals for a total sales revenue of $16 million. 

That’s an ROI of 119x!

Tesla referral strategy v3: the raffle

Credit for new customers was increased to $1,200 and referrers were entered into a raffle to win a tour of SpaceX in Los Angeles. This experiential prize added to Tesla’s unique brand identity - future transportation. Instead of rewarding referrers based on the top number of referrals, this gave everyone a chance of winning the grand prize.

Tesla referral strategy v4 & v5: tiered rewards

Rewards: new customers got $1,000 in Tesla credit. Referrers got an automatic entry into a contest to win a Ludacris P90 Model X, plus the following rewards based on the number of referrals:

• 10 referrals: invitation to Tesla’s next unveiling event - similar to the Gigafactory opening
• 5 referrals: Tesla wheel rims that are not available for general purchase
• 3 referrals: Tesla owners jacket that is not available for general purchase
• 2 referrals: Tesla duffel bag that is not available for general purchase

Besides monetary and experiential rewards, Tesla added exclusivity as the theme here. All of the rewards are one-of-a-kind and are not available for purchase, even to other Tesla customers.  

Word on the street is that top referrers are still owed a car or two… (but that’s a different topic for another time). 

3. Hi Smile

Hi Smile offers convenient teeth whitening solutions and has seen great success with their customer referral program. Their double-sided rewards offer a discount code for £10 off the referred customers’ first purchases over £54 while the referrers receive a £10 discount automatically credited into their accounts when the referrals check out using their links. Customers can easily find their links by signing in to their accounts and heading over to the Rewards tab. Their customer accounts make it easy for customers to find a summary of all their accumulated points and links that they can share with friends and family through email or social media platforms.

This type of referral program encourages customers to spread the word about their positive experiences with Hi Smile, leading to increased brand awareness and more sales. So if you're looking for a referral program that gets results, take a page out of Hi Smile's book! With the right incentives, you too can create a successful referral program like Hi Smile and see your business grow.

Casper is an online mattress and sleep products retailer. As part of their referral program, they offer a $75 Amazon gift card to anyone who refers someone to buy their product while the referrals receive 10% off their first mattress purchase.

To optimize the success of its referral program, Casper targeted key influencers in their existing customer base. They identified their customers who left positive net promoter score (NPS) or positive product reviews and created a VIP ambassador program for them. This allowed them to reward loyal customers and create brand ambassadors that could help generate additional referrals.

Casper also built their referral program into their post-purchase email marketing. Customers were given access to the referral program in the order confirmation email footer, making it easy for them to share. This made the process of referring new customers simple and streamlined, increasing the chances that they would complete the referral process.

By creating attractive rewards, targeting key influencers, and designing a user-friendly email referral, they were able to increase their customer base without spending any additional money. Their success serves as an example to other businesses looking to create effective referral programs.  

One great example of a successful referral program is that of Ztylus, an online store for mobile accessories and photography equipment. They created a product-specific referral program to help drive more customers to their website. 

The reward system Ztylus chose was to give a 25% discount to the referrals, and 10% of the purchase as a cash reward to the referrer. Ztylus created a custom referral link for each of its customers. This link was then shared via email and social media. Whenever someone clicked on the link and completed a purchase, both the referral and the referrer received their rewards. In addition, Ztylus used its referral program to drive email signups and turn customers into brand advocates.

Besides customer referrals, Ztylus also focused on another distribution. Product reviews, e.g. “the best looking iPhone accessory that I’ve ever seen” by popular influencers, YouTubers and bloggers have been a great source of referrals for Ztylus.

6. Chase Card

The Chase Card Referral Program is a great example of how a well-crafted referral program can be successful. This program was launched in 2009 to encourage existing customers to refer friends and family. Chase Bank offers up to 75,000 bonus points or up to $500 cashback per year for each friend that gets referred, depending on the type of card the person was referring for. From a psychological perspective, presenting customers with a larger number (75,000 points) makes them think they’re getting a significant amount more of a reward which is a brilliant strategy.

To promote the program, Chase used email campaigns, direct mail pieces and television commercials. The success of this program was attributed to its targeted promotion, attractive reward incentives and a focus on building a base of brand advocates. Chase used both traditional and digital marketing channels to reach out to existing customers and encourage them to spread the word about their card offerings. By incentivizing people who were already familiar with the brand, Chase was able to generate more interest in their products and services.

7. Hydro Flask

Hydro Flask is the world’s leading manufacturer of high-performance insulated stainless steel bottles. They launched one of the most successful customer referral programs of all time. The program takes an interesting approach to reward customers and their referrals with “a little something”. It has successfully piqued the customers’ interest to refer and find out which leads to a massive surge in referrals.

Hydro Flask’s referral landing page is simple and straightforward. They provide a few popular sharing options that customers can conveniently use to refer their friends. All the customers have to do is enter their email address and choose the platforms for sharing: Messenger, Facebook or Twitter. They can also use the click-to-copy referral link or simply send their friends an email with their own message or opt for a pre-populated message to save time.

Overall, the Hydro Flask customer referral program was incredibly successful. It demonstrates how offering attractive reward incentives can be the key to engaging customers, building loyalty, and ultimately increasing profits. 

One company that has made an impressive impact through its referral program is PayPal. Over the years, PayPal’s referral program has helped the company acquire millions of new customers and grow its revenue. Let’s see what made Paypal’s referral program so successful.

• An attractive double-sided reward: PayPal offers a generous cashback incentive for both the referrer and the referred. 
• Easy for customers to refer: Customers can send referrals directly from their account or via a convenient link. This minimizes the effort required by the referrer, increasing their likelihood of referring others.
• Track and monitor referrals: PayPal’s referral program tracks each referral and monitors its progress through every stage of the sales process. This allows them to identify trends and areas for improvement.
• Reward users at the right time: the reward money was deposited to the referrer and the referral’s accounts as soon as the verification was approved. Rewarding at the right time ensured that Paypal wouldn’t get too many junk users and the participation rate was high because users saw value in using their product. 

Harry's is a men’s grooming brand. Instead of spending a ton of money on Google and Facebook, Harry’s focus was on building an effective referral campaign that helped people spread the word to their friends. The campaign was so successful that they managed to gather 100,000 emails in a single week, with referrals accounting for over 65,000 signups; 77% of the campaign total! This means about 20K people referred about 65K friends or an average of 3 referrals for each organic signup! 

Harry’s referral landing page was a relatively simple two-page microsite. The first page was used to capture users’ email addresses and the second to display their share screen which contained the users’ referral links and social share buttons on Facebook and Twitter.

Harry’s super doable (who doesn’t know 5 or 10 guys that shave?) referral rewards were also clearly emphasized on the page, “Invite friends & earn product”. There were four reward tiers in total:

• Referred 5 friends = free shave cream
• Referred 10 friends = free razor
• Referred 25 friends = free premium razor
• Referred 50 friends = free shaving for a year

Users could easily check the campaign progress tracker on the page for info such as how many friends they had referred and what prize they had won - or not yet won.

10. The Hustle

Another great example of how to create an effective customer referral program comes from the Hustle . Founded in 2014, the Hustle was seeking to become the premier source for technology and business news among young professionals.

To help spread their message and reach, The Hustle implemented a milestone referral program. They made the program easily accessible to readers in two ways, i. a dedicated landing page which can be accessed anytime from their website’s footer ii. an email from the founder which includes the readers’ unique referral link and the reward tiers, 

• Four emails to earn access to The Hustle’s private community with special content
• 25 emails to earn a custom The Hustle shirt
• 100 emails to earn a ‘Hustlin’ hoodie
• 5,000 emails to earn a trip to San Francisco to hang out with the Hustle’s team

The results were incredible: A staggering 300K subscribers in just a few months!

The Hustle’s case study shows how effective referral programs can be when done correctly. It serves as an example of how to create an appealing reward system for customers, one that will incentivize them to actively refer others.  

For any business looking to create an effective referral program, these 10 case studies are excellent examples to draw inspiration from. We’ve put together a summary of 10 key takeaways to help you make the most of your referral program:

1. Offer attractive rewards - Make sure that your reward incentives are attractive enough to motivate customers to refer your brand.

2. Target specific audiences - Focus on targeting your existing loyal customers and email subscribers as they’ll be more likely to refer your brand to their friends and family.

3. Encourage social sharing - Use social media channels such as Twitter, Facebook, and Instagram to spread the word about your referral program. This will help you reach a wider audience and increase engagement with current customers.

4. Use an automated system - Automate the entire referral process using a specialized software solution like ReferralHero . This saves time and helps ensure that referrals are tracked accurately.

5. Integrate with other marketing campaigns - Make sure that your referral program is integrated into all of your other marketing strategies, such as email and search engine optimization (SEO). This will help you to maximize the reach of your program.

6. Create a unique link for each customer - Create a custom referral link for each customer that they can share with their contacts ( ReferralHero software does this for you). This will help you to track the success of your program more accurately.

7. Leverage influencers - Reach out to social media influencers in your niche and offer them rewards for referring their followers to your brand. This can be a great way to boost engagement and attract new customers.

8. Provide exceptional customer service - Make sure that your customer service is top-notch so that customers have a positive experience with your brand and are more likely to refer it to others.

9. Gamify the referral process - Use game mechanics such as leaderboards, badges, and reward tiers to encourage customers to refer more people to your brand.

10. Launch an ambassador program - Create a brand ambassador program in order to turn your most loyal customers into advocates for your product or service. Offer rewards such as exclusive discounts and free products to incentivize ambassadors to refer more people.

Ready to 10x your software platform, mobile app, or web3 company with our automated growth engine?

In just 14 days, we help you build the same waitlist, contest, or referral program used to launch and scale Airbnb, Uber, PayPal, and 1000s of other businesses. Start your  ReferralHero  free trial today.

This article was written with the help of Vy from Removal.AI , an AI tool used to remove bg from images for social media, eCommerce, web, app development, and marketing automation.

Ready to 10x your referrals with our automated referral growth engine? In just 14 days, we help you build the same waitlist, contest, affiliate, or referral program used to launch and scale Airbnb, Uber, PayPal, and 1000s of other businesses. Start your ReferralHero free trial today.

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‍ How to Create an Uber Referral Program in 2024?

Update: As of June 2020, due to growing financial difficulties caused by COVID-19, Uber Ride has discontinued its referral program. It’s is sad to see the program go as Uber was built on its refer-a-friend campaign and much of its growth can be attributed to this very program. However, despite its recent closure, I still believe that it is worthwhile to analyze what made the Uber program a roaring success. 

One of the most effective customer acquisition channels in sharing economy relies on heavy software machinery. If you’re wondering what it takes to implement a similar referral engine and how specific cogs impact the bottom line, we have you covered. Read this article for an in-depth look into Uber referral program mechanics and then see how you can get similar results with Voucherify referral API at a fraction of the cost and time.

Keep in mind that implementing a happy path of the Uber referral program is one thing, but preparing the system for scale and requests from marketing and customer success teams is a helluva different story.

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The Uber referral program in a nutshell

Just in case, let me introduce Uber – they have developed the Uber mobile app, which allows customers to request a trip, which is later routed to one of the Uber drivers. What’s special about it? Well, first of all, it’s a lot more convenient and cheaper than a traditional cab. Secondly, the Uber marketing team is pretty much on fire – offering attractive promotions to attract new customers. One of those being their world-renowned refer-a-friend campaign. 

A part of Uber’s referral program that moves the needle is dual-sided rewards. When you look deeper, you’ll see that their program contains a wealth of referral campaigns with various rewards targeted at different countries or even cities. At one point, the program offered a $20 reward for new riders. Add A/B tests on top of that and you’ll end up with hundreds of projects spanning across the globe, managed by dozens of teams.

For the sake of this teardown analysis, let’s assume that the Uber referral program rewarded both the referrer and the invited friend with an extra $20 attached to their Uber accounts. To make matters more complicated, Uber also offers a driver referral program. Drivers could expect a referral reward valued at anywhere from $100 to $1,100. Although it’s similar to the rider program, it has different mechanics under the hood. So let’s focus on the rider program. 

Geo-targeting, internationalization, and user access management aren’t, of course, the hard-to-implement concerns for the software teams that want to build a similar system on their own. In the sections below, we’ll dive into three essential parts of the referral mechanics – reward engine, sharing and notification capabilities, and program maintenance. Along the lines, we’ll suggest how you can solve those issues with Voucherify.

1. What kind of referral rewards did Uber use?

The incentives that propelled Uber’s referral program to its heights sound very straightforward. However, if you’ve been paying attention, you must have noticed that they are evolving all the time. Let’s see what referral program features allow Uber to achieve their results.

Depending on the program, the reward might be credits added to an Uber account or cash payout. Also, the value of the prize varies from country to country or even city to city. Interestingly, the reward often changes its value depending on the marketing campaign performance.

How does this work having in mind these requirements? I believe Uber PMs determined it’s reasonable to enable the marketing team to choose rewards on a campaign basis. This approach would prevent frequent code changes in places that interact with the various rewards (e.g., referral code redemption points or referrals history view).

How to do this Voucherify?

Voucherify referral programs work exactly this way. You integrate the redemption API endpoint once so that it will validate and accept all future referrals. When it comes to rewards, Voucherify offers three types:

• Discount coupons (amount, percentage, unit, free shipping, fixed order amount).
• Gift card credits.
• Loyalty points .

Do you want to increase or decrease the reward value? No problem, the API and a marketer-friendly dashboard enable your marketing team to do so at any time. An extra word on how Voucherify treats discount coupons. They can be single-use or multiple uses. Why is that important? Well, in some cities, Uber has recently changed their rewards from $10 credit to $5 off for the first two rides. This kind of coupon would do the work here.

To cover the cash payout option, you can use the amount coupon object combined with webhooks – our promotion engine notifies your payment processor the moment the reward (coupon) is assigned to a person. Then, you can extract the value of the coupon from the request payload and turn it into cash.

2. How did Uber define successful referrals?

Speaking of the rewarding workflow, sometimes the redemption of a referral code isn’t enough to reward the customers. First, you might want to raise the stakes, e.g., refer 5 friends to get $5. Or even introduce referral tiers – refer 5 friends to get $5 and make it 10 to get $20.

Watching customer acquisition strategies for a while now, I’ve learned that ever-changing consumer habits can plow even a well-designed referral system. This is why the code responsible for determining conversion should be open to modification.

How to do it in Voucherify?

To achieve such an extent of flexibility, we have created a conversion event builder. It’s based on top of our multi-level reward engine and real-time events tracker.

In brief, there are two things that can activate a reward in Voucherify:

• Standard redemption event (or its multiple occurrences).
• Your custom event (e.g., a friend redeemed a code but you also want to delay the reward until a ride_finished event occurs).

You can use both of them for defining successful referral criteria. With this combination, you can quickly spin programs like:

• A reward for every referral code redemption.
• A reward for X redemptions.
• X reward for X redemptions and Y reward for Y redemptions.
• A reward for a single custom event occurrence (for example Uber’s bonus doesn’t get paid unless the new driver completes more than 25 trips in their first 30 days).
• A reward for X custom event occurrences.
• X reward for X custom event occurrences and Y reward for Y custom event occurrences.

3. How did Uber limit access to rewards?

It’s often the case that a successfully redeemed referral code shouldn’t trigger a reward for every customer. There are several limits you want to impose on your audience to protect your budget. One of the basic limits is that you can’t refer the same person twice. But there are more:

• Expire the discount after 90 days from the issue date.
• Block referrals from a different country.
• Block payout if a person has already earned $2000 per month.
• Block a referrer whose account isn’t in good standing.
• Reward only ex-Lyft drivers.

These are all real-life requirements from Uber’s referral program terms. Verifying these kinds of attributes against your promotion rules requires a pretty tight connection to a CRM, so make sure you sync the data.

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Voucherify offers a dedicated CDP that allows syncing with any CRM through the API (with some native integrations like Segment or Salesforce )With this in place,  allows you to create validation rules on top of customer data like:

• Standard attributes (address, email, phone, etc.).
• Purchase history (number of orders, total order amount, order frequency).
• Custom fields.
• Promotion activity (e.g., if a referee has already redeemed a coupon before).
• Promotional budget.

You can apply these rules both to the referrer (advocate) and referee (invited friend). The best thing about it is that the segments work real-time – change the flag/attribute with the API or dashboard and the customer pops in and out of the segment.

4. How did Uber's sharing process work like?

One of the essential factors of Uber’s referral program success is great experience throughout the whole customer journey. Starting from a simple invitation form, through piece-of-cake-like sharing, to the ability to track the referrer’s progress. To achieve this, Uber connected their referral engine to numerous marketing channels.

The pillar of any refer-a-friend program (not only Uber) are unique referral codes. This is how you can track if the word of mouth works at the end of the day. As simple it sounds, there are several caveats you should take into account when planning how to ensure true uniqueness. To name a few:

• Codes shouldn’t be too long – 8-12 characters should be enough for any size (Uber is fine with only 6).
• You should avoid ambiguous characters – the differences between O and 0 or I (uppercase i) and l (lowercase L) are hard to spot. Also, for a new customer, there’s nothing more irritating than a message saying “Your code is invalid” when they interact with your brand for the first time.
• Cut the code into a few small chunks – e.g., ABCD-1234-XYZ. It’s a subtle change but it simplifies typing at the checkout view. This adds up to the overall buying experience and customer satisfaction.
• But the biggest one is to ensure that the code is assigned to a single customer only once.

Learn more : How to ensure a fantastic coupon validation experience

At its core, Voucherify relies on a unique codes generator. It has numerous features that allow you to create referral codes of virtually any size and format. You can define:

• Codes length – Voucherify automatically calculates the maximum number of codes based on possible combinations.
• Code pattern – chunked (ABC-123) or continuous (e1m3c3a7). If chunked, what separator is used. Plus, you can add a prefix and a suffix for better branding or tracking.
• Character set – alphanumeric, alphabetical, numbers, custom one, including lower case and upper case.
• Number of generated codes – you can cap the number of codes up-front or use an auto-update mode which automatically extends a pool of codes if necessary.

When you’re ready to deliver the codes to advocates, the engine takes care of publishing one and only one code to a single person. The code is marked as published and won’t be used ever again in the scope of this campaign (you can launch many referral programs and assign a single referrer a code from each of them).

[BONUS] Personalized codes

If you want to let your referrers create their own names as codes, as Uber did in the early days, Voucherify paves the way here. You can create custom codes like “Ride-with-Tom” to drive engagement and improve the success rate of your Uber-style referral campaign.‍

The problem, in this case, lies in the maintenance overhead – it’s way easier for a duplicate. With Voucherify, you can create an empty campaign and use our API to populate it with custom names. The referral engine will apply all the standard unique rules and help you inform the user about possible duplicates when claiming their code.

5. How did Uber handle program enrolment?

Referral code uniqueness is transparent to the user, it’s something implicit. So, let’s focus on what’s visible to customers. One thing that made the program so popular is the easiness of, first, joining and, second, driving the program.

This part is often neglected by companies who want to run their first friend referral program. As a result, the success rate of the program with even a generous incentive is decimated.

So let’s see how Uber makes enrolment easy:

• Dedicated website wooing users with “Free Rides” ad.
• Post-purchase banners.

Both in the web and mobile application, users are just a click away from a referral code/link which can get them free rides. Whatever channel they use, referrers don’t need to do anything to join the program, they’re all set up to share and win.

How to do it in Voucherify?

The API-based approach allows you to integrate referral codes into any channel. If it’s bespoke software you have control over, you get the ultimate flexibility – you can use one of our SDKs to publish the referral code and then retrieve it every time you want to display it to the user. This includes web apps, in-app banners, email content, push notifications, live chat, POS, and any future channel. This makes entry easy and allows for creating a unified referral experience throughout the whole user journey.

Additionally, Voucherify can send email/SMS/push notifications to periodically remind referrers that they should put their code into motion to win rewards (more about this in the “Performance tracking” section below).

Note that before you can enrol your customers into a referral program, you should import them to Voucherify. Our platform offers several options here:

• CSV/Excel import.
• Bulk API import.
• Real-time API sync.
• Real-time sync with a native plugins.

6. How did Uber manage redemptions?

Validating and redeeming referral codes is also seamless from a new Uber user’s point of view. They follow the link and the code is auto-applied to the sign-up form. Or, alternatively, you just need to paste it into the app.

Again, what seems straightforward on the surface also requires attention to detail. To achieve a top-notch customer experience, the Uber referral program covers several use cases:

• If the code is valid, show a user the reward from a matching referral program.
• If it’s not, inform the user about the reason (it can be expired, inactive, or the user doesn’t satisfy a specific business rule).
• To personalize and thus strengthen your referral message, you can remind the referee who invited them. Uber tops this technique by showing the referrer’s face.

[BONUS] Uber offered a retroactive referral – if you signed up and forgot to enter the code, you can contact Uber and get a code added as long as you’re within 15 days of activation.

Voucherify API redemption endpoints can be quickly connected to your redemption points. Be it a website or mobile app, our SDKs will reduce the time of implementation to hours. But there’s more. Our building blocks consist of web and mobile widgets, which you can brand and quickly inject into a redemption page. They use separate public API keys, so rest assured they won’t be used for malicious activity – plus, the rate limiter takes care of potential brute force attacks. As for the retroactive referrals, your customer support agents can quick-click them with the dashboard.

7. How did Uber track performance?

The final stage of the referral program, from the referrer’s point of view, is to see how much they’ve earned so far and when they can redeem their reward. Uber got this extremely right for their driver referral program. Not only does the referrer dashboard show the list of all invited friends, but it specifies what stage they are in and what they need to complete to make the referrer eligible for a reward. With this knowledge, referrers know when to nudge their friends and when to expect the money.

Throughout the referral workflow, Uber notifies referrers about their friends’ status with relevant emails and push notifications.

The good thing is that you can achieve a similar effect with Voucherify API:

• Get the list of referrer’s friends who used (redeemed) the code.
• Track custom events (e.g., a referee made their first trip) and use them to build a view of referees and their current status like the one from the Uber driver referral program.

When it comes to having different reward values for customers from different segments (in Uber’s case it’s a different city), Voucherify got you covered too. You can use tiers to model this case. It’s worth pointing out that tiers are based not only on the number of referred customers but on any validation rule you can come up with, this includes location, purchase history, or any other custom field.

As for notifications, you will find the built-in distribution mechanisms helpful. The engine listens to the changes in customer segments and if criteria are matched, it sends a contextual message. You can choose one of several channels to send a referral notification. So, you can easily create the following refer-a-friend scenarios:

• Send a push notification when a referral code has been used.
• Send an email and a push notification when the referrer is eligible for payout.
• Remind referrers to share their code with SMS.
• Send notifications through a live chat.
• Invoke a webhook when tier 1 has been achieved.
• Any combination of these channels.

Learn more : Go here to see all integrations

8. How did Uber manage their program?

Implementing an initial design of your referral campaign is one thing, ensuring that it adheres to the market reality is another one. Very often, it’s the program maintenance that takes the most effort. This includes:

• Changing the program timeframe.
• Changing program features, like making rewards more attractive for the holiday season.
• Launching multiple referral campaigns at the same time and A/B testing them.
• Replying to marketing with insights and reports on performance.
• Helping customer support agents solve cases with “invalid” codes.
• Detecting fraud and deactivating suspicious accounts/referral codes.
• Adding new marketing channels for program promotion.

Ultimately, there are a plethora of things needed to cope with market dynamics impacted by competitors, regulations, or simply calendar.

In the case of the Uber refer-a-friend program, the number of modifications in the course of the year is so huge that there are dedicated websites to track them. With this scale, I bet they had to incur a lot of development resources to build a machine that handles their programs.

There are a few components that reduce the workload necessary to manage running referral programs. We offer a marketer-friendly dashboard that allows you to:

• Edit campaigns at any time (rewards, timeframes, conversion points).
• Track referral history (globally, per campaign, or by a single customer with various timeframes).
• View 360-degree customer profile (solve customer complaints/issues quickly with data from all referral program touchpoints).
• Invite team members to manage referral campaigns, grant fine-grained access with custom roles, and define who can and can’t approve a program launch.
• You can authorize different parties or marketing channels to access your API by issuing separate API keys. This includes also public API keys you can use directly on websites and mobile apps without a need for the backend part.
• Likewise, if you need to notify other systems about any referral event without pulling Voucherify API, you can achieve this by using webhooks.
• Finally, when the number of employees who manage the referral campaign grows, it’s useful from a security point of view to have the track of what they did in the system and when.

How to build an Uber-style referral program at a fraction of the cost?

Uber has disrupted many areas of commuting. They have done so in online marketing as well. Having in mind ever-changing customer habits and new marketing channels popping once in a while, they’ve bet on a referral program built from scratch – as opposed to integrating one of the various cookie-cutter referral software available on the market. I’m sure it did cost a lot, but it’s brought them unparalleled flexibility in exchange.

If your business is looking for a similar level of configurability, but you don’t feel like spending months of development work on building a referral platform from the ground up, you might want to give Voucherify a try. It’s not a no-code solution, you still need developers – but with our programmable building blocks, you get to build a tailor-made referral campaign in days.

Build your Uber-inspired referral program with Voucherify

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The 51 Best Referral Program Examples

Here it is folks!

Our big list of the best customer referral program examples out there right now.

We’ve analyzed how companies are driving profitable customer acquisition with referral programs. From Typeform, Uber, Paypal, Prezi to x, we reviewed 51 companies’ referral programs and campaigns so you can see what’s common, what’s cutting edge, and what’s a good fit for you.

Let’s dig into it, shall we?

Software Companies:

1. typeform.

One of our favorite SaaS companies – Typeform – have established themselves as the go-to solution for beautiful mobile surveys and forms. Typeform’s refer-a-friend program offers a 10% double-sided reward targeted at their Pro customers.

Dropbox continues to optimize their impressive referral program with a clean layout that still nods to the illustration branding the company has become known for. We all know about the viral case study that showed off the winning growth experiments of referral rewards and their beta launch video. Dropbox’s team is constantly looking for areas to increase retention and referral metrics with in-app storage rewards.

Box’s referral program has an experience asks more from the user than some of the consumer-focused referral program examples we profile here. But that’s not necessarily a bad thing – in B2B having detailed fields in your signup process can help your sales team qualify and prioritize their time on the opportunities with a higher likelihood of closing.

4. Google Apps

The Google Apps referral program uses a single-sided structure, offering a $15 reward for every paying user. It seems the Google Apps referral marketing team has changed the program to be more affiliate focused as they don’t offer a reward for the newly referred users. The Google Apps refer-a-friend page is well designed, but missing the punch in the headline. If you’re giving out a financial incentive, make sure it’s mentioned in the header of your landing page! There’s nothing like money to motivate.

5. SugarSync

File storage competitor SugarSync offers a tiered referral program with double-sided 500MB and 10GB rewards. The strategy here encourages customers to invite power users in order to get the best rewards.

6. Evernote

Popular note-taking software Evernote runs a double-sided refer-a-friend program to reward users for inviting their friends. The program awards points when users successfully refer user sign-ups and premium subscriptions, which can be redeemed for increased storage space or free months.

7. EquityFeed

SaaS stock trading platform EquityFeed rewards their customers with 10% double-sided discounts for referring new paid customers. EquityFeed’s referral program continues to be one of their most profitable customer acquisition channels with a strong trial to paid conversion rate.

8. Marin Software

Marin Software, an enterprise software provider, can afford to spend up to $2,000 for every successful referral. The company is positioned to offer these high-value referral rewards because their customers spend between $10K-$100K per month. Marin’s refer-a-friend program offers $500, $1500 or $2000 rewards depending on which plan referred customers sign up for.

9. LastPass

LastPass, a leading SaaS password storage provider, has a single-sided referral program. The LastPass refer-a-friend campaign issues one month of their Premium plan for every successful referral. The LastPass referral program is promoted inside their web application with a minimal call to action (CTA) in their dashboard. We wrote more about their program here .

10. HubStaff

Hubstaff, a strong SaaS time tracking provider, rewards user referrals with a double-sided 10% discount. Their team is constantly experimenting with ways to promote their referral program. Hubstaff’s refer-a-friend program is promoted across their website, web app and FAQ pages. The Hubstaff team is always looking to improve the customer journey and encourage referrals when customers are thinking about the value of their product.

11. Shoeboxed

Shoeboxed is a popular cloud accounting software provider that recognized the value of customer referrals and wanted to scale their strategy with a structured referral program. The team at Shoeboxed rewards their customers with a 10% discount for every successful referral.

The popular presentation software Prezi, runs a single-sided referral program. Their campaign is focused on driving new signups to their entry-level paid plan ‘Enjoy’. Prezi’s refer-a-friend program gives out 3 months free of Enjoy to a user when they sign up three friends for Enjoy. From what we’ve seen from our customers it’s better to reward users for every referral they make. Rewarding each referral improves the ‘program visitor to program invite’ ratio and encourages customers to stay engaged with the program.

13. YesWare

YesWare is a popular sales email tool. They run a web refer-a-friend campaign to capitalize on their positive word of mouth and reward customer loyalty. YesWare gives customers 100 free tracking events for every successful referral. Their referral page even pre-fills email text to explain the main value of their product and why the referred customer should try it out.

14. Upserve

Upserve, a popular restaurant management platform, rewards customers for their referrals by making a $200 donation to the Clean Water Fund. Upserve’s program is focused on the altruistic motivations of their customer base so they can get new restaurant referrals.

15. World of Warcraft

World of Warcraft, the most successful video game of all time, has an active user base with millions of players. Though the MMORPG (Massively Multiplayer Online Role-Playing Game) is more than 10 years old, it still attracts new gamers through their ‘Recruit a Friend’ program. Their program uses special in-game rewards to motivate players to make referrals. The WoW marketing team recently updated their program rewards, and launched their new recruit a friend campaign with a website landing page, an in-app recruit a friend section and a viral marketing video with over 460K views on YouTube.

Mobile E-Commerce

Uber continues to dominate the transportation app scene with their solid mobile experience and customer referral rewards. Constantly looking to gain an edge, Uber’s referral campaigns have recently expanded into targeted push notifications and chatbot functionality.

Lyft is the biggest Uber competitor in North America. Lyft gives customers $10 to $50 referral rewards across different cities so they can aggressively drive customer acquisition in new markets.

18. GetAround

GetAround is another North American ride-sharing startup making a name for themselves in select cities. The single-sign-on offer to sign in to Facebook helps with the onboarding experience. They offer customers a $20 referral reward but also offer $200 to recruit drivers. GetAround could benefit from building out separate creative for their refer a driver campaign—messaging complexity could be avoided if their two campaigns were distinct.

The international travel marketplace Airbnb uses a lovely in-app referral offer design to drive steady growth across their cities. Similar to the Uber referral program, Airbnb gives out different size rewards depending on which city users live in. This is a popular approach for global brands looking to expand their customer acquisition region by region.

Digital Retailers:

20. eventbrite.

This popular event hosting platform runs a $10 single-sided referral program. Eventbrite customers are given affiliate-style offers to sign up their friends and earn money. These types of referral programs perform don’t typically perform as well as their double-sided counterparts. The customer experience of sharing is changed when one friend profits off of the other—not many consumers are interested in making money off of their friends.

21. Woof Pack

Woof Pack, A Canadian dog toy and treats subscription box service, uses a double-sided refer-a-friend program structure. Woof Pack offers a $20 discount to the newly referred friends and offers a $20 off for the referring user.

Zulily’s referral program has a modern design with bright email CTAs for popular email clients Gmail, Outlook and Yahoo. Zulily’s refer-a-friend program reward users in their local currency—which means they can experiment with program performance across their different regions.

Digital retailer Gilt gives out a $25 single-sided referral reward for customers. This is the first program to experiment with a large QR code CTA. Gilt’s website has smaller buttons users can click to share referral invites directly via email, Facebook or Twitter.

This leading bus travel marketplace uses a multichannel refer-a-friend program to reward customers for their loyalty and positive word of mouth. BusBud’s refer-a-friend program is integrated across their web and mobile apps. Their mobile app takes advantage of SaaSquatch’s deep-linking feature to personalize the onboarding flow for newly referred users.

25. ThredUp

E-Commerce company ThredUp’s refer-a-friend program has a clean design and bold CTA ‘Give $10, Get $10’ to entice customers to engage with the program. The $10 double-sided reward is smaller than the rewards we’ve seen used by other digital retailers. ThredUp also uses large colorful CTAs for both email and Facebook referral invites.

26. JackThreads

Mens fashion retailer JackThreads’ refer-a-friend program uses a beautiful image with long-form copy to entice customers to engage with their program. JackThreads is experimenting with tiered rewards, they offer $10 for signups and $20 for conversions. We recommend they invest in security measures so the referral rewards are only going out to actual prospects.

27. Wayfair

This program follows referral best practices with a double-sided reward of $10. Wayfair’s marketing team designed a beautiful page with clear copy to engage customers with a financial reward for inviting their friends.

The main CTA requires users to upload their friend’s email addresses. This creates unnecessary friction and could be negatively impacting referral rates and conversions. Implementing single-sign-on buttons to popular email and messaging apps would help the customer make a referral more easily and quickly.

Tile is a leader in the bluetooth wearables market. They partnered with SaaSquatch Referral Software to run a multichannel refer-a-friend program. Their refer-a-friend program is integrated across their web and mobile experiences. They use a single-sided referral rewards structure where customers earn points towards a free Tile for every friend they refer.

29. Indochino

Digital retailer Indochino runs a multichannel refer-a-friend program with a double-sided reward of $100 and $50. Integrated across their digital customer touch points including website, email and mobile, Indochino’s refer-a-friend program uses beautiful branded photos to show off the value of their products and a direct email a friend CTA.

30. Frank & Oak

Digital retailer Frank & Oak – also in the menswear space – experiments with referral marketing campaigns and runs a double-sided credit reward of $25. The main CTA is to invite friends via email, copy and pasting the unique link, or via Facebook. Their refer-a-friend program uses the simple 1-2-3 method to explain how the program works and how customers get their rewards.

31. GrubHub

GrubHub, one of the leaders in online food delivery, uses a refer-a-friend campaign to reward their customer’s loyalty. GrubHub customers can earn $12 for every friend that signs up. The refer-a-friend interstitial uses on-brand language in the heading and email message to engage their customer base.

32. Snapwire

This beautiful stock photography marketplace is gaining traction with their community-driven approach. On average , 15,000 people sign up for Snapwire every single month. The community has grown to 285,000 photographers in 180 countries. It was a natural marketing initiative to build out a refer-a-friend campaign to reward the positive word of mouth already happening in their social channels. We worked with the Snapwire marketing team to design a double-sided $20 credit referral program that integrates into their web shopping experience.

33. Chipolo

Chipolo is also in the bluetooth wearables industry and they use a mobile referral program to encourage their app users to make friend invites. The Chipolo refer-a-friend program offers a double-sided reward. Referees get a 20% discount, while the referring customer gets points which they can use towards a free Chipolo.

34. PillPack

PillPack is a leading pharmacy subscription provider and their team runs a similar refer-a-friend campaign to Upserve. Their referral reward is a $100 charitable donation to RxArt which appeals to the altruistic side of their customer base. The PillPack marketing team chose a charity with a similar medicine and health focus—RxArt is a children’s hospital initiative to redecorate hospital wings as visually pleasing environments.

Julep, a leading beauty subscription box company, runs a referral campaign that rewards customers with a $15 credit. Their refer-a-friend pop-up matches the look and feel of the Julep brand and uses playful copy to make the campaign seem like a natural conversation between friends. The primary CTA is an email with a pre-filled text that helps the customer explain the value of Julep’s beauty subscription box to their friend.

Telecom and Media:

36. hulu plus.

Hulu, a strong competitor in the content streaming industry, uses a refer-a-friend program to drive Hulu Plus sign-ups. Their refer-a-friend program reward is a free two-week trial to Hulu Plus. Implementing an email invite CTA would improve their referral rate and conversions.

37. Netflix

Everyone’s favorite streaming content company, Netflix, ran a refer-a-friend campaign way back when they were transitioning from their DVD rental service into online video streaming. They shut down the Netflix refer-a-friend program in 2011, but we heard the program was well-received by their customers and was a key part of their North America growth engine.

Dish, a leading North American provider of satellite television, has a different refer-a-friend program structure than we’ve seen used. It’s a main website CTA that wants prospective customers to find their friends with Dish subscriptions and get their referral code. Interesting approach!

39. DirecTV

DirecTV uses the same refer-a-friend program structure as Dish’s ‘get referred by a friend’ campaign. They offer a higher reward of $100 to their prospective customers, but still require the high friction process of getting a friend’s DirecTV account code.

40. AT&T

Telecom giant AT&T runs a refer-a-friend program with a minimalist design and bright symbols to highlight the value of their 5 core offerings. Bolding the part people really care about ( $575 a year! ) grabs the customer’s attention. AT&T could improve the program by reducing the amount of friction in the sign-up flow. Applying for a referral program creates an unnecessary step for customers already interested in making a referral.

41. T-Mobile

T-Mobile targets younger demographics with their loud colors, hip branding and playful copy. The T-Mobile refer-a-friend program plays within that theme, employing a branded landing page highlighting all the fun associated with their brand. Though T-Mobile referral page doesn’t highlight the referral reward, it certainly captures your attention.

Sprint, another nationwide telecom giant, runs a referral program that uses a double-sided reward (a $50 American Express reward card) for every successful referral. The Sprint refer-a-friend program uses a modern theme with bold CTAs that emphasize the cash-cash-money. It’s too bad that customers must register in order to make a referral - program engagement is higher when this requirement is not in place.

Rogers, one of Canada’s largest telecom providers, runs a single-sided customer referral program. The Rogers refer-a-friend program rewards customers with a $25 credit for every successful referral. Rogers uses a templated design with content blocks to describe the core areas of the referral program.

44. Virgin Mobile

Virgin Mobile approaches their referral program using bold colors and playful copy to deliver the details. The Virgin refer-a-friend program offers a double-sided $25 reward for successful referrals. Virgin Mobile’s referral page highlights the referral reward and main value proposition of their company with lines like ‘Unlimited Plans’ ‘Packed With More Data’ and ‘Limitless Music’ (although they made a typo on that last one - Teachable Moment: always proofread your deals before they go live! ).

Financial Services:

The PayPal refer-a-friend program was one of the growth engines for the early-stage company. It’s one of the more notable examples of customer referral programs and was originally pitched by their co-founder Elon Musk as a viral marketing campaign. A double-sided $10 reward for new users and active promotion through their customer touchpoints were major contributors behind the campaign’s success.

46. Tangerine

Modern banking institution Tangerine offers a double-sided refer-a-friend program for their customers to sign up new accounts. The Tangerine refer-a-friend program offers $50 for both customers and newly referred customers for taking part in their program. The referral page is well-designed and has a bold CTA that appeals to the financial motivation of their buyer persona.

47. American Express

American Express runs a streamlined referral program for card members, encouraging them to invite their friends to try different card offerings. The American Express refer-a-friend program has different rewards available for customers depending on the type of card. The American Express referral page highlights the steps needed to earn referrals with a clean 1-2-3 step graphic.

48. Chase Bank

Chase Bank runs a double-sided referral program that rewards customers with $50 for each successful referral. The Chase Bank refer-a-friend program uses different channels to tell their customers about their referral rewards and promote sharing. The above email uses the recommended 1-2-3 graphic to simply explain the offer and large green CTAs to promote referral invites.

49. Questrade

Questrade, a leading stock trading platform, uses a double-sided referral program to encourage customers to invite their friends and start trading with their platform. The Questrade refer-a-friend program uses a tiered reward program with $25 for the first two, and a $50 bonus for the third successful referral. Third time’s the charm, right?

50. Robinhood

Robinhood, also in the stock trading software industry, uses a refer-a-friend program to help customers gain early access to their platform. This type of referral reward structure uses the power of scarcity and instant gratification to increase sign-ups. This referral waiting list tactic can catapult the growth of your pre-launch brand (as we’ve seen with the Harry’s  refer a friend case study). A word of caution for incentivizing non-paid actions: you’ll need to build in some fraud protection as users may try to game your system.

51. Wealthfront

Wealthfront, an automated stock trading platform, uses a personalized referral program to reward customers for their loyalty. The Wealthfront refer-a-friend program offers a double-sided reward that waives the management fees on a $5,000 investment. The newly referred customer gets a whopping $15,000 managed for free. Nice deal! For easy sharing, the Wealthfront referral page pre-fills a personalized note explaining their product’s value and referral reward.

So...did you read the whole thing?

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Uber: An empire in the making?

The case study is set in early December 2014. Uber has just completed a round of funding and as a result has an eye-watering valuation of US$41 billion. The case initially explains the service Uber offered to its riders and then gives an overview of the origins and early growth of the company, as well as some insights into the influence of co-founder and CEO, Travis Kalanick, on the company culture. The following section outlines the characteristics of the traditional taxi industry, which was initially Uber’s primary competitor. Details of Uber’s disruptive business model are implicit in the case but the components are not spelled out to the reader. Rather, the intention is to draw this out in small group or plenary discussions through the assignment questions. The case goes on to review more recent growth, outlining some of the PR issues the company has faced with respect to aggressive business practices and questions around its data privacy policies. A possible softening of management’s approach is suggested in the final section.

• Participants gain insights into which components of Uber’s business model were instrumental in disrupting an established and protectionist industry globally.
• They will also see how the model was continually evolving. Although Uber initially clearly operated in one closely defined sector, its future strategic direction lay in broader, diverse activities and markets.
• Participants will consider the strategic options for companies facing a new entrant that is re-inventing the rules of engagement.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK Tel +44 (0)1234 750903 Email  [email protected]

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By Adam Satariano Paul Mozur Kate Conger and Sheera Frenkel

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