UberEats Strategy Mapping

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Table of Contents:

  1. Overview
  2. Financial Perspectives
  3. Customers Perspectives
  4. Internal Business Processes Perspectives
  5. Learning and Growth Perspectives 
  6. Appendix-1;
    1. Strategy Mapping
  7. BCG Matrix
  8. Academic References
  9. Webpage References

Overview 

The objective of this study is to analyze and evaluate the strategies implemented by UberEats over the course of the last five years. The focus will be on four strategic maps encompassed within a single frame: 1. Operations management processes and strategy map, 2. Customer management processes and strategy map, 3. Innovation process and strategy map, and 4. Regulatory and social processes and strategy map.

First by assessing and designing the UberEats strategy/vision via using an iterative and incremental process starting with financial performance. By answering questions like if the business is profitable? Is it growing or shrinking? How does it compare with its rivalries? Is it investing in capitalisation? Is their share price declining or increasing? 

Next this study will investigate the other five areas. The Strategy mapping will assess and explain the financial performance of UberEats for the past five years- including their market share value, total revenue, net income, gross margin, and production costs and liabilities. And the second is customers’ perspectives by looking at their prices, quality, availability, selection, functionality, service partnership and branding. Third strategy mapping is about the internal perspectives and will evaluate the operation and customers management process As well as innovation process, and regularity and social process. And finally, it will identify how UberEats encourage and increase learning and growth in their workforce presented as a diagram. (appendix1)

Financial Perspectives:

Uber-Eats market share has been increasing gradually from 3% in 2016 to 30% in 2020. Their past five years of financial performances illustrate that they have short and long-term strategies in place to grow and sustain their market shares and gross net. The cause and effects assessment can explain why did it’s market shares fluctuate? It can aid to analyse what went wrong or where is the gap that they missed to fulfil (Kaplan and Norton, 2004).

Postmates market share fluctuated wildly from 6% in 2014 to 8% in 2020. Their experience curve was during 2015 and 2016, from 6% in 2014 to 17% in 2016. However, it had sharply fallen from 2016 to 2020 by 9%.

Grubhub market shares are, decreasing significantly from 66% in 2016 to 18% in 2020. The massive decrease happened by 23% from 2017 to 218 and by 13% from 2018 to 2019, and by 2% in 2020 (Curry, 2021).

DoorDash, on the other hand, been climbing up from 5% in 2015 to 45% in 2020. The most effective increase in their market share was by 20 % from 2018 to 2019. However, their market share increased only by 10% in 2020 (Curry, 2021). 

But, UberEats has experienced a negative net income over the past five years except in 2018 which illustrates they are not profitable. It may be because of the increase in market share that they are growing.  And according to BCG Metrix-High growth and high shares-they need to “milk out the cash cows” and focus on re-investing (BCG, 2021). 

(Available as BCG Metrix)

Grubhub net income has been falling from -$98K in 2017 to minus -198 thousand USD with a total asset of $2,3m in 2020. DoorDash net income has been declining from -$207K in 2018 to -$442K, but their total assets are $6,5m in 2020 (Yahoo Finance, 2021).   

So one of the reasons why UberEats chose Postmates is perhaps because they paid attention to Postmates financial revenue.

Customers Perspective

The attributes of Uber Eats food and medicine delivery-the intangible assets, products/services- seems perfectly meet and fit customers’ needs and problems. It could be the results of covid-19 impacts “Black Swan” which increased the volume of demands for food deliveries ‘’opportunity/need/problem” around the globe. And plus, through partnering with Postmates who provide and fulfil a specific need caused by the pandemic since early 2020. Postmates enable customers to place orders for their medicines via their mobile phones and this is a unique service that Postmates adding to UberEats value. So, there is a possibility this could be another reason for explaining why Uber have chosen Postmates over Grubhub. This reflects that Uber Eats have achieved higher productivity and lower unit costs, compared to its competitors (Jones, 2021).  

Also, this strategy has helped UberEats to expand their consumers audience and identify a new market target. Therefore, a new innovated process by UberEats has combined with a new service, and attribute “Medicine Delivery” by Postmates, identifies UberEats is focusing and reinvesting on product/service and process innovation.  

Internal Business Processes Perspective

Since UberEats entered a new business and added a new intangible product and service through business acquisition with Postmates in 2016, to fit the purpose. This strategy has helped UberEats to expand their customers audience and identify a new market. So, it can be the third answer to why they took over Postmates instead of Grubhub. So, the new idea combined with the new service attribute “Drug Delivery”. Therefore, it explains UberEats is encouraging and increasing their product/service and process via innovation by R&D. 

Another attributes to consider is the Dynamic Pricing Algorithm (DPA) that Uber has in centre of its pricing strategy (Uber, 2021). The specific attribute like setting higher prices during rush hours and weekends. On the other hand, as the prices increase it attracts more drivers to the area and the prices will drop (Kiechel III, 2010). So, the UberEats users can pay a normal price after a few minutes wait. The DPA enables UberEats delivery service charge set at a high price during pick times within each region round the globe 24/7 (Kiechel III,2010).  

UberEats vision is defined as delight customers, treat, and motivate employees at the office with food delivery (Uber,2021) and their mission defined as making customer journey easy in other words, make food delivery fast and easy for customers (comparably, 2021). But, they have not included the new attribute “Drug Delivery”, an intangible product, which reflects they aren’t clear to the users and employees.

Learning and Growth Perspectives 

UberEats reinvesting in Human capital , Information and Organisational Capital which will aid to reduce the costs. Their eco-friendly paper bags are 50% recycled, and they educate their customers and employees about the differences between paper and plastic recycling. Flexible hours enable parents and other employees to choose their preferred working hours and days.  

Academic References

Conn, C and Mclean, R (2019) Bulletproof Problem Solving: The one skill that changes everything. 1st edn. Oxford. Wiley. 

HBR (2011) The Charts That Changed the World. Available at: https://hbr.org/2011/12/the-charts-that-changed-the-world (Access: 5th June 2021).

Jones, D (2021) “Efficiency and Economies of Scale”, MN7031 Topic 3: Global Strategy and Innovation. Available at: https://bblearn.londonmet.ac.uk/webapps/blackboard/content/listContent.jsp?course_id=_43518_1&content_id=_2952816_1(Accessed: 3rd June 2021).

Jones, D (2021) “Strategy mapping” MN7031 Topic 2: Global Strategy and Innovation. Available at https://bblearn.londonmet.ac.uk/webapps/blackboard/content/listContent.jsp?course_id=_43518_1&content_id=_2952815_1 (Accessed: 3rd June 2021).

Jones, D (2021) “Successful Innovation and Strategic Renewal”, MN7031 Topic 4.2: Global Strategy and Innovation. Available at https://bblearn.londonmet.ac.uk/webapps/blackboard/content/listContent.jsp?course_id=_43518_1&content_id=_2952827_1 (Accessed: 2nd June 2021).

Kiechel III, W (2010) The Lords of Strategy: The secret intellectual history of the new corporate world. 1ST ed. Massachusetts: Harvard Business School Publishing. Available at: https://store.hbr.org/product/the-lords-of-strategy-the-secret-intellectual-history-of-the-new-corporate-world/7820 (Accessed: 5th June 2021).

Kaplan, R, s., and Norton, D, S (2004) Strategy Maps: Converting Intangible Assets into Tangible Outcomes, Harvard Business School Press, pp 1-10. Available at: https://dimas0709.files.wordpress.com/2018/02/39004748-kaplan-norton-strategy-maps-converting-intangible-assets-into-tangible-outcomes.pdf (Access: 3rd June 2021). 

Webpage References:

BCG (2021) What is the Growth Share Metrix? Available at: https://www.bcg.com/en-gb/about/our-history/growth-share-matrix (Access: 4rd June 2021).

Uber Investor (2020) Uber Announces Results for Fourth Quarter and Full Year 2019. Available at: https://investor.uber.com/news-events/news/press-release-details/2020/Uber-Announces-Results-for-Fourth-Quarter-and-Full-Year-2019/   (Access: 4rd June 2021).

Uber (no date) How does Uber Eats work? Available at:  https://help.uber.com/merchants-and-restaurants/article/how-does-uber-eats-work-?nodeId=054c6b5e-c22f-4b0a-b0d8-dd397ec7b92e(Access: 4th June 2021).

MediaRadar (2021) UberEats Advertiser Profile. Available at: https://advertisers.mediaradar.com/ubereats-advertising-profile (Access: 4th June 2021).

Ficaja, S. (2020) Stronger Together: Uber Eats and Postmates Partner to Benefit Merchants. Available at:  https://www.uber.com/newsroom/stronger-together-uber-eats-postmates-partner-to-benefit-merchants/ (Access: 4th June 2021).

UberEats (2021) Marketing tools for restaurants. Available at: https://restaurants.ubereats.com/gb/en/what-we-offer/marketing/marketing-tools/ (Access: 4th June 2021).

Grubhub (2019) Grubhub History. Available at:  https://about.grubhub.com/about-us/company-timeline/default.aspx (Access: 4th June 2021).

SFiST (2020) Uber Eats’ Business Up 190%, Company Has Still Lost Nearly $6 Billion This Year. Available at:  https://sfist.com/2020/11/06/uber-eats-business-up-190-company-has-still-lost-nearly-6-billion-this-year/  (Access: 4th June 2021).

Journal of Contemporary Management (2015) A new theory for sustainable competitive advantage in a motor services firm in Kenya, Volume 12, pp 862-880. Available at: https://journals.co.za/doi/pdf/10.10520/EJC179540 (Access: 4th June 2021).

Uber Help (2021) Why are prices higher than normal? Available at: https://help.uber.com/en-GB/riders/article/why-are-prices-higher-than-normal—?nodeId=34212e8b-d69a-4d8a-a923-095d3075b487 (Access: 4th June 2021).

Curry, D (2021) DoorDash Revenue and Usage Statistics (2021). Available at: https://www.businessofapps.com/data/doordash-statistics/ (Access: 5th June 2021).

Curry, D (2021) UberEats Revenue and Usage Statistics (2021). Available at: Available at:https://www.businessofapps.com/data/uber-eats-statistics/ (Access: 5th June 2021).

Curry, D (2021) Postmates Revenue and Usage Statistics (2021). Available at: https://www.businessofapps.com/data/postmates-statistics/ (Access: 5th June 2021).

Curry, D (2021) Grubhub Revenue and Usage Statistics (2021). Available at: https://www.businessofapps.com/data/grubhub-statistics/ (Access: 5th June 2021).

Spider Strategy (no date) What is a strategy map? Available at: https://www.spiderstrategies.com/strategy-map/ (Access: 3rd June 2021).

Yahoo Finance (2021) Uber Technologies. Available at: HBR (2011) The Charts That Changed the World. Available at: https://hbr.org/2011/12/the-charts-that-changed-the-world (Access: 5th June 2021).

Yahoo Finance (2021) Grubhub lnc. Available at: https://finance.yahoo.com/quote/GRUB/financials(Access: 4th June 2021).

Yahoo Finance (2021) Just Eat Takeaways .com N.V. Available at: https://uk.finance.yahoo.com/quote/JET.L/financials?p=JET.L (Access: 4th June 2021). 

Published by JanE

Hello, and welcome to my page. My name is Jane, an MBA student and ambitious to betterment and increase her understanding, knowledge, skills, and adaptability within the Global Business WonderLand context. And been wonder how to change the world since I was five years old. I enjoy helping people no matter of what nationality, belief and ethnicity. I believe the life journey is not solely about eating, loving, making children etc. I see it as a journey that comes with man consciously or unconsciously with different scenarios and strategies. I interpret and link the life journey and business based on the value which lives in the strategies. I have ten years of work experience in management. I opened a retail shop and sold it in London between 2007 and 2017. within real estate in North West of London. And the co-founder of the PBMerchantile export/import company in Dubai. The PBM is on standby due to macro external factors and forces.

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