Two days back I was having a conversation with my dad and he was super excited to tell me that he made a trip to someplace without spending a single buck. “Uber gave me two free rides! So amazing. But how can they benefit from that?”
The brilliance of it struck me when I realized Uber won over my tech-sceptical father and probably earned themselves a loyal customer. But his question “how can they benefit from them” encouraged me to dive deep into Uber’s marketing strategy. So, let’s see how they can afford to give us the blissful free rides.
5 key marketing strategies that worked wonders for Uber
- Early adopter marketing
- Referral programs and discounts
- Reviews and ratings
- Publicity stunts
- Market segmentation and targeting
Early adopter marketing
Word of mouth marketing played a huge role in Uber’s early stages when they were trying to set foot on the market. One of the first problems Uber faced, as it comes with being a peer-to-peer dependent marketplace, is that they had two core customer groups to target- drivers and riders.
Instead of diving deep, they took a step back and adopted an early adopter marketing strategy
💡 An early adopter is a person who tries new products before the majority of other people. When it comes to technology, early adopters are more common. They give the vendor comments and assist them in improving the product’s features, design, distribution, and support.
They marketed to a very targeted and localized customer segment- tech communities in silicon valley. These communities became an ideal customer persona since they’re always interested in new and innovative products that add value to their life as well as society. They hosted numerous sponsored events, offered free rides to first-timers and other tech bloggers or influencers thus painting a positive image for the brand. So, by the time Uber started expanding its market, people were raving about this new taxicab experience that was way more affordable and convenient than the traditional taxicab.
Referral programs and discounts
Referral marketing is not something new, but it definitely offers a high conversion rate and contributes significantly to Uber’s conversion funnel.
💡 Referral marketing is a word-of-mouth initiative designed by a company to incentivize existing customers to introduce their family, friends and contac
Every uber rider can share a unique referral code with their acquaintances and in turn get ‘reward points’ or other offers when their referred party download the app using the code. This viral loop goes on and uber not only gets word-of-mouth marketing but also earns themselves a loyal customer base.
Offers like a free trip for first-timers sway even the tech-sceptical population (like my dad). If nothing, this at least increases their app downloads from app stores. Once the app is downloaded, targeted in-app marketing and push notifications with personalized offers encourage users to initiate trials. Incentives like collecting redeemable reward points after each ride encourage users to frequently use the app.
Uber also targets its regular riders with occasional discount coupons or offers to incentivize their customers. To revive abandoned users they offer luscious offers through emails, push notifications as well as in-app messaging. There’s only so much you can resist, and uber knows that all too well.
Reviews and ratings
The thought of willingly getting into a stranger’s car was revolting a couple of years back (maybe even now in some places). So how did uber manage to break through that fear in people’s minds and instil a sense of safety and assurance? Why should people ditch the old ways if the ‘new way’ has nothing better to offer?
This is where the review and rating system comes into play (dramatic protagonist entry)
Every rider can rate their designated driver after a trip or leave a review about their experience. This works both ways. Drivers can also rate their customers based on their experience. This creates a transparent user interface for both sides and also promotes trust towards the brand. Riders can avoid taking a ride or request a different driver if the reviews worry them. This in a way also motivates people to behave more responsibly. Not everyone likes a talkative driver and what better way to know than this!
Publicity stunts
Who wouldn’t like to cuddle kittens to take a break from work? Uber doesn’t shy away from a trick or two from time to time to excite the public. The one that I mentioned above has to be one of my favourites. It isn’t something loud and crazy but such positive, goodwill tactics please the public too. For uber’s more widespread publicity stunt, they delivered kitties to workplaces where people can snuggle up with adorable adoptable kittens for fifteen minutes! I would spend my month’s worth of salary to spend the whole day with them, please. ;-;
For one of their unconventional PRs, they offered users in Chile a wine tour on demand. Back in December 2013, they delivered Christmas trees on-demand in 10 U.S. states. One of my favourite PR stunts has to be UberPITCH. Imagine requesting an Uber to pitch your start-up idea to venture investors. Is this a Hollywood movie scene come to life or what? But yes, Uber did make it happen. Riders, or more like ‘startup owners’ had seven minutes to pitch their idea to venture investors and get feedback (or an investment(?)).
Tactics like the ones mentioned above create a buzz around the brand and also improve your brand image. It also adds a unique image to the brand and adds to their story.
Market Segmentation and targeting
Another one of the many things Uber did right was their “live locally, build globally” strategy. Even though Uber has spread to global locations, its core marketing strategy is still localized. Even though expansion and diversification are good and can help a brand grow, it is important to keep the core value propositions intact and if possible inculcate them into the new product.
What do I mean by this? Let me explain. Let’s consider a country like India where traffic congestion in almost every state is high. In such a case, two-wheeler rides will be more convenient than four-wheelers since the arrival time reduces and so does the cost. This feature may not be valid or required in other countries where streets aren’t much congested. It is this kind of localization and targeting that keeps uber relevant in different countries around the world.
Even PR stunts like UberWINE in Chile that I mentioned earlier was a localized feature and not something available globally. Geographical and demographical targeting and market segmentation to the local level was one of the finest marketing strategies of Uber.
It’s not a surprise how the brand grew over the years exploring different marketing approaches. Even though they have several other brilliant marketing strategies, these five were my personal favourites. I hope you liked what I curated for you and were able to get a little insight into how marketing works.
Please let me know if you have any feedback! I would love to know from you. If there’s another brand or topic you’d want me to explore, feel free to comment! Until next time! x
She Says 
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