At the heart of its business model ubers success is

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revenue stream and straightforward cost scheme. At the heart of its business model, Uber’s  success is highly contingent upon the usage of the service through the volume of customer base.   Beyond the profit model, however, there are various other business factors that may  affect the efficiency and profit scheme. In the following discussion, we will analyze its target  markets, target demographics, its products, customer lock-in, and customer segmentation.   Uber’s target markets usually have a common characteristic: urbanized area. Since  Uber’s service can be considered as a substitute for taxi’s service, wherever taxis have operated  before, Uber is also likely to operate in those areas. Universally, these areas are highly populated
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areas that spread within the city and to the suburbs. This characteristic is closely related to its  target demographics as well. In many cases, customers use Uber because they do not have a  method of transportation by themselves, whether it be because they do not own a vehicle, or they are not in capacity to drive (e.g. alcohol). As a result, most of the target demographics are young  adults and teenagers with smaller group of adults who are more cost-conscious and does not use  a taxi service. However, historically, Uber so far has not been a viable substitute for normal  commute, and one main reason is because in cities where Uber operates, there are also viable  public transportation systems that do not necessitate the need for Uber. In terms of product differentiation, Uber only has few options – UberX, UberXL,  UberPool, and UberBlack (Pullen, 2014). Each of these products aim to serve different customer  bases with different needs such as cost and capacity. The most common service is UberX, and  this service targets people who are not too price-conscious and time-conscious. On the other  hand, people who are price-conscious but not time-conscious may use services such as UberPool, which is a service that connects two different riders who are heading towards the same direction.  For the less price-conscious customers, UberBlack exists to fill in the gap, for they are served in  a more luxurious car than UberX would provide. These services, however, are not unique only to Uber, for any other ride-sharing companies can create the same type of system that fills the same  type of needs. As a result, Uber’s products are not really unique, and its products cannot be the  differentiating factor among the customers.   Therefore, Uber’s method of “locking-in” customers and having customer segmentation 
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