Uber's Product Differentiation

As a whole, Uber's product is not very different from the alternative (taxi cabs.) The end result is the same which is getting its customers from point A to B, but Uber does make this experience as different as possible and it is this that is the progressive part about Uber that makes its customers choose it over cabs. Even though an Uber customer could accomplish the same feat by hailing a cab, the Uber experience is different for a number of reasons. First the hailing process is much simpler. No waiving at cabs driving by. No haggling over prices. Just opening an app and clicking a button. Second, while the quality of vehicles that Uber drivers can use has decreased from a maximum of 10 years old to a maximum of 15 years old, these vehicles are still by in large nicer than the taxi cab alternative. The clientele that drives for Uber is higher class than taxi cabs and this makes riders feel more comfortable. Finally, the price is a differentiating factor. As has been discussed previously, Uber saves big time when it comes to overhead and they pass this on to their customers as savings which helps to differentiate their service from taxis.