Peter L Rodriguez, Randy Johnson
Darden School of Business (UV7673-PDF-ENG)
October 19, 2015
Uber offered a variety of car services that varied by city. The full range of services included UberX, UberBLACK, UberSUV, UberSELECT / PLUS, UberXL, UberLUX, and UberTAXI. The services varied according to the type of car offered and the rate charged. In big cities, there was the opportunity to choose from a wide variety of private transportation services and car types long before Uber and other ridesharing services hit the market. So it seemed easy that the differentiation of the level of service had to be profitable. But was providing this variety of service levels better for drivers, too? What was the reason for offering diversity of service levels for products and / or services that clearly supersede each other? When did it make sense to differentiate by level of service for both the driver and the service provider? And how many levels of service should there be?
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