Problem Statement:

Despite the rapid growth of ride-hailing apps in LATAM countries, the market faces several challenges that create inefficiencies and frustrations for both passengers and drivers, leading to decreased user trust and adoption of ride-hailing services, in turn contributing to urban environmental problems.

Why Brazil:

Brazil stands as a powerhouse economy in South America and Latin America, marked by rapid growth and abundant mineral resources, including extensive oil fields. Being the largest country in both regions, Brazil holds a prominent status as a founding member of various international organizations such as the United Nations, G20, BRICS, Union of South American Nations, and Mercosur, among others.

  1. Fast Growing Economy:
    1. GDP Growth: After experiencing negative growth in 2014-2019, Brazil's GDP has rebounded, showing an average growth of 3.3% per year in 2001-2014 and exceeding that in 2021-2022.
    2. Export Growth: Strong performance in sectors like agriculture and mining has boosted exports, generating revenue and foreign investment.
    3. Domestic Consumption: Economic recovery and government social programs have led to increased household spending, stimulating the economy.
  2. Total highest population in Latam i.e., ~215.3 million, with approximately 87.10% being urban population.
  3. Brazil is the fifth largest digital population in the world, with approximately 181.8 million internet users in January 2023
  4. Highest Tourist Footfall: The approximate tourist footfall for 2023 stands at 6.7 million, which would be a third more than in 2022. This represents a substantial increase of over 60% year-over-year.

Brazil’s Market Share Growth Potential

Revenue ARPU CAGR(2024-2028) User Penetration Market Volume (2028)
US$2.14bn in 2024 US$31.58 5.89% 76.32m users by 2028 US$2.69bn
31.1 in 2024

PESTEL Analysis:

Screenshot 2024-01-05 at 11.28.26 PM.png

Uber’s Market Share in Brazil

Region Share Competition
Southeast 70% This region houses the country's economic powerhouses like São Paulo and Rio de Janeiro, attracting young, tech-savvy populations with high smartphone penetration Didi
Cabify
Northeast 55-60% Cities like Salvador and Recife showcase robust economies. Didi
South 55-60% Curitiba and Porto Alegre boast high urbanization and tech adoption Didi
North and Central West 45-55% Less dense populations and economic disparity Didi
Local taxi

Why not other LATAM countries (Chile, Mexico, Argentina, and others)?

We have not considered other significant LATAM countries at this moment owing to certain reasons as follows: . Due to the very high inflation rate and political unrest, it’s not convenient to run a business in Argentina. . Owing to low population density and an already saturated market, it's not relevant to proceed in Chile as of now. . As per Statista, Uber has already achieved 80% market share in Mexico.

So we finally decided to improvise Uber’s business model in Brazil initially.

Objective:

Our goal is to drive 10% growth in Uber's user base and increase the existing market share in Brazil within the next 12 months. Maximizing market penetration by improving services in existing and new cities and regions, in turn growing user base.

TAM SAM SOM