Case available in text form below the video.
You are a manager at Uber, and a senior executive has asked to meet you.
She is happy you were able to meet on such a short notice, and briefs you about a strategic opportunity presented by Google regarding the integrating the Uber service into Google Maps. The Google Maps service is now used by around 45% of the U.S. market whereas Uber marketshare is at around 25%.
This is the deal: Google will add functionality for users to order an Uber ride directly from the Google Maps app, taking them to the place they are looking at. This user will see the price of the ride and estimated time to the destination directly on their map. The geographic scope of the deal is the United States and it will run for three years, subject to renewal if both companies wish to do so. This deal is exclusive to Uber, although Google will create other partnerships with electric scooter and bike sharing companies.
Nothing is free, of course. Google will require a commission of 5% for all rides booked through Google Maps. As you know, we have been struggling to turn a profit. We have an operating margin of roughly 10-20% on individual rides, depending on the city, but large corporate overheads mean that the company remains unprofitable. Yet, I want to emphasize that our board greatly values rapid growth as they believe that we operate in a winner-takes-all market.
Your boss is expecting you to draft a short informal memo with pros and cons of collaborating with Google — and your recommendation.
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