Monday, 28 September 2015

Strategic Dilemnas

Uber_India_Airtel_Lockup_blog_960x540_r1

Wonder whether freebies by an undifferentiated product/service can ever earn your customer loyalty

You now get Rs 500 Uber credits free when you first recharge your Airtel Money wallet

I have my doubts on the feasibility of this strategy - will users switch from Paytm to Airtel Money just because of a Rs 500 bonanza

Say if 1 lac Uber users get Rs 500 each free, its a net cash burn of Rs 5 crore for Airtle Money

Smart Indian customers will merrily use this offer and then switch to the 3rd one who offer more freebies

https://newsroom.uber.com/2015/08/bharti-airtel/

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