Ubertour - Individual Project Management
1
MASY1-GC1250 Project Management in the Information Age
Uber Tour Business Case
Team Indigo,
Grade: 95 (A)
While you’ll see I made a number of observations and comments below, it seemed that your business case was reasonable for your project and expressed the inherent value of your proposal fairly well.
You can consider your cost and benefits assumptions to be acceptable. The expected cost of the project seemed quite reasonable. It did seem to me that rolling out the service across the entire U.S. might be expected to generate more revenue than what you indicated, though. I don’t see a need to modify your numbers at this point as your project would generate a positive ROI.
Let me know if you have any questions about my comments.
Larry
Table of contents
Executive Summary (MIng cai) 3
Current Situation (ming cai) 3
Options Considered (Meiheng Chen) 4
Goals and Objectives (meiheng chen) 4
Critical Success Factors (Ruyu betty zheng) 7
Cost and Benefits (ruyu betty zheng) 7
Project Delivery Schedule Summary (binghao Chen) 8
Conclusion and Next Steps (binghao Chen) 9
Executive Summary Comment by Larry Mantrone: This gives a good overview of your project and is certainly suitable for the initial project proposal. Now that you have developed cost and benefit estimates, you need to highlight them in your executive summary in some way. A single sentence indicating total project costs and aggregate expected benefits would suffice. Those numbers are essential outputs, as those with the power to approve your project would be eagerly looking for them. Your project might be one of many Uber is considering. You have to show yours makes economic sense.
Uber is the leading transportation technology company that operates globally. However, it offers no support for local tourism despite transporting clients to different destinations. Our team at Travel Foundation seeks to introduce a tour planning functionality called 'Uber Tour.' Here, the Uber app's new service can interact with the passenger(s) and recommend them to restaurants or attractions popular to the locals. It features a leaflet with pictures of popular restaurants and attraction sites and a map to show their locations. The program will thus result in the growth of local tourism and the Uber company.
Current Situation Comment by Larry Mantrone: This is good! You could also consider existing companies which offer local tours as competition. You correctly noted the possibility of collaborating with existing travel agencies as one of your options considered. Could they also be a potential source of competition, especially if Lyft or another competitor decides to partner with them?
Uber is an international company that uses a mobile app platform to link up travelers with taxi drivers who offer reliable and affordable transportation services. Uber has been in the front line in promoting local and international tourism, but this has not been possible because the mobile App does not provide information to its users about the availability of nearby restaurants and attraction sites.
One of Uber's strengths lies with the vast customer base it has, with many people preferring to use uber Uber services compared to traditional taxi services. Besides, the mobile App is linked to an accessible database, with information about destinations and drivers who are ready to offer commuter services. Uber lacks support for local tourism, as it does not provide users with information about restaurants and local attractions. Apart from targeting commuters, Uber has the opportunity to reach out to potential tourists by providing them information about nearby places they may visit. Uber is likely to face threats from its competitors, such as Lyft. These competitors are likely to steal customer base from Uber by offering reduced service costs and better financial returns to the drivers
Considering the strengths and weaknesses, the most promising target for the Uber Tour service will be the United States of America. The US records the highest number of Uber users in a day and hence a convenient environment. Besides, the US has increased local tourists, especially now that international travels have declined following the COVID 19 pandemic. The service will include an added feature in the Uber called "Uber Tour," which will allow users to access pictures and information of available attraction sites nearby. First, Uber Tour will be available to Uber users in main towns, offering information about few attraction sites. The customer base will gradually expand as more and more information is added to the database.
To make a deliberate decision with the project design, we also considered other options that can deliver a similar outcome: for the travel route recommendation technique, we also considered the collaboration with another travel agency; for the delivery method of the project, we also thought to develop a separating application for the project. However, after analyzing the budget and technical support, we insist that our original design is the best method to achieve our goal. Comment by Larry Mantrone: “Separate” is the better word to use here. You used it correctly below.
We believe the collaboration would be expensive for the first option to collaborate with other travel agencies that already have their brand established. Travel agencies in the market would likely hold on to their strength and refuse the proposal for the project's threat to the industry. Meanwhile, Uber has already collected databases from years of operation. We can use the database to analyze the favored places within the city using reliable local sources so that the travel route suggestion would be cheaper to build and more accurate to use. Comment by Larry Mantrone: That might be the case but one wonders if they might consider how Amazon decimated once-powerful bookstore chains as it established dominance selling books. Comment by Larry Mantrone: That’s an interesting idea! By properly mining user data, Uber might be able to devise some unique tours which would attract customers.
For the second option to design a separate application for the project, we believe it is unnecessary and would waste time and budget for a desirable result. We believe our customers would not want to download an extra app just to travel; buildbuilt-in features in original apps are more convenient for customers and reduce the cost on time to develop. At the same time, launching a separate application would also increase the campaign cost. With a built-in feature in the Uber app, customers would automatically recognize the new project.
Therefore, our original design to make a buildbuilt-in feature in Uber for travel planning and recommendations designed by our team would be an efficient design for this new project.
Making sure our project is on the right track, our team established the final goals and objectives to measure the effort and success of the project. The goal of this project is to extend our business to the travel service industry. By doing this, Uber will gain long-term benefits with increasing profit and competitive advantage. To achieve the final goals, we also set up objectives to make sure our project is on the right track:
1. Gaining 10% of market share in the travel service industry and increasing the overall profit for at least 5% in the first year of launch.
2. Following the schedule of development so that the project can be launched in the middle of 2022: This objective would limit the project development time length so that project gains the first-mover benefit.
3. Making sure the project would be accomplished within the budget: using careful monitoring in the financial condition, the project should use a budget that is suitable for the development and would not influence the daily operational liquidity. The budget should always be concerned during development.
Our team will follow the objectives to achieve final goals to improve Uber's business model and making a profit for the future.
The project will thrive on several assumptions. Assumptions generally are anticipated circumstances that are expected to take place over the life of the project. Uber tour project will be based on the following assumptions: Comment by Larry Mantrone: I’m not sure “thrive” is the right word to use here. How about “rest” instead?
Pandemic is close to the end Comment by Larry Mantrone: In your case, as you are targeting a go-live date in mid-2022, it might be better to state your assumption as “the pandemic will have ended by the go-live date”, or something like that.
In current times, businesses worldwide are being faced with tough calls due to the spread of COVID-19. The tourism sector has been affected in many ways, including travel restrictions, closure of tour areas, low demand, and hygiene protocols requirements, to name but a few[footnoteRef:1]. The travel restrictions ranged from imposed quarantines, entry and exit bans, and closure of roads apart from essential services and, in some cases, lockdown and curfews that prevented people from even moving out of their houses. That happened at the height of the pandemic, and the whole world was in a panic. In addition, most areas were shut down with limitations in movements being in place. Low demand for tourism followed, which made it far worse for the tour industries. [1: World Tourism Organization. (n.d.). Retrieved October 04, 2020, from https://www.unwto.org/impact-assessment-of-the-covid-19-outbreak-on-international-tourism]
Moreover, there was an introduction of hygiene protocols of social distance, which required observation. All these happenings took place during the COVID-19 pandemic climax and made the whole world shut down. Businesses were barely surviving, and tourism was no exception.
However, a declined number in reported cases of COVID-19 evident can result in a decrease in specimens being tested in the US. It's also notable that globally, recovery has been good. Around 26 million persons have recovered, around 7.9 million are active with mild conditions, and only around 66,000 remain in critical condition[footnoteRef:2]. That is a huge win for the health of the world. In addition to that, people are now equipped with hygienic measures to control the spread with the use of masks and hand sanitizers as well as social distance being observed. Most nations have appreciated the positive change and eased up travel restrictions opening up to normal life. That being the case, the period of no tour activities is in the past now. Traveling is now allowed subject to adhering to hygiene protocols; hence the period of the pandemic storm is over. The project will thus thrive in the current times since tour activities have resumed. Comment by Larry Mantrone: Again, it might be safer to avoid saying the worst of the pandemic is over and just indicate it isn’t expected to be a factor by the time your service is ready to be released. [2: Coronavirus Cases. (n.d.). Retrieved October 04, 2020, from https://www.worldometers.info/coronavirus/?utm_campaign=homeAdvegas1%3F]
No future acquisition of traveling companies
Uber tour is dependent on the Uber digital taxi company. Therefore, it follows that the entire business requires the operation of the taxi partner to remain sufficient. That being the case, the assumption is that Uber as a company will not be acquired any other set up for the idea to work. The underlying reason is to avoid compromising the status of the relationship between Uber taxi and Uber Tour. The assumption here is that the relationship between the two partners will remain intact and will work for the company's good. That aspect will have a lasting relationship, and the two companies will symbiotically benefit from each of their relationships. Comment by Larry Mantrone: This could have been worded more clearly. Assuming that Uber won’t be acquired by someone else is legitimate. You also might assume that Uber doesn’t make any acquisitions which include a service like the one you are creating.
Minor attractions deficiency
The assumption is that the App is not going to be used to further agendas of minor attraction. The fact that there are instances connected to strangers such as drivers and touring different areas does not give an avenue for minor attraction incidences. The App is tailored for use by adults, and any minors using the App will be doing so under an adult's guidance. Comment by Larry Mantrone: This section could have been worded more clearly. It makes sense for you to require that customers be above a certain age. The phrase “minor attractions deficiency” sounds awkward. You could just say your service is for adults only, for example, or require minors to be accompanied by adults.
Constraints impose limitations on the ability to achieve goals defined for the project. It's thus important to identify the constraints for a business to work on the completion of the project. The Uber Tour project faces constraints in the course of working towards completion. The constraints are geographic limitation and distance limits for uber Taxis
Geographic limit: USA
The geographic limit is a major constraint for the project. Uber Tour will be operating only in the United States of America. That is besides the fact that Uber operates across continents. The App will only function for persons who are touring within the USA. This constraint means the potential of the App to ride on its partner's already established market is hindered. The tour sites to be availed in the App are thus in the United States. To address this constraint, we have prospects of expanding to other continents/regions where Uber Taxis are operational. That will happen in the future after the project has had its foundation in the USA, and it's successful. Comment by Larry Mantrone: This is a self-imposed constraint intended to simplify the planning of your project. You could simply express that this project is intended to be the first of many, with the others focusing on different countries.
Distance limit: driver's concern
Uber does not limit the distance that a ride can take you. However, the trip is automatically ended after four hours. That aspect might affect the tour for a person who wanted to tour using the same taxis for more than four hours. This may apply mainly when the driver is not willing to go on the trip/ride. Also, there can be instances when the driver is concerned about the trip to certain areas where the person is touring. That may happen due to concerns such as the roads' condition and operating hours, among others. Such dictates of the driver might hinder the success of a tour for a tourist. In response to the constraint, the App can be configured to have the driver know the whole route before the pickup and possible detours to avoid inconveniences. The driver can also know the whole schedule for the tour the driver is involved in. Comment by Larry Mantrone: It’s reasonable to expect Uber Tour to define the different tours which are offered as well as the times when they might be accessed. Comment by Larry Mantrone: That relates to my previous comment. You do have to keep in mind the schedule might be approximate due to traffic conditions, but you could build some slack into the tour schedule or perhaps even give the driver the authority to cut back on a stop or two if the tour is taking too long.
Critical Success Factors Comment by Larry Mantrone: These are reasonable!
Uber is a technology that has disrupted the way people request for transport services. Several critical success factors can assist Uber in enhancing its market share and promoting tourism. One of the main essential elements that can guarantee business success is ensuring that the Uber Tour service can be accessed without clients incurring extra costs. Moreover, there is a need to ensure that stakeholders are satisfied by enhancing the service's value. With millions of people using Uber worldwide, Uber Tour will serve an already existing market, which can potentially increase customer loyalty and attract new ones. However, success with the proposed Uber Tour service must be accompanied by strong technical support and comprehensive business model execution. The goal is to offer customers effective services and prompt answers to their queries whenever needed.
Since Uber is an existing technology, the costs of implementing the Uber Tour functionality can enhance shareholder value and promote customer experience. Within a particular locality, tourists can efficiently utilize the Uber Tour planning functionality to identify restaurants, booking services, and identify sites to visit. This can reduce extra costs that they would have incurred for hiring tour guides. The budget for implementation is also fairly low, considering that it is a global service. Notably, the benefits and value that shareholders can potentially enjoy are high. When we weigh the costs against the benefits, the benefits increase and significantly increase Uber and customer loyalty. As long as all the critical success factors are implemented and service delivery enhanced, Uber Tour is a viable functionality. Comment by Larry Mantrone: The potential advantages the service would offer to shareholders and customers seem realistic. In this section, however, you just need to focus on what it will take to finance the project and the expected revenues and other economic benefits to be derived from it. Comment by Larry Mantrone: These are reasonable qualitative statements to make. I would suggest it would be better to state them after you have provided the numerical estimates, though.
The implementation of the Uber Tour functionality requires various stages of implementation. The estimated budget, including marketing, for the 'Uber Tour' project is $400,000 USD. Planning and documentation require 10% of the overall budget. Development, testing, contingency, and project management will take 15% of the budget each. The systems and the server's creation and implementation require 10% of the budget. During the initial stage (Year 1), the marketing costs will take 15% of the project. The detailed projected cost allocation is presented below (all numbers are in USD): Comment by Larry Mantrone: How does “planning and documentation” differ from “project management”? Comment by Larry Mantrone: These estimates are acceptable for the purposes of this assignment!
|
Project Stages |
Percentage |
Budget Value |
|
Planning and Documentation |
10% |
$ 40,000 |
|
Development |
15% |
$ 60,000 |
|
Testing |
15% |
$ 60,000 |
|
Contingency |
15% |
$ 60,000 |
|
Project Management |
15% |
$ 60,000 |
|
Systems/Servers |
10% |
$ 40,000 |
|
Marketing |
20% |
$ 80,000 |
There are many benefits to the implementation of the Uber Tour functionality. Uber users from any part of the world will know the restaurants and sceneries within a particular locality. In addition, the company will also enhance its revenue and attract more clients. Tourists will be able to save costs, which can build brand loyalty among the clients. The expected revenue for the four years after deployment shows as following (all numbers are in USD): Comment by Larry Mantrone: “Points of interest” would be the term to use here, IMHO.
|
Year Comment by Larry Mantrone: I’ll accept this for the assignment. If you are doing this across the U.S., it would be reasonable to expect more revenue. The key is you are showing you are getting a decent return on your investment. |
Revenue |
|
Year 1 |
$30,000 |
|
Year 2 |
$150,000 |
|
Year 3 |
$300,000 |
|
Year 4 |
$450,000 |
Project Delivery Schedule Summary
The chart below summarizes the major milestones for the Uber Tour project. This chart only comprised high-level milestones and their proposed timelines. Any scheduled delays that will impact any of the milestones should be notified to the project manager immediately for the consideration of adopting proactive measures. The project is planned for 14 months until deployment, which will start on January 1st, 2021. Comment by Larry Mantrone: It would be better to say “The project, which will start on January 1st, 2021, is planned for 14 months until deployment.
|
Milestones |
Estimated Completion Date (MM/DD/YYYY) |
|
Project initial initiation (or start) date |
01/01/2021 |
|
General Analysis and Requirements Gathering |
02/15/2021 |
|
Product Design |
04/31/2021 |
|
Coding |
11/15/2021 |
|
Testing |
02/15/2022 |
|
Deployment of the product |
03/01/2022 |
The Uber Tour project will create a tour planning functionality as an extension to Uber's current transportation service, providing service including trip itineraries creation that connects user's desired destinations, consulting recommendations and in-detail information of local business and attractions on the route, automated hassle-free ride arrangement between destinations, and real-time route adjustment in response to user's request. The project is expected to deploy at the end of the first quarter in 2022, with a total estimated budget of $400,000 US dollars.
The approval of this proposed project outlined in this business case will enable the origination to do the following steps:
· Charter the project and authorize developing a formal project plan.
· Keep the decision-maker(s), the project owner(s), and key stakeholders up to date with the project's progress.
· Secure or obtain essential recourses such as funding, techniques, tools, and individuals accountable for each project step.
· Prepare some allowance for contingencies when a thing goes off.
· Acquire documents and authorizations for any related government regulations.
· Design a post-implementation review for future product maintenance and operation.
Approvals
|
Ming Cai Binghao Chen Meiheng Chen Chen Chen Ruyu Betty Zheng |
|
Co-Project Manager |
Prepared by:
|
|
|
Project Executive Sponsor |
Approved by: