Thursday, February 5, 2015

Uber uses Internet’s foolproof weapon to battle bad PR By Caitlin Huston



Uber uses Internet’s foolproof weapon to battle bad PR
Published: Feb 5, 2015 6:38 p.m. ET
Uber recently had puppy, pretzels and kitten promotions
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Uber had a promotion in Australia Thursday for 15 minutes with kittens
NEW YORK (MarketWatch)—With pretzels in Philadelphia, puppies in Washington, D.C. and kittens in Australia, Uber is swiftly working to cultivate a warm and cuddly image.
But the embattled ride-hailing company has a lot to overcome, with rape allegations against a driver in India, widespread regulation problems and criticisms of the company’s tactics.
That’s not to mention the recent rumors of Google, whose venture arm is an investor in Uber, starting a competitor ride-sharing service.
So are cute animals really enough to assuage the public’s concerns?
Maybe not.
“They’re banking on the short memory of the American public,” said branding consultant Rob Frankel. “I don’t think they’re going to win this one.”
As Frankel sees it, the company is focused on spinning the narrative with these feel-good promotions, but what it should be doing is differentiating itself from competitor Lyft, he said.
Uber did announce a partnership Monday with Carnegie Mellon to create driverless cars, but Frankel said by the time the cars are available, he believes competitors will have them.
Uber could not immediately be reached for comment.
Still, the one-time promotions aren’t hurting the company, said Tim Calkins, a clinical professor of marketing at Northwestern University’s Kellogg School of Management. They’re nice to have, but don’t have much staying power, he said.
The kitten promotion did happen the same day as 11 Uber drivers were scheduled to appear in court on charges of operating a commercial passenger vehicle without a license. And Uber said it was offering the pretzels Thursday after the Philadelphia City Council approved a resolution to support UberX in the city.
Calkins said he believes Uber is taking its criticism seriously and needs to address its problems with a mixture of programs, policies and promotions.
The company does appear to be taking the steps. It released reports in January saying its drivers earn more per hour than cabdrivers and saying Uber has helped lower the number of drunken-driving crashes. Uber also announced last week that it was implementing new privacy measures and training after an outside law firm reviewed the company’s privacy policy.
Beyond the criticisms, Uber suffers from a lack of prominent founding story, said Calkins.
“Uber is a little bit of this faceless entity,” Calkins said.
In terms of marketing, Calkins said Uber needs to tell the public how it came to be and make CEO Travis Kalanick more recognizable, beyond apologizing for the company.
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Caitlin Huston
Caitlin Huston is a MarketWatch reporter based in New York. She covers startups and small business. You can follow her on Twitter @hustonca.

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