Should Uber work on a shuttle service that runs between SF and South Bay?

Considering the question is focussing on if or not Uber should work on a shuttle service between SF and South Bay. The way I am thinking of approaching above is as 

Clarifying questions:

1. What does 'work' mean? Is it launch a new service or improve existing service.

2. Shuttle service refers to a shuttle bus or boat or any two wheeler or tram rail etc?

3. What's the goal? Is it adoption/acquisition or retention?

4. What's the distance between SF and South Bay?

5. Is there a specific user need we are trying to solve?

Assumptions: Let's assume Uber is looking to launch new shuttle bus service with primary goal as 'user adoption'.

Answer:

I think Uber should launch a shuttle service between SF and South Bay and here is my analysis.

Fact: SFO is a area which has higher share of wallet for working professionals who work in SFO but live outside SFO.

Uber's mission: Provide hassle free ride for commuter ecosystem from point A to point B.

The way I am thinking of approaching this problem is via Porter's 5C framework.

1. Customers: 

User segments:

• Working professionals who commute daily b/w SF and their home
• Business travelers who take their own personal ride to travel from point A to B
• Leisure travelers who like to commute (mostly impromptu requirement)

Customers: Corporate businesses who provide commute service to their employees either through their own fleet or vendor fleet.

Think 'Working professionals who commute daily and corporate businesses' can be a good candidate with higher share of wallet as these are the users who look forward to have cost efficient, safe and hassle free ride.

2. Current alternatives & competitors:

• Public transport - Bus, Trams, Boat etc
• Lyft - which is looking forward to expand its market share in the US market
• Own car
• Company owned transport or vendor fleet

• Brand value
• Increased efficiency to user commute from booking to ride to safety to payment
• Tech infrastructure
• Business models incorporating different user signals like Customer LTV, seasonality, dynamic pricing etc
• Well defined network of Drivers
• Good revenue/profits and investor funding

• Individual Uber ride/shared Uber ride is expensive for single commuter compared to public transport
• Impact to environment due to current Uber fleet which runs primarily on fossil fuels
• Ageing fleet than modern day electric cars
• Most of the revenue comes from cars (used by riders for personal commute or car pool) or through Uber eats as a business

• Tech changes: More eco-friendly vehicles for example: electric cars
• Regulation: Introduction of limit on number of Uber cars running at one point in time in the city, or increase in road tax or toll tax for individual cars.
• Lyft is looking forward to expand market share and explore new revenue streams or government launching new air pod taxi technology which can reduce travel time by almost half.
• Consumer behaviour: Shift towards more environment friendly techniques like traveling in a shared vehicle which can accomodate more than 10+ people.
• Cost: Reduced cost on public transport to make travel more dearer with better savings.

• Diversification of business to areas outside normal individual car/taxi or shared car pool
• Collaboration: Tie up with corporates like big tech who look forward to outsource employee pick up and drop to 3rd party companies
• 10x customer acquisition as more riders will use Uber at one time
• Modernisation of existing fleet by additional revenue stream generated through shuttle service
• Vertical product outreach: Innovative subscription bundle like Monthly discount on shuttle or USD 1 Uber eats voucher per completed ride

• Can reduce the number of personal uber car rides or shared car pool rides b/w SFO to South Bay.