Question

Uber has made several decisions creating new product lines aimed at growing revenue, such as establishing UberEats, Uber Fresh, and UberTASTE for food delivery; UberRUSH for package delivery; and UberCARGO and UberVAN for moving goods. This strategy is known as

Answer 1

Answer:

The strategy described above is known as Umbrella (or Family) Brand Strategy

Explanation:

Family branding is a marketing concept where a company with strong equity uses a single brand name to sell two or more products under the same category.

In the question we see two broad categories:

1. Foods;
2. Cargo

And there, you have under each broad group, sub-categories using the brand Uber.

Real-life examples of successful umbrella brands are:

1. Apple (iPhone, iMac, iPod etc)
2. Adidas
3. Pokémon etc.

The advantage of Umbrella Branding as a business strategy is that the cost required to launch a product under a different brand is significantly avoided if the new product is affixed with the existing brand.

If however, the company fails to get it right, by enveloping a different line of product in the existing brand, it may water down the brand and also confuse customers.

Cheers!