Uber Business Model And Its Insights To Be Known
Uber this brand actually bought the digital sake that ensures high standards at the lowest cost. To be more clear, the smart app from the Uber provides on demand service to the people who are in need of.
Many remarks Uber bought a new revolution in the taxi dispatch industry, but literally they just recast’s the conventional one to the contemporary one. Yes this is all about business. Here not everything is new born, many victorious people have amended the existing model by knowing what actually people needs.
Wondering how ? Do you know the story of Uber ? This 10 years old company was started by the Travis Kalanick and Garrett Camp. Their anecdote behind this is, on New Year's eve they bothered to find a cab and after considerable endeavor got a private cab at exorbitant. So out of frustration on paying outrageous price, an idea sparked to change this fate of high paid taxi episodes.
History Of Uber
Let's dig deeper into the history of Uber, Camp thought that, when one dividend the price of travelling with other people, it is admissible for both riders and drivers, there the spark of Uber cab started and Kalanick joined this project. With the bunch of squad they launched the beta version of Ubercab in 2010, March.
After this when you try to gauge their affluence you will be just astonished.
Wow, what a extemporize with in a decade, and right now they have experience in pushing the boundaries of.
Who They Targeted ?
When we deliberate this success in business perspective will end up with a bunch of questions
- For Whom the Uber Created The Value ?
- Who Are Their Important Customers ?
- What Value Does It Provide For The Customers ?
- How Do They Reach Wide Audience All Of A Sudden ?
- How Do They Engage Customers ?
And the point goes on.
Actually Uber targeted the normal audience, like people who don't own a car, people who don't belong to that city, friends who hang out in pubs or who check out for the party.
Just by providing the smartest way to get the ground, Uber started providing values to their customers. But how do they reach wide audience in this short span ? Pretty tough rite, yet possible.
Steve Jobs used to say “People don't know what they want until you show it” It actually works. Uber manifested that
- We provide cabs in less than 15 to 20 mins in your pickup location.
- Our app is user friendly to book rides and track the status
- The driver can earn money easily and they can increase their income
- In case of any queries we will address as soon as possible.
- Will make your trip at ease
What Made Uber Unique From Traditional One ?
Does only the app invention and technology enact made them this popular ? No don't come to the conclusion.
They charged different prices according to the vehicle they choose, So they can magnetise all kinds of people. If you need only SUV, go book and pay less. If you need BMW, no worries go book and pay accordingly. Simple and economical.
The next one to be considered is that they influenced the concept called “surge pricing” In peak hours they charged a bit more regarding the traffic issues. Even people understood and associated with this. Coupled with they had upfront pricing, route based pricing and others.
They do segmentation, for kids, senior citizens and others to be more precise about their service.
Apart from proving the cab service, they extended to the boat, motorcycles, helicopters and the list is on.
More importantly they deployed the maximum technology, features and functionalities for the convenience. Some of the salient features are
- Within a tap book a ride
- Driver has the convenience of accepting or neglecting the request
- The rider can track the drivers move towards the pickup location or said as real time tracking
- Multiple Payment option has been integrated
- Security regarding options like SOS, Share location and much more.
More over their criticism and public cases regarding Uber had made them more renowned.
How Do They Work ?
The revenue model in Uber is based on the commission process. The Uber used to connect the riders and drivers. So the rider will share a percent of amount for the convenience offered and the driver will pay percent of amount for the trip request they got.
- More over for the usage of the software
- Collection and transfer of pay fares
- Commission via online transaction using debit cards
- To distribute invoices to client
Strength Of Uber Business Model
The matter of Uber is all about network, When an additional driver joins his service, then Uber can serve more added customers. Moreover, When they have more driver, it reflects in lesser wait time for the riders.
When he satisfies the riders the count of ride request increases. This highly beneficiaries the driver, because more ride then more income for him. So Uber highly concentrated on the significance of the network liquidity too.
Next to that, there comes “Market expansion” In the places where taxis are inadequate but retirements is abundant there they hit the arrow, when there is a need, then success knocks on the door, it happens with Uber also.
They even tried to influence their fame in the different ondemand fields like food delivery, goods delivery and others as UberEats, Uber Delivery, even the motorcycle option also integrated.So wide option regarding the business to gravitate wide audience.
Even in future Uber believes that their revenue would be increasing because of the motor bikes, bike sharing and autonomous vehicle.
Key Facts To Ponder About Uber Business Model
- As it is not the ownership business model, be a mediator and earn big
- Try to solve the common people's need and venture it with the upshot influencing technology.
- The main element of this business is stalk holders, so do concentrate to treat them wise.
- At the first shot grab the users with the discounts, offers, because your existing customers word of mouth has a fate to change your business upside down.
- With fair deals and pricing, ask people to choose you compared to the other competitors that is already existing
- Don’t hesitate to stack the other business models and implement the best one if it helps you to expand your growth.
Right now you have a clear vision about how this new born Uber has become an epic pioneer in this transportation field. Even you can be next to Uber or even compete Uber in this transportation field.
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If you need any clarification and queries feel free to contact [email protected].
Believing that the future of the ride sharing business is in a good hand.