Uber Business Model
The days when obtaining a taxi to work was a hassle are long gone. We don't have to stand on the side of the road gesturing frantically for a cab only to witness it being hacked by another customer. We don't recall ever been refused a ride in the middle of the night or late at night. All of this – and much more – has become possible because to the rise of online cab companies, which allow users to arrange a journey in a matter of minutes.
Uber, an up-and-coming commercial behemoth, was one of the first ridesharing companies to disrupt the sector in 2009. If you've ever wondered how Uber works, and more crucially, how it makes money without you tipping more or with costs that are typically lower than taxis, keep reading to learn more about the Uber Business Model — a taxi aggregator.
What Is Uber and How Does It Work?
Uber is a smartphone-based on-demand cab aggregator that allows you to book a cab from point A to point B, pre-calculating the charge, estimating the time of arrival, and offering the option to split the fare with co-riders, all with a few taps on the app.
When the founders couldn't find a cab on a frigid winter evening in 2008, the firm rocked the whole cab industry.
Today, the firm is reported to have over 100 million monthly active users globally, is a unicorn valued at $60 billion, and offers a variety of transportation options ranging from inexpensive bikes and scooters to Uber Air.
- UberX: This is the most basic Uber journey.
- Uber Pool: Rides in a group.
- Uber Comfort: Brand-new vehicles with more legroom.
- Uber Green: Vehicles that run on electricity.
- Uber Black: High-end vehicles.
- Bikes: Electric bikes that can be rented on demand.
- Electric scooters are a type of scooter.
- UberXL: Vehicles that can transport up to 6 people.
- Uber Transit: Information on public transportation in real time.
- Uber WAV: Vehicles that are wheelchair accessible.
- Uber Lux: High-end automobiles driven by highly rated drivers.
- Uber Black SUV: Top-rated drivers in luxury SUVs.
- Uber Taxi: Uber has partnered with local taxicabs.
- Uber Flash: A specialised cab service created just for Hong Kong.
- Uber Auto: Auto rickshaws on demand.
- Uber Air: Self-flying taxis.
Uber's Business Plan
Uber popularised the concept of the aggregator business model. Rather than producing and expanding the offering on your own, this business strategy entails forming alliances and allowing the partners to work under your brand.
Simply explained, Uber does not own any autos. It gathers or aggregates cab drivers who own and operate their own vehicles but work under the Uber brand. While the partners provide the actual service, Uber ensures that the service criteria are met, such as the cabs being on time, being clean, taking the correct route, and ensuring the customer's safety.
Because it was the first, this business model is also known as the Uber for X business model.
What is the Uber Process?
Uber has a two-pronged business plan. One component concentrates on bringing as many cab partners on board as possible in order to provide a seamless experience to the end consumer, while the other focuses on promoting Uber as a wonderful ride-hailing app to users who can book a cab with a few taps on their smartphone.
Here's how Uber works from the end user's perspective:
The Application
Application is the first point of contact for the customer, when they provide their point A and point B information. They also evaluate and select ride alternatives based on vehicle size, price, and expected drop-off time; they select the one that best meets their needs; and they confirm the pickup.
The Algorithm in the Background
This is the offering's foundation. The application algorithm notifies all nearby available drivers of the request, which they can accept or deny at their discretion.
Uber, on the other hand, does not show the information about the destination to the drivers before they take the ride, in order to avoid bias.
The passenger is told about the driver and the time it will take for the driver to arrive at the departure place once the ride has been approved.
Taking a Cab
This is when the brand's standardisation and security features come into play. Despite the fact that the cab is owned and controlled by the cab driver, Uber ensures that its brand identification is maintained.
The rider and the driver confirm each other's names and the destination once they arrive at the departure point. Two-factor authentication is frequently used to do this (pin received by the rider).
The driver ensures that the rider's instructions are followed.
In addition, in premium rides, there is an entertainment system and WiFi for riders to enjoy during their voyage. This aids in the development of a brand.
Aside from that, Uber ensures that the rider is in a safe environment. To do so, Uber conducts a thorough background check on all of the drivers who work for the company.
Riders must also use their phone numbers and/or social media accounts to authenticate their accounts.
In the event of an emergency, Uber provides emergency assistance to both riders and drivers, allowing them to dial 911 (or other emergency numbers) immediately from the Uber app, which also shows their current position and trip details, which may be easily shared with the emergency dispatcher.
Aside from that, you can share the trip details and live location with other friends and family members to assure their safety.
Payment
Uber's payment policy varies according on the region in which it operates. Payments are normally removed once the ride is done, whatever the case may be. Cash, a debit card linked to the app, credit cards, bank transfers, and wallets are all options.
The Process of Social Validation
This is a feature of Uber's operational strategy that makes the service more community-friendly.
Both the rider and the driver are given the opportunity to rate each other at the end of each ride. When the other party books or accepts the ride, this rating, along with other ratings they receive from other riders and drivers, is displayed to them.
Furthermore, the social validation system aids the company in keeping tabs on its drivers and ensuring that they are adhering to the company's requirements in order to keep the passenger happy. A rider who does not adhere to the terms of service is likewise barred, in order to keep the commitment made to the drivers.
- Free consultation
Rather of focusing on making a sale, we concentrate on developing connections. We offer free consultations and sound technical advice to all of our potential clients.
- A team of seasoned app creators
Our mobile app developers have a combined experience of 9 years. They are not only domain experts, but they are also experts at deciphering the needs of your app.
- Complete secrecy
The client is updated on the status of their app development at regular intervals. We arrange frequent call sessions and personal meetings to ensure that the app development is on track.
- Technical Support
The team assigned to your project will be accessible to answer any questions or address any concerns you may have about the app.
