What Every Uber Aspiring Businessman Needs to Know Before Handing Over their Uber Project
This is one of the most asked questions for Uber as a business
Yes. Uber's business model is the most sustainable model.
Why? You ask.
The basis of Uber's business is the aggregation of the demand and planning for the supply.
For the supply to be aligned with the functionality of the business, Uber partners with the drivers. Again, it does not have its own fleet of either cars or drivers. The stakeholders in Uber are third-party partners.
The Uber model helps the service providers to work at their own timings and hours and so it entices them to get along with the platform.
As long as the service providers on board are satisfied with the platform, there is not thing impossible in the expansion venture of the business for Uber and similar businesses. When Uber lost the trust of its drivers, it came up with the ‘180 days of change’ campaign. This is how it strategized to win back the ‘feel good to work’ factor of its service providers.
Moreover, with the single business model, there are multiple other expansion ways -UberBlack, UberX, UberPOOL, UberMOTO, UberEats, UberFRESH, and self-driving cars and UberCOPTER is awaited. So, with every new mode of transportation, you will see Uber expanding along.
This is why I feel Uber's business model is sustainable.
See, the basic idea with which Uber started was to provide an affordable taxi service in competition with the high prices of Black taxis in the US.
Yet another most asked questions for uber
UberX: It is the most pivotal day-to-day ride service for up to 4 people.
Uber Black: It is a luxurious car service with professional drivers for up to 4 people.
UberPOOL: It is the most affordable ride-sharing service. It allows people with different starting and ending points to travel in the same direction to share rides and costs.
Uber XL: It is an affordable SUV service for up to 6 people.
Uber SUV: It is a luxurious ride service for up to 6 people.
UberSelect: It offers stylish, luxurious cars with top-rated drivers for up to 4 people.
UberTAXI: It allows you to book a yellow cab from the Uber app.
This is also one of the most asked questions for uber. Uber has multiple revenues generating models, however, the most pivotal source of revenue for Uber is the commission model. Uber charges the transaction fee from the drivers and the service fee from the passengers.
Real-time in an app like Uber is possible with Route Optimization.
To build route optimization, you have to simply consider the most relevant factors such as the number and location of all the required stops on the route.
To be more specific, you can integrate it with the Geo-analytical tools which change the location-based data into representations that can help focus more on the optimization.
Read More: Route Optimization – The most underrated feature in the Uber-like application development
The business model of Uber Eats is similar to that of Uber.
Uber Eats has got no restaurants owned or a fleet of hired delivery boys.
Uber Eats has got the restaurants listed under the app. The Uber Eats user can filter the search results on the basis of the restaurants, cuisines, and deals in eateries. There are food baskets that act similar to that of shopping carts in eCommerce portals. The user adds the food to the food basket, followed by the checkout process. The user gets an estimated time of food arrival.
The delivery boy gets the food delivery request. On accepting it, he gets the pickup location of the restaurant and the drop location of the user. He has to finish the ride within the estimated time given to the user for the food delivery.
On delivery, the user rates the restaurant.
Word-of-Mouth Marketing
Offers and Discounts
In the on-demand service business model, there is no product owned. It operates completely with the help of third-party service providers and their personalized resources.
It gives the service providers the ease to be flexible in their timings and work hours.
The demand for the service is aggregated and then the supply is accordingly strategized.
Uber is the most disruptive, profitable, and comprehensive business. Charmed by the business appeal of Uber, many businesses have started developing Uber-like apps to earn the most out of it.
This does not necessarily mean that all the clone businesses go for Uber as a ride, they use the business model of Uber and apply it to any feasible niche.
However, the business model remains the same for any niche — the demand for the service is aggregated and the supply is planned.
These businesses are also known as Uber for X business.
Homejoy
Exec
Rivet and Sway
HelloParking
Tutorspree
The most basic business ploy of heavy discounts is to make as much customer acquisition as possible.
Once the customers have landed on the platform, it solely depends on the quality of the service provided to the customers.
If Uber provides quick pickups and quality rides killing the heat of the traffic and helping the passengers reach in a hassle-free manner, discounts won’t matter to loyal customers.
If you develop a thoughtful application and provide quality service, nothing else matters.
Read More: Uber’s Marketing Examples
Stay cautious towards your Uber goals by making sure you consider these factors:
1. Figure Out ‘Why’
The best advice for the startup is to try to figure out the true calling of why you think your business is NEEDED to be established. On the other side, figure out why the customers would prefer you.
2. Front Stakeholders
Talking about the Uber business model deals with both the service providers and the customers and tries to meet their needs.
So when setting out to Uberize your startup business it is important that the problem you try to meet should be feasible and acceptable by both the front stakeholders.
3. Expansion
Even though you are funded quite well, it is important for the startups to dwell in the business well before going on the expansion.
As important as funding may sound to you, equally important is the customer acquisition for the business, and then expansion can be planned.
4. Revenue Model
As easy as it may sound for Uber, the revenue model for your particular Uber for X might be different and so a rough analysis of the unit economics should be made about where the cut from every transaction is to be made.
5. Frequency of Usage
When you are finalizing the niche for your Uber startup, what you need to look out for is the customer frequency of service usage and the transaction made within the application.
6. Customer Retention
Once the analysis of the customer base is made, progressively the data can be used to analyze the customer retention rate.
7. Multi-sided Platforms
With launching the applications on more than one platform, reaching a considerable amount of mass is the first landmark that any startup should target.
8. On-demand service startups
The critical mass accumulation can be ensured once the loyalty of the customer retention and the efficiency of the service providers when reaching a certain level.
9. Scheduling Vs. Instant
The right design choices are extremely necessary for any Uber for X model since every model strives to choose the right model that makes it different from the rest.
For a scheduled design, it is easier when the startup is bootstrapping a business.
When going for an instant, it puts more pressure on the supply-side infrastructure.
10. Aggregated Vs. Integrated Supply
There are two types of service providers: Freelancers and Contracted Supply.
While the freelancers help in providing external strength to the business, the contracted suppliers are more reliable for the business.
Hence, keeping in mind the frequency of your on-demand service, you should go for investing in targeting whichever supply resources compliments your business to its core.
12. Total Addressable Market Size
Talking about Uber, it first started serving the ones that already use the taxi service by launching black luxury car and later introduced its service to the other groups of people.
While your business is in its initial stage of development it is important for you to target only a specific audience.
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