Some time back it was revealed that Uber’s valuation stands at $51 Bn, which is much more than its competitor Lyft’s valuation which is at $3 Bn. Having said this, it was definitely not easy for Uber to reach this stage of earnings, and earn this profit. For a company to grow from just an idea to a billion dollar company, it needs to set some amazing examples and differentiation. Uber too has had to differentiate from its single competitor to become popular and valued higher.

It is not a success they have stumbled upon; it has been a slow and eventual journey that has led them to get such amazing profits. Uber diverted its approach from the slowing down traditional ways and adopted a different business planning method. That is one of the reasons why its app is so popular.

Let’s have a look at what Uber did. It removed the need for a middleman who would end up creating confusion. Some of the successful apps and companies have diverted from the traditional approach that was used in the business planning, of including brokers who would help in getting the ideal outcomes.

So, what role does Uber play? It plays the role of a middleman with a difference. Uber app can be actively called the middleman in this case, as it allows the customers and the drivers to meet each other and connect to conclude the deal.

Uber is not the only one is this case. In fact, companies like booking.com, Airbnb etc. have also become the middleman, and have removed the actual broker or other middleman from the game entirely.

How they Work?

These companies that have given the middleman culture a difference work on the peer-to-peer marketplace model for the web development. They have adopted human inputs and reviews to help the other humans get what they are looking for on this marketplace. They don’t encourage anything on the app that you cannot do in a few minutes using the app. These companies use their staff to steer an organized working environment which aims at delivering good customer service to the end users. They include intuitive ratings, manually curated products and instant responses from their staff to the queries to keep up with the increasing needs of the customers.

The model swiftly sifts out those drivers, in case of Uber, or hotels ( in case of Airbnb) that are bad. This is done based on the ratings and reviews received from other users of the app.

With services like Uber, Airbnb etc. users can call a cab or book an accommodation with ease. They don’t really need a middleman.

What Niche to Choose?

When you are looking to start out, you need a successful niche that you can serve, and disrupt with your idea and application development. You need to check on all the niches that are serving in the traditional manner, and you should think of ways you can bring in a difference.

Let’s understand what the industry where Uber, Airbnb etc. are serving had in common before the arrival of these companies. They had a conservative industry, and a middleman who helped complete the orders. They also had a lobbying force that was required to accomplish most of the tasks. These segments were bounded by cartel practices, which did not allow small players to flourish. The traditional model did not really benefit anyone, the customer or the client; it only managed to satisfy the middleman.

So, when you are looking out for a niche, here’s something you could probably take into account. You will need to look at the different industries, and see what’s happening at present and how you can change the way it works. For example, the banking industry is evolving, and you can see remarkable changes happening in the industry. They are moving from physical to virtual, which is also revamping the way the banks function. Will the physical banks exist in the near future is a question that remains to be answered?

Similarly, other industries like logistics, transport, and marine are transforming the way they function.They have also changed their marketing strategy to engage the target.

When you want to start out, you will need to think virtual and not actual physical locations, given the era we live in. So, how about giving your new idea an app touch? You can gain the needed visibility on the mobile platform with mobile app development.

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