• most asked questions of uber 2 TRooTech Business Solutions

13 Most Asked Questions For Uber As A Successful On-Demand Business

What Every Uber Aspiring Businessman Needs to Know Before Handing Over their Uber Project

.1) Is Uber’s Business Model Sustainable?


This is one of the most asked questions for uber as a business

Yes. Uber business model is the most sustainable model.

Why? You ask.

The basis of Uber 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 the drivers. The stakeholders in Uber are the 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 a thing impossible in the expansion venture of the business for the Uber similar businesses. When Uber lost the trust of its drivers, it came up with a ‘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 business model is sustainable.

.2) How Uber expanded as a business?


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.

2009 — Uber was founded as UberCabs

2010 — UberCabs became Uber and started in San Francisco

2012 — UberX was launched

2014 — Uber started Uber Rush, a courier service using bicycle messengers to deliver parcels.

2014 — Uber initiated UberPOOL

2014 — Uber started Uber Fresh, an online grocery delivery service

2015 — Uber began testing on the self-driving cars

2015 — Uber launched UberEats, an on-demand food ordering service

2016 — Uber exhausted bikes and started UberMOTO, the least expensive ride

2017 — Uber announces the acceptance of Visa credit card for the ride

.3) What is the difference between an UberX, Uber Black, Uber XL, Uber SUV, UberSelect, UberTAXI, and UberPOOL?


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 services with professional driver for up to 4 people.

UberPOOL: It is the most affordable ride sharing service. It allows people with different starting and ending points traveling in the same direction to share rides and cost.

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 to book a yellow cab from the Uber app.

.4) What is the revenue model of Uber? – One of the most asked questions of uber. 


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.

Revenue Stream for Uber

· Commission from the customers — Service Fee

· Commission (15% to 30% per ride) from the Drivers — Transaction Fee

· Cancellation Fee from whosoever cancels the ride

· Surge Pricing — At peak traffic hours surge pricing is applicable

.5) How do I build a Real-time location App-like Uber?


The real-time in an app like Uber is possible with Route Optimization.

· It is a process to schedule the rides and design an excellent solution to determine the most cost-effective route.

· It does more than simply finding the shortest path between two points.

· It helps design the route when there are more than one stops in a long complex path.

What you Should Do

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 changes the location-based data into the representations that can help focus more on the optimization.

Read More: Route Optimization – The most underrated feature in the Uber-like application development

.6) What is the business model of Uber Eats?


The business model of Uber Eats is similar to that of Uber.

The customer segments for Uber Eats are:

· The Restaurateurs

· Delivery Partners (Uber Drivers)

· Customers – Real-time Order Placing Individuals

The Business Model

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 on eateries. There are food baskets which act similar to that of shopping carts in eCommerce portals. The user adds the food in 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.

Revenue Stream

· Commission (flat $5 per order) from the customers – Service Fee

· Commission (15% to 40% per order) from the restaurants – Delivery Fee

· Featuring Fee from the Restaurateurs

· Listing Fee

· Cancellation Fee -Mostly charged from the customers

· Surge Pricing – At peak lunch and dinner hours surge pricing is applicable

Marketing Strategy

· Word-of-Mouth Marketing

· Social Media Marketing

· Offers and Discounts

.7) What is on-demand service business model?


In the on-demand service business model, there is no product owned. It operates completely with the help of the 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.

.8) What is the difference between Uber and Lyft?


Difference between Uber and Lyft TRooTech Business Solutions

.9) What is an Uber clone business? What other businesses can be created using a business model similar to Uber business model?


Uber is the most disruptive, profitable, and comprehensive business. Charmed by the business appeal of Uber, many businesses have started developing Uber like app 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 remain 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.

Businesses created using a business model similar to Uber business model

· Uber for Online food delivery services

· Uber for Medicine

· Uber for Dog walking

· Uber for Beauty

· Uber for Grocery

· Uber for Courier Delivery

· Uber for Fitness

· Uber for Sports

· Uber for Logistics

.10) Which are the failed aggregator start-ups who tried to copy Uber and failed? Why?



· Expanded too fast

· No training to service providers

· Could not retain customers


· It served all possible jobs

· Financial planning gone wrong

Rivet and Sway

· High cost to customer acquisition

· Competitor was heavily funded


· Unclear about the business idea

· Inability to expand


· Single channel dependency to acquire new customers

For detailed information, you should be here

.11) Will Uber survive once heavy discount era ends?


The most basic business ploy of heavy discount 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, quality ride killing the heat of the traffic, and help the passengers reach in a hassle-free manner, discount won’t matter to the loyal customers.

If you develop a thoughtful application and provide quality service, nothing else matters.

.12) What conclusions can be drawn from the marketing strategies of Uber?


· If you market for your business, you can acquire customers; if you market for the feature that your business provides, you retain customers.

· When you market show why you are different with your offerings and not with your operation.

· When you market for a feature, make sure to make it as relatable to your targeted audience. You can make use of Geo-targeted ads.

· Get the line clear — You are here to solve one of their problems permanently and would work in that direction.

Read More: Uber’s Marketing Examples

.13) What is the advice for any business aiming to be the next Uber?


Stay cautious towards your Uber goals by making sure you consider these factors:

1. Figure Out ‘Why’

The best advice for the startup is 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, it 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 into the business well before going on the expansion.

As important as funding may sound to you, but equally important is the customer acquisition for the business and then expansion can be planned.

4. Revenue Model

As easy it may sound for Uber, the revenue model for your particular Uber for X might be different and so a rough analysis about 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 the service usage and the transaction made within the application.

6. Customer Retention

Once the analysis about 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 platforms, reaching to a considerable amount of mass is the first landmark that any startup should target for.

8. On-demand service startups

The critical mass accumulation can be ensured once the loyalty of the customer’s retention and the efficiency of the service providers when they reach 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 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.

11. Domain Knowledge

Without delving deep into the knowledge of the domain and the niche, it is next to impossible to design a seamless flow for the business.

Considering the consistent experiments and innovation in the domain, it is important for any business persona to hold a knack of what he is about to commence so that he could extract deep insights and hold a futuristic view at the time of expansion.

Apart from these factors, it is really important for the startups to keep in mind the best dominant request platform for their on-demand service.

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 specific audience.

We helps connect deeply the brands to enrich the digital experience of the end-customers and make a remunerative business. We shape the business ideas by offering custom-tailored business services by being a top-rated full-stack developer using native technology that caters to and compliments the exact requirements of start-ups and enterprises with a resourceful team and process for developing top-notch web application, mobile application, custom software, apps for IoT, wearables, Bluetooth devices, and form integrated solution using different databases and server technologies.

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About the Author:

I’m a digital strategist, and I believe that unique businesses deserve unique strategies to succeed and I love coming up with ideas to match your ambition. I know you’ve got the ambition to spare, you’re a leader, and you understand the profit potential and exposure available for your business online.
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