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    How UBER Business & Revenue model works?

    Uber started off in California, USA in March 2009 and has never looked back since then. Today it is a business worth $22 billion. The idea behind Uber is a simple one- availing a taxi! It is a general problem of our day to day life- waiting in long lines for a taxi, paying exorbitant fares and even not getting a taxi at a time of great need. Uber understood this everyday problem and with the help of technological innovation, created an app that brings a taxi to one’s doorsteps at convenient fares and in good time.

    Revenue Model
    Uber is no different from any other cab company. Customers hire a taxi, they pay for the ride, and this payment is the source of revenue for the company. The edge that Uber has over other cab companies is the vast number of cabs at their disposal throughout the world and about 1 million average daily users.

    Business Model
    The success and growth rate of Uber has been tremendous and they achieved it through planned marketing. The tag line of Uber is “Your Personal Driver”, giving its customers a feeling of personal comfort and satisfaction. They catered to every need of customers, launching various rides starting from the normal taxis to shared rides. They also introduced exclusive features such as Uber Black for ones loving a black ride and Uber X. what Uber did by introducing so many options is a simple feat, it increased its range of customers. They also introduced a technology to surge prices at peak hours when per cab demand is high. Uber made it a point to fix some of the rates, such as a journey to the airport. All these perks that Uber provided made it very acceptable and appreciable to the customers and they started choosing Uber over normal cabs.

    Uber made an analysis of the core problems associated with a taxi ride and gave a solution to them. They partnered with drivers and segmented the market- Uber for kids, Uber for the old, Uber for the ones wishing a stylish ride, and what not. It enticed its customers with such propositions as a lesser time to wait, discounts on rides on special occasions, free rides on offer occasionally and tracking of drivers and rides. It developed its workforce by delivering innovative perks such as working hour that is flexible, drivers being paid for just being online, irrespective of whether they are getting rides and so on. They treated the drivers as their partners and gave them a whopping 80% of the fare. All in all, Uber charmed both the drivers and the customers with its crafty and masterful value proposition.

    Uber made a mark upon arrival with its exciting discounts and top of the shelf services. It reached out to its customers through the rampant use of social media. Treating customers like God leads to the brilliant mouth of the word advertisement. When it launches in any new city, it gives away a horde of offers attracting customers which is now possible because of their huge revenue. It has a tremendous customer support team that works round the clock interacting with customers. Now Uber is reliable and runs in 633 cities. All these factors combined Uber has become very reliable both among customers and its workforce and shares a special bond with either of them. Their masterful business plan of converting a simple daily need and their budding relationship with customers and drivers alike is the key to their success.

    Uber Successful Timeline

    Salient Features about the Uber Model
    Many car owners wish to work in collaboration with Uber as Uber cares for its workers. They treat all car owners like their very own partners instead of as employees and give a major share of 80% of all rides to the drivers.
    The technological input behind the Uber platform is very grand and intricately designed. This advanced Uber Technology enables them to get a customer from the nearest location. Thus drivers don’t have to aimlessly roam about anymore!
    Uber’s success is a result of implementing such user as well as driver-friendly set up in their app. They were the first to imagine of such a world where a click brings a cab to your door and hence brought in newer customers and drivers alike from all over the world.
    It may so happen that the drivers may not always be in their supreme behaviors. Cases of harassment, especially harassment of women customers have been reported from certain regions. Though all the drivers that Uber employs are strictly verified, they are ever changing their flexible policies to make it a safer ride at all times.
    The journey of Uber from nothing to a humongous multi-billion dollar business in 10 years is indeed a story worth applauding for. They grew into this because they provided a very necessary requirement in our daily lives- taxi services at a click. From normal cabs to super-luxurious rides, Uber gave it all, thus touching a very broad category of customers. Nowadays Uber has so many daily commuters all over the world and it is still expanding as Uber tries newer schemes and newer countries.

    It is the time that you finally get your personal driver with Uber. So go plan the trip and start booking!

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