Uber, the bible of taxi business and the king of on-demand transportation service that changed the face of taxi businesses all over the world. The concept and business model of Uber app have made taxi booking as simple as just tapping a Smartphone to get the cab at your desired location. As the app makes the life of the passengers easy in the same way, it is an intelligent tool for business. The reason for the popularity of cab booking app like uber is the concept and business model on which the whole system works efficiently. It is an earning model for all the stakeholders involved may it be in cash or kind.
As a Business Model
Uber is in the list of those few companies who have grown tremendously in a short period and shows its presence in almost 60 countries. The reason for this growth all over the world is the business model they work on which creates the trust of investors.
The business model in detail:
- Payment Gateways
- Map API Provider
- Product Development
- Arranging drivers with cabs
- Managing drivers commission payout
- Customer support
Value Offerings to Customers
- Door to door pick up and drop
- Minimum wait time
- Competitive price
- Cashless payment system
- Real-time cab tracking
Value offerings to Drivers
- Extra source of income
- Flexible working schedule
- Payment with an ease
- Passenger Review
Uber’s Revenue Model:
The revenue model is not much different from the old taxi business, but some changes in the model can help you earn more than you expect. Let us see how:
- Trip fare per km/mile
- Surge Pricing
- Types of taxi offerings i.e. Uber Go, Uber Black, Uber X and Uber SUV
- Uber ridesharing and Uber delivery
The unique concept with a unique revenue generation model has made cab-booking apps like Uber a successful model and it can be further explained as:
Different cab to cater different needs:
These apps are not restricted to a limited segment of cars or a specific segment of people. The passenger can choose from various models depending on availability and requirement. This option provides a cost effective solution to the clients with a small pocket. On the contrary, the system also caters to people who deal in luxury and have bigger pockets; they can opt for a ride that suits their pocket.
Surge Pricing Technology:
Uber business model runs on fare variations based on situations. The law of demand and supply gets applicable based on time and situation. When the demand is more the prices tends to increase automatically, which means the new price would be dependent on the availability of driver against the request received from the tentative passenger.
Furthermore, the business of ridesharing and Uber delivery clone also adds up to the revenue generation without any extra burden of expenditure. The overall system of cab booking app like Uber has been proved as a perfect business and earning model, that is the reason it has been accepted by the world.
So what are you waiting for? Order your own cab booking app like Uber and see how the best business model works for you and generates revenue.