Uber is a brand, an industry and a phenomenal concept that has changed the way we travel today. However, have we ever wondered what has made it so successful? Is it the unique technology, or the way it works, or a combination of both? Every time you open the newspapers, or surf the internet or even go out you will definitely come across Uber or read about how various businesses are springing up everywhere using uber like app development for their business.
From a layman’s point of view, it does make you wonder how these startups are succeeding. Well, they must be because these days there is an Uber for everything, leave alone taxis. Let’s actually look at it from a potential entrepreneur’s point of view. If you are thinking of venturing into an Uber-like startup then you need to check out what Uber is and how it is making money for its owners. If it can make money for them, then surely this technology can make money for you too.
What is uber?
Uber is actually a smartphone app that connects passengers to drivers. Initially, it was begun as a taxi service, but today you can use its technology for almost any service you require. However, let’s talk about the original Uber because that is what we are all familiar with.
The drivers register on the app and use their own cars whilst driving for Uber. For every fare that the driver gets, Uber takes a percentage cut.
The uber workings in detail
Now let us look at each entity in this trio of operations for that seamlessly synchronised ride. The Uber package is actually a set of three, the driver app for the driver, the passenger app for the rider and the admin panel for Uber. Let’s see how they work individually and with each other to provide that best riding experience that Uber is branded for.
The cab driver
Anyone who has a driving license can apply to drive with Uber. Any normal person like me and you can drive for Uber. However, there is a strict screening process to make sure all your papers are in order before you can start picking up fares. Once you clear the screening process you will be registered by the admin on the system and you can start driving for Uber once you download the driver app, and activate it after registration. As a driver, you receive a regular income whilst driving at the time of your choice.
Anyone who requires a taxi at short notice needs to download and register on the passenger version of the app. They can now search for taxis using their smartphones as all taxis in the nearby vicinity will show up on their screen. Once their fare is confirmed, the passenger can communicate with the driver as well as track the cab as it makes its way to the pickup point. Riders prefer this way of booking a taxi because they get their ride when they want it; it can be booked in the comfort of their homes at short notice and is economical on the pocket too. Let’s not forget the comfort of the ride too.
The admin (uber)
Uber gets approximately 20% of the cut of the fare from every driver. That is their commission for the facilitating and managing the service.
How uber earns
The admin or Uber is actually responsible for how much revenue is generated from every ride. Let’s look at how they maximize their earning potential.
- A percentage of the trip fare, which is a combination of the waiting time, travel time, distance and any taxes, if applicable
- Uber also have different modes of transportation, apart from taxis that they can earn from. This includes helicopters, bikes, jets, bike taxis, and cars.
- Uber is available in many countries in the world. In some countries, it has customized rides for kids, senior citizens, ladies etc. Uber charges different rates whenever they provide these services.
- Surge pricing – This is one very big source of income for Uber. Here the principal of supply and demand is applied to maximize their potential. Whenever there are fewer taxis and the demand for them is high, the price is hiked up. Instances like Christmas Day, public holidays, early morning or late evening rush hours are ideal for surge pricing, and Uber makes the most of these times.
- Drivers pay a listing fee when they register to drive for Uber. Another nice little earner for the company.
BE THE NEXT UBER
Coming back to what I started with, now that you know where the money is, you too can start your own on-demand business of a service of your choice or maybe just do what Uber is doing. All you need is an Uber like app development from a reputed company and start making your millions. It’s as easy as that. These apps are not even that expensive. Do your research and you will find that there are some very good deals for these apps where you get good customer service, a reasonably priced app and a load of free services too. Take that first step to being the next Uber.