Uber business model ?
Uber business model is dispelling the notion that transportation management is strictly for yellow taxi cabs. The company develops and operates the Uber business model mobile app, which lets customers with smartphones arrange for transportation from Uber drivers who use their own cars. Customers rate drivers, while drivers can also rate customers to provide quality to the experience and build a person’s reputation. In addition to its transportation services, the company’s UberEATS app delivers food from restaurants to customers in select markets. The company’s services are available in almost 60 countries and 460 cities around the world. Fast-growing Uber was established in 2009 as “UberCab” by Travis Kalanick and Garrett Camp.
Here you will find the complete guide that explains the Airbnb business model strategy completed within the Sharing economy concept:
Uber business model canvas
Step by step the whole explanation according to the nine modules:
1st/ Customer Segments.
For whom is Uber business model creating value?
Who are their most important customers?
- Passengers (those who do can not own a car, Citizens who need a taxi service, Party people who go to clubs, Parties or events, Business Travelers and Tourists, Cab at doorstep in bad weather conditions, City’s Nightlife).
- Drivers (people who own a car and want to earn money).
2nd/ Value Propositions.
What value does Uber deliver to the customer?
Wich one of their customer’sproblems are they helping to solve?
What bundles of products and services are they offering to each Customer Segments?
Wich customer needs are they satisfying?
- The smartest way to get around.
- Customers (Taxi on Demand, Cash free, Easy to order cab and short wait time, Low price, Cab map tracking).
- Drivers (Additional source of income, Flexible work schedules and can work part time, Easy payment procedure, Drivers get paid to be online).
- Layer player.
- Revenue sharing.
- Take the Wheel.
- Technology trends.
- Two-sided market.
Through wich channels do their Customer Segments want to be reached?
How are they reaching them now?
How are their channels integrated?
Wich ones work best?
Wich ones are most cost-efficiency?
- Word of Mouth.
- Mobile App (Android and iOS).
- Social media.
- Various local advertising channels like FM radio, Newspapers, Online advertising etc
4th/ Customer relationship.
What type of relationship does each of their Customer?
Wich ones have they established?
How are they integrated with the rest of their business model?
How costly are they?
- 100% digital mobile experience.
- Highly automated.
- Rating & Feedback System.
- Customer Support.
5th/ Revenue Streams.
For what value are their customers really willing to pay?
For what do they currently pay?
How are they currently paying?
How would they prefer to pay?
How much does each Revenue Stream contribute to overall revenues?
- Pay per Ride charges.
- Surge Pricing.
- Premium Uber brands.
6th/ Key Activites.
What key activities do their Value Propositions require?
- Platform Development & maintenance.
- Marketing and Consumers acquisition.
- Balanced supply and demand.
- Hiring Drivers.
- Drivers Payments.
- Customer Support.
7th/ Key Resources.
What Key Resources do their Value Propositions require?
- Uber Platform.
- Pricing Algorithm.
- Routing Algorithm.
- Skilled Drivers who own vehicles.
- Artificial Intelligence (AI).
- Self-driving technology.
- Salient Features.
8th/ Key Partners.
Who are their Key Partners?
Who are their key Suppliers?
Wich key resources are they adquiring from partners?
Wich Key Activities do partners perfom?
- Drivers who own cars.
- Payment Processors.
- TomTom mapping data.
- Investors (Google Ventures, Baidu and Toyota).
- Early adopters.
- Partnerships with public transit agencies.
- Volvo Partners With Uber on Self-Driving Cars.
- Collaborations with Dream Drive.
- Uber partnered with Blade to offer “UberCHOPPER” helicopter rides from New York City to The Hamptons.
- The company partnered with Airbus to test UberCopter.
9th/ Cost Structure.
What are the most important cost inherent in their business model?
Wich Key Resources are most expensive?
Wich Key Activites are most expensive?
- Salaries to Permanent employees.
- Payment to drivers.
- Platform development.
- Events & Marketing.
- Legal issues.
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