Timeline of Uber's success path
If you've ever traveled by taxi, you'll know that at the end of each trip, you have to pay the driver. The money for each trip is the only revenue source for traditional taxi businesses. Uber is no exception.Uber not only does not have a different revenue model from the above model but so far there is no other revenue source . Imagine the number of 1 million trips every day, you can calculate the sizable amount that Uber earns. But dig a little deeper to understand Uber's revenue stream.
What makes Uber so successful? That's because Uber's revenue model is as unique and unique as its business model. This can be explained as follows.
Uber does not limit itself to a certain segment of the car or segment. The company has Uber X, Uber Black for those who prefer black cars, Uber Taxi for those who want to choose low-cost solutions or Uber SUB for those who want more luxury.
Taxi prices fluctuate depending on different situations, which is one of the important aspects of Uber's business model. When demand is high, unit prices per mile will also increase automatically. The new price also depends on the number of existing drivers and the number of requests of car callers. Uber has also registered copyright for this model in the US.
Uber has gone beyond traditional taxi facilities. Now the company also provides boats, helicopters and several other means of transportation on demand. Uber already has a Paris bike service, a San Francisco transportation service and an ice cream truck service in 7 other cities. Although these services are only available in selected locations, it also provides additional revenue for Uber's business model.
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Uber customers are:
Uber's customer segment is so vast that its services seem to cover everyone. From Uber Taxi to Uber Black, from Uber X to Uber SUV, the company has a very large customer base and so has more options. Uber also serves people who need professionalism because they hire a Uber taxi to work. With this object, Uber connects with the business from the beginning and does the same when they expand in other cities and other countries. Besides, Uber also brings many other services such as:
All of these things may raise a question in your mind - how do Uber find customers and how can they market to their target customers? The article will expand beyond Uber's business model and come with this company's growth model.
In less than 6 years, Uber tries to be the best mobile city service provider. Let's decode Uber to see how they did when "opening" a new city or country. The deep rule is that for every new city, Uber faces the same "egg and chicken" problem. The advantage that Uber has over other startups is:
Everything starts with a group in a small city. In every city, there is a manager who is responsible for attracting drivers and customers. The first "front-end" taxis were often professional drivers, having a relationship with local taxi companies and having their own cars. The first customers from broadcast channels such as FM radio, newspapers, online advertising . Uber is a big name that everyone expects their service to appear in their city. live.
Uber - Business Model Canvas business model
It can't be said that I have completely understood Uber's business model and revenue model if I can't answer the question of why Uber has become such a "successful journey". Below is a brief description of Uber's journey from its inception. Any startup that wants to grow like Uber can try this journey
Previously, people had to stand on the street, waving their hands to signal the taxi to stop. Waiting time, inconvenience and high prices become problems for everyone. There are very few taxi companies and therefore taxi drivers or taxi companies often get a high price even if they think it is right or not. No one controls the price and the user has no other choice. Besides, the situation is worse than during peak hours when it is almost impossible to find an empty taxi.
Uber recognizes the problem of calling a taxi and providing a technology solution through the phone application. The solution to call a taxi by smphone has revolutionized the taxi industry. Uber application was officially launched in 2010 and quickly became popular thanks to the value it brings to users.
It is difficult to market a new product or service launch anywhere. What makes Uber beyond the usual boundaries is because it was first launched in San Francisco - the home town of tech connoisseurs. The first driver is approached by cold calling method - approach to potential customers by phone. Many of them are professional drivers at taxi companies or earn their living with taxi jobs.
To get first customers, Uber uses social media and mass marketing. The company offers discounted, free driving packages and lower prices than other taxi services in the city. Uber's first customers are those who are passionate about trying new services. Uber also offers cars from clubs to customers' doors, so partygoers love it. The company also serves a group of business customers who work in the workplace to help them save time.
Anyone who participates in a trip with Uber must be amazed at the experience of "seeing the ears". This makes the first users become regular customers and they also help advertise through word of mouth. This advertising method is also one of the common transmission forces.
Uber's main development opportunities come from
Take a taxi in your own style
Law - Uber is involved in lawsuits in New York and San Francisco. According to Uber, all their drivers are partners while the court says they are actually employees. Uber is not the only company that has this problem, but practically all companies that hire workers in the form of 1099 are controlled.
Chicken and egg problem (when launched in the new city) - Uber faces the chicken and egg problem when they start out in a new city. Attracting customers and partners is not an easy task. To solve this problem, the Marketing team started working by looking for professional drivers. Soon after, they started online and offline marketing methods. Discounting is also the main selling point (User Selling Point) to appeal to new customers in the early stages.
Trust and safety issues - There are cases where taxi drivers behave rude to guests. A few cases of drivers must be surprised when the reluctance of female passengers is exposed. This is a big challenge for Uber. Although the company has taken measures such as verifying their drivers and personal identities, there are cases that cannot completely eliminate the problem.
There is no doubt that Uber has brought a revolution not only as a taxi company but also as a business model that can reach and serve customers in its area. Many startups have copied Uber's business model accurately and many others have taken repeated steps to start a business in many other vertical industries (industry vertical).