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We can’t imagine those days where it was a nightmare to commute to the office or any party. It was those days where we used to wait for taxis along the roadside for our requirements. All these were changed with the opening of the online cab service in the taxi business industry.
It made a revolutionary in the taxi industry. When we hear about the online cab, the first and the foremost online cab service which strikes our mind is Uber- The topmost emerging online taxi business and a very good taxi booking app which helps the customers to commute as well as the drivers to move along with this transportation network business.
With the arrival of Uber into the taxi industry during 2009, drastic changes happened to overcome the traditional way of booking a taxi. Through Uber, you can book a taxi online within a few minutes.
It introduced cheap rides when compared to traditional rides and there is no tipping system in Uber. You may wonder how it works well to earn revenue. It is based on Uber Business Model
In this article, we will look into the Uber Business Model and how it works
As we have already seen Uber is an online taxi service started in 2009 by Travis Kalanick. It is a multinational and American based ride hailing company with its own Uber mobile app offering for its massive customers and driver partners.
Uber has been in the taxi business for long ten years. Here we can look into the Uber timeline underscoring the galloped achievements and showdowns of Uber.
The black car ride service model was established by Kalanick and Camp and later it opened the way to Uber Cab service.
In San Francisco, Uber was launched and the service was linked with high tech professionals, car owners.
The company was renamed from UberCab to Uber. In capital funding, the company share was around $1.25 million. Shawn Fanning, who was the former co-founder of Napster invested in the company. Immediately after two months, Graves stepped down from the CEO position and it was replaced by Kalanick.
The service was expanded to New York City and it was highly competitive among the massive cab industries. After six months it was able to launch to Paris.
The drivers of Uber joined up to initiate a lawsuit against Uber for employee designation rather than contract workers. It was the first and one of showdowns.
Uber Pool was introduced to have a ride-sharing model and to split the ride fare between multiple customers.
It introduced UberEats in few cities like New York, Los Angeles, Chicago and offered the food delivery experience of Uber. It allured busy professionals who hardly had time to cook dinner. It added a remarkable profit to the company.
The first charge of sexual harassment was reported in the workplace of Uber. It was reported by a former company engineer which resulted to hire Eric Holder who was the former Attorney General of the US. He was responsible to investigate the issue. After 5 months, this forced Kalanick to resign from the CEO position and replaced by Dara Khosrowshahi, who was the former CEO of Expedia.
In New York Stock Exchange, it goes public at a share price of $45 and the market capitalization was around $75.5 billion.
The following steps can be followed to understand the working of Uber App.
Customers can book a taxi from the Uber App by enabling the GPS and internet connection. GPS will track the customer and driver location for each other.
The taxis available near to the customer place will be listed and the customer can choose the taxi based on the nearest available taxi to pick up point or customer location.
Customers can also select from standard cars to luxury depending upon their requirements.
The drivers can use a seperate Uber app developed for their drive partners to view the customer request and to manage the commissions earned from Uber.
When the drivers accept the request, the taxi can be tracked by the customers and the payment is calculated based on the fuel consumption, time taken for the ride, distance traveled.
The payment can also be paid during the booking or after the ride. If the ride gets canceled the payment made will be back to the customer’s account. Once the ride is completed the payment gets deducted from the customer’s account.
After the successful ride, the customers will be able to rate the taxi service and provide positive or negative feedback with the real time ride experience.
Read about how you can build your own Uber-like Taxi App, Yet Unique.
1. Adopts different cab models
2. Surge pricing technology
3. Other Uber rides
Uber business model is a partnership model
How Uber works with this business model
Uber- Customer Interface
Price calculation of the ride in this business model
Dynamic pricing in this business model
The success of Uber business model
Uber-like cab management software is on high demand to run a Taxi business these days. Here are some more benefits of Uber-like Taxi App.
Hope you will find how the Uber Business Model works. Uber business Model is a business Model which is very transparent and easy to understand for its customers and driver partners.
They mainly satisfy their customers and their driver partners to run their show. A very good platform for the vehicle owners to start their business and they stay success with this Business Model.
Before concluding you can also try a Free Taxi Dispatch Software Demo to understand how it works for your business.
Similar to Uber, Ola is one of the leading Taxi Booking App based in India. Here You can also have a look at the Ola business model which has become highly popular in a short span of time.