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Business Model and Revenue Model of Uber

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Business Modeling

Published on 04 Dec 2016

Business Model of Uber

Uber is one of the new companies out there. It has a new and innovative business model and revenue model.

Is Uber a platform or an app?

Wikipedia says that Uber Technologies Inc. is an American worldwide online transportation network company headquartered in San Francisco, California.

One of the biggest questions is: is Uber just an app or is it a platform? Depending on the answer it is allowed or forbidden to do certain things by law, just like Airbnb.

uber app

Uber App.

Everyone by now has heard about Uber: You request a cab on your smartphone, and in no time a cab arrives at your location.

Mission & Vision

The mission of Uber is to have you spend the shortest time possible to ride to your destination and have the rest of the day for you. With Uber we make the streets much safer: fewer drunk drivers and people have more access to public transportation. Economic opportunities are better in a city with Uber.Uber is the smartest way to get around. One tap and a car come directly to you. Your driver knows exactly where to go.

The vision of Uber is: People do not want to wait, or make reservations. People want to know more about the cab driver, they want to have some trust in the driver.

Business Ideas

Uber is an on-demand transportation network or service that has brought a revolution in the taxi industry all across the world. Uber makes it possible for people to simply tap their smartphone and have a cab arrive at their location in the minimum possible time.

A Four-Step Model

Uber is best explained via the four-step model:

Step 1: Requesting a cab - The first step in the business model of Uber is about creating a demand. People have a smartphone app that lets them request a cab instantly or schedule it for some time later.

Step 2: Matching a driver - As soon as the request is made, a notification about your details is sent to the nearest driver. A cab driver has the option to accept or reject the ride. In case he rejects, the notification is sent to another driver in that area.

Step 3: Riding in the cab - The customer can track the cab when it is arriving. The ETA is also shown to the customer. The meter starts running as soon as the customer sits down in the cab. The customer can track the ride continuously on his app as well.

Step 4: Paying & Rating the driver - Once the ride is over, the customer pays the driver and gets an option to rate the driver. The rating system is an important part of the model of trust as a person can get information about the driver before booking a ride.

uber self driving car

Uber Self Driving Car.

So What is Uber?

You may answer the question: Is Uber an app or a platform?

Mark Paauwe | Sales Director   7/31/2018Uber is a Platform!

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