If you are dreaming of launching your brand of online taxi booking business, then your idol ought to be an Uber app. Yes, Uber has become a household name in the taxi booking industry. For a young budding entrepreneur wishing to repeat the Uber triumph legacy, Uber is definitely his idol.
Let’s Walk Down The Memory Lane And Trail The Success Path Of Uber:
Uber is just 11 years old, a business in its teens to say. Yes, Uber was born in 2009 to cater to the serious taxi problem in San Francisco. Since a baby, Uber faced many challenges but faced it all and became a giant that it is at present.
Uber Company Portfolio & Statistics:
- Company Headquarters: San Francisco, California, United States.
- Uber CEO: Dara Khosrowshahi
- Uber Founders: Garrett Camp, Oscar Salazar & Travis Kalanick
- Latest Funding Received by Uber: $8.1 Billion. (as of May 2019)
- Company Valuation: Over $82 Billion. (as of May 2019)
- The Number of Active Users: More than 95 Million.
- The Number of Registered Drivers: Approximately 4 Million.
- The Average Number of Daily Uber Trips: 15 Million
Factors Guiding To Uber Success:
There are numerous taxi booking startups but why has Uber received such huge success? This is a million-dollar question that everyone wants to know. Please read ahead to learn key factors guiding to the success of the Uber app:
1. One Of Its Kind:
Back in the year 2009, the public transportation service was in an awful state, leading to the painful plight of the passengers. Commuting through public transportation was not what everyone wanted to take up to. And taxi/cab booking was a costly or luxurious affair. In such a scenario, Uber came to the rescue with its unique, hassle-free ride-sharing taxi booking service. Uber app has revolutionized the whole face of the taxi booking industry. Uber was definitely one of its kind taxi dispatch solutions which catered to the need of the hour.
2. Real Solutions To The Real World Problems:
Customers are the heart and soul of any business. Customer satisfaction is the primary concern. Uber just got it right. While companies adapt to business models sorting out one of the few needs of the customers, Uber gained quick popularity among masses for answering many problems of its customers at one time.
Uber solved the basic transportation problem with budget-friendly trip fares.
Uber Customer’s Segment:
- People who don’t own cars
- People who can’t drive a car
- People who don’t want to drive themselves to parties
- People who like to travel in style and luxury
- People who are looking for a cost-effective transport option
The Uber app is super user friendly and passengers can book a ride hassle freely. Additionally, Uber made it possible for the passengers to review and rate their experience with the drivers. The drivers were never accountable prior to Uber. So, Uber catered to customers and it was for the sake of the customer’s convenience that Uber became super hit. HAPPY CLIENT, HAPPIER THE COMPANY.
Uber’s Drive Segment:
Drivers are a too important part of the Uber business. Uber gave employment opportunities from its platform to the drivers, who were else unemployed and money less. While earning $500 per week was the average earnings of a driver, Uber just shouted their income very high. Now with Uber, they earn the same but per day. Is it not an attractive deal for the drivers? Absolutely yes! Uber employees qualified and experienced drivers and since its inception its creating huge job opportunities for drivers.
So, Uber sorted out two problems with a single arrow. And thus, a deserving great success.
3. Uber, An Early Adopter:
Uber carved out the largest share of the online taxi booking industry being the first ride-sharing company. Yes, people will always remember the first brand that created an upsurge and such brand popularity cannot be bought. Uber faced many challenges and competition from other taxi dispatch solutions like Lyft, DiDi, etc but Uber was an early adopter of the new technology amalgamated with taxi service to cater best to the customers which many companies fail to do.
4. Low Infrastructural Cost:
Infrastructural cost is crucial to any business. Cost and margin are inversely related. More the operating and infrastructure cost, the less is the margins. Uber had very minimum infrastructural requirements and thus was operating with a low infrastructural cost. Uber had no overhead expenses like traditional can companies. It has a relatively simple infrastructure that enables them to adopt your changes quickly. Labor cost accounts for the biggest share of expenses in transportation companies Uber saved that money by hiring non-commercial drivers. Initially, Uber was one costly taxi service which went to become a 10% cheaper taxi service after a year it was launched. So, it’s wise to control expenses and make your taxi booking solution cost-efficient one.
5. Catchy Marketing Strategies:
While social media advertising, banners can help you reach the target audience but it’s a costly affair. Uber made great stress on Word of mouth advertising. When real people share their real great experiences with friends and people around, they are more influenced and you know what, it’s absolutely free. The users are the real marketers and people trust their peer’s feedback more than the advertisements. Uber also encouraged referrals programs. People spreading information would receive a bonus. Also, the first time user or rider enjoys a free ride. With all these small, big, catchy, and new marketing strategies, Uber made a deep and huge impact on the people. Word of mouth is the core marketing strategy of Uber. Satisfied customers are the most potent advertisers.
6. Uber, Catering To Every Genre Of Audience:
Whether you are looking for a luxury ride or a cost-efficient ride, Uber caters to all. Uber maintains a fleet of multiple luxury sedans and SUVs to budget-friendly taxis. So, Uber has a ride for every budget and everybody.
7. Diversification Of Business:
Uber is Synonymous with a taxi booking service. But Uber very wisely has diversified its business to many new venues with beaming growth opportunities. Uber has launched Ubermoto, catering to motorbike and scooter riders. It has enormously helped the scooter and bike drivers to get into the game and earn. Apart from the taxi dispatch software, Uber got into food delivery with Uber eats, uberBoat,uberChopper, UberFreight. Uber has extended its taxi booking service in China as well. Though the Chinese markets give less earning opportunities but Uber played the card well to establish the global reputation of Uber.
No Matter how much your competitors grow and earn, there is always room left for you. All you have to do is find possible avenues of expansion in unexplored areas. If we talk about the mobility industry then, driverless cars or self-automated cars are still not in the picture, flying taxis, etc doesn’t seem to be a very near future concept. So, budding entrepreneurs can go ahead in the direction. All startups need to find out possible new avenues by studying the following key factors:
- Finding new customers and retaining old ones
- Going into new market segments
- Expanding your service capabilities
Uber has done all these strategic studies before expanding its business.
8. Uber, The Believer Of Simplicity:
According to Subrah Iyer, the co-founder of Moxtra and Webex, the giant success of Uber lies in its simplicity. Uber has the simplest yet elegant business model. Uber made an uncomplicated and simple to implement a business model to cater to simple needs. A simple approach to a simple problem basically. Talking is easy, right? Let’s see how simple things are really made simpler:
- Have a clear, crisp vision of your business.
- Effective communication with team members of vision and ideas
- Great operation techniques to carry out internal operations coherently
- Follow the client’s feedback and reviews. The clients are the testimonial of your service success.
However, initially, it’s very difficult to keep all well optimized but by and by you can adapt the need of the hour.
Initially, according to the experts, Uber had a complex plan. Their plan of luxury taxis was a complicated service. Uber soon realized it’s not what people are looking for. People wanted a hassle-free cab booking service and budget-friendly rides with other essential built-in features. Yes, luxury rides can be an added service. Apart from luxury rides, Uber today is working on self-driving cars and trucks. To all aspiring entrepreneurs, keep your business plan simple yet effective.
9. Uber’s Transparent Surge Pricing:
Surge pricing is a demand-responsive pricing algorithm to maximize revenue and also ensure that no chronic shortage. Surge pricing is adopted generally by airlines and the hotel industry. Uber’s surge pricing strategy also reflected high fares during unusual events or bad weather etc. However, Uber’s surge pricing garnered many criticisms not actually for high fares but for not being transparent for the strategy. Users complained about not communicating such a pricing strategy to them beforehand. This cane was a big challenge to Uber. However, Travis Kalanick, CEO of Uber, went ahead to incorporate a feature in the Uber app that would communicate the user about the price rise and when the high fares would come down to normal. This transparency feature made Uber even more popular.
10. Change Is Constant:
Its only change that is constant in life. It’s a hard truth and applies to all spheres of life. The same holds true for the business as well. It’s particularly true for Uber-like companies which operate in unconventional markets and with ever-changing consumer preferences. Capitalism is constantly evolving and technology has left traditional business far behind. Today’s consumers’ needs are radically different from those of the previous generation. Companies who didn’t adapt to changes are left back and wither away in time. Uber is one such business company that has adapted to changing market situations very quickly to its favor. It’s for the new entrepreneurs to understand and find out opportunities in changing environments to their favor always.
Take Away From The Uber Business Model:
The Uber business model is one of the best business strategies running in the global world at present. A detailed and deeper analysis of the Uber app is like an entrepreneur course for budding entrepreneurs. Uber-like any other business has experienced high and low in the business. Uber took lows as the lessons to learn and rise ahead.
- Learn to innovate like Uber
- Keep your business scalable
- Keep an eye on the cost and keep the cost to the minimum
Uber, over years, has experienced unbound success. The success was a hard-earned and well maintained one. If you are aspiring to launch your taxi dispatch software to recreate an Uber success story then approach a taxi app development company to build an Uber clone taxi app that will onboard you to create your own success story.