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Uber is one of the most popular and leading ride-sharing app across the globe. Uber business model has been a trendsetter in the mobility and on-demand economy. There are also other prominent players such as Lyft, Careem, and Gett in the ride-hailing industry. However, Uber still retains the lion’s share of the market. According to a report by Statista, it serviced 111 million people every month in 2019. And it was clocking a massive net revenue of USD 14.1 billion.
However, Uber and its peers are still lagging in meeting the demand of customers. Goldman Sachs estimates that the ride-hailing industry to grow eight times and become a 285 billion USD market by 2030. Another report by Statista highlights that user penetration will reach 20.6% by 2024 from 19.2% in 2020. Unless the current players boost their capabilities to unprecedented levels, supply is falling short of demand in clear terms.
So, if you are hoping to launch your own ride-sharing business, the industry is open and ripe for new entrants. But, the question is how to follow in the footsteps of Uber? Well, it takes years to get a success like Uber. What’s more crucial is to start now. Here is how you can do it:
Define Your Value Proposition for ride-sharing app
Uber acts as a facilitator between drivers and riders. The drivers have the flexibility to decide the terms of a contract based on their schedule. At the same time, riders get mobility at their convenience. In turn, Uber earns its revenue by collecting a fee from both drivers and passengers. The value proposition is a win-win situation for all stakeholders.
Why should cab drivers partner with your business? Why should customers book your service and not your competitors’? What’s so unique about your business? The answers to these questions will help you figure out your ride-sharing company’s value proposition.
Develop a Powerful ride App
Uber’s app is the core foundation on which its laurels rest. Available on both iOS and Android, Uber is an amalgamation of three apps:
- Passenger App: Riders can schedule a cab, see the driver and cab details, manage personal profiles, and track real-time ride status and history. They can also pay the fare, contact the drivers, receive push notifications, and give ratings/reviews.
- Driver App: The app enables Uber’s drivers to show their availability to riders, accept or reject a ride, manage personal and cab profiles, and call the riders. Moreover, they can navigate a route through GPS, estimate the cost of the journey, and check the daily status of trips and earnings.
- Admin Panel: Also called the nerve center of Uber. This app is more of a web application. It acts as an admin for both passenger and driver apps. It helps the company track, manage, and reviews these aspects – vehicle information, coordination between riders and drivers, billing and invoice, customer feedback, promotions, and discounts.
The cost of developing an Uber-like app depends on several factors, such as:
- Geography for which the app needs.
- Type, number, and customization of features required.
- The location of the app development team.
- The number of app development hours.
If you want to provide a robust customer experience through an app, it should have rich features and provide real-time information.
Uber-Like Business Find Innovative/Alternative Revenue Generation Streams
Uber is known for its three revenue generation models other than the routine fee collection:
- Surge Pricing: Whenever there is a spike in demand in a particular area or at a specific time, Uber applies surge pricing. This means that riders have to pay an additional fare over and above the base fare per mile. The surge pricing also comes into the picture during lousy weather, special occasions/holidays, rush hours, etc.
- Vehicle Choice: Whether the rider wants to ride on budget or luxury, or needs extra seats, Uber offers several choices of the cab and fares at the time of booking. The passenger app displays the vehicle type and food against it.
- Brand Promotions: Given its massive customer base, many brands collaborate with Uber to advertise their products and services on its app. Uber charges a commission from the brands for running these advertising campaigns.
Thus, you must find and carve out innovative streams for revenue generation as well.
Uber-Like Business Conclusion
Uber has come a long way since it started its breakthrough journey in the ride-sharing segment. With the right vision, feasible business model, and a feature-rich mobile app, you can also confidently tread Uber’s path.