Uber Business Model

Smartphone Enabled Ride Service of Uber Business Model was founded in March 2009 in San Francisco, California, USA. In 2012, it expanded its business internationally Uber is available in 201 cities outside the U.S. in over 60 countries Uber now has over a million driver partners and is adding hundreds of thousands of drivers every month around the world. Uber started the delivery business in April 2014 and is now expanding its delivery business. Uber Business model is one of the widest read case study on how uber is generating money.
Uber now adding hundreds of thousands of drivers every month around the world. Uber started the delivery business in April 2014 and is now expanding its delivery business as well
• Launched in San Francisco, California
• Now operates in 572+ cities in 77 countries
• Currently valued at roughly $70 billion

How Uber Works:

1. Install the app on smartphone and create an Uber account.
2. Whenever user need a ride they must use the app to tell Uber about their pickup location. Uber access the current location of User through GPS There are also text message and mobile website alternatives to using the app.
3. Uber will inform the user on confirmation on booking and how many minutes it may take for driver to reach the location
4. Uber will inform the user when the car is arrived. The Uber app will also show you details of the driver, his/her name and photo, and the type of car he/she drives.
5. The Pool option will allow the user to choose economical way of using by sharing the ride.
6. Payment can be made either cashless way by paying through card or directly through cash.
7. After your ride, user can rate the driver on a scale of 1 to 5 (politeness, safety, cleanliness).

Different types of car offered by Uber.

Uber offers several types of cars to the riders. They can be broadly organized into three segments: Economy, Medium and Premium. The different car categories in the different segments are listed below
Economy segment.

Uber Business Model

UBERX (website)

UberX: An UberX is common sedan which has 4 seats.
UberXL: UberXL vehicles are larger than UberX which has 6 seats.
Medium segment.

Uber Business Model


UberSELECT: UberSELECT are premium cars. This option is for riders looking for an affordable luxury experience. An UberSELECT can seat 4 riders.
Premium segment.

Uber Business model

Uber Business Model -UberSUV (Website)

UberBLACK: An UberBLACK is luxury car. User can choose UberBLACK for a private-driver experience and expect pickup in a high-end sedan within minutes.
UberSUV: An UberSUV is a high-end SUV. Its fare price is higher than UberBLACK.
UberLUX: An UberLUX is a luxury car that provides ultimate luxury and style. Its fare price is higher than UberBLACK and UberSUV.

Uber offers the following benefits to the users:

Uber offers benefit for customers as part of Uber Business model , they are

Simple to use: The app is simple to use this will help the user to book a ride easily. The driver comes to the pick-up location and the rider can track the approaching driver.
Safe to use: The driver information is shared with the user as soon as the ride is confirmed so this ensures safety of the User.
Multiple options:The riders can choose from several car categories depending upon their budget.
Cashless Transaction : Uber allows user to pay cash through credit card which helps in cashless transaction.
Feedback: After every trip, a rider can rate the driver and provide anonymous feedback about the ride.

Uber offers the following benefits to the drivers- Uber Business Model

Uber offers benefit for Drivers as part of Uber Business model , they are

Flexibility: The drivers can work whenever they want to work and they can work how much they want.
Monetary Benefit: Whenever driver completes certain number of rides Uber offer them assured income or bonuses. Uber also provides referral bonuses to them when they introduce new drivers.
surge pricing: Whenever the demand is high and supply is low, Uber automatically increases the fares. This helps drivers make more money for the same distance.
Cashless transactions: Uber’s cashless transaction avoid the hassle of carrying cash and making change.
On Time payments: Uber makes payments to the drivers every week directly into the driver’s bank account.
Two-way feedback: Uber provides a two-way rating system, where Drivers can also rate the riders after every trip.

Also Read: Larry Ellison Net Worth

Uber Driver incentive Programs- Uber Business Model.

Uber works with a system of Minimum Business Guarantee(MBG) facility, where the driver has to fulfill certain criteria to get assured money.
They are –
4000 rupees – 14 trips a day.
3000 rupees – 11 trips a day.
2000 rupees – 8 trips a day.
If after fulfilling the criteria, drivers still earns less than the MBG, Uber would add the rest of the money to your MBG guarantee. Ie., Even after 14 trips if driver make 3300 which is less than 4000, then Uber would add 700 rupees to make it 4000, through 15 trips a day Uber driver can earn around 40,000/ day on average.

Uber Business Model


Uber Business Model.

Uber business model is simple,
1. Commission from Trips: Uber charges 20% commission from each trip from the driver.
2. Rolling Interest: Uber usually take 7 days to deposit money to driver’s account to the money received from user earns them huge rolling interest from banks.
3. Earnings from UberRUSH: UberRUSH is a door to door delivery service that allows businesses to fulfil their local deliveries. The delivery partner drives or rides to the business location, picks up the item, and delivers it to the customer.
4. Earnings from UberEATS: UberEATS is a food delivery service powered by the Uber.It delivers meals to the customers from their favourite local restaurants. UberEATS promises a delivery time of 10 minutes or less.

Today net worth of Uber is $70 billion and the recent diversity report shows Thirty-six per cent of the company’s worldwide employees are women, Google has 31 per cent women and Apple has 32 per cent.

Please share if you liked Uber Business Model 

Written by storypmb