Uber’s business and revenue model is perhaps the base that has uplifted the startup to a million-dollar company. You may be aware of the fact that Uber’s net worth exceeds $70 billion, which includes a recent equity funding of around $22.2$ billion!
Imagine a life without Uber Cabs that has now become an integral part of our contemporary lifestyle? Sounds nasty, isn’t it? You just can’t deny the fact that a smart mobile application has tremendously altered the conventional taxicab services!
Here’s a complete portrayal of Uber’s business and revenue model that depicts how this company works, earns a profit, overall value, and the structure.
The Founders and The Funding
- Founders: Travis Kalanick and Garrett Camp founded the company back in 2007
- Funding till December 2017: $22.2 Billion
- Uber’s Overall Valuation: Worth $70 Billion
- Daily Trips around all over the world: Nearly 1 Million
- Uber’s Headquarters: San Francisco, United States
- Worldwide Users: More than 50 Million
The Most Spectacular Business Revenue Model of Uber
Uber’s revenue model is no different from the conventional Cab Booking App services that are based on the overall fare that is calculated as per your trip. There is no special revenue model for Uber insights and it doesn’t generate revenue except this model. Here we would be sharing adequate details about the company’s cash collection.
Dive in Here to Know More About the Business Model of Uber that Make it Different From Others:
The Surge Pricing of Uber Cabs
One of the finest modes of earning for Uber is the analysis of the situation that can enhance the trip fare whenever there is a huge demand. The automated program used by Uber increases the fare when the The number of bookings increases.
The company eventually earns 2 to 3 times the actual revenues in that particular case when more users book a cab on a particular day.
Diverse Cab Needs
Have you noticed why Uber offers a different segment of cars to its users? Well, this is again a smart revenue generation model that enhances the earnings without any extra effort! One can choose the variant as per their requirements from the available options such as Uber Black, Uber X, Uber SUV, and Uber taxi.
If you are one of those who prefer traveling in style and wish to maintain your status symbol, you can opt for an Uber SUV. This SUV cab facility gives a luxurious feel to the client and all they need to do is to pay some extra bucks for the same.
On the other hand, the ones seeking an inexpensive mode of transport can opt for the Uber taxi that can lend a hand in saving ample money. There is also an option to book an Uber Black if you prefer a black cab, which also costs a little more than the regular cab.
The out of the Box Services
Besides the overall revenue generated from the cab service, Uber clutches some inventive ways to enhance their revenues. Uber now offers helicopters, boats, and similar transportation services in some selected countries. The company also started a bike pick-up service that lets you save ample money and eventually saves your time.
Apart from this, Uber is consistently observing the market trends and has recently launched its food delivery services named UberEATS that significantly offered exceptional food delivery services. One can eventually order food from their favorite restaurant and can track the same using the mobile application, which precisely functions just like the Uber cab application.
The idea is to deliver exceptional services to the clients and simultaneously maintain adequate revenue services for the drivers. Here’s the proposition of the company for both customers and drivers
- Immediate response when booking a cab (no waiting)
- From time to time attractive offers
- Better services at comparatively lesser prices
- 24*7 availability
- Real-time tracking
- VIP treatment when reserving a luxurious cab
- Easy working schedules (no dedicated timings)
- Hassle-free payments options
- Additional income depending on the driver’s availability
- Extra income if a driver is online (even without a ride)