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Uber Insights: An in-depth Analysis of a Huge Revenue Model

January 28, 2020 | 10 min Read

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 taxi 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 the 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 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 Uber cab application.

Uber’s Schemes

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:

For Customers:

• Immediate response when booking a cab (no waiting)

• Time to time attractive offers

• Better services at comparatively lesser prices

• 24*7 availability

• Real-time tracking

• VIP treatment when reserving a luxurious cab

For Drivers:

• 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)

The Basic Growth Model (How Uber Attracts Customers)

Have you ever thought about how this startup managed to steal the title of the most successful startup with a huge funding in hand in just nearly 6 years? Well, Uber has the smartest way to counter the issues that every startup may face in the initial years.

Here’s the list of advantages that Uber has:

• A finest mobile application that acts as a backbone for their funding and magnetizing clients

• Uber holds great funding based on the unique idea that helps them in offering incentives to customers and drivers in the new launch city.

• A brand name that requires no introduction even in the moderately developed cities

There’s more than you ever think about the growth model of Uber insights. The company emphasizes starting their business in the small cities, which is controlled by a general manager that manages both the drivers and customer acquisition.

The company smartly hires the drivers that are initially in the business of a taxi cab service with a new launch in a city. This eventually saves their initial investment as the drivers have their own car that further runs under the branding of Uber!

Once the service is started in a city, the local branding is done through the media and great discounts are offered initially to magnetize customers.

How a Customer Books an Uber

Requesting a Cab

The initial step is to request a cab using the mobile application. A smart mobile application lets you book a cab instantly without squandering your precious time.

Matching the Request

Once you make a request on the application, your details about the requirement are shared with the driver that is available at the nearest spot. It is entirely the driver’s will to accept the requestor to reject the same. If the request is rejected, the same request is forwarded to the other driver in that area.

Tracking the Ride

Once the ride is booked, the user can track the cab with the real-time tracking feature offered by Uber’s application. This is perhaps the best thing that has tremendously augmented the revenues of the company as the user gets the hassle-free experience of booking a cab.


Once your ride is over, you can pay the driver by various means. This is perhaps the reason both drivers and customers never have to face any glitches related to the payments. You can offer the rating to the drivers once you have made the payment that again lends a hand in augmenting the service.

Uber in India

India is one of the choicest countries for businesses from around the world and Uber isn’t untouched with the influence of this country towards startup ideas! Uber first launched its product in Bengaluru India in August 2009.

The company witnessed tremendous response from the public initially and was able to generate great revenues. Here are uber insights in India:

Drivers in India:

• Uber has more than 400,000 driver-partners that are serving the best in class services across the country.

• Most of the Uber drivers have their own cars.

• In some cities, the company has tied-up with weekly car rental service providers.

• While the remaining drivers have taken cars on EMI’s as they can easily manage the

Average Earning of an Uber Driver in India:

• The average income of a driver varies from location to location and lies between INR 50,000 -100,000.

• While records depict that most of the drivers made it possible to cross INR 100,000 in the FY2017.

• The drivers who are available to serve the cab service more than 6 hours on daily basis earn fares ranging from INR 1500-2500 each day (the drivers have to deduct the prices of fuel and other expenses from this amount only). This is perhaps the reason more and more professional cab drivers are getting attracted towards Uber services in India.

• Uber charges around 20 percent as a commission on your earnings and some other charges as taxes.

• If a driver makes a certain amount of trips from Monday to Thursday, the driver gets INR 1400 more as an incentive. The same concept is followed when a driver makes the same amount of rides on Friday, Saturday, and Sunday and the incentive for the same is INR 1900.

• The incentives vary from time to time depending on the surge.

Uber’s Revenues in India

• The company recently posted an increase of 52.3% in their overall profits for the year ending March 2017.

• The overall revenue from operations was increased by 133% to INR 1.04 crore in the fiscal year 2017 from INR 42.9 lakh in the fiscal year 2016.


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