Uber is synonymous with taxis, with passengers, and to drivers. It’s basically a referral service. The app is well established in the business world. Although, we’ve all wondered where all this revenue is coming from? Uber is discreet about how the revenue works in the company. There is no way that you haven’t come across it or used it but just in case, Uber is an app that connects drivers with riders. It has an iOS, Android, and Windows version. In addition, the tech company also processes all payments involved, charging the passenger’s credit card, taking a cut for itself which ranges fro 5%to 20% and direct depositing the remaining money into the driver’s account, all in the background and completely cashless.
Uber has been valued over $50 Billion, while already receiving an equity funding of $8.2 billion, and is present in about 60 countries at the moment. The trust of the investors on Uber’s business model is clearly visible with these facts. It also makes us wonder how much revenue will Uber be making once it attains liquidity.
The Revenue Generation Model:
The cash collected at the end of the journey is the only source of revenue for a traditional cab company, Uber is similar, it does not have a different source of revenue than the normal. Although, 1 million rides a day is not easy to calculate so let’s get deeper.
The business model of Uber is as unique as their revenue model.
Uber has all types of cars and all types of customers, the company has not restricted itself to anything. It offers any service that is demanded by the user, if they need a SUV they’ve got it, if they need the smallest car they’ve got it. Hell, if they need a helicopter they’ve got it
Surge Pricing plays a vital role in the business model, the variation in price according to situation earns a lot of revenue for Uber as most people need a ride – after office, during rush hour, during strikes and stuff. The price depends on number of available drives and number of requests coming in.
Other than cars, Uber has also started offering other transportation means like – helicopter rides, boat rides. Uber has also recently launched a motor bike pick-up in Paris, since in Paris users prefer to bike to places, and an ice-cream-truck-delivery service in 7 other cities. All these have added to the revenue model even though they are present in particular places.
FOR THE USERS
There’s no need for the user to wait for a taxi, once the request is sent in the nearest driver will arrive at the users location, which makes it convenient and time saving. They can also track their rides, know their drivers and talk to their drivers from the app.
FOR THE DRIVERS
The drivers have the opportunity to earn additional income, the working hours is flexible and they can even work part time if they wish to. A major plus point for the drivers is that Uber pays them to be online even if they don’t receive any requests.
Uber’s users are mostly the ones who do not own cars, people who do not want to drive themselves to a particular place and people who want a cost-efficient cab at their doorstep.
Uber has a huge customer base because it has something to offer to everyone.
Uber for kids is a special service for parents who cannot pick their children up and need a cab to bring their child home safely.
Uber has cabs especially for senior citizens, based on statistics 30% to 40% of total rides is ridden by senior citizens. They have special features which are suitable for senior citizens especially. Uber has thought about everything!
Uber defiantly has proved itself capable of earning the amount it does, based on the ideas and planning that it comes up with, investors are bound to trust them. Like Uber, you can have your own ‘revenue app’ all you need to do is come to us and we’ll help you figure out the rest.