Uber Business Model

1115 Words 5 Pages
Founded in 2009, the famous Uber ride share company has become explosive across the world. Uber continues to grow extensively by making ride sharing effortless and affordable. Through the use of the Uber application on smart phones, customers can simply request a driver with just the touch of a finger. Once drivers are contacted, the passenger has access to the type of car being driven, the driver’s route, and the ability to communicate to the driver if necessary.
Because everything is done electronically through Uber with credit cards, people basically get into the car, get to their destination, and walk out with out the use of cash paymentd. This type of ride sharing service is not only innovative, but it also keeps up with today’s ever
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Everything is done through an application that allows the passenger to order a ride to whatever destination they may want. Once that request is sent, the passenger has the ability to access the driver’s background information; name, car type, phone number, and license plate number. When the driver arrives, the passenger is alerted and the car will be waiting for them outside. Once the passenger has arrived at their destination they simply get out of the car, not having to deal with money exchange or leaving a tip. “Uber is currently active in 120 international cities, receives more than 3.8 million annual sign`ups, and has recently been evaluated to be worth $17 billion dollars” (SF Tech Beat). This type of ride sharing is simple which is why it appeals to so many people, especially the younger generations and millennials. According to a recently released, “marketing study, 10 percent said that they ‘couldn’t imagine [their] life without it’ and 51 percent use Uber or would be likely if it were locally available” (Liss 71). This rapid growth of Uber proves its power and determination to continue …show more content…
Uber offers three different types of car services; Uber Black, Uber X, or a limousine service. Uber Black is the car service where a professional driver picks up passengers upon request in a black SUV. These drivers are are certified and official. Uber X is regular people picking passengers up in their own cars which are registered through Uber. These drivers are not considered professional, and usually use Uber as a side job. Uber X is the cheapest version of Uber, making it much more affordable. Due to its constant growth in numbers, many taxi drivers are quitting their jobs and choosing Uber as the better alternative. By switching to Uber, taxi drivers, “save on the cost of renting the cab, increased flexibility in work hours, and the opportunity to earn more money” (SF Tech Beat). Uber focuses on an on-demand service where the ride share is essentially offered any time,

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