Case Study of Uber

Uber is an on-demand transportation service.

Uber is a company that provides on-demand taxi services. Users request a ride via the Uber app, then are connected with an Uber driver who will pick them up and take them to their requested destination. The user pays using the app, so there’s no need for cash.

The on-demand taxi has risen to success as it provides a more convenient service than traditional taxis, allowing users to book rides at any time of day or night and eliminating the need to carry around cash. It also allows drivers to work when they want and make their own schedules, which is appealing to many people.

Uber has been successful because it allows users to have a more convenient experience than they would have when taking a traditional taxi, and it appeals to the current “sharing economy” mindset of today’s consumers.

In the era of on-demand services, Uber is a pioneer. The company has revolutionized the way we hail a cab, and it has been a significant player in the sharing economy’s growth. But what makes Uber so successful?

It all comes down to timing:

Uber came onto the scene in 2009, when smartphones were starting to become famous. This was the perfect time for an app that made hailing a cab more convenient than ever and probably wouldn’t have worked as well without a smartphone to call and track your ride in real-time.

Uber’s USP

Uber started out as a solution to an age-old problem: how do you find and book an on-demand ride quickly, especially when you’re in an unfamiliar place or just don’t want to spend the time and energy hailing a cab?

Instead of calling up the yellow cab company, waiting on hold, having the dispatcher ask you where exactly you are, and then hoping they can get someone to your location ASAP, Uber allows you to quickly pull up their app and see all available drivers right near your location. With just a few taps, you can request a driver, who will be there in minutes.

Another feature that makes Uber so revolutionary is the fact that their drivers are not full-time employees. They are independent contractors who drive for Uber in their spare time. This means that Uber is able to keep overhead costs low without sacrificing quality of service — or number of drivers available at any given moment.

The Uber business model operates in over 900 metropolitan areas.

Uber is the largest rideshare company on the planet. Its presence can be felt in 785 metropolitan areas worldwide, and it boasts over 14 million users.

It’s also one of the fastest-growing private companies in history, with an estimated $70 billion valuation and growing tenfold from 2015 to 2019.

How did Uber make it out on top? The company innovated their product and the services that surrounded it in a few key ways.

1. They not only focused on their mobile platform; they focused on their infrastructure.

2. They made sure to create technology that was responsive to both driver and passenger needs.

3. They implemented a flexible payment system that would accommodate both cash payments and credit cards for drivers who needed them.

Uber’s Monetization Model

Uber’s monetization model is based on “surge pricing.” When there are more riders than drivers on the road, the

The most common monetization model for Uber is charging the passenger a booking fee and a per-mile fee. The per-mile cost varies depending on the city you are riding to, while the booking fee stays the same. Other fees may apply depending on how long you wait in traffic and your driver’s speed or route after picking you up.

In addition to these fees charged directly to Uber’s drivers, Uber charges its customers an up to 20% cancellation fee if they cancel a ride after ordering it but before the driver arrives, and it sometimes has surge pricing in place during periods of high demand that can raise fares by up to 8 times the regular price.

How does the Uber app work?

• The Uber app allows you to book a car (driven by an independent contractor) with your smartphone at any time of day or night.
• Open the app and tap the “Where to?” bar to enter your destination address to request a ride. Then tap “Request UberX.” Within minutes, a driver arrives in their vehicle (the quality may vary). You’ll receive a notification when they’re close by, and you can track their movements on the map in real-time as they approach.
• When they arrive, hop into your ride and enter the destination again into the driver’s GPS (if they don’t have data connectivity). Once dropped off at your location, you’ll be automatically charged for the fare through your credit card — no need to handle money or fumble for cash.

While Uber has a few competitors which operate in similar ways, their strong branding and advanced technologies give them advantages that allow them to gain clients, retain them, and grow. Their services are currently available in over 66 countries worldwide and have continued to experience rapid growth.

Although there are some legal issues to be worked out with the taxi industry, it is likely that Uber will continue to be a dominant force in the transportation industry. This can be credited to its ability to adapt to new technologies and its ability to reach massive audiences with its services.