Travel, Uber

What are the Key Factors of Uber Business Model

Uber is the highest-valued private company in the world, more than Airbnb, Space X and Lyft combined. uber bsuiness, uber business,uber bsuiness,

Do you know every day 15 million rides are taken on Uber around the 600 cities in 78 countries?

Uber is so successful because it’s convenient, open the application chose the luxuries car, auto or rickshaw in India.

uber business
Uber Business Model and Economic

After the ride completed, Uber allows the rating to each party driver can share rating, and so is a rider.

1 out of the 5 stars as considered being the worst experience during the trip and 5 out of the 5-star considered as an amazing experience during the trip.

However, the low rating can block the rider to take the ride and vice-Versa driver account get deactivated if they received the low rating.

I am sure it still better than the YouTube thumbs ups and thumbs down if you want to rate the video.

Uber fare calculation is very easy starts with the base fare, add the per minute and multiplied by the time spent in car plus distance per mile rate covered during the trip which depends upon the different cities of countries.

uber business
Source: Image taken from ibrandstudio

A $5 trips in Mumbai costs $15 in South Carolina.

Toll fee, cancellation fee, cleaning fee it also considers during the trip and if the driver’s quantity is less then Uber may multiply the price by a surge price such occasion is New Year’s Eve and Holiday.

Surge price may higher five times more than the normal price where the driver is not enough but requirement and demand is more.

uber business
Image source: Ibrandstudio

The Great depression.

Despite the surge price, Uber is always cheaper, quicker and reliable. It took out the outdated and efficient industry something called technology. You should know by now there’s perpetually a twist driving in the Uber circles.

In 1930, during the Great Depression in the United States, every fourth American was unemployed and desperately looking for a job and at that time almost many of them started driving a taxi. You find out now by 1920 you could get taxi everywhere in the United States and the depressing situation where barely any driver could afford the ride.

 According to the law of monopoly taught us in school when the supply keeps increasing the demand to keep on decreasing. Since then New York passed a HAAS Act which states if you would need driver a taxi you need a 17,000 license called medallion, but after 80 years it became into 13,000 medallions requires for driving a taxi in the United States.

Extreme competition only good for riders and bad for driver and after the act clock reversed its direction and too many rides and sufficient taxi made good for the driver and bad for the rider.

How Much Uber Driver Earn?

If you ask the Uber driver how much they earn, someone says $19 an hour,-another one says $21 per hour. The maintenance, cleaning, depreciation, and insurance of the car are also crucial and Uber policy strictly doesn’t allow the vehicles to have any kind of scratch and that’s why the driver must maintain the car.

This states that the driver earned about $8 to per hour after cutting all the expenses during the trip. 60% of the Uber driver has primary different jobs and flexibility allows them to work too. However, Uber considers their driver independent contractor, not an employer and they have an advantage when they want to take a ride and when they want a break from driving, somewhat freelancing, work according to the situation and earn as much you want to drive. The more you ride the more you earn.

Is Driving for Uber  Worth of living?

As is stated Uber considers the driver as an independent contractor rather than employees who work for continuously 9 hours. Uber allows the complete flexibility to a driver and they don’t consider themselves as a company who is running the business rather than a platform to welcome the partner and more opportunities to the car owner to earn some passive income.

However, the driver doesn’t more driver in Uber as it creates more competition in the market but almost 80% of the driver leave the driving in the first year of driving and to prepare them from a shortage of driver Uber keep welcoming the new driver to join the platform. The driver is the one who controls the shift and decides when to work and when to not but on another hand Uber is the who control the prices of Uber and paid according to the contract and policy.

Related Post

Uber Coupon For Existing User

Lyft Coupon For Existing User

Why Uber Control the Prices?

If you would look back at the initial days, the competition between the cab transportation industry is big and price fluctuation is the major step to keep maintain the balance in the market. The industry is keeping revolutionize Uber keep looking for the resources to maintain the position in the eye of riders, and 90% user first look for the price before confirming the Uber cab service. Therefore, keep adding new drivers, it’s simple Uber makes more money with more driver.

For example, Amazon wants more seller to join, and Airbnb wants more host, and so on. The vendor relationship is very important while running such industries.

Loopholes in Uber Business Model?

Uber is the most-controversial industry in the market, often new controversy must be involved with Uber if you think it leads the Uber to deteriorate in the market then you are absolutely wrong.

Uber is 9 years old company and previous year it lost almost a billion dollars.

The main problems come before any startups it networking, social media start-up are easy to create hype,  your Pinterest, Facebook, Instagram friend Tony suggest Steve to use those social media and so on-but in the case Uber has to start from scratch because new York driver doesn’t know anything about the Mumbai driver.

Hence, building the new empire to each country from scratch must create trouble and concern but Uber keep tackling such situations since 2009.

A Quick Comparison Between Uber and Lyft

Best Car for Uber and Lyft Driver

uber business
Image source: Ibrandstudio

Leave a Reply

Your email address will not be published. Required fields are marked *