Develop Cab Booking App like Uber : Business and Earning Model

Uber, the bible of the taxi business and the king of on-demand transportation service that altered the face of taxi businesses all over the world. The perception and business model of Uber app have made taxi booking as simple as just tapping a Smartphone to get the cab at your desired location. As the cab booking app like Uber makes the life of the passengers easy in the same way, it is an intelligent tool for business.

The country like Brazil where taxi service services are on demand as a huge number of people is traveling to Brazil. Traveling from one place another was very difficult until Uber opened the doors by winning the case and letting their government remove all the rules that were against online taxi services. With Uber, the other on demand taxi service business came into action and also became popular in the cities like Rio De Janeiro and Sao Paula.

The reason for the popularity of cab booking app like uber is the concept and business model on which the whole system works efficiently. It is a simple idea that someone can just use their Smartphone to get a taxi when you need it is quite an achievement. It is an earning model for all the stakeholders involved may it be in cash or kind.

As a Business Model

Uber is in the list of those few companies who have grown tremendously in a short period and shows its presence in almost 60 countries. The reason for this growth all over the world is the business model they work on which creates the trust of investors.

Uber has one of the most robust business models across the globe. You believe it or not but Uber was the first online taxi business model that came to market. The ideas were the ultramodern one that actually shocks the whole world. With great market research, uber just destroyed the other radio, hailing etc taxi services.

Since Uber came to market, online ride booking became a trend all over the world. By learning from Uber, many online taxi service businesses became huge brands in many countries and are still expanding their business. Still, Uber has not stopped yet; this brand is upgrading itself in the different sector as well as in different countries.

Understanding the Business Model of cab booking app like uber

Partners Involved

  • Investors
  • Drivers
  • Payment Gateways
  • Map API Provider

Activities Involved

  • Product Development
  • Marketing
  • Arranging drivers with cabs
  • Managing drivers commission payout
  • Customer support

Value Offerings to Customers

  • A door to door pick up and drop
  • Minimum wait time
  • Competitive price
  • Cashless payment system
  • Real-time cab tracking

Value offerings to Drivers

  • An extra source of income
  • Flexible working schedule
  • Payment with an ease
  • Passenger Review

Uber’s Revenue Model:

The revenue model is not much different from the old taxi business, but some changes in the model can help you earn more than you expect. Let us see how:

  • Trip fare per km/mile
  • Surge Pricing
  • Types of taxi offerings i.e. Uber Go, Uber Black, Uber X and Uber SUV
  • Uber ridesharing and Uber delivery

Uber’s Revenue Model:

The revenue model is not much different from the old taxi business, but some changes in the model can help you earn more than you expect. Let us see how:

    • Trip fare per km/mile (The price of the trip will be calculated according to the distance that you will cover. The distance will be calculated in Kilometre or mile.)
    • Surge Pricing (This option in admin panel doubles the actual pricing. This option is triggered when too many requests come from any specific location. To balance the situation, the owner of an app can use this option from the app’s web admin panel.)
      • Types of taxi offerings i.e. Uber Go, Uber Black, Uber X and Uber SUV (Well, the pricing also differ from car to car. As the customer will choose the high luxury car, the price of a ride will increase accordingly.)
    • Uber ridesharing and Uber delivery(Uber ridesharing option enables a customer to share his or her ride with the other customers and whatever the trip price is, it is distributed in between all the customers. Uber delivery is quite a different feature in this online taxi service app. This feature allows a customer to deliver any of their desired product or item from one place to another or directly at their doorsteps.)

The unique concept with a unique revenue generation model has made cab-booking apps like Uber a successful model and it can be further explained as:

Different cab to cater for different needs:

These apps are not restricted to a limited segment of cars or a specific segment of people. The passenger can choose from various models depending on availability and requirement. This option provides a cost-effective solution to clients with a small pocket. On the contrary, the system also caters to people who deal in luxury and have bigger pockets; they can opt for a ride that suits their pocket.

Surge Pricing Technology:

Uber business model runs on fare variations based on situations. The law of demand and supply gets applicable based on time and situation. When the demand is more the prices tends to increase automatically, which means the new price would be dependent on the availability of a driver against the request received from the tentative passenger.

Furthermore, the business of ridesharing and Uber delivery clone also adds up to the revenue generation without any extra burden of expenditure. The overall system of cab booking app like Uber has been proved as a perfect business and earning model, that is the reason it has been accepted by the world.

So what are you waiting for? Order your own cab booking app like Uber and see how the best business model works for you and generates revenue.

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