Uber is the market leader in ridesharing business. It started its operation in 2010 in San Francisco with three cars, now it has expanded its operation to 200 cities across 55 countries. Aspiring entrepreneurs across the world have turned their eye towards taxi sharing business after Uber’s success. For a venture like this, formulating a business plan and revenue model can avoid teething problems.
What can be the business plan?
- “A startup messed up at its foundation cannot be fixed,” says investor Peter Theil. Strong foundation includes having in-depth knowledge about the business, investing right capital, hiring the right person, calculating risks involved.
- One cannot expect the customers to use inferior service or service which has the same problem as others. So do market research about the problems faced by the counterparts. Also, analyze the market in your area whether this type of business is sustainable.
- Financial management is important as how fuel is to vehicles. By saying financial management I mean Return of Investment (ROI), CAGR, Break-even point, Projected investment etc.,
- A startup will be more successful if it involves less ownership. Not a single car is owned by Uber, so it helps them to innovate a lot in their app.
How should be the revenue model?
Most of the company’s revenue model is product/service sales i.e. they sell their product or service to customers thereby generating revenue. This is not true for all cases, for example, internet giants like Google, Facebook and YouTube provide free service to customers but generate revenue through ads.
In a traditional taxi business, you would pay the driver in cash once the ride is completed. The same is present in ridesharing business but with a change, here a mobile app is used.
At Uber, three separate apps are used each for the customers, drivers and the admin. The customers book a ride using the app, driver of the nearest Uber car receives a request in his app. Once the ride is completed, the customer pays with the app. But in some markets like India, cash is also accepted.
You can emulate the revenue model of Uber and also look for additional revenue generation for your venture.
While selecting a revenue model make sure it is sustainable. Before developing a revenue model for your venture, ask yourself questions like “Whether our target customers are having the purchasing power?”, “Whether our product/service/platform is worth to be considered as a revenue model?”, “Whether our revenue model creates positive cash flow for our venture?” If your answer to these questions is YES, then go ahead with your revenue model.
Take away from Uber
The USP of Uber is its app. You can also create own app for your venture but it takes a lot of time and money. Using a Uber clone will definitely help you.
We at SpotnRides, provide a super cool Uber clone with attracting features. It is easily customizable and is exactly similar to that of the original Uber app.
If you are looking for a quick response team to clarify your doubts instantly about your new business venture, please connect with our expert team at Whatsapp or write a quick email to firstname.lastname@example.org.