UBERIZING YOUR BUSINESS MODEL: WHAT WE CAN ALL LEARN FROM UBER
By know pretty much everyone knows what Uber is. Download the Uber app, register, and you’re ready to go. When you want to get picked up by a car, the app sends a dispatch request to nearby Uber drivers (who receive 80% of the fare). Uber is a massively successful app (with an expected 2015 revenue of $10 billion). There is a lot that entrepreneurs and business owners can all learn from the Uber business model:
- Don’t be afraid of criticism and disrupting other business models. Uber has received a lot of opposition from traditional taxi companies, but this hasn’t halted their success. If the business model makes sense, it’s OK to stir things up
- A primary reason why Uber is able to maintain such strong profits, is that they don’t own or manage any cars of their own. Offloading our outsourcing your inventory can have powerful implications for your profit model. How can you apply this concept to your business?
- By delivering a reliable service, you’re justified in charging at least a 15% commission on transactions
- Let publicity work for you. Despite having to go to court multiple times, this “bad publicity” ended up working in Uber’s favor
If your business is looking to incorporate an app into its business model, do your homework on Uber. What’s the take away message? Keep your app elegantly simple, look for opportunities to disrupt the market, and outsource whenever you can. Who knows? You might be the next Uber.