Uber Business Plan Template
Written by Dave Lavinsky
Uber Business Plan
Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through an Uber business plan template step-by-step so you can create your plan today.
Download our Ultimate Business Plan Template here >
What Is a Business Plan?
A business plan provides a snapshot of your business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.
Why You Need a Business Plan
If you’re looking to start an Uber business, or grow your existing business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your business in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.
Sources of Funding for Uber Businesses
With regards to funding, the main sources of funding for an Uber business are personal savings, and credit cards. Personal savings and bank loans are the most common funding paths for Uber businesses.
How To Write a Business Plan For an Uber Business
If you want to start an Uber business or expand your current one, you need a business plan. Below we detail what should be included in each section of your business plan.
Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of Uber business you are operating and its status. For example, are you a startup, do you have a business that you would like to grow, or are you operating businesses in multiple markets?
Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the Uber industry. Discuss the type of Uber business you are operating and your business model. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.
In your company analysis, you will detail the type of business you are operating.
For example, you might operate one of the following types of Uber businesses:
- Uber Green : this type of Uber uses electric vehicles.
- UberX: this type of Uber provides rides for 1-3 customers in a car.
- UberXL: this type of provides rides for groups up to 5 in a minivan or van.
- Uber Delivery: this type of Uber provides local deliveries, of food ordered via the Uber Eats platform, or of packages under 50 pounds.
- Uber Freight: this type of Uber hauls freight over long distances, choosing which loads to haul via the Uber Freight platform
In addition to explaining the type of Uber business you will operate, the Company Analysis section of your business plan needs to provide background on the business.
Include answers to questions such as:
- When and why did you start the business?
- What is your Uber business model? How will you make money using Uber?
- What milestones have you achieved to date? Milestones could include the number of persons assisted, the prestige of clientele served, etc.
- Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.
In your industry analysis, you need to provide an overview of the Uber industry.
While this may seem unnecessary, it serves multiple purposes.
First, researching the Uber industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your strategy, particularly if your research identifies market trends.
The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section:
- How big is the Uber industry (in dollars)?
- Is the market declining or increasing?
- Who are the key competitors in the market?
- Who are the key suppliers in the market?
- What trends are affecting the industry?
- What is the industry’s growth forecast over the next 5 – 10 years?
- What is the relevant market size? That is, how big is the potential market for your Uber business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.
The customer analysis section must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: individuals, groups, and manufacturers.
As you can imagine, the customer segment(s) you choose will have a great impact on your business. Clearly, your business structure would be far different for freight than for individual rides, for example.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most Uber businesses primarily serve customers living in the same city or town, such demographic information is easy to find on government websites.
Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.
Finish Your Uber Business Plan in 1 Day!
Don’t you wish there was a faster, easier way to finish your business plan?
With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!
Click here to finish your business plan today.
Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are other Uber drivers.
Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes individuals who have their own car, or drive a rental car, or independent trucking companies.
With regards to direct competition, you want to describe the other Uber drivers with which you compete. Most likely, your direct competitors will be Uber drivers located very close to your location.
For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:
- What types of customers do they serve?
- Do they specialize in specific services (i.e. luxury transportation, courier services, etc.)?
- What is their pricing (premium, low, etc.)?
- What are they good at?
- What are their weaknesses?
With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
- Will you provide a wider range of services?
- Will you offer greater convenience, such as early morning and/or late night hours?
- Will you provide any in-car amenities, such as mints or bottled water?
- Will you offer better pricing?
Think about ways you will outperform your competition and document them in this section of your plan.
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an Uber driver, your marketing plan should include the following:
Product : In the product section, you should reiterate the type of Uber that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to cross-town trips, will your Uber business provide rides between cities?
Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.
Place : Place refers to the location of your Uber business. Document your location and mention how the location will impact your success. For example, will your car or fleet be centrally located, to capture the greatest market share? In this section, discuss how your location will affect the demand for your services.
Promotions : The final part of your Uber marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider the following marketing campaigns:
- Advertising in local papers and magazines
- Reaching out to local websites
- Signs and billboards
- Social media marketing
- Local radio advertising
While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your business, including getting regular oil changes, cleaning the interior after each customer, washing the exterior regularly, purchasing water/mints, etc.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to complete your 1,000 th ride, or when you hope to reach $X in revenue. It could also be when you expect to launch in new markets.
To demonstrate your ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.
Ideally, you and/or your team members have direct experience in managing Uber businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in passenger transportation, or successfully running small businesses.
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.
Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.
In developing your income statement, you need to devise assumptions. For example, will you give 10 rides per day, or 20? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.
Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your Uber business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.
In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a business:
- Office build-out including fixtures, construction, etc.
- Cost of buying or leasing a company vehicle
- Cost of office supplies such as software
- Payroll or salaries paid to staff
- Business insurance
- Taxes and permits
- Legal expenses
Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your car or fleet specs, or an overview of all the amenities or services you provide.
Putting together a business plan for your Uber business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the Uber industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful business.
Uber Business Plan FAQs
What is the easiest way to complete my uber business plan.
Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Uber Business Plan.
What is the Goal of a Business Plan's Executive Summary?
The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of Uber business you are operating and the status; for example, are you a startup, do you have an Uber business that you would like to grow, or are you operating a chain of Uber businesses?
OR, Let Us Develop Your Plan For You
Since 1999, Growthink has developed business plans for thousands of companies that have gone on to achieve tremendous success.
Click here to see how a Growthink business planning consultant can create your business plan for you.
Other Helpful Business Plan Articles & Templates
- Super Guides
- Search for:
No products in the cart.
Business Model Canvas Examples
Uber business model.
The Uber business model is also known as a multisided platform business model , as it connects drivers (offer) and passengers (demand), in order to offer cheaper transportation and an additional source of income. According to Dara Khosrowshahi , current CEO of Uber, “Uber accounts for less than 1% of all miles driven globally. Just a small percentage of people in countries where Uber is available have ever used our services”. Still, I am sure that you know very well what this company is, you have probably already used its services and, most likely, you have the app installed on your smartphone.
Uber is a technological platform that has revolutionized urban transportation — and has given taxi drivers and cab companies a lot of headaches. In short, it is an app that connects drivers to users who need a ride, using a smartphone as a tool.
A brief history of Uber
Uber’s history starts back in 2008, in Paris. Travis Kalanick and Garrett Camp were attending an annual tech conference (LeWeb) in the city and, one night during the conference, they simply could not get a cab, and they got thinking about how it would be if people could just ask for a cab via smartphone.
Camp kept thinking about it and, back to San Francisco, he bought the domain UberCab.com. In 2009, Camp was CEO of StumbleUpon, a startup he had sold two years earlier to eBay for $75 million — by the way, Kalanick also had sold his startup, Red Swoosh, to Akamai Technologies for $19 million, in the same year, but he began working on UberCab as a side project.
By summer, Camp persuaded Kalanick to join turinabol_10 UberCab, and the official launch took place in 2010. The company grew quickly. One year later, it would be launched internationally — in Paris, of course. From 2009 on, Uber raised a lot of funding and, in 2015, it was the most valuable startup in the world ($51 billion).
Currently, with more than a decade of existence, Uber operates in more than 900 cities worldwide and has a valuation of more than $70 billion. Let’s understand the business model of this innovative urban transportation giant, which allows us to get a vehicle within reach of a click.
Who Owns Uber
It was June 2017 when Travis Kalanick was on an UberBlack ride and got into a discussion with the driver. After that incident, Travis stepped down from his position as Uber’s CEO. Later, he launched two new enterprises, the venture firm 10100 and the real state company City Storage Systems.
As for Uber’s CEO, Expedia’s former CEO, Dara Khosrowshahi, was the chosen one after Kalanick stepped down, and has been occupying this position until today.
Uber’s Mission Statement
“We ignite opportunity by setting the world in motion.”
How does Uber operate?
To get an Uber, you need a smartphone with a GPS system, internet, and the Uber app installed. Then, in the app, you will enter your destination and the platform will locate an available driver, based on the location of both. As soon as you get in the car, the driver will take you to your chosen destination, using the navigation system of the app itself.
There are different categories of vehicles in the app, depending on the city in which you are going to use it. There are some differences in the rates for each category, accordingly. The value of the race is calculated by an Uber algorithm, considering the distance traveled, elapsed time, and the fuel used.
There are also different payment methods, depending on the location where you use the app. Besides, there is a rating system, which is an important feature of Uber. The rider evaluates the driver, and the driver also evaluates the passenger. Thus, everyone can check each other’s degree of confidence before accepting a ride.
Uber’s Pros and Cons
Uber’s biggest advantage for users is convenience. To begin with, the app is user-friendly and is rarely down. Today, practically everyone in urban areas has a cell phone, mostly with an internet connection, so the majority of the population can ask for a car without having to walk even a step from wherever they are.
When making the request, users receive plenty of information about the driver and the car, such as license plate, name, photo, time of service, and grade within the ranking system. This offers more security to the user. In fact, they can also send their ride information in real-time to someone else, which also guarantees them more security and peace of mind.
For drivers, the big benefit is being able to get a job, by just having access to a car and a cell phone, being able to choose their working hours, and having their income coming in regularly. In addition, due to the ranking system, the driver also has greater security by being able to check the user’s profile and their score on the app, to decide whether to stay with the ride or not.
Regarding Uber itself, its great advantage is that it was the first entrant in this market. Although it can be said that taxis are competitors of Uber, the customer segment is different, since we are talking about an audience that will ask for a ride via the app and not wave at an identified car that is in their way.
In addition, Uber has established itself in the market not only because it is the first in its business model, but because it has set up a functional structure, which really works and which has guaranteed the confidence of both drivers and riders.
As negative points, we can mention the liability questions and insurance issues, which the company continues to face both in the cities in which Uber enters and in those in which it has already been operating. This includes battles against taxi drivers’ unions, as well as against some municipalities around the world.
As for customers, both users and drivers, the disadvantage is precisely the lack of strong competition. Although in some locations there is already competition, competitors are unable to force a fight over price, for example, making Uber practically choose how much to charge the user and, mainly, how much to pass on to the driver.
How Uber makes money
Uber’s business model is based on commissioning and this is, therefore, its revenue stream . The total value of each ride includes the driver’s payment, fees, taxes, and company commission. In general, the driver gets about 75% to 80% of the value and the rest keeps with Uber.
But the commission can reach around 50% when it comes in the short run, due to the fees and minimum fare. But this is not the company’s only source of income. Uber also makes money with promotional partnerships. These are marketing campaigns run through the app and several times through the ride itself (for example, the BMW 7 Series offered free trips in their new car to promote it). In addition, it is worth remembering that Uber has been expanding its service offering.
Probably the most famous one, especially during the period of social isolation on the Covid-19 pandemic, is Uber Eats . It is a food service delivery, with the same characteristic as the transportation app — connecting restaurants to costumers through an online platform, providing the delivery service through partner deliverers. The revenue streams, in this case, are three: advertising, the delivery fee, and the shares in revenue with the restaurants. All of these values and percentages vary depending on the location where the operation takes place.
Uber’s Business Model Canvas
Let’s see how the Uber Business Model Canvas can be designed below:
To download Uber Business Model Canvas today just enter your email address!
Uber’s Customer Segments
In general, Uber has two customer segments riders and drivers. The side of riders is people who either do not have their own car, need to travel outside their city of residence, or don’t want to drive at a certain time — for example, when they know they will consume alcohol at a party, concert or celebration. And the side of drivers are those people mentioned above, who are probably out of the market or need some extra money, and may start a new job just by driving and using an app.
Uber’s Value Propositions
For customers, the greatest value proposition is the convenience of not having to look for a taxi — the car comes to you. Cars are available 24/7 and their route can be tracked. In addition, fares are generally lower than those charged by taxi drivers, and the rider can estimate how much the ride will cost before calling the driver. For drivers, it is a source of income (main or additional), a job that doesn’t require experience, with flexible working schedules and easy access to passengers. Plus, let’s not forget that the passenger informs the destination on the app, which avoids misunderstandings when we are talking about people who do not speak the same language, which is a positive point for both sides.
Historically, in those ten years, the biggest channel for accessing customers was word of mouth. In addition, the other widely used distribution channel has been social media. And, of course, the app stores, where riders and drivers download their Uber apps.
Uber’s Customer Relationships
The customer relationship involves three sides: customer, driver, and regulators. Uber’s focus is predominantly on the customer. If the company has no credibility with the end-user, then it has no reason to create a relationship with the other two. Transparency regarding time and prices, as well as confidence in security and privacy, are essential here. Uber’s second-largest customer is its own driver. Since the driver is not an Uber employee and their vehicle is not Uber’s property — even though there are several lawsuits around the world in this regard —, the company needs to offer them attractive working and payment conditions to keep its business running. As for regulators, Uber seeks compliance and responsibility within the law, within a threshold that also allows it to obey the laws of the market itself.
Uber’s Revenue Stream
- Share (%) per ride
Uber’s Key Resources
Uber has two key resources : 1) The platform that connects drivers and riders, with a focus on continuous improvement of its resources and algorithms, and 2) The Uber brand itself, which is used in all cities where the company operates.
Uber’s Key Activities
Uber’s two key activities are: 1) Developing and maintaining the app (and its algorithms), and 2) Maintaining and improving engagement between riders and drivers. In order for these activities to work, its key activities also include marketing, communication between the parties, customer service, and more.
Uber’s Key Partners
Uber’s most important key partner is its driver, without whom the company doesn’t reach the final customer, doesn’t deliver its value propositions, and therefore doesn’t produce revenue. They are the supply side of the chain. Other important key partners are the investors, that allow the company to develop and reach other levels of performance. They bring the initial rounds of funding to develop the app, algorithms, and new proposals, such as driverless cars. Of course, this revenue is also used for other expenditures. And, last but not least, technology providers, with GPS, payment, communication, cloud storage, and data analytics systems, among others.
Uber’s Cost Structure
The cost structure of Uber is all about maintaining the platform and marketing to acquire new customers (Customer Acquisition Costs — CAC). In addition, there are legal costs, credit card fees, insurance, research and development investments, customer support, and more.
- Lyft : This is the major competitor. Founded in 2012, the company provides services throughout the U.S. and in more than 220 cities, providing 18.5 billion rides per month. It went public at a $24 billion valuation;
- Curb : Owned by VeriFoneSystems, the company uses its systems and credit card machines for operation. Launched in 2015, Curb operates most of New York’s green and yellow taxis and aims to reach all the major cities in the U.S.;
- DidiChuxing : Launched in 2009 and already one of the largest companies in China, it offers services such as DiDi Chauffeur, Didi Test Drive, taxi-hailing, DiDi Minibus, and DiDi private car rental through its app. In 2015, the company reached 1.4 billion rides and its valuation was $28 billion in 2016;
- OlaCabs : It began in Mumbai, in 2010, as an online taxi aggregator. Now, the network reaches Australia, New Zealand, and the UK, and its valuation surpassed $5 billion in 2015. Currently, Ola has a more than 60 percent market share in India;
- Grab : Founded in 2011, in Singapore, the company also offers services in the Philippines, Indonesia, Vietnam, Thailand, Myanmar, and Malaysia. At the end of 2016, Grab introduced a messaging service on its app that allowed language translations, helping break this barrier in Asia;
- Cabify : Launched in 2011 in Spain, it is considered the most secure in the industry, with modern vehicles, expert drivers, and geo-tracking. The company operates in Spain, Mexico, Chile, Brazil, Peru, Argentina, and Portugal, among other places;
- Yandex Taxi : This Russian company offers ride-sharing and food delivery services in the Middle East, Russia, Eastern Europe, and Africa, and is also one of the world’s leading companies developing self-driving vehicles. The company completed 1 billion rides by the end of 2018, performed by more than 700,000 drivers;
- Local taxis : Every major city in the world has taxi spots, generally near stations, terminals, airports, and hotels. The advantage of taxis is the possibility of negotiating prices directly with the clients.
Uber’s SWOT Analysis
Below, there is a detailed SWOT Analysis of Uber:
- Global reach : Uber is a worldwide company, making it the most recognizable brand in the industry, since it operates in 85 countries;
- Convenience : Uber is accessible to anybody with an internet connection and a smartphone. The app is easy to use, offers interaction with the drivers, provides several payment methods, and is usually cheaper than regular taxis;
- Pricing : The company uses multiple variables to determine the price of a trip, also bringing more advantages for the drivers;
- Operating structure : Uber doesn’t have employees, which allows the company to invest much more back in the business and R&D;
- Brand : Uber has the widest coverage in the industry, was the first one to be launched, and also had a lot of attention from the media.
- Lawsuits : Uber has been involved in many lawsuits which have been affecting its image and reputation;
- Regulations : The company has a history of problems with governments regarding regulations and laws of the taxi industry;
- Sustainability : Uber does not have internal policies to minimize the impact on the environment;
- Transparency : As it is a private company, Uber does not need to open up its finances, but this lack of transparency puts in check whether they are investing in R&D or others;
- Safety : Like any other transportation, Uber riders are subject to robbery, abuse, and other safety issues;
- Internet dependence : It relies on the internet and smartphones to run, but the majority of emerging countries still face difficulties in those matters.
- Expansion : Uber has a huge opportunity to expand into new markets around the planet;
- Diversification : The company has already added food delivery to its services, but it can still diversity its business and offers, especially niching down to categories of transportation, for example;
- The number of drivers : Whether it is a result of an economic crisis or not, the company has been able to attract many drivers. This increases the offer for cars, which pleases the consumers, thus raising the number of regular users.
- Competition : The high level and rising number of rivals may jeopardize Uber’s expansion, thus making it difficult to grow as planned;
- Margins : Uber keeps low rates that result in low margins. For example, it has an 80% market share in Brazil, but it is still unprofitable there;
- Regulations : Governments may impose strict rules that can endanger Uber businesses in many countries.
-> Read more about Uber’s SWOT Analysis .
The success of Uber’s business model is very clear from the fact that you will rarely see a user comparing prices on their mobile before ordering a ride. They will simply open the Uber app and enter their destination. In addition, the company has had a very positive response from the population, especially in locations with employment problems, as it offers a new possibility to several people who are not working.
Any entrepreneur can draw several “lessons” from Uber’s business model. For example, you don’t need large equity to start a business. Uber doesn’t even own a car and, still, provides over 1 million rides a day. More than that, its founders saw a problem in an industry and simply sought a solution for it. And in doing so, they were able to transform the cab industry.
Finally, two of the biggest entrepreneurship classes you can take: 1) Treat your workforce as partners, and 2) Expand one step at a time. Uber started with cars and is already operating with bikes, boats, and even helicopters!
Username or email address *
Remember me Log in
Lost your password?
- Business Plan for Investors
- Bank/SBA Business Plan
- Strategic/Operational Business Plan
- L1 Visa Business Plan
- E1 Treaty Trader Visa Business Plan
- E2 Treaty Investor Visa Business Plan
- EB-1 Business Plan
- EB-2 NIW Business Plan
- EB-5 Business Plan
- Innovator Visa Business Plan
- Start-Up Visa Business Plan
- Expansion Worker Visa Business Plan
- Manitoba MPNP Visa Business Plan
- Nova Scotia NSNP Visa Business Plan
- British Columbia BC PNP Visa Business Plan
- Self-Employed Visa Business Plan
- OINP Entrepreneur Stream Business Plan
- LMIA Owner Operator Business Plan
- ICT Work Permit Business Plan
- LMIA Mobility Program – C11 Entrepreneur Business Plan
- USMCA (ex-NAFTA) Business Plan
- Franchise Business Plan
- Landlord business plan
- Nonprofit Start-Up Business Plan
- Cannabis business plan
- Ecommerce business plan
- Online boutique business plan
- Mobile application business plan
- Daycare business plan
- Restaurant business plan
- Food delivery business plan
- Real estate business plan
- Business Continuity Plan
- Buy Side Due Diligence Services
- ICO whitepaper
- ICO consulting services
- Confidential Information Memorandum
- Private Placement Memorandum
- Feasibility study
- How it works
- Business Plan Examples
Uber Business Plan Sample
Uber taxi business plan for starting your own business
Do you want to create ease for people on every road they go and every turn they run? You must start an uber business then. By starting this business, you will become a part of the global transport network. You will be using the software and setup that has already been created. And thus starting it would not be much difficult.
To embark on this journey, the first step is to research what is uber business model and then create an extensive strategic business plan. Since this startup would be a lot different than others, we are providing a sample business plan for uber for an uber startup in Manhattan.
2.1 the business.
Charles Ben will be running the uber business franchise in Manhattan. The business will initially operate in just one city. However, within two months, the network will be expanded to the neighboring cities as well.
2.2 Management of uber taxi business
If you are starting an uber business, you do not have much to decide on your own. It is because you will have to comply with uber operating model and your choices would be limited. So to manage the business and make sure that the business operates in line with the set guidelines, you will need to make uber business plan.
Ben did the same, He studied uber business models, undertook an exhaustive research on how does uber for business work before creating uber business plan for a franchise. In this uber business plan pdf we will be giving the uber business model explained and developed by Ben free of cost for everyone’s benefit.
2.3 Customers of the uber taxi business
The customers of uber business will the same as are mentioned in taxi business plan and transport business plan . They are:
- Senior Citizens
2.4 Business Target
Our long-term target is to expand to at least one more location within a year. The short-term goals include attaining a CSAT score of more than 90 and increasing the no. of customers by 5% every month for the first year. The financial targets are given as:
3.1 company owner.
Charles Ben will be the owner of the uber franchise in Manhattan. Charles is an MBA from a prestigious institute in the U.S. He initially decided to start a bus transportation business. But later, he went for purchasing a franchise.
3.2 Why the uber taxi business is being started
Ben started the uber business because of his special interest in transportation businesses. Upon thorough research, he figured out that the uber business will be both easy to run and profitable for him as compared to the bus business.
3.3 How the uber taxi business will be started
To start the uber business, the first thing to do is to understand what is uber for business, how the uber model works, and how does uber make money. After that study uber type businesses and follow the following steps.
Step1: Develop Uber Taxi Business Plan
Making a business plan of an uber will be your first toward entering this venture. To help you in this we are offering uber business plan sample for the franchise Ben acquired. According to your agreement with the uber company, you may also access uber original business plan.
Step2: Market Your Venture
Getting to your customers will be the next step. For this, you will have to carry out an exhaustive marketing strategy. In this uber cab business plan we will list the sales strategy adopted by Ben to use online and offline media in his favor.
Step3: Web Presence is a Must
Since the business activities will depend on your online presence, establishing a strong website is a must as you enter this venture.
Step4: Recruit and Serve
The last step is to reach the drivers and make your package attractive for them so they join you and service the customers in their best interests.
Services of uber taxi business
Since the uber franchise will not operate in an isolated fashion, it is important to realize that you will be providing only those services that come in the sphere of uber operating model. In this uber driver business plan all those services will be listed.
Moreover, the personnel required to maintain the operations will also be given in this uber business plan template. Thus, your queries regarding what is the uber business model will be addressed.
Like the global uber network, services of the uber franchise started by Ben will provide the following services:
- Standard Rides
As per the uber car service business plan, the foremost service will be the provision of standard rides. They will be affordable for daily use and routine commute. This service will provide rides on Hatchback and Sedan cars mostly.
- Premium Rides
For use in VIP events and weddings, we will also offer rides in luxurious cars and SUVs.
- Pickup & Delivery
One of our major services will be the offering of pickup and delivery options to our customers. Our drivers will procure the desired food items from any location in Manhattan to deliver them to the consumers. For more details, you can also visit business plan uber eats.
Besides food, the pickup service for shifting house and office appliances will also be provided.
We will also provide the facility to ride bikes that can carry two people.
To reach a maximum of people, we will provide packages and discounts on special festivals and events. In this uber partner business plan we will specify the discount strategy adopted by Ben in his business plan uber.
Marketing Analysis of uber taxi business
Great service. Good turnaround time and quality work. Thanks!
If you are wondering how to open an uber franchise you are in the right space. After going through the initial procedure to get an uber taxi franchise you should study who your customers and riders are going to be. This will help you evaluate the uber franchise cost. While carrying out the market analysis for how to start a business with uber you should also study other uber type businesses to know how others are doing in the domain.
In this business plan of uber, we will be answering all your queries regarding uber starting such as how to franchise uber taxi or uber is from which country. You will also discover uber strategies and ideals for setting up an uber cabs company.
5.1 Market Trends
The market trends for uber business are promising . According to IBISWorld, the ride-sharing services and uber business are expected to increase over the next five years i.e. from 2022 to 2027. Due to ever-increased awareness of the environment and air pollution, people are opting for using public transport and uber in shared rides instead of owning a car.
5.2 Marketing Segmentation
The customers of uber business will belong to various lifestyles and ages. Major customers will be the ones who do not either possess the capability to own a car and parking space or prefer to not drive themselves.
The groups of target customers as identified by Ben are given in this uber business plan.
UK Start-Up Visa Business Plan
This is the category that does not own their cars and cannot do so. This will be our biggest group of target customers as students have to move from their home space to the educational institute on day to day basis.
5.2.2 Senior Citizens
The second biggest category of our target customers includes senior citizens. They are expected to use uber because they prefer to not drive even when they own a car to avoid anxiety and tension.
The third category comprises tourists who cannot own a vehicle as they move.
People who do jobs usually possess a car or any vehicle for the commute. However, still, some of them are expected to avail themselves of uber services.
5.3 Business Target
Setting business targets help you in devising the future course and strategy. The goals as per business plans for trucking company and logistics business plans are usually related to the fiscal benefits. Ben, however, went for a different approach as he focused also on customer satisfaction and retention in his transportation business plan .
The business targets of the Uber franchise as started by Ben are as follows:
- Acquire a CSAT score of 90+ within a year of the launch
- Expand the customer base by 5 percent every month for the first year
- Start making at least $30k in monthly profits by the end of the first five years
5.4 Product Pricing
The pricing will be based on the Uber guidelines and will be set as such to make the rides more and more affordable for the people.
Marketing Strategy of uber taxi business
After you have known how to start a uber business and you fulfill all the requirements to start a uber cab franchise, you should start looking for marketing ideas. Uber startup is distinct from other transport businesses or tipper truck business plan . Therefore, you will have to advertise two ways to gain the target customers as well as drivers.
6.1 Competitive Analysis
- We will be offering many types of packages and discounts .
- We have an excellent sales marketing team who will market how safe it is to travel with us.
6.2 Sales Strategy
The advertisement techniques as per uber business strategy are given here.
- Advertising the business on social media and through newspapers and magazines
- Creating awareness of how using Uber is both more affordable and convenient than buying a car
- Offering regular packages on a monthly and weekly basis to customers who use Uber on a daily basis
- Offering a 20% discount on standard rides on festivities and cultural events
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
Personnel plan of uber taxi business
While creating uber strategy and planning, you have to outline a list of the personnel you will need to run your business. In this uber business plan pdf we are providing the personnel plan of the uber franchise of Ben.
7.1 Company Staff
Under this business plan for uber, these positions will be hired for:
- 1 Operation Manager
- 1 Social Media Manager
- 1 Sales Executive
- 2 Software Manager
- 2 Customer Care Executives
- 1 Business Consultant
7.2 Average Salary of Employees
Financial plan of uber taxi business.
If you are considering uber for startups you must want to know how much you can build in return for your investments. As you can see in this uber business plan pdf Ben started making huge profits within only three years of the launch. Therefore, if you manage the business successfully you can make your way through it too.
The cities in which uber makes an immense profit might make you wonder why is uber so successful there. The fact is, the better you market and convince the users to use your service, the more you are going to earn.
The financial details of the uber franchise started by Ben are given here:
8.1 Important Assumptions
8.2 break-even analysis.
8.3 Projected Profit and Loss
8.3.1 profit monthly.
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
8.5 Projected Balance Sheet
8.6 business ratios.
- How do I start the Uber business?
To start an uber business you have to follow the steps that are mentioned in detail in this uber taxi business plan. They include making an uber cab business plan for your own business/ franchise, hiring the staff, arranging the stuff, and marketing your venture.
- What is Uber’s business model?
The Uber business model is that you provide a platform for the drivers to connect with the people who want to take a ride. As the business owner, you have to ensure that the drivers fulfill the criteria of licensing, national identity, etc. Moreover, you will be responsible for making the experience safe and affordable for your users. For further information, you can visit uber original business plan.
- How do I open an Uber office?
You have to first meet the legal requirements and licensing pre-requisites that are unique to your locality and service area. Then, you have to enter the legal agreement with uber to start a franchise and make further arrangements. The further steps can be studied in detail from this uber partner business plan. In this uber business plan in we have provided all details on how Ben started his Uber office successfully in Manhattan.
Download Uber Business Plan Template in PDF
OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.
E-mail is already registered on the site. Please use the Login form or enter another .
You entered an incorrect username or password
mentioned in the press:
Search the site:
OGScapital website is not supported for your current browser. Please use:
The Leading Source of Insights On Business Model Strategy & Tech Business Models
How Does Uber Make Money? Uber Business Model Analysis
Uber is a multi-sided marketplace , a platform business model that connects drivers and riders. It has an interface with gamification elements that make it easy for two sides to connect and transact. Uber has three main segments: mobility, freight (both are two-sided marketplaces), and delivery (a three-sided platform ). Uber makes money by collecting fees from the platform’s gross bookings. In 2022, Uber generated over $31.87 billion in revenues, mostly from mobility, delivery ( Uber Eats ), and freight.
Uber Business Model Short Description
We describe the Uber business model via the VTDF framework developed by FourWeekMBA.
Uber Business Model in 2022
Uber’s business model has substantially changed over the pandemic.
Yet, as the pandemic slowed, Uber’s core business model kept shifting again toward mobility.
The delivery platform (Uber Eats) is an important part of the overall business model, comparable to the mobility platform.
And the interesting part is that Uber is now a three-headed company, comprising both ride-sharing and delivery and freight as two core segments.
As Uber went through some structural changes that are worth highlighting before breaking it down in its entirety:
- Mobility and delivery platform are equally important: if we look at the growth of the mobility platform vs. the delivery platform, we can see how in 2021, the delivery platform grew at a 114% rate, compared to just the 14.2% of the mobility platform. This has been the effect of the pandemic, which has quickly transformed the food delivery business model into one of the most exciting areas for the company. Yet, it’s important to highlight that the mobility (ride-sharing) platform is the underlying infrastructure that enabled Uber to build other business segments. And as the pandemic slowed down, the mobility platform grew again at a double-digit rate. In 2022, while the mobile platform is back on track, Uber Eats has also become vital to the company’s business model.
- The mobility platform is the one that runs at positive margins and is much wider. If we look at the EBITDA for the company, in 2022, the mobility platform generated $1.59 billion vs. the losses of the other segments. It’s important to remark that the other segments are also relatively new investment areas for Uber. Therefore it might take some time for them to get consolidated into the overall business model .
- Uber Eats and investments in further expanding the delivery business: the delivery business has become the most interesting part for Uber. So much so that by 2022 the revenues from the delivery business represented about 44% of the company’s total revenues. In 2022, Uber kept consolidating its position in the delivery business. Uber first tried to buy DoorDash in 2020, but it failed. Uber Eats today is one of the most exciting segments for the company.
- Uber Freight has been the fastest-growing segment for the company in 2022, growing at a 2x rate! Also, here, Uber leverages the existing platform to connect carriers with shippers and gives carriers upfront, transparent pricing and the ability to book a shipment.
As of 2022, Uber is a much more complex and interesting platform than just a few years ago.
The history of Uber
As Dara Khosrowshahi, CEO of Uber pointed out in its financial prospectus.
Uber started at a specific moment in the business world.
The “rise of smartphones, the advent of app stores, and the desire for on-demand work supercharged Uber’s growth and created an entirely new standard of consumer convenience.”
Some context below:
Uber is the very definition of a disruptor. The company, which at one point was the most valuable private startup in the world, has revolutionized the way consumers hail a ride, order takeout from their favorite restaurant, and even earn a living.
With its various transportation and delivery services now available in more than 10,500 cities across 72 countries , it is sometimes easy to forget that Uber started as a humble startup selling limousine rides.
One simple idea
It is December 2008, and friends Travis Kalanick and Garrett Camp are attending the LeWeb technology conference in Paris.
Both men were entrepreneurs cashed up after recently selling their respective startups.
One night during the conference, the two could not find a cab in the middle of a snowstorm.
Kalanick credits Camp with the idea for Uber, which at that time consisted of a rideshare limousine service that could be requested from a smartphone app.
Kalanick and Camp went their separate ways after the conference, but the latter remained interested in the idea and started work on a prototype with friends Conrad Whelan and Oscar Salazar while he was still CEO of StumbleUpon.
Camp purchased the domain name UberCab.com and convinced Kalanick to come on board as a chief incubator.
In early 2010, the app was tested in New York City with three vehicles, and an official launch was held in San Francisco a few months later.
The service, which was initially more expensive than a traditional taxi, was nevertheless popular in the city among tech employees.
UberCab then became known as Uber after the founders realized that it was not a cab company in the traditional sense.
Around this time, Uber hired its first employee Ryan Graves with a now-infamous tweet from Kalanick explaining that he was looking for a product manager.
Expansion and funding
In May 2011, Uber expanded into New York City and was met with resistance and criticism from the city’s established taxi industry.
Uber then became available in Paris in December as an almost ceremonious nod to the place where it had all started three years earlier.
In the same month, at the 2011 LeWeb technology conference, Kalanick announced a Series B funding round worth $37 million with Jeff Bezos and Goldman Sachs among the backers.
The company launched UberX in July 2012 to open up the platform to non-limousine vehicles such as the Cadillac Escalade and Toyota Prius Hybrid.
This would mark the first time the company would seek out drivers using their own vehicles as transportation.
Perhaps more significantly, UberX would eventually expand into other vehicle models and other forms of transportation, such as scooters and bikes.
In August 2013, Uber expanded into Africa and India with a Series C funding round worth $258 million.
The following year, the first Uber ride was hailed in China – which may prove to be Uber’s largest market in the future.
Recapping the Uber history
- Uber was, at one point, the most valuable startup in the world and has now revolutionized how consumers hail a ride, order takeout, and even earn a living.
- The idea for the company came after co-founders Garrett Camp, and Travis Kalanick struggled to hail a cab in a snowstorm during a tech conference in Paris. Camp and two friends developed a prototype app for a service that would be known as UberCab.
- Uber gained early traction with tech employees after officially launching in San Francisco in 2010. Uber became available in New York City and Paris in 2011 and then in other countries in 2012 and 2013. The launch of UberX signaled a turning point for Uber as it allowed drivers to use their non-luxury vehicles.
What’s so special about Uber?
Bill Gurley Bill Gurley, general partner at Benchmark and an early investor in Uber, pointed out what he thought was its best feature:
no driver-partner is ever told where or when to work
And he continued:
This is quite remarkable — an entire global network miraculously “level loads” on its own. Driver-partners unilaterally decide when they want to work and where they want to work. The flip side is also true — they have unlimited freedom to choose when they do NOT want to work. Despite the complete lack of a “driver-partner schedule” this system delivers pick-up times that are less than 5 minutes (in most US cities (with populations over 25K) and in 412 cities in 55 other countries.
In short, Uber has been able to build with an invisible hand a global network able to “manage” bottom-up and with no such thing as a “schedule”!
Becoming a top urban mobility platform is part of Uber’s ultimate vision as pointed out by Uber:
We see the Uber app as moving from just being about car sharing and car hailing to really helping the consumer get from A to B int he most affordable, most dependable, most convenient way,
When acquiring a bike-sharing company called Jum, Uber specified :
Our ultimate goal is one we share with cities around the world: making it easier to live without owning a personal car. Achieving that goal ultimately means improving urban life by reducing congestion, pollution and the need for parking spaces.
Its core principles are:
- Expanding access.
- Delivering reliability.
- Providing choice.
- Aligning needs.
- Being upfront.
These elements give us a first glance at Uber’s long-term direction.
Uber value proposition
Uber’s value proposition was born on the need to make up for the scarcity of cab drivers and the inefficiencies of urban mobility.
Therefore, Uber attracts two key players:
- And riders.
Let’s start with Uber’s first side of the marketplace, its drivers.
In a series of posts from Uber’s blog entitled “Why I drive,” several drivers explain why they do it. For instance, Susan explains:
It’s fun. It’s flexible. And it’s profitable!
Kevin instead explains:
I enjoy the flexibility it offers to me the ability to work whenever and however often you want
I love the freedom I have to work when I can, and make as much or as little as I need. Meeting different people everyday makes this more enjoyable. It’s the best business opportunity I have ever had. Thank you, Uber!
Thus, even though several drivers find different reasons to drive with Uber, there is a common thread which is a part-time “job” that provides supplemental income and flexibility to work any time without a boss.
While this value proposition seems compelling, as pointed out by earnest.com , about 84% of Uber drivers make anywhere between $0-499 per month, while only 2% make anywhere between $1500-1999 per month.
The ability to generate enough revenues for drivers to get back is a crucial ingredient to Uber’s success.
This is also why Uber tries hard to get drivers constantly. This need for drivers also fueled other business models , like HyreCar.
Related: How Does HyreCar Make Money? HyreCar Business Model In A Nutshell
On the other hand, when it comes to riders, Uber offers a few key elements that make up a unique value proposition that apply to most of them.
First, as urban dwellers have kept growing, the cost of ownership of a car has become higher and too expensive to bear.
In this respect, giving up car ownership has become a no-brainer in urban areas. This makes ride-sharing convenient.
Second, Uber and other apps like Lyft make it extremely easy to go anywhere with the least friction, thanks to their gamified marketplaces.
Another critical element for riders is safety. For instance, Uber now performs background checks on its drivers that comprise “ felonies, violent crimes, sexual offenses, and registered sex offender status, among other types of criminal records ” which automatically disqualify drivers from the platform.
Uber’s liquidity network effects
A two-sided marketplace has to have built-in mechanisms that allow network effects to pick up. This means that for each additional driver or rider joining the platform, it becomes better and better for the others joining next.
In Uber’s case, more drivers and riders have meant better pickup times, lower prices, better reviews of drivers, and increased revenues for the marketplace.
Uber tapped into inefficiencies created by misallocating supply and demand within the taxicab industry.
The more efficiencies Uber gains, the more appealing it becomes and the more revenues it grows.
Thus, Uber leverages the Liquidity Network Effects that aim at growing and broadening the network so that the company can capture higher margins in the long run.
Uber expanded market opportunities
Another key element is market expansion. Any successful two-sided marketplace will be able, at a particular stage, to expand market opportunities.
For Uber, in particular, the company taps into a few specific needs:
- Taxi Industry inefficiencies where the supply of cubs is limited at all times.
- Urban population growth and the impossibility of cities to keep up with car spaces.
- A growing number of people are willing to rent on demand rather than own a car.
When those needs are combined with a technological marketplace, it also generates several markets that before didn’t exist.
For instance, since Uber’s inception, a new need for cars for rent to make additional income over the platform has sparked new businesses.
Uber revenue model and pricing models
Uber makes money via a service fee that drivers pay. This service fee varies from trip to trip, representing the difference between what riders pay and what drivers earn once removed tips, tolls, and fees.
Uber covers several segments by offering different vehicles, with services like:
- Uber Black.
Uber is also betting on other segments, such as:
- Uber Eats .
- Autonomous driving.
- Electric scooters.
Uber fees (take rates) range from 20% to 25% of the total amount the riders charges.
However, when it comes to taking rates we should distinguish between mobility (ride-sharing) and delivery (Uber Eats).
When it comes to ride-sharing, thanks to Uber’s much stronger market position, which dominates it, its take rates are higher. Indeed, in Q3 2022, take rates for Uber ride-sharing were 27.9%.
Instead, in the delivery segment, where Uber Eats got to compete for market share consolidations, take rates are slightly lower.
In Q2 2022, the take rate for Uber Eats was 20.2%.
Over time, as Uber Eats consolidates market shares, we can expect these take rates between mobility and delivery to balance out.
And potentially, in case the delivery business becomes larger than the mobility business, we might see even larger take rates for the delivery business.
The fares are calculated based on a few elements:
- A base rate.
- Rates for estimated time and distance of the route.
- The current demand for rides in the area.
Among the pricing models used by Uber, there are:
- Surge pricing.
- Upfront pricing.
- Route-based pricing.
Those strategies have several aims. With surge pricing, for instance, Uber can calibrate the demand and offering of rides to allow riders to pay more if they don’t want to way for a driver.
And at the same time, drivers can earn more if willing to move to “hot areas” when there is a surge in pricing.
With upfront pricing instead, the company shows the cost of a ride in advance .
As pointed out by Uber, riders feel confident taking trips when they have the information to make better decisions and drivers get more opportunities to earn.
Roud-pricing allows price adjustments on a route designed to expand access by making trips more affordable.
Uber dynamic pricing and surge pricing
Uber has used a particular kind of dynamic pricing called surge pricing.
This strategy has allowed Uber to match the demand and supply of rides and steadily repopulate its driver population, which has high churn rates.
It also works as a stimulus for drivers willing to make more money to move in certain areas.
For instance, in a classic case of surge pricing, Uber signals to drivers what area is experiencing them. So that drivers can go to that area and earn more.
Uber explains :
When prices are surging, you’ll see a multiplier to the standard rates on the map. For example, you might see surge at 1.8x or 2.5x. This is how much your base fare will be multiplied by, so a fare that is usually $10 would be $18 when it’s at 1.8x Surge. Uber’s fee percentage does not change during surge pricing.
At a visual level, users can recognize surge areas based on the map’s change of color in specific neighborhoods.
Where areas that will go from orange to dark red going from standard pricing to multipliers:
How does Uber make money? Breaking down Uber’s revenue model The key operational metrics that Uber tracks are:
- MAPCs (Uber defines it as the number of unique consumers who completed a Rides or New Mobility ride or received an Eats meal on our platform at least once in a given month, averaged over each month in the quarter.).
- Trips (Uber defines it as the number of completed consumer Rides or New Mobility rides and Eats meal deliveries in a given period.).
- Gross Bookings (Uber defines it as the total dollar value, including any applicable taxes, tolls, and fees, of Rides and New Mobility rides, Eats meal deliveries, and amounts paid by Freight shippers, in each case without any adjustment for consumer discounts and refunds, Driver and Restaurant earnings, and Driver incentives.)
Uber’s agent revenue model
In generating revenues, Uber follows an agent model, where revenues come from fees paid by Drivers and Restaurants for the use of its platform.
The reason why Uber defines itself as an agent it’s because the platform does not provide the final service to customers, but “it arranges for other parties to provide the service to the end-user.”
As a classic platform business model , Uber connects consumers to drivers. And restaurants to consumers (Uber Eats).
In 2019, Uber made over $14 billion as an agent enabling rides and deliveries on its platform. And it lost over $8 billion from its operations.
The company acts as an agent in the transactions that happen through Uber.
Indeed, it connects the end-user with the proper ride-sharing or delivery service provision. As such, Uber makes money from three key areas:
- Core platform.
- Other bets.
The core platform revenues
- Ridesharing : Drivers’ revenues from service and booking fees for using the platform.
- Uber Eats revenues from service fees paid by restaurants and Drivers for its platform. The service fee is paid by both restaurants (a percentage of the meal price) and Drivers (the difference between the delivery fee amount paid by the consumer and the amount earned by the Driver).
- And others: revenues from the lease or rent of vehicles to third parties who could use these vehicles to provide Ridesharing or Uber Eats services through our platform. This revenue stream got mostly discontinued.
Other bets revenues
- Uber Freight: publicly launched in 2017, it generates revenue from its offerings from shippers that pay a pre-determined fee for each shipment to use Uber’s brokerage service.
- New Mobility: introduced in 2018. Revenue is generated through consumer fees for a ride on a dockless e-bike or e-scooter.
How will Uber make money in the future?
For the future, Uber is betting on a few potential revenue streams:
- And autonomous vehicles.
In July 2018, Lime, a company whose mission is to “ help people move around their cities affordably and conveniently while eliminating their carbon footprint,” announced a Series C financing round of $335 million led by Alphabet’s Google Ventures, which also involved Uber.
Interviewed on the deal Rachel Holt, Uber’s head of new modalities, specified, “ Our investment and partnership in Lime is another step towards our vision of becoming a one-stop-shop for all your transportation needs. “
As part of a plan to cover all the possible transportation needs of people in the future, Uber acquired the dockless bike startup Jump in April 2018, which aligns with the vision of becoming the top urban mobility platform globally.
As specified on Uber’s blog:
we’re committed to bringing together multiple modes of transportation within the Uber app—so that you can choose the fastest or most affordable way to get where you’re going, whether that’s in an Uber, on a bike, on the subway, or more.
Among other visions, Uber also aims at “bringing safe, reliable self-driving transportation to everyone, everywhere.”
This is a bold claim, yet it would help Uber fix in one shot a critical element: automate rides and get rid of drivers.
Indeed, with its high-churn rate and difficulty in keeping up with supply and demand, self-driving might make the Uber business model way more sustainable.
Breaking down the Uber Eats business model
Uber Eats is a three-sided marketplace connecting a driver, a restaurant owner, and a customer with the Uber Eats platform at the center.
Uber Eats has become a key segment within Uber.
Indeed, Uber naturally positioned itself to solve the last-mile delivery problem and used its existing network and platform to launch Uber Eats, which gained traction quickly.
The three-sided marketplace moves around three players: Restaurants pay commission on the orders to Uber Eats; Customers pay small delivery charges and, at times, cancellation fees; Drivers earn through making reliable deliveries on time.
Uber Eats as a three-sided marketplace it connects three key players:
- Restaurant owners.
- And customers.
With the Uber Eats platform at the center, the three-sided marketplace leverages the existing Uber platform to allow eaters to take advantage of the existing Uber infrastructure:
Source: Uber Engineering Blog
This model is very smart as it allowed Uber to enter another industry by leveraging its existing infrastructure, network effects , and community.
As noted in Uber Eats Business Model , the unit economics work in this way:
- Amount paid by YOU: $50 + $5 = $55
- The amount received by XYZ restaurant: $50 – (30% commission on order) = $35
- Delivery Charges: Pickup Fee + Delivery Fee + Per Mile Charges = $4 + $2 + ($2 x 3) = $12
- Net Revenue for Uber Eats = ($55 – $35) – $12 = $8
Last-mile problems and delivery wars
Uber Eats, thanks to the shared network effects of its mother company, Uber, managed to grow quickly in the US market, and according to some estimates it reached over 22% market shares of Meal Delivery by May 2020 .
That brought Uber Eats head to head-with GrubHub . And in trajectory to reach the largest player, DoorDash . Thus, Uber attempted to overtake the US market by acquiring GrubHub.
Potentially the two players would have become the largest US player in the last-mile delivery food space (this raised some Antitrust concerns).
However, to Uber’s surprise, GrubHub closed a $7.3 billion-dollar deal with Just Eat to create the largest delivery firm outside China.
While this failed attempt might sound as a defeat, Uber Eats remain among the most interesting parts of the business, with an incredible growth potential.
And in July 2020, Uber agreed to buy Postmates (with an 8% market share in the US for meal delivery). With an all-stock transaction of $2.65 billion, Uber will further convert its business model to push toward consolidation in the meal delivery market.
Where Uber’s core business, in ride-sharing, has been suffering due to the pandemic. The same pandemic has created the perfect condition for the meal delivery service Uber Eats to thrive and grow.
Thus, now Uber is a three-headed company comprised of mobility, delivery, and freight!
What about Lyft?
While Lyft has been a strong competitor for Uber, over the years, the company has primarily stayed in the mobility space, where Uber has expanded to other areas.
From here, a massive divide between Uber and Lyft was created as an effect of the ability of Uber to expand its network effects beyond mobility.
Visual Stories Connected To Uber
Is Uber Profitable?
Uber Eats Revenue
Is Uber Eats Profitable?
Uber Revenue Breakdown
Food Delivery Business Models
Instacart Business Model
Grubhub Business Model
Shipt Business Model
About The Author
Leave a reply cancel reply.
- Bundle Promo
- 70+ Business Models
- Airbnb Business Model
- Amazon Business Model
- Apple Business Model
- Google Business Model
- Facebook [Meta] Business Model
- Microsoft Business Model
- Netflix Business Model
- Uber Business Model
- Case Studies
- Digital Strategy & Consultation
- Digital Product Engineering
- Product Sustenance
- Digital Experience Design
- Innovation Lab
- Offshore Development Center
- Team Augmentation
- Digital Commerce Services
- Digital Innovation As a Service
- HIPAA Consulting Services
- Salesforce Consulting Services
- Metaverse Consulting Services
- Experience Design
- Data Engineering
- Test Automation
- Microservices & API
- Machine Learning & Cognitive
- Medical Transportation
- Educational Transportation
- Bus & Shuttle
- Event Transportation
- Employee Transportation
- Digital Pass Solution
- Freight Booking
- EV Transportation
- Aircrew Transportation
- Telemedicine Solution For Providers
- Telemedicine Solution For Aggregators
- Digital Pharmacy
- Appointment Booking
- Mosquito Control
- Social Determinants of Health
- Rx Med Pulse
- Supplemental Benefits for the Chronically Ill
- Food Delivery
- Home Services
- Grocery Delivery
- Fuel Delivery
- Digital Scanning
- For Healthcare
- For Logistics
- For Air Travel
- For Warehousing
- For Automobile Rental
- For On-site Security
- Healthcare & Lifescience
- Logistics & Transportation
- Retail & E-commerce
- High Tech & Startups
- Sports & Entertainment
- Inquire Now
We are trusted technology partner of global enterprises and innovative startups
We build digital products that fuel growth
How We Work
We are digital technology and innovation partners transforming businesses across globe through our services and solutions.
We like sharing knowledge, insights about digital technology and businesses
Our prebuilt solutions improve productivity, streamlines workflow, achieves higher ROI and reduces cost.
Logistics & transportation
Retail & e-commerce.
- TaxiPulse On-demand ride hailing
- TruckPulse On-demand logistics & bidding solution
- Medical Transportation NEMT & paratransit solution
- Delivery Delivery service management
- Educational Transportation Students, staff & campus transporation
- Bus & Shuttle Ticketing & booking
- Event Transportation Exclusive solution for mega events
- Employee Transportation Smart commute experience
- TruckPulse Truck Dispatch Software Solution
- Microtransit Keyless, self-service rentals
- Safety Passenger, driver & highway safety solution
- EV Transportation Electric Vehicle Transportation Solution
- Fleet Fleet management for all
- Rent All-in-one vehicle rental
- Carpool Corporate & public carpool solution
- Digital Pass Solution A white-labeled e-pass solution
- Freight Booking Freight Bidding Marketplace Solution
- Aircrew Transportation Airline and airport crew transportation
- Telemedicine Solution for providers
- Digital Pharmacy Omnichannel commerce
- Rx Med Pulse Prescription Management Software
- Telemedicine Solution for aggregators
- Mosquito Control Intelligent mosquito prediction & control
- Supplemental Benefits for the Chronically Ill SSBCI services via RainbowCare to provide digital services
- Appointment Booking For clinics, hospitals & agreegators
- Social Determinants of Health Solution to address healthcare and non-healthcare needs
- Digital Scanning Scan objects using smart devices
- For Healthcare Digitization of clinical and clerical operations
- For Automobile Rental Automate vehicle rental process
- For Logistics Optimization of logistics processes
- For Retail Redefine end-to end retail operations
- For On-site Security Powerful Smart Patrolling Solution
- For Air Travel Digitize and Speed up Airport Operations
- For Warehousing Digitizing Warehouse Operations
- mCommerce Unified mobile commerce solution
Drive innovation and disruption in your industry and explore opportunities with new business & operational models, digital trends, and technologies
Get In Touch
- White Papers
Resources / --> Return to Blog list
Uber business model explained: from start to finish.
By Nitin Lahoti In Blog Posted January 2, 2019
What Is Uber’s Business Model? How Uber Works? How Does Uber Make Money? What Is Uber’s Business Strategy? Why Is Uber so Successful?
These are some of the major questions any budding entrepreneur in the on-demand startup space would be curious about, before working on his/her own “Uber for X” business model.
And, rightly so.
Uber’s business model has turned out to be so successful and popular that it has fuelled a new startup economy, the “on-demand economy”.
Having a deeper understanding of Uber’s on-demand business model can play a pivotal role in modeling your own on-demand startup business idea.
As a leading on-demand startup technology development partner, we want to share this knowledge with you through this comprehensive blog post.
Uber Basics – Facts, Figures, Founders & Fundings
Before drilling down into “Uber’s business model” or “How Uber makes money?”, let us gain knowledge about some basics and interesting facts about Uber – from inception to being a multi-billion dollar startup.
Did you know that Uber was initially called as UberCab?
Originally, the app only had the option to hail a black luxury car.
Founders – Garrett Camp, Oscar Salazar, Travis Kalanick
Founding Year – March 2009
Headquarters – San Francisco Bay Area, U.S.A
Legal Name – Uber Technologies Inc. (Crunchbase)
Total Funding – $24.2B (In 22 funding rounds as of Oct 2018, Crunchbase )
Major Investors – SoftBank Vision Fund, Tencent Holdings, Toyota Motor Corporation, and others.
Current Valuation – $120B (Source – Bloomberg )
Uber’s Business Model – How Uber Works?
Uber is no longer just the on-demand cab hailing service we used to know. It has dipped its toes into other territories as well – from Uber Eats (on-demand food delivery) to Uber Freight (on-demand trucking).
For the matter of simplicity, in this blog, we will focus on Uber’s core business of ridesharing – its business model and how it makes money?
To put it in simple words,
Uber works as a digital aggregator app platform, connecting passengers who need a ride from point A to point B with drivers that are willing to serve them.
“ Passengers ” generate the demand, “ Drivers ” supply the demand and “ Uber ” acts as the marketplace/facilitator to make this all happen seamlessly on a mobile platform.
Through its model, Uber has been able to generate strong value propositions for both passengers and drivers to get onboard on its platform and create disruption in the taxi/cab industry.
Uber’s Value Proposition for Passengers
- On-demand cab bookings (Convenient)
- Real-time tracking
- Accurate ETAs
- Cashless rides
- Lower wait time for a ride
- Upfront pricing
- Multiple ride options
Uber’s Value Propositions for Drivers
- Flexibility to drive on their own terms
- Better income
- Lower idle time to get new rides
- Training sessions
- Assistance in getting vehicle loans
- Better trip allocation
Uber’s Business Model Canvas – A Visual Snapshot
Click to Enlarge Image
Digging Deep Into Uber’s Revenue Sources – How Uber Makes Money?
At a high level, Uber makes money by taking a cut on each ride (shared or individual) from the drivers. However, as we do a detailed analysis we will found that Uber’s revenue model is more complex than just trip commissions.
Uber provides the drivers on its platform (also called as partners) with a robust supply of ride requests to accept, fulfill, and make income. While making a booking, the passenger pays Uber for the ride through the app. Uber then transfers the payment to the partner’s account after taking some amount of commission for doing the job of a broker (digital broker if you want to say so).
The commission rates may vary from 15-30 % depending on the market.
Dynamic pricing/ surge pricing is a novel concept that has been popularized by Uber and being adopted in other verticals as well, such as food delivery.
Whenever there is a higher demand for cabs than what can be served at that moment (for example, at the airport after a flight lands), the fare goes up based on a surge price calculation algorithm.
Some drivers move to the surge region to earn extra (increases supply) and some passengers opt to wait to get a ride (reduces demand). This way Uber is able to manage the demand-supply mismatch situation better.
Drivers make more money, Uber makes more money and customers spend more money (but get urgent rides).
Uber offers multiple ride options, from affordable hatchbacks to luxury sedans and SUVs. The profit margin for premium rides are much higher and helps Uber mint more money.
If a passenger cancels a ride after a certain time-frame, say five minutes, he/she is charged a cancellation fee.
Leasing to Drivers
Uber runs a vehicle leasing program in many of its target countries to help new drivers get onboard faster. Drivers have to pay an upfront security deposit for the vehicle and payments are automatically deducted on a weekly basis from the driver’s earnings.
Uber is a very popular app with millions of active users. This makes it a good option for brands to do promotions. Its current app interface pushes a feed style layout for intuitive content consumption. Over the period, it may go on to become a strong revenue source by becoming a channel for sponsored content.
Expanding Rapidly With New Business Verticals
As mentioned earlier above, Uber is now much more than just a ridesharing company. It is leveraging it’s underlying technology for cab bookings, like, optimal driver allocation, to new use cases as well.
These new businesses that Uber is building side-by-side have tremendous potential to generate revenue and fuel Uber’s grand ambitions.
Uber is betting big on on-demand food delivery and why not. It’s a logical step for Uber to tap into this enormous market as it aligns with its ridesharing business and helps it utilize its large fleet of drivers. Uber Eats was launched as a separate app in 2016 and is growing in popularity at a rapid rate.
Uber Freight is basically Uber for trucks. Uber launched its own on-demand trucking app in 2017 with the core idea of seamlessly matching shippers with carriers. If Uber can execute on its strategy to become the freight matching platform of choice, the revenue opportunities are also big.
Key Takeaways for Budding Entrepreneurs From Uber’s Business Model Analysis
Uber got a lot right in its journey towards becoming a pioneer in the on-demand industry today. It has seen its fair share of challenges over the period and been able to maneuver through most of them successfully.
It is a great testament of a tech startup that achieved success with a novel business model and smart execution.
Interesting Read: How to Build an App Like Uber?
Tech entrepreneurs and startups can learn a lot from studying Uber’s business case study. We have tried to make the job easy by putting down a list of key takeaways/ tips from analyzing Uber’s massive success.
Let’s check them out below.
Build Solutions for Real-world Problems
This is somewhat obvious but still needs to be mentioned first. You as an entrepreneur should identify real problems and figure out how technology can be leveraged to solve it, just like Uber used mobile technology to transform on-demand transportation.
Uber doesn’t rest on its laurels of being the first prominent rideshare app. Its founders understood really well that the competition will grow over time and they can only stay ahead through continuous product iterations. They keep adding new features to their passenger and driver apps, invest in new technologies and more.
Shoot for Scalability
Building a scalable business model is critical if you are to sustain your startup in the long run. Uber has built its platform in such a way that it is easy for it to expand to new markets and serve multiple users simultaneously with confidence.
Keep Overhead Costs Low
Run a lean business model that doesn’t require large infrastructural investments. Also, for building a tech startup, a skilled workforce is very crucial. This also adds up to your cost overheads in terms of high salary payments. One effective way to stay lean during the initial stages of your product development is by partnering with a third-party technology development company to build the MVP and overtime do in-house hiring.
The proliferation of the on-demand industry owes a lot to Uber and rightfully so. Uber’s success in many ways started a chain reaction with hundreds of on-demand/ Uber for “X” startups been launched after that and hopefully many more to come.
Specifically, in the on-demand transportation and logistics industry, the effect has been profound. We hope that our analysis of Uber’s business model will become a useful resource for upcoming on-demand startups.
Disclaimer : The information mentioned in this blog is based on the author’s own understanding of Uber’s business model. The facts and figures have been obtained from online research with appropriate credits given wherever required. Please use the information at your own discretion with no liability on the author or the firm.
Nitin Lahoti is the Co-Founder and Director at Mobisoft Infotech . He has 15 years of experience in Design, Business Development and Startups. His expertise is in Product Ideation, UX/UI design, Startup consulting and mentoring. He prefers business readings and loves traveling.
- Latest Posts
- Popular Posts
- Exploring the Latest Remote Patient Monitoring Trends and Future Possibilities
- How to Overcome Challenges in Micromobility with IoT
- Coping with Complexity: Addressing the 10 Key Challenges of EHR Implementation
- Learn TypeScript with React By Building a CRUD Application
- Digital Disruption in Retail Unlocking New Opportunities for Retailers
- Tips for Effective Project Management
- Web API Performance Testing Using Apache JMeter
- How Artificial Intelligence Chatbots are Revolutionizing Healthcare?
- iPhone TabBar: UITabBarController Tutorial
- Xamarin – Cost Effective Approach to Enterprise Mobile App Development
- on-demand business model
- startup business ideas
- startup business model
- uber business model
Reach Out To Us
Please select the field.
Get our latest posts delivered right to your inbox.
Explore our related services to enhance your digital product performance.
Mobile App Development Houston Usa
Hire Golang Developers India
Hire Uipath Developers
Get in touch for detailed discussion., accelerate your business growth with our digital solutions and services..
Thank you for downloading our resource. Subscribe newsletters to stay updated with our resources.
Home » Business ideas » Transportation Industry » Taxi Business
How to Write an Uber Driver Business Plan [Sample Template]
Are you about starting an Uber driver management company? If YES, here is a complete sample Uber driver business plan template & FREE feasibility report. Since the emergence of Uber and other e – hailing taxi services business, quite a lot of business opportunities have sprung up in the niche and interestingly, one of such business opportunities is to run an independent business that manages drivers and fleet of cars under Uber.
You can decide to just recruit drivers for Uber and make available cars for them to ride, or you can serve as a middle – man between Uber and potential drivers. It is important to note that starting a standard Uber business with over a handful of cars and drivers also needs a significant investment capital, solid planning, and concentration to detail in order to keep your business profitable. You are also expected to have done your feasibility studies and market survey before committing your capital in the business.
A Sample Uber Driver Business Plan Template
1. industry overview.
Uber driver services companies are known as taxi e-hailing software app services company and the business is under the taxi e-hailing software app services industry. A taxi e-hailing software app company provides comfortable and private transportation via automobiles for passengers. This taxi service is not operated on regular schedules or routes like the usual buses or car that usually pick several passengers along the road.
Uber Technologies Inc. is an American multinational transportation network company (TNC) offering services that include peer-to-peer ridesharing, ride service hailing, food delivery , and a bicycle-sharing system. The company is based in San Francisco and has operations in 785 metropolitan areas worldwide. Its platforms can be accessed via its websites and mobile apps.
A recent statistic released in 2019 shows that Uber is estimated to have 110 million worldwide users, a 69.0 percent market share in the united states for passenger transport, and a 25 percent market share for food delivery. Uber has been so prominent in the sharing economy that the changes in industries as a result of it have been referred to as uberisation, and many startups have described their products as “Uber for X”.
A good percentage of Uber drivers use their own cars even though drivers can rent or lease a car to drive with Uber. Uber offers car rental or leasing via Getaround, Hertz, and Fair, and Uber and BYD Auto have a partnership to provide leasing of electric cars to Uber drivers in Chicago and New York City.
In order to qualify as a driver under Uber, you must meet some basic requirements for age, health, car age and type, have a driver’s license and a smartphone or tablet, and must pass a background check. In many cities, vehicles used by Uber drivers must pass annual safety inspections and/or must have an Uber emblem posted in the passenger window. Some cities also require Uber drivers to have a business license.
Uber drivers are considered independent contractors and not employees, though this has been the subject of lawsuits in several jurisdictions. Before drivers accept a ride, the app tells them if the ride will take more than 45 minutes. Uber has invested significantly in mapping technology. The Uber driver app includes accommodations for hearing-impaired drivers.
Drivers in the United States who open a checking account at GoBank by Green Dot receive a debit card that provides cash back for purchases at Exxon, Walmart, Sprint, Jiffy Lube, and Advance Auto Parts. To verify identity and prevent drivers’ accounts from being compromised, a mechanism called “Real-Time ID Check” requires some drivers to occasionally take selfies when logging on to Uber.
The bottom line is that Uber is open to partnership with an independent company that can help them extend their market – share in the taxi e-hailing software app industry and you can leverage on this to start your own Uber taxi driver business in the United States of America.
2. Executive Summary
Alpha Plus® Uber Drivers, Inc. is a licensed and registered taxi e – hailing software app company that intends to manage drivers under Uber. We will be based in Miami Beach, Florida – United States of America and we will have active presence in other cities like Green acres City, Miami, Jacksonville, Clearwater, Tampa, Fort Lauderdale, North Miami, West Palm Beach, Palm Harbor, Deltona, Orlando, Palm Bay and Panama City et al.
We chose to operate in these cities because we know that our services will be in high demand due to the demographic composition of Florida. We are well trained and equipped with some of the finest taxi cab drivers and comfortable cars to service our clients irrespective of their social and financial status.
Our services will involve managing professional drivers and fleet of cars under Uber. Our aim is to offer only the above stated services, but we will not close our doors to diversification (additional services) as long as it does not affect our core services.
At Alpha Plus® Uber Drivers, Inc. we are passionate in the pursuit of excellence and financial success with uncompromising services and integrity which is why we have decided to start our own Uber driver service business. We are quite optimistic that our values and quality of service offering will help us drive Alpha Plus® Uber Drivers, Inc. to enviable heights.
We will be dedicated to establishing good business relationships with our clients giving them value for their money and reasons for them to hire our services over and over again. We are quite aware that in order to become the number one choice in our city, we must continue to deliver quality and highly reliable services.
We are open to the use of latest technology in the taxi e-hailing software app services line of business. No doubt our excellent customer service and the quality of services we offer will position us to always welcome repeated customers.
Our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Alpha Plus® Uber Drivers, Inc. is owned and managed by Wilson Garry and his friend and business partner Allen Rooney. They both graduated from University of California and are equipped with the required qualifications and experience to grow Alpha Plus® Uber Drivers, Inc. to favorable compete with leaders in the Taxi e-hailing software app services industry.
3. Our Products and Services
Alpha Plus® Uber Drivers, Inc. is a standard Uber driver company that is positioned to make profit and favorable compete with leaders in the industry and we are going to do all that is permitted by the law of the United States of America to achieve our business aims and ambition. Our services offerings are listed below;
- Recruiting, training and providing drivers for partners under Uber
- Managing drivers and fleet of cars for partners under Uber
4. Our Mission and Vision Statement
- Our vision is to become the number one Uber driver company in the whole of Florida with active presence in key cities all around the State of Florida.
- Our mission as a standard Uber driver company is to develop a highly successful, profitable business which provides reliable drivers and cars in our city and to become the standard for an ideal taxi e-hailing business not only in the State of Florida but also throughout the United States of America.
Our Business Structure
We are quite aware that the success of any business lies in the foundation on which the business is built on, which is why we have decided to build our taxi e-hailing software app company on the right business foundation.
As a matter of fact, we are set to build an Uber driver services company that will be the standard for the industry in the United States of America. We want to build a dedicated workforce that will ensure that our customers and partners are satisfied and they get value for their money.
We aware that it takes a business with the right employees and structures to achieve all what we have set to achieve, which is why we will be putting structures and processes in place that will help us deliver excellent services and run the business on auto pilot.
With the wide range of our service offerings, we are expected to employ more than it is required to run a conventional Uber driver business. Definitely, we will have various employees (full – time and contract staff) to man the various service offerings of Alpha Plus® Uber Drivers, Inc.
Alpha Plus® Uber Drivers, Inc. will employ professionals and highly skilled people to occupy the following position;
- Chief Executive Officer
Admin and HR Manager
Marketing and Sales Executive
- Customer Care Executive / Front Desk Officer
5. Job Roles and Responsibilities
Chief Executive Office:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results and developing incentives
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Managing our software and backend
- Responsible for installation, repair and maintenance of GPS car tracking device for the organization
- Responsible for writing and presenting reports, proposals, applications and contracts
- In charge of choosing the GPC car tracker components and software to be used and specifying the requirements for the project
- Adapting plans according to circumstances and resolving any problems that may arise during GPS car tracker installation and monitoring
- Monitor all our taxi that are plying different routes
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Design job descriptions with KPI to drive performance management for clients
- Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defining job positions for recruitment and managing interviewing process
- Carrying out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
- Identify, prioritize, and reach out to new partners, and business opportunities et al
- Identifies potential partners; follows up on development leads and contacts
- Writing winning proposal documents, negotiate fees and rates in line with company policy
- Responsible for handling business research, marker surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Document all customer contact and information
- Represent the company in strategic meetings
- Help increase sales and growth for the company
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Create reports from the information concerning the financial transactions recorded by the bookkeeper
- Prepare the income statement and balance sheet using the trial balance and ledgers prepared by the bookkeeper.
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the company
- Serves as internal auditor for the company
- Serve as a professional driver for the organization by driving cars as assigned by the management
- Maintain a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
- Keep a record of vehicle inspections and make sure the cab is equipped with safety equipment
- Inspect vehicles for mechanical items and safety issues and perform preventative maintenance
- Comply with taxi driving rules and regulations as well as with company policies and procedures
- Report defects, accidents or violations
Client Service Executive/Front Desk Officer
- Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the manager in an effective and timely manner
- Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
- Receives parcels / documents for the company
- Distribute mails in the organization
- Handles any other duties as assigned by the line manager
6. SWOT Analysis
Taxi e-hailing software app business cum Uber driver business is one of the many businesses that can easily generate sales with little stress. We are building a standard Uber driver business with plans to sell our franchise all across the United States of America and Canada which is why we have decided to subject our business idea (company) to SWOT Analysis.
Ordinarily we can successfully run a normal Uber services business without the stress of writing a detailed business plan, but because we intend becoming one of the leaders in the line of business we want to establish, we don’t have any option other than to follow due process.
We hired the services of Lardon Maxwell, an expert HR and Business consultant with bias in disruptive startups to help us conduct SWOT analysis for our company and she did a pretty job for us. Here is a of the result we got from the SWOT analysis that was conducted on behalf of Alpha Plus® Uber Drivers, Inc.;
The strategic locations we intend covering, the Business model we will be operating on, access to a pool of willing partners, ease of payment, wide range of highly reliable and comfortable cars, highly trained and courteous drivers and of course our excellent customer service culture will definitely count as a strong strength for Alpha Plus® Uber Drivers, Inc.
A major weakness that may count against us is the fact that for now, we don’t have the financial capacity and business structure to compete with Uber hence the need for us to work with them as an independent partner.
The fact that we are launching out in the heart of Miami – Florida, provides us with unlimited opportunities to market our services to a large number of professional drivers, business partners, corporate organizations, travel and tours agencies, hotels, government organizations, households et al.
We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they patronize our services; we are well positioned to take on the opportunities that will come our way.
A major threat that we are going to be confronted with is that as an independent business whose services is dependent on Uber, we might not have a say on how they run their business and they may decide to release policies that may adversely affect our business.
7. MARKET ANALYSIS
- Market Trends
The market for luxury services such as taxi and limousine services is driven by the growth of the economy and the increase in consumer spending – in essence, as the general economy of a country grows, more people will have enough financial resources to patronize luxury services such as making use of taxi cum Uber as against making use of public buses, and trains et al.
Besides, revenue generated by an Uber services company is driven by business and leisure travel. No doubt, the profitability of operators in this industry depends on good marketing and networking. Small taxi cab companies can effectively compete with large ones because there are few economies of scale in this line of business.
Research shows that the taxi cab and limousine services industry in the US is fragmented: the top 50 companies account for less than 35 percent of the total revenue generated in the industry.
Lastly, technology has indeed played a major role in this industry; especially in cutting cost and enforcing safety and monitoring measures. GPS car tracking device readily comes to mind. There is hardly any Uber services company that does not have GPS car tracker installed on all their cabs. It helps them in monitoring their fleets, drivers and also in planning and budgeting.
8. Our Target Market
Before choosing a location to launch our Uber services company, we conducted our feasibility studies and market survey and we were able to identify those who will benefit greatly from our service. Those who will benefit from our service offering are grouped into three and they are;
- Investors / partners who are interested in investing in Uber by making available fleet of cars to be managed by a company like ours
- Professional drivers who want to drive under Uber but don’t have their own cars
- Everyone who has the financial capacity to make use of taxi cabs / Uber.
Our competitive advantage
Taxi cab and limousine services business is an easy to set up business especially if you have the finance to acquire comfortable cars, attract drivers and the ability to run and manage a business. It means that the possibility of Uber driver businesses springing up where our company is located is high. We are aware of this that is why we decided to come up with a business concept that will position us to become the leader in Miami – Florida.
We can confidently say that the strategic locations we intend covering, the Business model we will be operating on, access to pool of partners and investors, ease of payment, wide range of highly reliable and comfortable cars, highly trained and courteous drivers and of course our excellent customer service culture will definitely serve as competitive advantage for Alpha Plus® Uber Drivers, Inc.
For the time being, Alpha Plus® Uber Drivers, Inc. has no real competitors that can compete with the quality of services we offer. Our customer service will be customized to meet the needs of all our customers.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category (startups Uber services businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Alpha Plus® Uber Drivers, Inc. is established with the aim of maximizing profits in the industry and we are going to ensure that we do all it takes to attract clients on a regular basis. We will ensure that we leverage on our strength and the opportunities available to us in the U.S. market to generate enough income that will help us drive the business to stability.
We will explore every available sources of income in the taxi e-hailing software apps industry. Below are the sources we intend exploring to generate income for Alpha Plus® Uber Drivers, Inc.;
10. Sales Forecast
One thing is certain, there would always be investors and drivers who would need the services of Uber companies. We are well positioned to take on the available market in Miami – Florida and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six months of operation and grow our Uber driver business and our clientele base.
We have been able to examine the taxi e-hailing services software apps market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Alpha Plus® Uber Drivers, Inc. it is based on the location of our business and of course the wide range of related services that we will be offering;
- First Fiscal Year: $240,000
- Second Fiscal Year: $450,000
- Third Fiscal Year: $950,000
N.B : This projection was done based on what is obtainable in the taxi e-hailing software apps industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering the same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
The marketing strategy for Alpha Plus® Uber Drivers, Inc. is going to be driven by good returns on investment (ROI) for our partners, excellent customer service, honesty and quality service delivery. We will ensure that we build a loyal customer base.
We want to drive sales via the output of our jobs and via referral from our satisfied customers. We are quite aware of how satisfied customers and investors drive business growth especially businesses like Uber driver services. Alpha Plus® Uber Drivers, Inc. is strategically located and we are going to maximize the opportunities that are available which is why we spent more to locate the business in a location that will be visible to our target market.
Our sales and marketing team will be recruited based on their experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of Alpha Plus® Uber Drivers, Inc.
Our goal is to grow Alpha Plus® Uber Drivers, Inc. to become the leading Uber driver company in Miami – Florida which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with in the taxi e-hailing software apps industry. Alpha Plus® Uber Drivers, Inc. is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our Uber driver services business by sending introductory letters alongside our brochure to corporate organizations, travel and tour agencies, hotels, households and key stakeholders in all across Miami, Green acres City, Miami, Jacksonville, Clearwater, Tampa, Fort Lauderdale, North Miami, West Palm Beach, Palm Harbor, Deltona, Orlando, Palm Bay and Panama City et al
- Print out fliers and business cards and strategically drop them in offices, car parks, libraries, public facilities and train stations et al.
- Use friends and family to spread word about our business
- Post information about our company and the services we offer on bulletin boards in places like car parks, schools, libraries, and local coffee shops et al
- Place a small or classified advertisement in the newspaper, or local publication about our company and the services we offer
- Leverage on referral networks such as agencies that will attract drivers and partners who would need our customized services
- Advertise our Uber driver services company in relevant magazines, newspapers, TV, and radio stations.
- Attend relevant automobile expos, seminars, and business fairs et al to market our services
- Engage in direct marketing approach
- Encourage the use of Word of mouth marketing from loyal and satisfied clients
- Join local chambers of commerce and industry to market our services and attract partners.
11. Publicity and Advertising Strategy
Alpha Plus® Uber Drivers, Inc. is set to establish a standard for Uber businesses in Miami – Florida and throughout the United States which is why we will adopt and apply best practices to promote our business. Good enough, there is no hard and fast rule on how to advertise or promote an Uber driver services business.
The challenge is that most startup companies do not have the required money to pump into publicity and advertising. Here are the platforms we intend leveraging on to promote and advertise Alpha Plus® Uber Drivers, Inc.;
- Encourage our loyal customers (partners and drivers) to help us use Word of Mouth mode of advertisement (referrals)
- Advertise our business in relevant magazines, local newspaper, local TV and radio stations
- Promote our business online via our official website
- List our business on local directories (yellow pages)
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, LinkedIn, twitter, et al to promote our brand
- Install our Billboards in strategic locations in and around Florida
- Direct coupon mailing approach
- Distribute our fliers and handbills in target areas in and around Miami – Florida.
- Advertise our company in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members and drivers wear our branded shirts and all our taxis are branded with our company logo
12. Our Pricing Strategy
Firstly, we don’t have the capacity to determine the price for this business since we are an independent partner with Uber; they are in the position to determine the price and the commission to pay per trip.
Secondly, since we will be managing a fleet of cars under Uber, we will ensure that we abide by the standard price range as regards leasing of cars over a period of time for our drivers who chose the lease option. For those who just want to drive under our scheme, we will pay them 40 percent of the earnings the car generates per day.
- Payment Options
The payment policy adopted by Alpha Plus® Uber Drivers, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Alpha Plus® Uber Drivers, Inc. will make available to her clients and partners;
- Payment via bank transfer
- Payment with cash
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our clients and partners make payment without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients and partners who may want to deposit cash or make online transfer for our services.
13. Startup Expenditure (Budget)
From our market survey and feasibility studies, we have been able to come up with a detailed budget of establishing a standard Uber driver services company in Miami – Florida. These are the key areas where we will spend our startup capital on;
- The Total Fee for Registering the Business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits – $1,500.
- Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- Cost for hiring Business Consultant – $2,000.
- Insurance (general liability, comprehensive car insurance, workers’ compensation and property casualty) coverage at a total premium – $30,800.
- The cost of accounting software, CRM software and Payroll Software – $3,000
- The cost for leasing standard office facility with enough parking- $100,000.
- The cost for facility remodeling – $10,000.
- Other start-up expenses including stationery – $1000
- Amount needed for phone and utility deposits – $3,500
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for Start-up inventory (fueling, car tracking devices and accessories) – $50,000
- The total cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Credit card machine, POS, tables and chairs et al): $4,000.
- The cost of Launching a Website: $600
- The total cost for financing the acquisition of the first set of Uber – spec cars – $500,000
- The cost for our grand opening party: $15,000
- Miscellaneous: $10,000
We would need an estimate of $750,000 to successfully launch our Uber driver business in Miami – Florida.
Generating Funds/Startup Capital for Alpha Plus® Uber Drivers, Inc.
Alpha Plus® Uber Drivers, Inc. is a business that will be owned and managed by Wilson Garry and his friend and business partner Allen Rooney. They are the initial financiers of the business which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.
These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings and sale of stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $550,000 from the bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
One of our major goals of starting Alpha Plus® Uber Drivers, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to offer give our drivers and partners more than they can get elsewhere in terms of earnings and return on investment (ROI).
We are well prepared to survive on a low-level profit margin for a short period of time. Alpha Plus® Uber Drivers, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of ten years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check:>Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Acquiring facility with enough parking lots and remodeling the facility: In Progress
- Acquiring of cars and limousines: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of office furniture and appliances, software apps and IT gadgets : In progress
- Creating Official Website for the Company: Completed
- Creating Awareness for the business both online and in the neighborhood: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Establishing business relationship with car dealership shops, Uber Technologies Inc., and other key stakeholders in the industry et al: In Progress
More on Taxi Business
Browser not supported
This probably isn't the experience you were expecting. Internet Explorer isn't supported on Uber.com. Try switching to a different browser to view our site.
A platform that was built to move
Transform the way your company moves and feeds its people with Uber for Business.
A single platform for employee and customer needs
With just a tap, your team can request a ride in over 70 countries around the world. We make it easy to set permissions and track spending.
Let employees and customers order from over 780,000 restaurants, while you control budgets and policies.
Help your employees get to work by subsidizing rides to and from the office. We’ve launched new safety standards, and it’s easy to set limits on location, time of day, and budget.
Distribute vouchers to help customers and guests get where they need to go. Or request rides for them from the Central dashboard.
Request on-demand, local deliveries for you and your customers with Uber. It’s as easy and fast as requesting a ride.
Vouchers is a great promotional tool to help drive foot traffic to your store. It can also be used to show customer appreciation.
See how the Uber for Business platform works
Tools that keep you in control, plan and send rides with central.
Use the Central dashboard to request rides for customers and guests even if they don't have a smartphone.
Cover rides and meals with Vouchers
Reach new customers and improve employee morale with vouchers they can use to get meals and go places.
Create programs in our dashboard
Invite your team to join customized business travel, meal, and commute programs by linking them to your business account.
Meet the businesses growing with our platform
Ryder has requested more than 100,000 rides for customers by integrating with Uber’s API, enabling the company to better allocate staff time and resources.
The Golden State Warriors teamed up with Uber for Business to find innovative ways to elevate the fan experience at the Chase Center.
Twenty Four Seven Hotels leveraged Uber for Business to request rides instead of using their traditional shuttle service and made a lasting impression with their guests.
Advanced features to save you time and money
Customize your programs.
Set ride and meal limits based on day, time, location, and budget. You can also let your team charge to a single company account or their own personal cards.
We integrate with leading expense software providers like SAP Concur so expenditures can be automatically processed. No more employees hunting down receipts.
Get deep insights
We give you unparalleled visibility into your team’s spending and usage, so you can fine-tune your program and improve your bottom line.
Your business is going places. We’re here to help.
How it works.
Transform how your company moves and feeds your people.
You pay our standard rates with no service fees
Your health and safety are our top priorities.
Get company-wide climate metrics and low-emission rides.
Products and features
Manage your programs and generate useful insights.
Request rides on behalf of your customers.
Cover the cost of customer rides and meals.
Send and receive local deliveries in an instant.
Purchase Uber gift cards in bulk.
Request rides and deliveries on behalf of patients and caregivers.
Simplify expensing and help employees earn rewards.
Save time with automatic expense reconciliation.
Maximize your employee benefits.
Improve the ways your business moves people.
Simplify rides and meals in cities worldwide
Offer your employees an easy, stress-free commute.
Request rides for customers and guests with ease.
Get attendees to and from your next event.
Request rides for a large group of employees with our shuttle solutions.
Delights employees and customers with meal delivery.
Let your people order local favorites from their phone.
Order lunch for the whole team and maximize productivity.
Request local, on-demand deliveries.
Integrate with our API to streamline deliveries.
Industries and teams
Elevate customer service with on-demand rides.
Delight your guests with rides and meals.
Attract and retain tenants with turnkey amenities.
Consulting and financial
Keep your employees moving and your clients happy.
Offer rides and meals to employees and constituents.
Offer ride and meal benefits everyone will love.
Make work trips easier for your team.
Sales and marketing
Help drive demand and increase engagement with Vouchers.
Request rides and meals for physical or virtual events.
Help improve your facility's safety and efficiency.
Request rides and meals for execs.
Take care of the office with commute and lunch options.
Control costs and simplify your procurement process.
Get the latest news from Uber for business.
See how innovative companies work with us.
Find helpful resources, tips, and more
Uber Business Model & Statistics [A Complete Uber Business Strategy]
The Uber business model is considered among the best business strategies running in the world at present. That is the sole reason why Uber’s revenue model has become a multi-stream entity with double-digit billion-dollar earning in a single year.
But every billion-dollar business enterprise started somewhere small and gradually grew from there. Uber is the poster child example of this American dream, and the Uber business plan the source of its victory.
The credit to this company’s success goes to the impeccable Uber financial model and business strategy. If you don’t believe me, I’ll be presenting a lot of relevant Uber statistics all through the blog to support my claims about the robust Uber business model.
But, before learning about the Uber business strategies and financial model, you need a little crash course on the history of Uber.
Uber Company Portfolio & Statistics:
- Company Headquarters: San Francisco, California, United States.
- Uber CEO: Dara Khosrowshahi
- Uber Founders: Garrett Camp, Oscar Salazar & Travis Kalanick
- Last Funding Raised by Uber: $500M.
- As of January 2023 Uber has a market cap of $58.71 Billion.
- The Number of Active Users: More than 93 Million
- The Number of Registered Drivers: Approximately 3.9 Million.
- The Average Number of Daily Uber Trips: 17.4 Million
Why Uber Business Model is Considered Best in the World?
Uber’s year after year revenue is proof itself showing that their business strategy is among the best ones in the world, but let’s study Uber strategy and planning in more detail.
There would be several questions in your mind like:
- Why is Uber so successful?
- What is Uber’s business strategy??
- What is Uber’s business model?
- How does Uber make money?
- How Uber works?
- How to build an app like Uber?
We’ll be answering all these questions and a few more in this blog about Uber Business Model Canvas & Strategies. Uber started as a simple concept and a single question: What if you could request a ride from your phone?
What began as a simple thought quickly escalated into a global passenger transport brand and leading two sided marketplace that helps people move towards opportunities.
Uber Business Model Canvas
Every business is unique, so you can’t compare a business strategy of McDonald’s to the Uber growth strategy. But, learning how such a complex company with hundreds of independent sections, work is a humongous task in itself.
But, I have the perfect method to do so. With a business model canvas, you can learn about any company’s goals, intent, and Uber business plans for the future, however big or small.
So, here’s the Uber Business Model Canvas that will give you a quick glimpseon how Uber works and its business strategy that will help you to start a similar taxi business.
Now that you have taken a good look at the Uber business plan, i.e. BMC (Business Model Canvas) of Uber; let me elaborate more on how Uber works, or precisely how Uber begins and spreads its reach in new cities.
Uber’s Customer Segments
As you saw in the canvas, the user segment of Uber are:
- People who don’t own cars
- People who can’t drive a car
- People who don’t want to drive themselves to parties
- People who like to travel in style and luxury
- People who are looking for a cost-effective transport option
So, unlike other on-demand businesses where the companies cater to a limited customer base, Uber has the benefit of providing a large array of transport services to its passengers. Uber offers services like UberX, UberXL, UberPOOL, UberBLACK, UberSUV, and much more for the various types of customers they serve.
We’ll be talking about all these different ride service categories further in the blog. For now, let’s learn more in detail about the Uber taxi business model and how uber makes money from it.
Uber’s Value Proposition
If you do not understand the technical mumbo jumbo of the business world, you must be thinking, What in the name of dear Henry Ford is a value proposition?
Let me explain in plain English, just as Shakespeare would have intended. Value Propositions is the benefit that your stakeholders (passengers and drivers) will get from your company/service. So, here are the value proposition that Uber offers its customers and drivers.
Uber’s Value Proposition for Customers:
- Don’t have to wait long for a taxi.
- Get free rides or discounts on certain occasions from time to time.
- Prices lower than the normal taxi fare.
- Fixed prices for common locations like airports, stations, etc.
Uber’s Value Proposition for Drivers:
- An additional source of income for drivers.
- Allows flexible working schedules where drivers can work part-time, full time, or whenever they want.
- Offers easy payment procedure and earning management platform.
- Those who wish to earn money and love to drive can pursue this as their hobby.
Starting a Taxi Business in a New City
Uber faces the same chicken and egg challenge whenever entering a new city, a new marketplace.
Although Uber serves the most professional cab services, it can still face difficulty in getting the right momentum for new city operations. To overcome this recurring problem, Uber created a systematic process of entering a new city and reaching to its people.
Uber did a few tie-ups with various corporates, in the beginning, corporates that have a large staff of employees. This way, whenever it launches its services in a new city or country, it has booked a regular customer base that will cover the running costs until Uber reaches to the common public of the location. For instance, if you’re planning to start a taxi app in Kenya , then the first move towards the common public to achieve your goal.
As mentioned earlier, this is the solution for the chicken and egg problem in the business. Just like the classic riddle, whether the chicken came first or the egg, in business, there are two entities or factors co-dependent to each other, in this case, the driver and the passengers. So to enter this business, you have to bribe either the chicken or the egg, or both.
Uber bribed both by offering interesting discounts and referral points to the passengers, and high incentives and bonuses to the Uber drivers. Uber focuses on building the supply chain first and keep it flowing until the time the demand side to service increases. Uber’s initial target is to get enough drivers as contractors and secure a steady passenger base whenever it enters into a new city.
Uber’s various approaches and tactics in tackling the new city is the perfect lesson to new startups and entrepreneurs who are planning to start a similar business like Uber.
Uber’s Operating Costs [with Uber Statistics]
You need to understand one scientific principle, the larger the mass of an object, the more force it needs to move. In simple terms, Heavy objects are harder to move than light ones. In business terms, a larger company has to put in more work to advance than a smaller startup. This theory stands absolutely true for Uber. The best part is Uber made a perfect mobile app business plan whether it’s for operating costs or revenue generation.
Although Uber has a terrific plan to break the chicken and egg problem, it bleeds heavy money initially to capture the new market in a particular city. Despite handsome revenues in billions (soon to go in double-digit billions), the unicorn startup has recorded losses. The loss is due to the company’s focus on the expansion of market demand.
Uber requires millions in working capital for each city that it enters, in terms of operating costs and marketing.
We have mentioned the accurate Uber revenue statistics to give you a better perspective of the company’s spending.
How does Uber make money? (Uber Revenue Model)
Short Answer:- Uber makes money from the commissions earned from each of its rides. But Uber’s revenue model is not actually as simple as it sounds. You need to dig a little deeper to learn how this colossal business enterprise makes money.
Uber Revenue Model
There are several ways how Uber makes its humongous billions of dollar revenue, and we’ll be talking about each of those ways here. I know you’re looking at this section like a kid looking at a bar of snickers on Halloween. So, I won’t tease you more.
Uber’s Different Service Categories
Uber initially started to serve the elite class only, but moving forward, the company found out that this niche wasn’t paying enough. So, they gradually shifted gears towards the larger crowd and the bigger market of the working class in the US cities.
As time passed, Uber learned about the large difference in their passengers and their requirements. That’s when they decided to offer more niche services under their belt of services. Uber came up with different rideshare business plans based upon different car types and passenger needs such as UberX, UberXL, UberPOOL, UberBLACK, etc., each service with a different price range.
Predictive Demand Technology
What is the most pivotal piece of add-on technology that helps Google make billions in revenue? It’s predictive text (auto-suggest for the non-technical readers). When you start typing something on Google, and the search engine offers suggestions according to what you are typing. This way, you get easier search experience, and Google guides you to the results it intends to show you.
Uber started working on a similar tool, a predictive demand technology to figure out which area in a city has more demand at a particular time of the day, which routes get more ride requests, etc. With enough data, Uber can give a highly user-friendly experience and can further focus on such sophisticated analytic tools to be developed.
Bonus! How Our On-Demand App Development Services Can Help You!!
Uber’s Surge Pricing Mechanism
This surge price mechanism works on Uber’s predictive demand algorithm. So, further exploring these two pieces of innovation, Uber got its most promising stream of revenue. Surge price is simple; more the demand, higher the charge.
Uber is known to charge even 4x to 5x the normal charge for some routes, getting the company very negative feedback from its users.
But in favor of Uber, the company has to balance the demand and supply, both sides of the business. And, surge price is by far the most accurate solution for it. One can say that it is a necessary evil of the on-demand cab service that keeps the balance. Let me explain how.
Source:Four Week MBA
The larger scale of business like Uber comes with larger problems and the need to further micromanage its deepest origins. With more demand by the passenger, the drivers need to be further incentivized. So, Uber continually looks up to times when it can charge the surge price to the riders.
The surge pricing also encourages more drivers to come to the area where demand is high to ensure there are enough cabs available. So, ride requests don’t get piled up unattended. If you use Uber, you would know this happening frequently when coming to and from airports.
If a passenger cancels a ride after a set time-frame, for instance, five minutes, he/she gets charged a cancellation fee. A good part of this fee is given to the driver who had to stay for the ride.
Leasing to Drivers
Uber began as the biggest online cab service that owned not a single car. But as time passed, they found an additional means of income by running a vehicle leasing program in many of its target countries to help new drivers get onboard faster. The drivers pay a security deposit upfront for the car, and the rental is deducted weekly from the driver’s earnings.
Pivoting with Different Verticals
Uber learned that expanding and pivoting their business to different directions could be very lucrative, and they took the chance. Here are the alternate services that Uber offers besides its passenger transport segment.
UberRUSH: is a motorcycle pickup service launched by Uber. It’s a package delivery service that delivers across all the big cities that Uber is operational in.
UberEATS: is the step Uber took towards on-demand food delivery vertical. UberEATS allows its users to order food and meals from participating restaurants. The restaurant does the cooking while the delivery is taken care of by Uber drivers.
UberBOAT: is available in all the big water-based cities and countries like Istanbul, Turkey, and Croatia. You must’ve already guessed that it’s a water-taxi service where users can book a boat or yacht ride to go to a select location.
UberCHOPPER: After conquering the land and sea, why would Uber leave out the sky? The company has recently come up with helicopter rides service in some select cities. Uber partnered with Airbus for trials of UberCopter.
UberFREIGHT: is basically Uber for trucks. Uber launched its own on-demand trucking service to try its luck in one of the most lucrative transport business. Guess what, the company’s gamble is paying out, and the revenue opportunities are also significant.
SEE ALSO: An Ultimate Transportation & Logistics Technology Solution
How will Uber make money in the future?
A few of its research are still under wraps, but the ones that we have managed to dig out show a recurring theme that the company is aiming for in the future. And for my money, I would say it is a very profitable and safe bet.
Uber’s Potential Future Revenue Streams:
- Electric Scooters
- Autonomous Vehicles
Uber, just like several of the other biggest companies, is most concerned about the earth, and their business model for the future proves it. They are investing heavily in electric vehicles, pooling options, and vehicle sharing methods for the future.
Uber’s Decade long Journey 2009-2019
Uber has been in the game for 10 long years. From its humble beginnings in San Francisco, the company has come a long way. For a moment, forget about all the Uber statistics, Uber revenue, and Uber business strategy
Just look at the journey Uber has crossed in the last 10 years. This is a road map that many companies dream of achieving in their career.
See More: Marketplace Business Model
The Uber Ride Service. Simplified!
We all know how Uber works. Order a cab on your app, and it comes to pick you up, right? After reading so much about Uber, we know that certainly, it’s not that simple. There is a very sophisticated process that goes behind an Uber ride.
How Does an Uber Ride Work?
Here’s the 5 step process of an Uber ride.
- Step 1: Requesting the Ride
The passenger books a ride by feeding in the pickup and drop point and requests for the ride.
- Step 2: Driver Accepts the Request
The closest driver will receive the request that you sent, and s/he can accept or decline as per the availability.
- Step 3: The Ride Begins
The driver accepts the request and comes to pick your up. You get in the car and get to the drop location with ease.
- Step 4: The Payment Process
Once the cab reaches your assigned drop location, you can pay the driver via cards, cash, net banking, or in-app wallet.
- Step 5: Rating the Ride
The final step of the ride is the passenger (you) rating the ride experience from 1 to 5 stars based on the driver’s behavior and vehicle comfort. Likewise, the driver will also rate the passenger.
So, that’s how an Uber ride is done, from start to finish.
Uber’s Ride Service Categories
Here are the various Uber subscription models that the passengers can choose from while booking a cab. All these ride models depend on the Uber car types that the passenger chose from for their ride.
Uber’s Economy Options
The economy service category are for the most common users who fall into the general passengers’ category for Uber.
The most standard ride option that Uber offers is UberX. You, along with up to three other users, can book your ride in a sedan for door-to-door service.
The UberXL ride model is similar to UberX, except that instead of a 4 sitter sedan you’ll be getting picked up in an SUV or van with the capacity of 6 sitters. So if there are more than 4 people with you, book an UberXL.
You can book an Uber select for upto 4 passengers and get a low-cost ride in a higher-end sedan or SUV with a highly-rated Uber driver. The prices on UberSelect are cheaper than Uber’s luxury category services. You can get a car anywhere from Kias and Hyundais to Audis and BMWs, depending on your luck and availability.
Uber’s Cost Effective Options
The cost-effective option, as the name suggests, is for the passengers who are looking for the best services that help them save money.
UberPOOL is the carpooling ride service that Uber offers for its users that are more concerned about saving money as well as the environment by sharing ride with other passengers with common drop locations. UberPOOL offers a door-to-door pickup and drop service where you can share the ride with upto 3 more passengers.
SEE Also: Know how to make a ridesharing app.
Express Pool is a new and cheapest ride option offered by Uber. The only difference with Express Pool is that it doesn’t offer a door-to-door service, but instead, the passenger has to get to the allocated common spots (heat spots) to catch the ride. With Express Pool, the app shows the common pickup point nearby to your location but doesn’t show you the dropoff points before you request a ride.
So, after reaching almost half of the way through a blog – did you felt like its a great idea to build an app like Uber for your startup? To the fact, these days it is quite easy to build an app with the help of a software development company. The best part is if you’re running out of budget, then you can opt for Uber app clone solution or an MVP product. Isn’t that interesting? Okay, back to the track again!
Uber’s Luxury Options
If you live for the finer things in life, then Uber’s luxury service category is where you should look for your cab.
Can you guess what sets UberXL apart from UberX? The type of car user is being picked up in. With UberSUV, its the same thing but for a different reason. Passengers are ready to pay a little extra to ride in a luxury SUV with a professional driver. Uber does a rigorous background check of the drivers and also inspect the car once a year.
UberBLACK is Uber’s answer to the town car services. Instead of a regular sedan, with UberBLACK, you’ll be picked up in a black luxury car and a professional driver. The service offers cars with premium features like all leather seats, partitions (in some car models), etc.
UberLUX can be called UberBLACK on steroids. It offers the ultimate luxury service with top of the line cars and the highest-rated drivers. This service is for the most elite customers of Uber for whom luxury and status is more important than money.
Uber’s User Assist Options
This service is for the Uber users that use wheelchairs or need any other kind of assistance.
UberWAV offers vehicles that are build or modified, especially to access motorized wheelchairs or scooters. With UberWAV, you can order a wheelchair-accessible ride for yourself or someone you know. The drivers offering service under the UberWAV category are certified in safely driving and assisting their target customers.
What’s So Special About Uber?
Uber has been through many ups and downs over the span of ten years, but the thing that has kept the company going strong are its mission and vision.
Uber has shown and followed various taglines over the years. Here are a few of them:
- Everyone’s private driver
- Get there. Your day belongs to you.
- Connecting you with the people, places, and things you love.
- Evolving the way the world moves.
If you can observe, there is a common theme going on with these titles; the company’s care for its passengers. Uber has always been firstly concerned about the experience that their passengers get, and the company has done more than someone can expect from a multi-billion company.
The company has many times shown where its true dedication lies. There have been speculations in the past that Uber has served its customers amazingly, but only at the expense of their drivers. Uber took these comments as creative criticism and for the past couple of years, has shown equal care for its drivers.
Their latest FinTech-based product UberMONEY is a shining example where they have kept the Uber drivers their first priority. Among other visions, Uber also aims to make safe and reliable self-driving transportation a reality.
The Good, The Bad, The Competitors
If you love old western movies, you know that after all the talks and discussions, in the end, only three factors stand in the world of business.
THE GOOD done by the company, THE BAD done by the company, and THE COMPETITORS against the company. So, just like a Mexican standoff, let’s pit these three factors against each other for Uber.
What Did Uber Do Right?
Uber digitized the taxi industry.
Before Uber, people use to stand on the street side and wave their hand to signal a taxi. This tiresome process increased the wait time and inconvenience for everyone.
Uber introduced an app for the passengers to order the taxi from anywhere. Just feed in the pickup and drop location and get your taxi app without any hassle.
Uber Removed The Fear of Unfamiliarity
Uber noticed that people had a fear of unfamiliar drivers. Most of the people (especially the women) were not comfortable to ride with an unknown driver.
Uber came up with the idea for passengers to see the driver profile and status before hiring a cab. Through the Uber app, users can now see the driver’s profile, their past trips, and the ratings given to them by pst passengers.
Uber Brought Real-Time Notification
With the usual taxis, passengers are not able to get the real-time notifications of their rides. This lack of technology had people face several hurdles in their daily lives.
Uber came up with the app feature by which passengers get real-time location about their rides in terms of arrival and the cancellation of rides.
Uber Introduced Smart Route Suggestions
In all of the major cities, long waiting hours of a traffic jam is a common problem that people face. The reason is that drivers are not aware of the lesser congested routes at a given time.
The Uber app only provides one of the shortest routes with less traffic areas to Uber drivers making the rides shorter and smoother for the driver and the passengers.
Uber Launched Cashless Payment
In the past, users’ had to carry money in hand to book a cab. In many instances after the ride, the driver and passenger would be fighting due to lack of money or change.
Uber found this problem earlier and introduced the cashless payment system into its app for easier transactions for the passengers as well as the drivers.
What Did Uber Do Wrong?
Maintaing uber’s image.
Uber is a multi-billion dollar company spread across several countries, and for such a company, there are occasions when things can go wrong. In this digital age, a single angry customer can impact very negatively on the social image of the company with one tweet or post.
So, handling such a massive operation without a few hiccups is impossible. Still, Uber is doing good as compared to a few other brands. But, this is a daily fight which the company will have to face until the day it stops running.
Chicken & Egg Problem
Entering any new city is always tough for any company, however big or small. We’ve talked about this problem earlier in the blog and also the solution that Uber applied to it. But throwing a lot of money towards a problem is not actually a feasible solution. So, until Uber finds an actual solution to this problem, I would consider this as a drawback of the company.
Trust & Safety Issue
One issue that is a subset of the problem mentioned above is trust. If a consumer is already using one company’s product, then s/he would find it difficult to switch to another option. Simply said, a passenger that frequently goes with a local taxi will find it difficult to trust Uber and the hi-fi digital app solution that the company provides.
The solution for this is through marketing and advertisement. To create an image of the company that the passengers can trust more than the existing service provider, the local taxi service.
Who are Uber’s Main Competition?
Here is a pictorial depiction of the top Uber statistics compared against Uber alternatives .
Takeaways from Uber Business Model
Uber has seen all the highs and lows of the passenger transport industry and learned from each of them. That is the only reason why even after massive losses, Uber is trusted by investors and still going strong as an enterprise.
So here are a few takeaway points from the Uber business strategy and Business Model that we discussed today.
Keep Innovating like Uber
Uber doesn’t know how to hang its guns and rest, and that is the best feature of a world-class business enterprise. The company always keeps on innovating with their old products as well as new. Uber always wants to provide the best to its customers and partners.
This enthusiasm is the reason why Uber has been among the top companies in the world, and it is the prime reason why Uber can become the whole and sole transport business entity of the future. With its latest innovations in automated driving, electric vehicles, and several other smart transport innovations, Uber is all set for the future and still exploring.
Keep Overhead Costs to Minimum
When Uber began operations to the point when it got its international fame, the company didn’t own a single car and yet became the biggest on-demand taxi service in the world. Follow the same Uer business strategy and go for the less ownership model.
Scalability is the Holy Grail
We have always heard that a business should be scalable and to start the business from day one thinking about the scalability. But, how many companies actually stand true to this statement. I can say Uber sure does.
If you are thinking of starting your own taxi business, then building an app is the first and foremost thing to begin with.
How to Start an On-Demand Taxi App Business like Uber?
If you are still thinking about how to start your own uber like business, then let me give you a final tip. What do you think is the most important asset that Uber has? It’s not its drivers, it’s not Uber’s R&D team, and it’s not the top management team.
The answer to the question, “how to start a business like uber?” and the most important asset of the company is the same, its mobile app. The Uber app is the platform using which its two main stakeholders, its drivers, and passengers interact with the company.
So, if you wish to build your own Uber like company, you need to focus on first developing a world-class passenger and driver app for your on-demand taxi service startup. For that, you need a very reliable and skillful taxi mobile app design and app development company to be your technology partner.
Yet confused on any point? Get in touch with our experts . They will guide you with the best solution for your app like Uber.
If you have an idea to start an uber business, reach out to the app development company and discuss your business plan for Uber. To start any business you would need a mobile app. Get the right understanding of the business plan and strategy to get a grip on the Uber taxi business.
Ride-sharing business model is where two or more people share the same ride. Ride-sharing is a two-sided marketplace where the interface connects the drivers and the users at the same time. Uber’s business strategy is the best to adapt for any taxi business.
Start your market research and choose a niche. Next would be the business or revenue model you choose for your business. Go digital and create a mobile application that can help you manage the entire taxi business operations from one platform. Discuss your Uber business plan with the developers and they will do the rest.
Uber looks simple and easy like any other ride sharing business. But, its revenue model is different from theirs. It does not employ riders so it does not generate money through rides. However, the commission based model decides the certain % shared with the drivers. The Uber business plan brings more money than any other business.
Yes, the business plan for Uber is an on-demand cab aggregator model that operates on the smartphone to book a cab that calculates the estimated time to travel, and the fare. The agent revenue model generates money that comes from the commission paid by the drivers to use the platform.
Yes, Uber strategy and planning has always given profits to the business. Though there is no direct revenue, they follow a commission-based plan to earn profits from the drivers’ earnings. It depends on the driver’s location and hourly wages.
The right question should be what is the growth strategy of Uber? Well, the business strategy or plan of Uber itself is the growth plan to earn maximum profits. The value proposition is simple and has solved many transportation problems easily. Most importantly, the digitized world has taken over the huge plunge in the growth of Uber. Develop a mobile app like Uber and get started with earning profits.
We believe in turning ideas into impactful products.
- Dedicated Team & Agile Approach
- Team of 200+ Developers
- Long Term Liability
- Competitive Pricing
- Technology Skills
- Useful Suggestions from Experts
- iOS App Development
- Android App Development
- Flutter App Development
- Mobile App UI/UX Design
- React Native App Development
- Software Development
- Website Development
- MVP Development Guide
- How to Patent an App Idea
- How to Raise Funds Guide
- Mobile App Development Guide
- Social Media App
- 30 Best Web App Ideas
- ABCtogo Liquor Delivery App
- MoveCoins – Health & Fitness
- Aromascence – eCommerce App
- Hirely – On-Demand Marketplace
- Smart Parking – Mall & Buildings
- Smart Switches – Control Devices
- Smart Helmet – Worker Safety
- App Development Cost Guide
- App Development Team Structure
- Food Delivery Business Model
- How to Create an NFT Marketplace
- Software Development Cost
- Best App Design Trends
- Cost to Build Taxi App
Meet us at Dubai GITEX 2022
- Financial Analysis
- Budgeting Consultants
- Financial Reporting
- Financial Planning
- Financial Modeling
- Accounting & Bookkeeping
- Investor Ready Business Plan
- Professional Business Plan Revision
- Investor Ready Pitch Deck Presentation
- Investor Ready Executive Summary
- Investor Ready One Page Project Overview
- Professional Business Plan Review
- Pro Forma Statement of Financial Position/Balance sheet
- Cash Flow Analysis
- Full time CFO
- Special Purpose CFO
- Interim CFO
- Virtual CFO
- Marketing KPI
- Growth Plan KPI
- Break Even Analysis
- Financial Metrics KPI
- Unit Metrics Analysis
- Sales Performance KPI
- Cash Management KPI
- Inventory Management KPI
- Business Plan Packages
- Automotive Industry
- Blockchain Industry Financial Model New
- Cosmetics Industry
- Consulting Business
- Education Industry
- Entertainment Industry
- Fintech Industry
- Real Estate
- View All Financial Models
- Healthcare Industry
- Restaurant Business
- View All Business Plan
- Automotive Business
- Blockchain Industry Pitch Deck New
- Education Pitch
- View All Pitch Decks
- Case Studies
How to Write Ride-Hailing Business Plan
Table of Contents
Our Ride-Hailing Business Plan is based on an UBER-like business plan , Ride-hailing or taxi collection business is a smart way to generate money for start-ups and business people alike. UBER, despite being the biggest industry in the taxi business, is not holding a single car. Such great is the business idea wherein the business is run relying on a powerful online app platform. So, just by owning the software, one can effectively generate money through commissions without investing a bit in buying and maintaining cars.
UBER has penetrated all parts of the world, with over 2 million drivers and counting. Instead of owning a car and driving for UBER, one can easily buy an app package, start and run their own taxi business and be an entrepreneur. This may sound daunting, but there are lots of UBER-like clone mobile software and scripts available, some being ready-made and some tailor-made to the customer’s precise needs.
Making a Software for Ride-Hailing Business Plan
An UBER-like Business Plan to run will need Software as reliable as UBER itself. The market is full of Software claiming to be UBER clones. An online Taxi Business is almost entirely dependent on the Software to function more efficiently. So investing in the best Software itself will alleviate most of the problem. A ride-hailing software should manage payments, have proper GPS navigation, handle incoming requests, user rating, management and record commissions, record transactions, and driver details. Some UBER clone scripts promise even more features like airport ride management and support for future driverless cars.
Before getting a Uber-like ride-hailing business up and running, you will need to structure a financial plan that would work out profitable for your business and the car owners. First of all, you’ll have to decide on a device, the budgetary plan, and the monthly revenue target and work accordingly to achieve it.
With a good user base at hand, you can up-sell and cross-sell numerous products from partner service providers right through the ride-hailing app. You can promote the ride-hailing business by partnering with service providers like movie food delivery, coffee shops, booking, groceries, shopping sites, etc., who can promote your business through ads on their platforms. Email marketing and Mobile SMS is a cheaper way to reach hundreds of potential customers. Sponsoring important local events can go a long way in increasing the reach. You can even try innovative, creative, or even hilarious PR stunts that could attract the media’s attention.
Executive Summary for Ride-Hailing Business Plan
The executive summary of your Ride-Hailing business plan will introduce your business, describes what you do, and lays out what you’re expecting from your readers. Structurally, it is an important chapter of your business plan. And while it’s the first thing that reader will read, we generally advise that you write it last. Why? Because once you know your business’s details inside and out, you will be fully prepared to address your executive summary. After all, this content of a business plan is a summary of everything else you’re going to write about.
Ideally, the executive summary can stand out as a document which includes all business milestone and opportunities available for the investors. You can also include brief financial highlights of your business.
Because your executive summary is such a crucial component of your business plan. You’ll want to make sure that it’s as clear and concise as possible. Cover the key business highlights and milestones of your business, but don’t into too much detail. Ideally, your executive summary will be two to three pages at most, designed to be a quick read that sparks interest and makes your investors feel eager to hear more.
The problem and solution for Ride-Hailing Business Plan
Start the opportunity section by describing the problem that you are solving for your target customers. What is the absolute pain point for them? How are they solving their problems? Maybe the existing solutions to your targeted customer’s problem are not affordable. For a startup business with a physical office location, maybe there aren’t any existing solutions within reasonable driving distance. Explaining the problem, as a business owner you are solving for your target customers is far, the most important element of your ride-hailing business plan and crucial for your business success in the future. If you are not able to pinpoint a problem that your potential customers have. Then you might not have a viable business concept.
Who is your Target Market for Ride-Hailing Business Plan
Who is your ideal target market or customer? What is their number? It’s critical here to be specific. If you’re a ride-hailing company, you aren’t targeting “everyone” just because many have owned a car. You’re possibly targeting a specific market segment such as “Students or individuals not owning a car” or “Tourists.” This technique will become much easier for you to target your sales and marketing efforts and bring new customers that are most likely to buy your service.
The individuals using or not using ride-hailing applications, private car transport with a driver, are classified according to different criteria, such as their level of education, age, annual income, and area, i.e., whether their place of residence is in an urban or rural area. These different poles make it possible to categorize and classify users and see the evolution of the last four years.
For example, in 2018 Less than a quarter of North American high school graduates used Lyft or Uber while more than a third of graduates and more than half of post-graduates used these applications. Educated students or people tend to use these Ride-Hailing applications more often. One of the reasons is that many of them live in city areas where access to this type of online service is straightforward and fast, unlike in rural areas with very few Lyft or Uber drivers.
Market analysis and Market Research
If you want to include a market analysis section in your business plan, start with some basic research. First, identify your market segments in the target location and determine how big each segment is. A market segment is a group or combination of individuals or businesses you could potentially sell.
Don’t fall into the trap by defining the market as everything. The classic example is an ice cream parlor; if everything in the target location eats ice cream, it doesn’t mean the whole population is your target market.
Marketing and Sales plan
The sales and marketing plan section of the Ride-Hailing Business Plan will include how you plan to reach your market segments, your pricing plan, how you plan on trading to those target markets, and what types of partnership and activities you need to make your business a success.
Before you decide about writing your marketing plan, you must have your target market properly defined and have your buyer persona comes out. Without actually understanding who you are marketing to, a marketing plan will have little value.
Are you happy with what we offer? Grab your Solution Now
We are having ready to use financial models, business plan & pitch decks for you., financial plan.
Last but surely not least is your financial plan section. This is often what Business Startups find most difficult, but it doesn’t have to be as intimidating as it appears. Business financial plans for most startups are less complex than you think, and a business finance degree is absolutely not required to build a solid financial model . That said, if you need further help, there are lots of financial templates and resources out there to help you build a perfect financial plan. You can also hire financial consultants who could carry such tasks.
A typical financial plan will have Income Statement, Cashflow , and Balance Sheet for five years and then annual sales projections for the remaining three to five years. Five-year projections are typically sufficient, but some investors will request a seven-year statement.
Following are details of the three financial statements that you should include in your business plan and a brief overview of what should be in each section.
The sales forecast is just that your projections of how much you will sell over the next 5 years. An ideal sales forecast is usually broken down into several excel rows, with a row for each center product or service you offer. Don’t make the error of breaking down your sales forecast into painful detail. Just focus on the high-level at this point.
Your sales forecast will also include an identical row for each sales row to cover the COGS(Cost of Goods Sold),. These rows show the expenses related to getting your product or delivering your service. Cost of Goods Sold should only include those costs directly related to producing your products. Regular business operating expenses such as insurance, salaries, rent, etc. are not a part of COGS.
Your business personnel plan details how much you plan on hiring or paying your employees. For a small or medium-sized company, you might list every position on the personnel plan. And how much money will be paid each month for each job post? For larger enterprises, the personnel plan is usually broken down into functional groups such as “Sales” and “Marketing.”
The personnel plan will also include cost analysis like “employee burden,” which is the employee’s cost beyond salary. This includes payroll benefits, payroll taxes, medical, insurance, and other related costs that you will incur every month for obtaining an employee on your payroll.
Income statement or profit and loss statement
The profit and loss are also known as PnL. This is where your Financial numbers all merge. It shows if you’re generating a profit or bearing a loss. The PnL pulls data from your sales forecast and your admin expenses and includes a list of all your other ongoing expenses connected with running your Ride-Hailing business.
The P&L also includes the all-vital “bottom line,” where your admin expenses are deducted from your sales to show if your business is making a net profit each month or potentially incurring some losses while you grow.
Cash flow statement
The cash flow statement mostly gets confused with the income statement, but they are very different and have different purposes. While the PnL calculates your profits and losses. The cash flow statement contains how much cash (money in the hand) that you have at any given point.
The key to understanding the distinction between the two statements is understanding the difference between profits and cash. The easiest way to imagine it is when you make a revenue. If you need to send an invoice to your customer. And then your customer takes 10 or 30 days to pay the dues. Then you don’t have the cash from the sale straight away. But, you will have recorded the sale in your PnL. And shown a profit from that sale on the day you made the sale.
The last financial statement that most ride-hailing businesses will need. To create as part of their business plan is the statement of financial position or balance sheet. The balance sheet gives an overview of the financial stability of your business. It lists the Fixed and Non-fixed assets in your company, the short and long-term liabilities, and the owner’s equity. If you deduct the company’s assets from liabilities, you can determine the net worth.
For ride-hailing businesses, we also offer customer financial models with guidelines. Do check it out below:
Ride-hailing Financial Model
Oak Business Consultant has helped many Start-up and SME’s for the preparation of Business Plan, Financial Modelling, and Financial Consultancy.
Get your desired solution today with just a single click, share this post, related posts.
COVID-19: A Wrath or An Opportunity
Overcoming the financial challenges amid the COVID-19 pandemic is a paramount task. But if you are looking to take...
Top Healthcare Industry Financial Models
Top Healthcare Industry Financial Models The Healthcare industry is one of the most lucrative industries in the world. It offers...
10 SaaS Financial Metrics Every Business Needs to Track
10 SaaS Financial Metrics Every Business Needs to Track With some new technology coming out almost every quarter in the...
Understanding Angel Investors
Angel Investors Angel investors are those affluent individuals who invest in a small-scale business, usually a start-up. They are dissimilar...
How to write an effective Mission Statement with Examples
How to write an effective Mission Statement with Examples Writing an effective Mission Statement is very important because a mission...
Highlighting the Importance of CAC and CLV
Customer Acquisition Cost (CAC) and Customer Lifetime Value (CLV) are two essential metrics for any SaaS company. CAC is...
What makes an office productive?
To be productive in whatever you do, you have to do analysis and work in a clearly defined office...
Creating a Financial Budget – A Holistic Guide
Creating a Financial Budget - A Holistic GuideCreating a financial budget can be intimidating and overwhelming, but it doesn't...
Why Do You Need CFO Services?
Running a business means you need a lot of financial planning, especially if you're a startup. There are way...
A Holistic Guide to the Role of Startup CFOs
A Holistic Guide to the Role of Startup CFOs The CFO role continues to expand, particularly in fast-growing startups. A...
- My Wishlist
How to Write an Uber Business Plan
Sep 23, 2022
Your executive summary is the first part of your business plan, but you usually write it last because it is a summary of all the important parts.
The point of your Executive Summary is to get the reader’s attention quickly. Tell them what kind of Uber business you’re running and what its status is. For example, are you a new business, do you have a business that you want to grow, or do you run businesses in more than one market?
Next, give an overview of each part of your plan that follows. For example, describe the Uber industry in a few words. Talk about the type of Uber business you run and how it works. Detail your direct competitors. Tell us about your ideal customers. Give a brief overview of your marketing plan. Find the important people on your team. And explain what your financial plan is.
In your business analysis, you will explain what kind of business you are running.
For instance, you could run one of the following Uber businesses:
- Uber Green is a service that uses electric cars.
- This kind of Uber takes between one and three people in a car.
- UberXL offers rides for groups of up to 5 people in a minivan or van.
- Uber Delivery : This type of Uber delivers food ordered through Uber Eats or packages under 50 pounds in the local area.
- Uber Freight: This type of Uber transports freight over long distances. The Uber Freight platform is used to choose which loads to transport.
In the Company Analysis section of your business plan, you need to explain what kind of Uber business you will run and give some background on the company.
Include answers to things like:
- When did you start your business, and why?
- How do you make money from Uber? How are you going to make money with Uber?
- What important steps have you taken so far? Milestones could be things like how many people were helped, how well-known the clients were, etc.
- Your legal structure. Are you set up as an S-Corporation? An LLC? A single-person business? Tell us about your legal structure.
In your industry analysis, you need to give a general picture of the Uber business.
Even though this may seem pointless, it has more than one use.
First, learning about the Uber industry makes you smarter. It gives you a better idea of the market you are in.
Second, market research can help you make your strategy better, especially if it shows you market trends.
The third reason to do market research is to show your readers that you know a lot about your field. You do just that by doing the research and putting it in your plan.
In the industry analysis section, you should answer the following questions:
- How much money is the Uber business worth?
- Is the market going down or up?
- Who are your main rivals in the market?
- Who are the main market suppliers?
- What changes are happening in the field?
- How fast is the industry expected to grow in the next 5–10 years?
- How big is the market that matters? That is, how big is your Uber business’s potential market? You can figure out such a number by figuring out how big the market is in the whole country and then applying that number to the population in your area.
In the customer analysis section, you need to explain who you serve and/or who you hope to serve.
Individuals, groups, and manufacturers are all examples of customer segments.
You can probably guess that the customer segment(s) you choose will have a big impact on your business. Clearly, the way you run your business would be very different for freight than for, say, individual rides.
Try to figure out who your ideal customers are based on how they look and how they think. In terms of demographics, talk about the ages, genders, locations, and income levels of the people you want to serve. Most Uber businesses mostly serve people in the same city or town, so it’s easy to find demographic information on government websites.
Psychographic profiles explain what your target customers want and need. The better you can understand and define these needs, the easier it will be to get customers and keep them coming back.
In your competitive analysis, you should list your business’s direct and indirect competitors and then focus on the direct ones.
Other Uber drivers are your direct competitors.
Indirect competitors are other places where customers can buy things that aren’t direct competitors. This includes people who drive their own cars, rent cars, or run their own trucking businesses.
Concerning direct competition, you should talk about the other Uber drivers with whom you compete. Most likely, the Uber drivers closest to you will be your direct competitors.
Give an overview of each of these competitors’ businesses and list their strengths and weaknesses. Unless you’ve worked at one of your competitors’ companies, you won’t know everything about them. But you should be able to find out key facts about them, such as:
- What kind of clients do they work with?
- Do they focus on certain services, such as luxury transportation, delivery services, etc.?
- How much do they charge (high, low, etc.)?
- What can they do well?
- What do they do wrong?
For the last two questions, try to answer them from the customers’ point of view. And don’t be afraid to ask the customers of your competitors what they like and dislike about them.
The last part of your competitive analysis section is to list the ways you are better than your competitors. As an example:
- Will you offer more types of services?
- Will you offer more convenience, such as opening early in the morning or staying open late at night?
- Will there be extras in the car, like mints or bottled water?
- Will you price things better?
Think about how you will do better than your competitors and write them down in this part of your plan.
Usually, a marketing plan has four parts: the product, the price, the place, and the promotion. As an Uber driver, the following should be part of your marketing plan:
Product: In the product section, you should restate the type of Uber that you wrote about in your Company Analysis. Then, give specifics about the products you’ll be selling. For example, does your Uber business offer rides between cities in addition to trips within the same city?
Price: Write down the prices you’ll be charging and how they compare to those of your competitors. In your marketing plan, the product and price sections are basically where you list the services you offer and how much they cost.
Place: This is where your Uber business is located. Write down where you are and how that will affect your success. For example, will your car or fleet be in the center of the market to get the most business? In this part, talk about how where you are will affect how many people want your services.
The last part of your Uber marketing plan is the section about promotions. Here, you’ll write down how you’ll get people to your location (s). Here are some ways to get the word out about the following marketing campaigns:
- Putting ads in newspapers and magazines in your area
- Contacting local websites
- Signs and billboards
- Social media marketing
- Local radio advertising
In the other parts of your business plan, you talked about your goals. In your operations plan, you talk about how you will reach those goals. Your plan for operations should have two separate parts.
Everyday short-term processes include all the things you have to do to run your business, like getting the oil changed regularly, cleaning the inside after each customer, washing the outside regularly, buying water/mints, etc.
Long-term goals are the goals you want to reach in the future. These could be the dates when you hope to complete your 1,000th ride or make $X. It could also be when you plan to launch in new markets.
To show that you can succeed, you need a strong management team. Showcase the backgrounds of your key players, focusing on the skills and experiences that prove they can help a company grow.
You and/or your team members should have managed Uber businesses before. If so, talk about your experience and skills. But also highlight any experience you think will help your business succeed.
If your team is missing something, you might want to put together an advisory board. A two-to-eight-person advisory board would help your business in the same way that a mentor would. They would help answer questions and give advice on how to plan. If you need to, look for advisory board members who have worked in transportation for people or who have run small businesses well.
Your 5-year financial plan should include a monthly or quarterly breakdown for the first year, then an annual breakdown after that. Your income statement, balance sheet, and cash flow statement are all parts of your financial statements.
A more common name for an income statement is a Profit and Loss statement, or P&L. It shows your income and then takes away your expenses to show if you made a profit.
You need to make assumptions in order to make your income statement. For example, how many rides will you give each day? 10 or 20? And will sales grow by 2% or 10% every year? As you might expect, the financial forecasts for your business will be greatly affected by the assumptions you choose. Do as much research as you can to try to make sure your assumptions are true.
Balance sheets show both your assets and your debts. Balance sheets can have a lot of information, but try to boil them down to the most important parts. For example, if you put $50,000 into building up your Uber business, you won’t make money right away. Instead, it is an asset that you can use to make money for years to come. Likewise, if a bank gives you a check for $50,000, you don’t have to pay it back right away. Instead, you will have to pay that back over time.
Cash Flow Statement: Your cash flow statement will help you figure out how much money you need to start or grow your business and make sure you never run out of cash. Most business owners and entrepreneurs don’t realize that you can make money but still go bankrupt if you run out of money.
When making your Income Statement and Balance Sheet, make sure to include some of the most important costs of starting or growing a business:
- Setting up an office, including furniture, construction, and other things.
- The price of buying or renting a company car
- The price of office supplies and software
- Payroll or wages given to employees Business insurance
- Taxes and licenses:
- Legal expenses
Business Plan for Banks
SBA Business Plan
Order Industry Analysis
Discuss the type of Uber business you are operating and your business model. Detail your direct competitors. Give an overview of your target customers. Provide
Uber's business model is based on commissioning and this is, therefore, its revenue stream. The total value of each ride includes the driver's
To start an uber business you have to follow the steps that are mentioned in detail in this uber taxi business plan. They include making an uber
Uber has three main segments: mobility, freight (both are two-sided marketplaces), and delivery (a three-sided platform). Uber makes money by
Uber's Value Propositions for Drivers · Flexibility to drive on their own terms · Better income · Lower idle time to get new rides · Training
Our mission as a standard Uber driver company is to develop a highly successful, profitable business which provides reliable drivers and cars in our city and to
business-travel.jpg · Meal delivery. Let employees and customers order from over 780,000 restaurants, while you control budgets and policies. · Commute programs.
Uber focuses on building the supply chain first and keep it flowing until the time the demand side to service increases. Uber's initial target
Before getting a Uber-like ride-hailing business up and running, you will need to structure a financial plan that would work out profitable for
Company Analysis · Uber Green is a service that uses electric cars. · UberXL offers rides for groups of up to 5 people in a minivan or van. · Uber