Paper Example on Uber Business Model

Paper Type:  Essay
Pages:  4
Wordcount:  901 Words
Date:  2022-06-22


Uber is identified as an international web-based transportation network company that was founded in 2009. With the headquarter being in San Francisco California, Uber offers a taxi replacement technology platform that is connecting the riders with the driver partners via a location-based application that is operating in more than sixty countries in the whole world.

Trust banner

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Being that the company is the first web-based transportation network, Uber has a great competitive advantage more than the upcoming competitors. In the general adoption of the Uber business model, Uber adopted one of the outstanding business models in bringing a solution to customer challenges.

Uber employs a driver after they and their cars have gone through the screening process to ensure the safety and comfort of clients. On the consumer's side, after they have downloaded Uber they are in a position of tracking the car as it approaches. Some of the information about the driver that the customer has access to include their photos and even the previous reviews. On the other hand, the pricing strategy that Uber is using is based on bad weather conditions, pricing strategy, car type and distance in general. The company ensured that the payment method is safe through incorporating credit card that the customer has used. The company is continuously growing by reinvesting in the R and D and acquisitions rather than making an investment in infrastructures and cars. From the general management of company's resources and information, Uber business model involves a higher transaction, low inventory and greater margin with the business model receiving great majority from Google venture.

SWOT Analysis

One of the greatest strength that Uber has enjoyed for a while is that the company was one of the first new companies in the market and this has made Uber achieve a greater competitive advantage. Additionally, the company is having various alternatives to offer service to different customers, for example, Uber X car, Uber POP, Uber SUV and Uber Black Car. With a safer method of payment, have offered a convenient way of traveling all over the world.

On the other hand, the company's weakness is a clear indication on some of the areas that can be improved internally. One great weakness that Uber is facing is that they are not capable of charging a flat fee just like other competitors. One complains that the company is facing is that Uber is facing poor consumer service and a surge price for its drivers since they are even hiring them. Making analysis on the company's opportunities, the Uber business model is very cheap to manage since fewer expenses and cost are involved in the process.

Uber's business model has achieved closer inspection even though the company is operating as a private company and the general strength of its value capture has remained to be one of the greatest subjects of conjecture. This has happened since it is one of the leading representatives of the new crop of an economy that is being shared. On the other hand, Uber customers have experienced a better service as compared to other nondigital models which have become very difficult to manage. More significantly, the Uber's model has created a shared revenue platform without the need of keeping expensive assets on its books.

In the general operations, some of the key assets involve the brand and the driver contracts which are recognized as the major assets and not taxi medallion or even the local street knowledge of the drivers. Uber's business model and technology, in general, is a clear reflection on the concept of the coherence of various elements of business strategy and model. The company's GPS requirement, for example, offers one of the accurate response time that is very predictable for the customer and at the same time facilitating the driver's identification of the correct location of the customer.

Relatively, the whole process of preapproving credit is efficient and has created a better platform that improves the driver's customers experience an even the motorist that is behind the Uber vehicles. From the general development, Uber is using technology to develop its bona fides as a car service and to manage cumbersome and costly regulations hence reducing the driver and customer's cost. Being that Uber is open to new entry, new drivers have easily achieved employment with drivers from all walks joining uber.

Notably, the application that Uber is using is identified to be the core center of the business model. the software platform has played an integral role in integrating the activities and automating logistics has a whole. This is by incorporating the request of thousands of customers and drivers in great cities such as London, San Francisco, and New York. With a properly integrated system, Uber and not the drivers are in total control when it comes to the price control since it has embedded with its overall market and fleet management.

Through the company's operation, it is very clear that the Uber business model has in the past demonstrated a significant element of successful business models, with the nature of the model being self-reinforcing in nature. In most cities currently, customers are now realizing the need of not owning a car since uber has brought a care service that is entirely improved. This will be a positive impact in the future since when the customer base has reduced then the demand for Uber in the long run will increase.

Cite this page

Paper Example on Uber Business Model. (2022, Jun 22). Retrieved from

Free essays can be submitted by anyone,

so we do not vouch for their quality

Want a quality guarantee?
Order from one of our vetted writers instead

If you are the original author of this essay and no longer wish to have it published on the ProEssays website, please click below to request its removal:

didn't find image

Liked this essay sample but need an original one?

Hire a professional with VAST experience and 25% off!

24/7 online support

NO plagiarism