Uber has transformed the world by inconceivable thinking of a world without the convenience of the innovative ride-sharing service. In 2009, when a company known as UberCab started their operation on the US market. We saw a new phenomenon which is known as the sharing economy which is named as an economy where physical or financial assets to be shared as services through digital platforms.
Companies whose business models are build surrounding the sharing economy bring together people who have their resource to rent out and people who want to use those resource without even becoming their legal owner. Like how Cab Booking App connects drivers and passengers, YouTube connects videographers and their audience, likewise TaskRabbit connects people those who need to complete their task without a hassle and the people who are willing to run task for others just to make money.
Sharing economy benefits multiple industries. Below are some platform build around the sharing economy which operates in various industries.
- · Dining and hotel – Airbus, Feastly
- · Transportation - Uber,ola
- · Services - Task Rabbit
- · Retail - Alibaba, Neighbourgoods
- · Entertainment- Spotify, Earbits
In these type of business, owners can exchange the values with consumers using the digital marketplaces or on a platform where they can interact. It is a unique business which doesn’t hold material assets, unlike traditional brick and mortar business, which has been the main idea behind all the uber like a business.
The startup which is trying to employ business model is often referred to as an Uber for “X,” which received mixed reviews, with critics saying that such platform can cause the worker to lose social benefits as well as the security of full-time employment too. However, these platforms are still increasing in popularity with a new startup which is appearing every day and hoping where they will able to replicate Uber’s success story. Uber has several traditional models in the conventional economy for both business owner as well as contractors. Below given are the benefits.
Uber has replaced traditional infrastructure with automated business - The computer has sorted the match providers of service with their consumers in the most efficient way, by increasing the profits margins for owners. For example, Uber Like App Solution has given an automation result most efficiently by reducing the time of pick up, also provided the opportunity for back to back rides with that it has removed the wasteful return trips.
Digital platforms- Platforms help providers and consumers without owning physical resource so that, they can often grow faster than a traditional brick and mortar business. All you need is stable platform to make your business grow. Also, you need not have to worry about renting a warehouse it is much easier to expand internationally.
Flexibility- Most of us must have been in a situation when on a rainy night you might a called an Uber, and end up paying twice the amount of regular rate. Its irritating isn’t it. At the same time, uber doesn’t hide the fact that on certain occasions and their prices surge. Is all because of their drivers are technically contractors, and they also cannot make to work. Uber only works when customers offer sufficient financial incentives to leave their house on a rainy evening. Traditional business cannot do the same because they have employees who work for a full time also with fixed wages. We hate the fact that platform pricing fluctuates significantly depending on how desperately people want a service, but it does help to maximize the profit for the business owner.
Payment system- Integrating third-party payment services such as Stripe and Braintree with a platform lifts the burden of having a reliable payment solution. Recent data has shown that the USA, is third most of using their phone for payments. Also with that platform can build trust in other ways like offering reviews too.
Less investment- When a platform hits the market, they were in the position of their competitors because platforms don’t have to pay rent, repairs, utilities and other costs which are associated with running a traditional business. Platform has also reduced their expenses by hiring a developer's to work online at a low price than full-time office employees. It also helps to generates most of the value.
To conclude the Apps like uber success stories were depending on several factors such as including business model, interaction based feature, and not the other way around combined with marketing strategy, focusing on attracting users.