The Business Model of Uber is also profiting on several other business. People hardly compare between transportation applications on their smartphone before going for a ride. Hence, a single mobile application is accumulating several customers worldwide.

Besides, the strong distribution network and greater number of cars on the road provide better service to customers. The fares have an advantage too – and are pocket friendly. Also, an Uber ride costs lesser than one in your personal car, with your personal driver.

It is a opportunity for vehicle owners who find the offer quite lucrative. With more and more people averting to ride-sharing companies for daily trips, it can actually be called an uber profit for drivers.

Primary Ways In Which Uber Makes Money

There are two primary ways Uber makes money – and these are pretty simple on the surface. One way is by charging their customer for rides. The second is through promotional offerings and partnerships involving third parties. Let us step into details of both in the next section – Uber Revenue Model.

Uber doesn’t employ its drivers. It partners with them. Uber has argued several times how it is not a transportation company, rather a technology or service provider, according to sources. Drivers set their own work structure and hourly duration and are under nominal control.  They have all rights to accept or reject the terms and conditions of the contract and can collaborate with Uber for a desired span of time.

Uber Concept For All Business:

The Business Model of Uber, along with its contemporaries and other booking applications, falls under the category of On Demand Delivery Model. The word Through this kind of Business Model, a firm would collect and organize the different elements that make up a service, and make this service available to customers under a single brand.

In the Uber Concept, the service pertains to cab rides. They didn’t own any cars. Instead, collaborators, organised and collected by the firm, use and drive their own vehicles. What Uber does, is just trade their deal under its brand name. “No office, No Boss”, says the website. The catch, however, is that these partners aren’t allowed much liberty – Uber needs to provide a uniform service, after all, despite the diversity in its associates. For this, all these collaborators sign a contract with Uber agreeing to the terms and conditions of the ridesharing services over quality and price.

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