How to develop your own Uber-like business

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Launching of your own business is a very interesting but not an easy task. Most experienced businessmen consider such initiative as the way to understand one’s limits and entrepreneurial skills. Beyond any doubt, all entrepreneurs want their business to be successful. 

That’s what the founders of the Uber app did. The type of an on-demand service they created became very popular. Many startups are trying to repeat their business way. How to do it? The secrets of this stunning success are in the article below.

Ways to create your Uber for X

Why we use X letter? Because it means the business type you can create using Uber model. Then X letter is replaced by the business name you chose for yourself. As a fact, Uber’s model corresponds to the three main criteria:


  • When people make online order, they can get access to offline service then

  • Service providers reserve the right to ?hoose whether they will provide a particular client with service or not;

Two mobile apps must be developed – one for the client, one for the service provider.

So this scheme is as simple as it can be. But the main thing you have to think over is your future business benefits. How competitive will it be? Thus, your Uber-like business should have some zests to attract the attention of new users.

However, you shouldn’t forget about the correct business model to build the successful business. Today we will scrutinize the development of the potential Uber-like service on the basis of Business Model Canvas.

Business model canvas to build your Uber-like business


This canvas model has 9 key points that startuper must follow if he or she wants to get some benefits.


  1. Value Proposition

Of course, you understand what this point means. A piece of cake, yes? Your business should have some advantages as we mentioned before. If your idea is really competitive, only in this case it can be valuable.

Thus, Uber business model is good for both client and service provider. The client is the passenger, the service provider is the driver. Using Uber service, the client can find a new car (not a broken one), book it, pay by banking card, read reviews and so forth.

Uber-drivers, in turn, have a flexible working schedule and, of course, good income.


2. Customer segment’s


Determine your values and make them really attractive for each segment. But to draw the user’s attention, you must build a product of high quality. It will help you become successful. Furthermore, good quality is the best promotion of your product.


If we talk about Uber, what does it propose to the customer? The customer wants to get from one point to another by good modern cars and paying a moderate price for the ride – Uber can provide it. The driver wants to be in business for himself and earn money with his own car – Uber also does it.


3. Distribution channels


How will you distribute your service? This question is very important. Of course, the first way is to use Internet – social networks, forums, and ads on various websites. The second way – to implement the power of client’s feedback. Sometimes one good feedback can be more valuable than 5 ads on the web. Keep it in mind.


4. Customer relationships


The interaction between client and driver – how it will be arranged? In Uber, it is completely automated – through the mobile app or the website. Cool!


5. Revenue stream


You provide service to somebody – he or she pays you for this. This order is inviolable. And, of course, you want to understand how much money you can earn with your new Uber-like service.


The revenue model is unique in each individual case.  So nobody knows what special features will help you to gain some money.


6. Key resources

For the development of your product, it is necessary to determine what resources you must deploy, what algorithms. The development cost will depend on how many resources you used during the creation process.


7. Key activities


Here you have to consider what main tasks your service will implement. You need to decide on what platform will it be – mobile (Android, iOS) or PC platform (Windows, Linux, MacOS). Then you need hire managers, specialists for customer support, marketers – all of this will add to your total cost, and you have to be ready to bear such expenses.


8. Key partners


It could be rather difficult (and sometimes even impossible) to create everything by yourself. So you will need to find technical support and investors who will be able to harvest your business. But don’t forget – the investment in the command your personnel is the best business investment.  


9. Cost structure

And the last key point (but no less important) in our business model.  There are three main points of expenses you can’t avoid:


  • App development and its maintenance

  • Salaries for your employees

  • Marketing expenses

It wouldn’t be cheap to create the on-demand service. So for beginning, it would be better to integrate into your service only basic mandatory functions.

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