Uber Technologies, Inc. is a global transportation network company offering various services, including ride booking and food delivery. Founded in 2009, it has grown significantly through a unique business model that relies on partnerships with drivers, innovative technology, and dynamic pricing strategies. Key revenue sources include trip commissions, surge pricing, and delivery fees, making it a leader in the on-demand service industry.

1. Insights
How Uber works and makes Money :
Business Model & Revenue model

2. Introduction About Uber
Uber Technologies, Inc. is an American multinational
transportation network company (TNC) offering services which
includes but not limited to Ride booking, peer-to-peer ridesharing,
ride service hailing, food delivery, and a bicycle-sharing system.

3. About Uber Business
Uber Founding Team
Uber was founded in 2009 as
UberCab by Garrett Camp, a
techie and the co-founder of
StumbleUpon, and Travis
Kalanick, who had sold his Red
Swoosh startup for $19 million
in 2007.
Funds Raised
The founders invested $200,000
in seed money in 2009 upon
inception. In 2010, Uber raised
$1.25 million from investors
and by the end of 2011, Uber
had raised $44.5 million in total
funding.
Uber’s Journey so far
From just an idea that clicked
the mind of Travis Kalanick
and Garrett Camp to a multi
billion dollar global on-demand
taxi booking business, Uber has
shown exponential growth in
the past decade which is
evident by its revenue growth
in the past years.

4. Features
Real-time ride
tracking
Real-time trip details could be
shared with friends,colleagues
or family.
Plan ahead with
Scheduled Rides
Rides could be booked in
advance if someone has to
catch early morning flight or
any other important work.
Add multiple drop-off
points
Multiple Destinations lets you
include extra stops along your
ride, so your driver can pick up
and drop off others with

5. Key Partners
Uber's drivers are its key partners. In Uber's business model, it
is important that these are partners, rather than employees as
this significantly decreases Uber's running costs.
Key Activities
● Platform (app) development and enhancement
● Marketing
● Sales promotions to acquire new customers
● Communication with the driver, customers, and
partners
● Customer support

6. Uber’s Cost Structure
Acquiring customers is a challenging task for any company and Uber is no exception. Customer
Acquisition Costs (CAC), which includes sales, marketing & promotion cost is the biggest cost
element for Uber.
Apart from this, there are several other costs involved as mentioned below:
● Infrastructure cost
● Research and development
● Platform maintenance
● Legal and settlement costs
● Insurance costs
● Customer support, and more

7. Uber’s Value Proposition
For Riders
● Safety and Security
● Ease of booking
● Easy & Convenient Transactions
For Drivers
● Ease to get started
● Opportunity to earn
● Freedom to choose working hours

8. Strengths of Uber’s
Business Model
1. Brand Equity
2. Low Fixed Investment
3. Focus on Customer Satisfaction
4. Dynamic Pricing strategy
5. Adaptive

9. New Uber Ventures
UberEats
It provides customers with the opportunity to order from their favourite
restaurants online.
UberEats is comprised of 3 revenue sources:
● Advertising income with Restaurant Partners.
● Customer Delivery Fee.
● Shares in Revenue with Restaurant Partners.

10. Uber’s Revenue Model – How Uber Makes
Money?
Uber’s revenue model is unique in itself as it is based on a variety of factors. It not
only includes the revenue through the customer’s trip commission but also the
surge pricing, revenue from cancellation of rides and endorsement of other
products on the app.
Furthermore, the details is as follows:
● Trip Commissions
● Surge Pricing
● Premium Rides
● Cancellation fee

12. What Entrepreneurs can/should Learn from Uber’s Business
Model
● When starting a new business,one has to face criticism and lawsuits for
disrupting other businesses but that should not stop business from
growing.
● In most cases, owning inventory is a liability and the Uber model of
business is a big relief in this regard.
● Maximum use of new technology and internet for business growth.
● Deliver a swift and efficient service and charge at least 15%
commission for any transaction.

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