Uber is an application that has seen extensive success since its original launch. Success stories like Uber just go to show the power of an idea when applied to mobile technology can create new opportunities within an industry which eventually leads to mass expansion and profits. In the year 2015 Uber raised approximately $2 billion in capital after their app was launched. Today the company has chartered a course through application development greatness to become not only one of the top downloaded apps in the app market but one of the pioneers of ridesharing. The company today has a valuation of around $51 billion.
There are many users that depend on it Uber not only to make a living but for their regular transportation needs. The application and the company have been able to navigate an increasingly popular market as well as make appropriate changes to the application to ensure that users continue to grow.
There is absolutely no doubt that Uber is a successful company but how did the application continue to grow and become the success it is today?
Shaking up an industry:
Part of the reason why Uber was so successful when it launched in 2009 is it revolutionized the idea of the taxi industry. The taxi transportation industry has been around since the 1600s when horses and buggies were used for hire in Paris. Although this system has changed to include many different vehicles, Uber was one of the first companies to offer the chance for people to not only book rides via their mobile device but for average individuals to use their cars to lend rides to other too. In today’s sharing economy, this was a powerful idea that would contribute to the process of developing future ridesharing applications and sharing economy style applications for freelancers as well. Some of the first ridesharing cars through Uber was also extremely attractive for users as the luxury line of uber cars such as Mercedes-Benz, BMW's and the standard Lincoln town car were being offered at comparable prices to cabs. These same vehicles are available using Uber today as well at a special request. These improvements and changes were a huge shakeup in the industry that had not experienced a considerable change for hundreds of years.
Huge benefits with customers:
Customers enjoyed the benefits of Uber because they were able to not only get a discount on the cost of their transportation, but they can enjoy the convenience of a hassle-free payment option on their smartphone and the option to order luxury vehicles on demand. In some of the first areas where Uber was tested, many individuals started to rely on it almost daily and ditched the idea of calling cabs.
Benefits to Uber Drivers:
With nothing more than a clean driving record and a vehicle, it is possible to get started as an Uber driver. Luckily there is a check and balance rating system to make sure that Uber drivers will continue to offer good quality services and customer service. This is really the only type of supervision that an Uber driver has. For the most part, it's very flexible work that can also be quite competitive during rush periods. Drivers that have access to luxury vehicles can also command slightly higher prices for using their car with Uber and this can be another powerful way to earn money through the app. Drivers like to use Uber because the wages are quite competitive and the process of work is very flexible. Many Uber drivers work nights and weekends and around their current schedule. Uber drivers don't need to operate with a business license, painting is all handled through the application and in many cases, qualified drivers can be ready to connect and drive within a few days of their application process.
Customer loyalty: Uber has referral codes available for every user allowing them to access free rides by sharing their code on social media. If a user can get another user to sign-up and then take a ride, both users will receive a free ride credit. Many individuals still continue to use the free ride credit to enjoy plenty of subsidized travel via Uber.
Surge: one of the main elements that make Uber so successful is its surge pricing. While the vast majority of the time an Uber ride is going to offer cost savings on a cab or limo, during surge the price of an Uber can go up with the extra risk placed on the driver and the demand for the service. Making sure that an Uber arrives on time during demand periods usually involves paying rates in multipliers. By waiting a few minutes it's possible to request a trip at a lower pricing, but when demand is high surge pricing may only continue to rise. This means that Uber drivers can earn more, the app creators can earn more and the users can still access rides much faster than cabs but at a premium rate.
Some of these top elements and more contributed to the overall success of Uber. Keep some of these revolutionary features in mind if you are considering building a ridesharing app or you have an innovative idea of your own.