Start-up stories Uber ‘Uber Success’

Scott D. Clary

Success Story Podcast Host | Founder / CEO OnMi Patch

In 10 years, Uber became the world’s most valuable startup with an estimated $ 78 billion in 2020.

But what made Uber successful? Just because you provided an app that connects drivers and drivers? Or is there more to seeing than to see?

This article looks at three key factors and explores what makes Uber a successful company.

Uber’s business model is straightforward and relates to people who need to drive.

If you think this sounds like a traditional cab company, you are right. There is a direct competition between Uber and traditional taxi services.

However, unlike taxis, Uber drivers use their own cars, so they have to pay for all the maintenance and repair costs associated with it.

How it started

Uber’s idea was born in Paris in 2008. Travis Clanic and Garrett Camp were at the Leibbe Annual Technology Conference.

After the event, they stood outside in the cold waiting for a taxi and left without transportation.

Then came an idea. “What if they ask for a ride from your phone?”

The answer is Uber.

Kalanik and Camp originally wanted the idea to be a time-enhancing Limo service that one could access by app.

The two went their separate ways, but Camp was so impressed with the idea that he continued to buy the domain name UberCab.com.

The beginning of Uberkab

A.D. In 2009 Camp worked for UberCab prototype when he was CEO of StumbleUpon. That same year, Winter Kalanik finally convinced Uberkab to join the “Incubator”.

Uberkab tested only three cars in New York the following year and officially began operations in May.

Hard year

In July 2015, Uber, after another fundraiser, was valued at $ 51 billion. In June 2016, Uber raised another $ 3.5 billion from the Saudi Arabian Fund.

However, 2017 was a very difficult year for Uber.

Controversy erupted when a female engineer called sex culture in a blog post. Uber’s corporate culture was reportedly hateful and sexist.

The post was spread by a virus, and as a result, many people were fired. Uber then conducted an internal investigation, known as the “Investigation.”

Meanwhile, Calanik resigned as chief executive due to a shareholder revolt.

In January 2018, Uber’s value decreased from $ 70 billion to $ 48 billion.

Back to the right track

Less than two months after Kalanik’s resignation, Dara Kosroshahi has been announced as the new CEO. A.D. In May 2018, the company announced a new offer of $ 62 billion.

In the same year, Japan’s conglomerate Softbank Group and investors offered Uber a 20% minimum review period.

Allegedly, the deal gave 15% to Softbank, and Uber has a strong partner in Asia.

The secret of Uber’s development

How did Uber do it all?

Uber started as an idea, and from that idea became a billion-dollar company that survived troubles and scandals.

What makes it so big that it produces thousands of services based on exactly the same concept?

Innovative solutions

The app and service design are the most important reason customers love Uber. You can simply order a ride by unplugging your phone and touching a key. The GPS on your phone shows where you are.

From the moment you enter the address into the application, the driver knows where you are going. In addition, your credit card has information, so there is no need to exchange money between you and the driver.

Compared to the traditional taxi industry, just think of all the steps that have been taken.

For example, finding a telephone number for a taxi company was already a major obstacle. You will then need to talk to the operator and provide your address. Then a taxi will take you, but you do not know exactly when it will arrive.

In addition, you will need to manually use the payment method at the end of your trip.

In order to provide the best possible service, each company must reduce the steps that its customers must take.

With its technology, Uber provides basic services for connecting and ordering people. This technology represents a gigantic economy or is supported by technology in command services.

Oral word

No more advertising than words. One of the reasons you don’t see Starbucks ads everywhere — word of mouth is more than enough to make them work.

Uber, a newcomer, encouraged his first clients to spread the word by offering referral bonuses. So when their friends get credit for the referral, they get their first ride for free.

Partnership strategy

Uber calls itself a technology company, not a transportation service. As a result, their drivers are considered independent contractors.

Accordingly, Uber drivers are not considered a key input in Uber’s internal processes but are key partners.

If Uber drivers were Uber employees, they would have to pay more taxes, and their customers would be less profitable because they would pay more for it.

Surprise and enjoyment

When Uber introduces a new service or makes a major upgrade, it often includes some “gymnasiums” with it.

That is why they are called the masters of “Stant Marketing”. They avoid ambiguous signs, such as cat litter or passengers’ chances of boarding with famous drivers.

These strategies work well, especially in the age of social media, buzz can easily occur, and something can go viral in a few hours.

Last words

Uber has grown faster than traditional taxi services, mainly due to the use of technology. The company’s rapid success began with the development of the first “stressful” business model and the use of new technologies such as smartphones.

Also published by Pokémon https://newsletter.roioverload.com/p/how-uber-became-the-worlds-most-valuable