Ubertrendy. Uberspeedy. Ubercheap.
Four years after founders Garrett Camp and Travis Kalanick officially launched Uber in San Francisco, their ridesharing service has spread like wildfire. The company expanded into a new city each month, including New York, Chicago and Washington, D.C. As of May 2015, Uber could be found in 300 cities worldwide and is estimated to be worth $50 billion USD. But how did a small startup comprising of two tech-savvy entrepreneurs get here?
Besides being a cool app that allows individuals with a car, driver’s license and insurance who pass background checks to earn extra income, Uber has launched several offshoot services. After seeing people embrace their regular ridesharing service, Uber launched UberPOOL and UberRUSH which stem from the same successful concept of leveraging fellow smartphone users for transportation. UberPOOL supports sharing of rides (carpooling) and UberRUSH is a form of bicycle delivery service.
Although Uber continues to meet much opposition, the company has truly exemplified the widespread success that a seemingly simple app can have. Of course, the concept of Uber was innovative, but much can be learned from the strategic decisions the company has made to be where it is today.
Competitive differentiators can make or break your business. Uber is known as the foremost smartphone-driven and managed transportation network service.
Do: Carve out a unique market approach. Define what makes you stand out from the competition.
Choosing to pay by your own rules is a customer luxury. Uber offers cashless (and tipless) payment and even took it a step further to enable users to just walk out of the car without paperwork or fumbling for change.
Do: Try to offer an array of payment options to ensure you support the customer’s preferred method.
Like it or not, online reviews are out there about your business. Uber users can evaluate drivers, and drivers can also evaluate passengers. Earning positive assessments will help improve your business; you’ll know exactly what your customers are thinking and saying.
Do: Have an open forum to respond, and improve your business accordingly. (Check out these tips on how to manage online reviews).
Sometimes spreading yourself too thin is dangerous, but branching out a successful business concept may be worth a shot. Uber claims to be “evolving the way the world moves,” in more ways than one. The Uber name has now entered areas such as courier package delivery and online food order delivery.
Do: Test new waters, but do so cautiously and start with minimal risk. It may be a profitable venture for your company.
A major driving factor for Uber’s success was also pricing. Uber offers a new model of pricing that is very competitive with traditional taxi companies. Combined with the convenience and ease-of-use of the application, Uber was destined to make customers happy.
In broader terms, Uber has taught us that offering customers a product when they want it and how they want it, is usually a recipe for success.
The information in this article is provided solely for informational purposes and is not intended to be legal, business or other professional advice or an endorsement of any of the websites or services listed.