What to Learn from the Uber Business Model: The Pros and Cons

using the uber app

The taxi industry was taken by storm in 2010 when Uber first went live in San Francisco, before quickly expanding in the U.S. and in other places of the world as well. Uber is an online transportation company that revolutionized the way we think about transportation. The Uber business model is definitely something worth exploring, since it comes with many pros, but also some cons and controversies that still surround it today. Let us take a look at the Uber business strategy and see what we can learn from it!

Uber Business Model Analysis: Pros and Cons

#Pros

1. Multiple Car Options

One of the first things that is appealing about the Uber business model is their commitment to keeping their customers satisfied. This includes a large variety of car options, targeting the needs of different people. For instance, if you don’t want to spend that much money, you can try Uber Taxi. If you enjoy traveling in black vehicles, there’s always Uber Black, while Uber SUV is perfect for people who want a luxurious car.

2. Easy Usage

Uber has invested a lot of time and effort into creating a service that is extremely easy to use. Needless to say, they definitely succeeded. The ability to reject a ride, to receive details about the driver, to track the driver, to pay with a credit card, and many other great features have made the Uber app a real success.

3. Great Customer Feedback

Uber takes their customers’ feedback into account. This is a huge plus, and also part of the reason why they’re so popular. In fact, not only do they take it into account, but they actually rely on it in order to help their system. They’re not afraid of dealing with negative reviews. Thus, they allow each and every one of their customers to have a voice.

#Cons

1. Surge Pricing

One of the things that customers are not thrilled about is the fact that when the demand for cars is high, Uber adds a surge price. The app clearly shows you when there’s a surge before you order a car. Still, the prices can be rather high at times, higher than in the case of a traditional cab or a car service.

2. Imperfect Location Services

The GPS location services can also be faulty at times. For instance, you might realize that the driver is waiting for you a couple of blocks away from where you actually are. Even though this can be solved easily with a call, you might still waste precious time.

3. The Greyball System

Greyball is a system that Uber has been using for multiple purposes, from testing new features, to preventing fraud, to identifying law enforcement officials and evading them. This last usage has sparked a certain amount of controversy. That’s because it implies searching through social media profiles, checking whether someone’s credit card is connected to a police credit union, and so on. However, recently, the CEO of Uber, John Sullivan, wrote a blog post saying that Uber will no longer use the Greyball system for such puposes.

We hope we’ve managed to provide you with a useful outline of the Uber business model and its main pros and cons. There’s no denying that even if it still has a long way to go until achieving perfection, Uber has what it takes to succeed in today’s on-demand society.

Image Source: here.

Author: Amanda Knowles

Comments

comments