Business Model Canvas

In order to understand factors leading to Uber’s success, a business model canvas is useful. Uber’s customer segments can be divided as follows:

Speed: I want a ride NOW segment. They usually flag down taxis from the street. Customers are attracted by the full accessibility to Uber app and can pre-book Uber before arrival and have it waiting. Uber match-makes customer to driver. Customers are in control (choice of car) and can track down the driver using the map.
Cost: I want a cost-effective ride/ to share the ride to reduce cost. It avoids the premium price of the street cars with cheaper Uber service. UberX offers the cheapest service in the range.
Choice: 1) Experiences: I want a luxury ride. There are a range of cars to choose from UberX to LUX. 2) Preferences: The car range delivers control to the customers to choose from: cheap service, luxury (Black taxi and LUX), car sharing etc.
Business travel: Companies form partnerships with Uber as a way of providing incentives for their employees covering their daily trips to work and business travels.

Value proposition

Uber provides customers with following values:

Convenience: Customers order by smartphone and service comes to their doorstep;
Control: It allows customers to choose whatever car they want. Customers can track the car through mapping and Uber also provides notification alter when the car arrives;
Cashless payment: Customer links their digital payments account with Uber, so they do not need to worry about cash or changes;
Meet different customers' need: Uber offers a range of cars from cost-effective ride to high-end travel to meet different customers’ need.
Business travel made easy: Companies can cooperate with Uber to get their employees rides to work as well as business travel.

While for drivers, Uber helps them:

To earn extra income: Uber recruit both professional taxi drivers or private car owners who want to earn extra money;
To work whenever you want: Drivers can choose to work whenever it is convenient for them by logging in or off the app;
To increase hourly wages: As the efficiency is increased through Uber’s network effects, the average hourly wages are higher than traditional taxi hiring.

Key Activities

Creating and maintaining the app
Business development: As Uber grows, there is on-demand need for cooperating with other businesses as well as developing its current business in other areas;
Attracting more drivers and customers/marketing: In order to provide full access whenever customer needs a ride, Uber has to work on recruiting more drivers to sustain its business.
Fighting the wrong press
Tackling legal issues

Channels

Mobile App
Partnerships: Uber establishes partnership with a lot of big brands in order to promote their application.
Events: Uber also takes advantages of sports events when it is difficult to get a taxi.
Social media

Customer Relationships

Push notification
Transparent rating: Customers are supposed to rate the driver and get rated after each ride.
Offers/discounts: Uber offers referral bonus and promotion discount to maintain customer relationship as well as attracting new customers.

Key Resources

Key Partners

Cost Structure

Revenue Streams

20% cut on all rides
Events/stages: Uber cooperates with companies who want to make the best use of its network and charge certain amount of fee.