What Is The Secret Of Uber’s Success? Let’s Have A Look
If you’re interested in mobile app development or anything related to it, you’ve probably heard the term “” a million times. That is the impact Uber has had on us all. It has an impact on everyday lives, entrepreneurial goals, the startup environment, and the way individuals do business and sell ideas.
Its narrative is both fascinating and challenging, but it is well worth reading if you want to succeed in the on-demand sector. Even after disrupting the transportation business, Uber Technologies Inc labels itself a technology company and operates like one. It is the first organization to introduce the notion of “the sharing economy” to the globe by establishing Uber.
Uber has gained a reputation as the disruptive startup that nearly changed the gig economy during the previous ten years. It is a shining example of the gig economy at work, but it faced numerous barriers and challenges on its way to success. In this article, we’ll take a look at all of them and Uber’s journey to see what lessons may be learned for fledgling entrepreneurs who want to follow in their footsteps and create an uber like app. Let’s get started if you’re ready to try a new Uber ride.
Let’s Start with the Brand: How Was Uber Created?
Uber’s origins began on a frigid night in Paris in 2008. Travis Kalanick and Garrett Camp, the founders, were in Paris for an annual tech conference and were trying to find a taxi to go there. They were having trouble obtaining a cab that night, so the idea came to them. “What if we could just schedule a ride from our phone?” one of the company’s founders wondered. They went their separate ways after the conference, but when Camp arrived in San Francisco, he decided to pursue the concept and purchased the domain UberCab.com.
He started working on the app prototype when he was the CEO of another company at the time, and there was no turning back. They created and launched the app. With Uber’s MVP, consumers could order a cab with just one tap. The rider’s location was determined through GPS, and payment was withdrawn from the card automatically. Its ease of use fuelled its appeal among investors and consumers, and the business swiftly became one of San Francisco’s largest companies. It is now the largest ride-hailing company in the world.
However, the brand encountered numerous hurdles, setbacks, and hitches along the way.
Uber’s Growth Can Teach You 5 Important Lessons
Solution #1: Always Build A Solution For Real-World Problems
Products and services that are designed to answer real-world problems gain traction quickly and are readily accepted by clients. If you want your target market to adopt a product, invest in solving real-world problems using technology.
Uber’s founders revolutionized the transportation sector by utilizing mobile technologies. They identified and addressed the following issues with the present transportation system with their product:
Problem #1:
The founders discovered that there are multiple infrastructural difficulties in numerous cities throughout the world, and taxi companies are incapable of correcting them. Taxi firms do not provide the greatest service and those that do charge exorbitant prices that no one can afford.
Uber solved this problem by offering cabs at significantly lower prices than regular taxis, and it quickly acquired popularity among clients.
Problem #2:
They noticed that while drivers play a crucial part in ensuring that cab booking clients are satisfied, there was no method for customers to hold drivers responsible for what occurred during the trip. They didn’t always recognize the driver’s name.
To address this issue, Uber empowered users to rate their interactions with drivers. It increased customer satisfaction by guaranteeing that only responsible and committed individuals work for Uber.
Problem #3:
Uber’s founding team recognized that customers value convenience above all else. And the old cab model never did. It had riders wait for hours on the road for cars to arrive.
Uber recognized the issue and addressed it by adding a real-time tracking tool to the app. Customers can now track their drivers and see how far they have traveled — a new level of convenience.
As a result, Uber was able to tackle the three concerns outlined above for its consumers while also gaining a lot of traction. If you want to design a solution like Uber, make it a point to provide features that help your users address actual problems.
Solution #2: Global Expansion is Not a Choice But Necessity
If you’re creating a product whose revenue is based on the number of services provided, strive to create a scalable business plan to maximize earnings. Uber designed its business strategy to make it simple for the company to quickly grow into new markets and add more users to its database. Uber has prioritized scalability from the start. When it entered a new market, it approached it with a warlike mentality and a resolve to win.
Uber approached each city as a new project at first, and it took a lot of effort. Uber’s team created an expansion checklist and expanded quickly to reduce time and operational costs. The Uber growth checklist was as follows:
- Secretly enter a new market.
- Ignore legal issues and take no action.
- Maintain a positive public image
- Obtain the help of local charities.
- Market monopolization
The checklist was developed by a brand-new local team led by an entrepreneur who used to work directly with Kalanick, Uber’s CEO at the time. Uber’s expansion strategy also included the acquisition of competitors. Soon after its start, it bought 38 percent of Yandex Taxi in Russia, 15.4% of Didi in China, and 23.2 percent of Grab in Southeast Asia.
Solution #3: With Thriving Startups Come Thriving Scandals
Uber is a well-known app that has revolutionized the ride-hailing industry all over the world. However, as previously indicated, it received condemnation from the general population as well as governments in many countries.
While some passengers alleged that Uber drivers sexually assaulted them, others sued them for a variety of reasons, including charging higher costs. Some of those tales were accurate, but others never saw the light of day after rising once.
As a result, if you’re starting a business, you’ll need to have measures in place to deal with these crises and maximize any unfavorable attention that comes your way. Customers were Uber’s potential, and they assisted them in fighting these allegations and emerging victorious.
People who were dissatisfied with traditional taxi services were among the brand’s early adopters. Following the introduction of Uber, these individuals became brand ambassadors, assisting the company in turning all losses into triumphs. To combat scandals, Uber enlisted the support of its customers.
Solution #4: The Omnichannel Nature Can Help You Scale
Uber’s seamless omnichannel nature is the most important aspect of its growth plan. Uber’s solution only addressed one aspect of the problem. It put money into the entire experience. The product tapped into consumers’ lives in a revolutionary way, from smartphone hailing to superior automobiles, frictionless payments, and driver rating, and no one could stop the market from adoring it.
While this is just one example of Uber’s omnichannel strategy, it did not end there. The following is how the brand elevated the omnichannel experience:
- It teamed up with Facebook Messenger to allow users to order a cab directly from the messaging app. It’s as simple as texting a friend and asking for a pick-up.
- In several places across the world, Uber also set up actual kiosks with breathalyzers for bar patrons who couldn’t get a ride at night.
- It established UberEATS, a company-owned and operated fast-food delivery service with its app.
- Uber also has UberRush (a B2B delivery service), UberHealth (a flu vaccine delivery app), and UberEvents, which aims to profit from the multibillion-dollar wedding business.
While your company is unlikely to offer as many services like Uber, there is still a lot to learn from their marketing strategy. To deliver a complete client experience, they’re combining data with mobile technologies.
One of the reasons for Uber’s success is that its advertising never regards its clients as faceless, emotionless individuals who come to the company for a single purpose. Instead, clients are viewed as individuals with diverse requirements and goals; they recognize that their target market needs better pricing, comfort, and recognition.
Solution #5: Be an Early Bird – an Important Factor Behind Uber’s Growth
Uber was the first technological business to offer novel services in the transportation market, and its early mover advantage helped it gain a significant market share. Uber always had a stronger brand image than its competitors, as we all know from the Uber versus Lyft debate.
If you are the first to enter the market, you will create a powerful image in the minds of consumers, and your brand name may even become the service name. In the United States, for example, people frequently say “let’s book an Uber” rather than “let’s book a cab.” They are going to book whatever service they want.
A Minimum Viable Product is the best way to shorten your time to market. If you have an idea, validate it by creating an MVP and taking advantage of the first-mover advantage.
Conclusion
Uber is and will always be the poster child for how sharing economy firms can succeed. Whatever your business, you may use the lessons learned from Uber’s growth and success to succeed in the market. Despite facing numerous challenges along the way, the company always emerged stronger and never crumbled. If you think you won’t be able to scale in a market dominated by established processes, look to Uber for inspiration. And if you are looking for uber like app development, remember Apptunix is always there for you!!
