Strategies that Uber used to disrupt the taxi industry

Posted by imjennifer on July 17th, 2019

Today, as we all know, the development of mobile app services has revolutionized the whole business structure and operations. The significant contribution is it helped businesses to grow in a short period when compared with the traditional ones. However, the growth not only provided revenue but have also declined the growth of many other traditional businesses. Uber stands as the best example since the impact of this app has disrupted the entire transportation industry.


Uber was filed many times for different occurrences, and these oppositions have even met severe legal actions in various cities around the world. The objections are not only raised by taxi drivers and traditional companies but also by ride-hailing services and governments.


Though Uber faces all these consequences, we still hear statements praising the services of it. The transportation industry has always been competitive, but the rise of Uber services expanded it more. New-age entrepreneurs are trying to take apart in this competition with a new ride-hailing service. With the ready-made solutions like Uber like app development in the market, it has been easy for them to enter into the market in a short duration of time.


Let us take a closer look at the strategies that Uber follows, which lead to disrupting the taxi industry.


Excluded the transaction costs

Uber has eliminated the cost of transaction which the traditional taxi riding service followed. Earlier, people had no choice and paid both search costs and transaction costs that were billed with their base fare. Also, even the taxi service took it as an advantage and charged more to see profits. But Uber broked this practice, and it enabled people to hire taxis without even reservation costs and to pay the actual fare.


Encouraged drivers to use their idle assets

Private cars that are not used and left to sit in the parking lot, still incur maintenance costs. Also, their value gets depreciated, but Uber focused on this by providing car owners an option where they can make use of their private cars to get money. This allowed drivers who work on part-times to earn additional incomes. This even favored them to work flexibly.


Used cutting edge technology

Technology has been known to break down the entry barriers, which stands as obstacles for years. And getting upgraded will definitely gain you a scalable place in the market. Uber acknowledged it and took full advantage of the perception of collaborative consumption by incepting a mobile application that is easy to use. Also, it built packed with features that are designed for users’ convenience.


Convenient payment options

Uber followed various payment options such as credit/cash/digital to process its billing formalities once the ride is done. Also, it gets the user’s card detail once he/she signs into the account to automatically detect the amount. This allows users to enjoy the ride without looking for spare change or being afraid to provide the right fare.


These strategies by Uber was analyzed and planned carefully before their business was on wheels. So, it becomes essential for newbies to spend time on market research to know about the current demands. Though Uber continuously upgrades and enhance its services for its global customers, it even lacks in some service providing. These can be identified and integrated into your Uber clone solution.


An entrepreneur like you must thoroughly analyze and build an application that fulfills the existing demand. And it is crucial for you to come up with new ideas to outsmart the giants. Make sure to select the best developing partner in the industry.


AppDupe, a leading developing partner, provides Uber clone apps for new entrepreneurs as well as the traditional taxi owners who are in a hurry to start or transform their taxi venture. The scripts are open for customization, allowing you to personalize as per your requirement. Reach them today to discuss your ideas and launch it immediately, surprisingly, in just two days.

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