Uber has become the trendsetter for many on-demand companies. It has been a revolutionary concept in many ways, literally defining what on-demand business models are. The larger than life goal of providing a reliable and efficient alternative transportation system in every place in the world has impacted many lives. The impact of the model has led to disruptive ripple effects with new platforms emerging to streamline value chains across industry verticals. These platforms that position themselves as Uber for X have been constantly in news for the last few years. Uber for X can be best described as a platform looking to deliver a product or provide a service-on-demand with demand being aggregated online and serviced offline. Uber for X has given rise to a large number of on-demand platforms being adapted for different verticals. Today Uber for X has become quite the rage and companies are working on this model. It has become an instant success due to the customer satisfaction the business provides with.
When a new business climbs the ladder of success, other entrepreneurs try to replicate that idea and create their own success story. With Uber’s phenomenal popularity and growth, numerous businesses have emerged in the on-demand service business.
Uber for X ideas can be divided into some major categories.
Uber for delivery- Uber for X model has impacted delivery business extensively. Eg Instacart (uber for groceries) and DoorDash ( uber for food delivery).
Uber for transportation and logistics- Apart from Uber, Lyft, Hailo and similar apps for hailing a taxi Uber for X has also come in freighting and package shipping eg Lalamove (uber for logistics), Shyp(uber for packages).
Uber for Home – home care (cleaning, laundry, you get it), repair services, babysitting, dog walking etc Eg TaskRabbit (uber for housekeeping), wag (uber for dog walking).
Uber for Health – a lot of apps have come up in this sector like Uber for X – specifically doctor appointments and remote consultations. Eg doctor on demand.
Uber for Accommodation – the best example for this is Airbnb
Uber for beauty- From salon booking appointments to hiring an in-home stylist, Uber for X model has beauty enabled services business to serve clients at their doorstep. Eg Glamsquad offers on-demand hairdressing services for women.
Uber for Others – any other service industry that can be like Uber for X
Lets first learn about the business model of Uber:
- Step 1 (Request a cab): The first step in the business model is about creating a demand. People have a smartphone app which lets them request a cab instantly or schedule it for some time later.
- Step 2 (Matching): As soon as the request is made, a notification about your details are sent to the nearest driver. A cab driver has the option to accept or reject the ride. In case he rejects, notification is sent to another driver in that area.
- Step 3 (Ride): Customer can track the cab when it is arriving and the ETA is also shown to the customer. The meter starts as soon as the customer sits in the cab which can be tracked through the customer side app as well. Friendly drivers make sure that the ride is comfortable for the passenger.
- Step 4 (Payment & Rating): Once the ride is over, the customer gets an option to rate the driver. A rating system is an important part of the business model as it lets a person know about the driver before booking a ride and helps him trust the driver.
Following things must be considered for building a successful Uber-like business.
Value Proposition :
A value proposition is a promise of value to be delivered and Uber abides by it. The Uber-like business model has two separate market segments that make it valuable: Service Providers and Service Consumers. An Uber-for-X business should focus on both sides to ensure it provides enough benefits to both the parties to generate demand and supply. Eg Uber gives customers easy and affordable rides and the same time it gives it drivers the extra income and other benefits.
Right Problem Statement
Everything starts with a WHY. The golden rule for any startup is that they should be solving an unmet need for customers.
When we talk about Uber for X startups, in particular, they essentially are dealing with multi-sided customer segments with buyers and suppliers being the 2 core segments. So for these Uber startups, the problem that you are trying to solve should echo with both of the groups.
Reaching the Critical Mass
As is the case with multi-sided platforms, reaching the critical mass is the first milestone that all entrepreneurs are working towards.
What does critical mass imply for On-Demand startups?
Critical Mass leads to ensuring reliability (customer is not denied the service/product) and efficiency (service providers/delivery personnel are engaged above a certain threshold). Uber is built from the ground up on these principles.
Customer Segment:
Uber has such a vast customer segment that it has got something on offer for everyone. When building an Uber-like business, do make sure that your product is valuable to all its user segments.
Distribution Channel:
Distribution Channel is defined as the path that a product or service takes to reach the consumer.In order to be the next Uber for X, it is important to identify how you will reach out to customers, attract them and retain them so they keep coming back to your product. Mobile apps, websites, content creation, referral programs, rewards, email and social media marketing etc are some of the methods of spreading the word about your services.
Domain Knowledge
It can be difficult to succeed without any domain knowledge since most of the on-demand startups demand heavy-lifting on the operations side. Without the right knowledge, it is quite possible that you might not be able to understand your audience and ask the right questions.
It is furthermore important to look into the Cost to develop an app like Uber. Having the right idea and the right resources can surely take you ahead.
When Uber has worked great for local transportation services, so why could uberfication not be applicable to all types of industries?
