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Uber Case Summary Pages 3-5

Business Model Innovation

Uber’s business model entails generating revenue from the drivers by offering matching services through its app. Uber connects customers with drivers based on their geographical location in less than a minute and provides a price estimate based on the length of the journey that a customer wishes to travel. These price estimates are highly competitive and consistently lower than the standard taxi charges. Uber’s business model price calculation is also based on other factors, such as demand, which creates a market-based approach. However, Uber’s pricing formula can be extremely costly in high-shortage areas. Nonetheless, some of these pricing concerns have been solved through UberPool, which allows customers to share the cost.

Drivers

Uber drivers are the business partners providing the services Uber believes in. For a driver to join Uber, they undergo a background check on their identity and details of the vehicles they intend to use to accomplish their partnership duties. Uber estimates that its drivers/partners earn more than regular taxi drivers with a significant margin after...