The Business Model Canvas Designed for: Designed by: Date: Version: Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Who are our Key Partners? Who are our key
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Hi this is Dennis from business model guru today I'm having a look at the uber business model and we put it onto the business model canvas here for you Taba a quick look at okay so customer segments uber has two main customer segments the the passengers the people who who wants rides and the drivers who give them rides unlike normal taxi company the drivers are self-employed uber does not employ them directly it's just much making between drivers and passengers now the value proposition is very much uber promises to give passengers a taxi when they need it it promises drivers that they will get them customers when they need it this is quite different from an old taxi operation where supply and demand are quite disjointed because the system can't respond flexibly enough to the current market situations if uber is able to do that within minutes or seconds given the its technological base it also makes it easy for people to make additional money its cash free lots of small ancillary value proposition if its customer relationship at essence they're super automated it's possible to use uber for years and never talk to an uber employee channels principally you use uber through the mobile app pretty much no other way of doing it and then it reaches people through the app through email marketing through the social media and above all through earned media through its PR through people talking about it and of course through word-of-mouth the key key resources for uber are the platform the technology the the app that enables drivers and passengers to communicate very very easily with each other and then the two key parts of that technology are the the pricing out algorithm which man matches supply and demand and then adjusts it through the pricing so that it comes into to balance as quickly as it's possible to do and then the routing which gets the closest cab to the passenger as quickly as possible and then reduces the journey the journey time the partners the the drivers are obviously owned their cars replacing the taxi driver companies and uber shifts off off a lot of cost and resort arm and resource issues onto those drivers and have the payment processes and one of the key things that's often overlooked is the local authorities who in the long term uber needs to to find a good modus operandi to work with and work at what is the the balance of Licensing and and freedom to do the business and give value to to to paying passengers the revenue is a very standard taxi based system you pay for how long you're riding how long you're actually using the taxi and then finally on the cost structure the huge costs are in the platform development yeah these are huge but they are amortized over so many thousands hundreds of thousand millions of rides I think it's almost a billion rides now in January 2016 so this huge cost mean that a very small charge is put onto each ride and that means super pricing is very cost effective thank you very much for listening do...