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Unveiling Uber’s Multisided Platform: Revolutionizing Transportation Worldwide

Uber’s Multisided Platform Business Model

From its creation in 2009, Uber has used a multisided platform business model, connecting passengers and drivers directly. It is this model that has helped Uber to become one of the most successful ride-sharing companies in the world.

In this article, we will explore the advantages of this approach. According to Investopedia, a multisided platform business model is a business that has two or more customer groups that they connect together.

By doing so, the business provides a benefit to each group and gains value from the interaction. The beauty of the Uber model is that it taps into the supply and demand of transportation.

Passengers need rides, and drivers want fares. Uber connects them.

Connecting Drivers and Passengers

Drivers and passengers alike enjoy the convenience of using the Uber platform. They can use the app to easily find and schedule rides, as well as make payments with the click of a button.

Drivers for Uber get to be their boss, and they can work on their own schedule, which makes it an attractive opportunity for those looking to make extra money. It’s also an excellent option for those who enjoy driving and meeting new people.

The demand from passengers for rides makes it easy to find work. For passengers, the convenience of Uber is unbeatable, as the service is available 24/7, and the app makes it easy to hail a ride from anywhere at any time.

The app also provides users with an estimated fare and the time it will take to get picked up and arrive at their destination. The volume of passengers requesting rides creates a powerful network effect, which ensures that the platform is always busy for drivers.

With more passengers using Uber, drivers and riders both benefit. Uber’s History and Founding

Uber was founded by Garrett Camp and Travis Kalanick, who were looking for a taxi service that would be more convenient than traditional taxis.

They initially created as a side project to fill that need and quickly found its popularity grew beyond expectations. In 2010, the app was launched, and in 2011 it started operating in San Francisco.

By 2012, the app was launched internationally in Paris, France. Since then, Uber has become one of the fastest-growing companies in history and a symbol of technology disruption for traditional businesses.

As of December 2020, Uber operates in more than 900 cities and has a valuation of over $70 billion.

Growth and International Expansion

Uber’s growth and expansion were aided by its successful funding rounds, totaling over $22.7 billion, one of the largest amounts ever raised by a startup. As Uber grew, it became more international, launching services in Asia, Africa, and South America.

As the company expanded, it met with opposition in many countries, including the United States and Australia. Governments, local authorities, and taxi drivers have accused the company of unfair competition, safety issues, and tax evasion.

In response to these complaints, Uber faced several legal and regulatory challenges globally, and some countries even banned the service. Uber has had to update their model and try to be more compliant with local rules to continue to grow.


In conclusion, Uber’s multisided platform business model has proved to be successful for both drivers and passengers. The platform has created a significant market advantage over traditional taxi services.

Investors and entrepreneurs are using the blueprint to create similar models, such as the popular ride-share companies Lyft and Grab. Despite facing much opposition and criticism, Uber has remained a relevant brand that revolutionized the transportation industry.

Uber’s Operations: From Booking to Payment

Uber is a multinational transportation network company that operates in over 900 cities worldwide. With its innovative ride-sharing concept and user-friendly app, it has revolutionized the transportation industry.

In this article, we take a closer look at how Uber operates, from the booking process to payment options.

Booking and Ride Process

The foundation of the Uber platform is its smartphone app, which enables users to book, evaluate, and pay for rides. To use the app, users need to create an account and link their payment method.

The Uber app offers a range of features that make booking and paying for rides a hassle-free experience. The app allows users to set their pick-up location, destination, and choose their preferred vehicle type.

Passengers can also see real-time updates of their driver’s arrival and track their travel route via GPS. The drivers on the Uber platform are required to use their smartphone for navigation systems like Google Maps and Waze.

Thus, ensuring riders are taken to their destination efficiently. Additionally, the app allows riders to share their ride information with friends or family members, adding an extra layer of security along the way.

Categories, Rates, and Payment Methods

Uber offers a range of vehicle options from its basic UberX to UberLux, which includes higher-end models, such as limousines and luxury SUVs. The company has since included shared ride options like UberPool, which helps riders save money by sharing a ride with other passengers headed the same way. The company also offers accessibility trips, providing transportation options for people with disabilities.

Rates vary based on the city you are booking from and the type of vehicle you choose. However, riders can expect to pay an upfront price when booking their ride, which includes the fare, booking fee, and taxes.

Riders can also take advantage of surge pricing, meaning the prices are dynamically discounted or hiked, depending on the level of demand for rides. The company provides cashless payment options, which includes credit cards, Paypal, Venmo, and other in-app options that can be linked through your Uber account.

A significant advantage for users who do not have to worry about carrying cash around or getting charged extra fees if their bank account has a different currency.

Advantages and Disadvantages of Uber

Uber has a lot of advantages, including convenience, security, and flexible working hours for drivers. Let’s explore these advantages and disadvantages in more detail:

Convenience and Security for Users

One of the main advantages of Uber is its convenience for both drivers and riders. With the app, riders can easily schedule and pay for rides without having to call a taxi dispatch line.

At the same time, drivers can easily find passengers without having to rely on taxi stands. The Uber platform is also designed with security in mind.

Passengers can see their driver’s name, picture, and license plate number before the ride. The app also allows for riders to see driver ratings and review past trips to evaluate whether to proceed with booking.

This process has been effective in creating a safer experience compared to traditional taxis. However, there have been concerns about driver vetting procedures, which need to be maintained appropriately.

Income and Flexibility for Drivers

Uber drivers enjoy the advantage of making their cars a source of income. This allows drivers to have flexible working hours that fit their schedule, leaving ample time for their other responsibilities.

The driver rating system is also a plus point for drivers as feedback helps to improve their performance, leading to higher confidence. Moreover, drivers face less competition with the app’s transparency, creating an even playing field for all drivers.

The company’s driver evaluation model ensures drivers have a job so long as they execute their roles effectively.

Challenges and Legal Issues

Alongside the benefits, Uber has faced criticism for its challenges, including legal issues, liability, and insurance. Drivers are considered independent contractors, not employees of the company typically, leaving them without benefits, such as healthcare, or vacation time.

This model has resulted in several legal disputes globally. The company has also faced opposition from taxi organizations who argue the platform creates unfair competition for the already established industry players.

Some cities have restricted or banned Uber’s operations, which constrains a wider reach for the company, and those who depend on ride-sharing service. Finally, the issue of liability and insurance in case of accidents has raised concerns.


Uber has become a household name, with its innovative approach to delivering transport services. To access all that ridesharing offers, users need a smartphone with an active internet connection and the app.

The quality of service and feedback systems have been a significant factor in its success, making it easier to assure the safety of driver and passengers, and handling issues with accountability. Though Uber has faced legal challenges and opposition globally, the success of the platform reveals the gap in the transportation market, and the effectiveness of well-implemented ride-sharing businesses.


Revenue Streams and Business Model Canvas

Uber’s success in the ride-sharing industry is powered by its innovative business model. The company’s platform connects drivers and riders, making it easy for users to schedule and pay for rides.

In this article, we will explore Uber’s revenue streams and business model canvas.

Revenue Streams

Uber’s revenue streams come from commission fees and other services offered on the platform. The company charges drivers a commission fee, which is a percentage of their earnings for a ride.

This means that the driver pays a percentage of their earnings to Uber. This fee varies by city and is usually between 20-30%.

Uber also charges customers a booking fee, which is typically around $2. This fee applies to every ride and covers the cost of operating the platform.

There are also additional fees that can be enforced, such as cancellation or waiting time charges. In addition to these revenue streams, Uber boosts its income through promotional partnerships with companies.

Promotions such as early discounts for a new restaurant location encourage Uber users to take a ride to enjoy the products or services available there. Partners can also pay to advertise their product placement in rides, as an example.

Finally, there are city-specific taxes or fees, like the airport fees or airport surcharges. Customer Segments, Value Propositions, Channels, and Relationships

Uber targets two main customer segments: riders and drivers.

For riders, the platform offers convenience, pricing transparency, and the assurance of safety measures in critically background checks conducted on drivers. For drivers, Uber has a value proposition that offers income opportunities, earnings flexibility, and business innovation.

To reach potential customers and ensure retention, the company uses various channels like social media advertising, referral programs, and website optimization. The Uber app itself serves as a significant catalyst for customer engagement, bringing together several feature offerings in a seamless user interface.

Uber reinforces positive customer relationships in various ways, including riders rating the drivers, customer service responding to queries quickly and professionally, and email communications promoting new features or efficiency tools. Key Resources, Activities, Partners, and Cost Structure

Uber’s Key Resources include the Uber app, which connects drivers and riders, along with the platform’s brand, which has become synonymous with convenience, pricing transparency, and safety.

Other resources include the driver network, analytics technologies, and customer support functions. Uber’s main activities include business development, app development, driver engagement, brand ambassadors, and advertising.

These activities have enabled the company to expand globally while creating a seamless user experience for riders and drivers alike. Key partners feature technology providers like Google, Apple Apple Maps, Amazon Web Services, or notable GPS tracking system developers.

Uber partners with finance companies to provide car financing and insurance services to its drivers. These partnerships help to reduce operating costs while improving the drivers overall experience and engagement.

Uber has a low-cost structure compared to traditional taxi services. This is partly due to the platform’s efficiency in connecting drivers and riders, which reduces administrative costs and overheads by utilizing technology.

However, the company’s cost structure includes costs related to support, insurance, marketing, and legal fees, which can significantly impact the bottom line. Uber’s Competitors and

SWOT Analysis

Major Competitors

Uber is not the only ride-sharing platform; it has rivals that exist in various markets around the world. Its primary competitor, Lyft, operates worldwide under similar business models, offering both drivers and passengers similar experiences.

Other competitors include Curb, DidiChuxing, OlaCabs, Grab, Cabify, Yandex Taxi, and typical local taxis.

SWOT Analysis


– Recognizable and growing global brand image

– Innovative app design and user-friendly platform

– Convenient, safe, and affordable for passengers

– Excellent earnings opportunity and flexible hours for drivers. – Strong customer service


– Facing competition from other ride-sharing businesses

– Unexpected and rising operation costs

– Increased legal disputes


– Rapid growth in urbanization and global population rates

– Expansion of services and app upgrades

– New partnerships and integration with other services

– Opportunity to establish new services like self-driving vehicles


– Increased in regulatory requirements that impede growth

– Security and safety issues for both drivers and passengers

– Technological glitches or failures

– Reputation by bad press or accidents


Uber has created a unique and revolutionary business model that has disrupted the transportation industry. While there have been legal disputes and increased competition, Uber has been able to steer through these challenges relatively well.

Uber has established a customer and driver-oriented platform through various services that focus on convenience, affordable pricing, reliability, and safety. The company has also maintained strong relationships with customers, drivers, and technology providers, making it a preeminent leader in ride-sharing platforms globally.

In summary, Uber’s success can be attributed to its innovative business model and platform. Through its multisided platform approach, Uber connects drivers and riders, offering convenience, safety, and pricing transparency.

The company generates revenue through commission fees, promotional partnerships, and additional charges. With a focus on customer segments, value propositions, and strong customer relationships, Uber has become a recognized global brand.

Key resources and activities, as well as partnerships, contribute to its low-cost structure. Despite facing competitors and challenges, Uber’s strengths lie in its brand recognition, user-friendly app, and earnings opportunities for drivers.

It is essential to acknowledge the impact of ride-sharing platforms on the transportation industry, and the opportunities and threats they present. As technology continues to evolve, it will be fascinating to see how Uber and its competitors navigate these changes.

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