“Ultimately, progress and innovation win.”
– Travis Kalanick (CEO Uber)
The global net revenue of Uber is around US$12 billion with US$15.76 billion as gross booking value in Q2 of 2019.
This growth in revenue of Uber is a major source of inspiration for all future entrepreneurs. Uber has become a paragon for the successful business model. Even though entrepreneurship looks all fun and shiny from outside, it is way too much hard work and a late-night stress attitude from inside.
Entrepreneurship is not a smooth journey. It is a roller coaster of failures and success. One day you will be at the top of the competition and another day you will be the one in the crowd. Launching a business is just the beginning; actual struggle begins when you have to earn your living from it.
So before jumping into the norm and giving up your job, take a pause and think; do you want to be an entrepreneur? Are you ready to face all the ups and downs? Do you think you will enjoy this nerve-racking ride of building your startup?
If you have second thoughts OR you are afraid of losing everything then this journey will be impossible for you. You won’t be able to create your brand if you are not ready to step out of your comfort zone.
But, If your answer to the above questions is yes, then my friend you are all set to be the next top entrepreneur of your niche.
The upswing of Uber
When Uber was first launched in March 2009, in San Francisco. No one had thought that one single app would introduce a revolution in almost every aspect of our lives. Even though the app was serving a perfect solution for a major problem, no one was ready to trust a virtual company. Today the app is popular in more than 700 cities and is growing rapidly and is planning to launch self-driving vehicles by 2020.
Every startup wants to be the next Uber, but Uber wasn’t built in a day. It took several months and minds of few top strategists to reach the level where it is today. We all know the success story of Uber but very few people know the challenges and failures faced by the company.
If you want to be the next Uber then you need to learn from its failures along with its success. If you want to succeed in the race of entrepreneurship here are few things to keep in mind.
Target a real-world problem
If you want to succeed then you need to know your objective. One of the major reasons for the success of Uber is; it has solved the biggest problem of San Francisco: “Finding a taxi”. Travis Kalanick and Garrett Camp tried their best to resolve this problem of their fellow citizens and friends. And this ended up as a great business idea.
If you want to figure out a unique idea for your business then you should know:
- Which is the biggest problem faced by the people around you.
- Which are the best ways to resolve this problem.
- How you can implement these ways to solve the problem.
- Why your customers will use your service or product.
- Why your idea is going to rock the world.
These are the basic questions to lead a successful startup. If you are looking for a new idea then you need to solve a problem. Figure out the answer to the above question and decide your reason to kick start your business.
Word of mouth marketing is your asset
As per the case study by Ogilvy Cannes; 74 per cent of customers take action from the recommendations of their friends and peers. This is the major reason for the growth of Uber. This completely free advertising campaign has the most positive impact on the company.
Uber has always leveraged Word of mouth marketing for its campaign. Uber knows how to give its customers a story to share. Whether it is on-demand ice-cream trucks, kittens, roses, Christmas trees or even tequila.
Arrive as early as possible
The reason behind this is the competition is very low and you won’t get many competitors. Uber was the first ride-sharing company. This is the primary reason that it holds the largest share of the market.
Even though it was challenged by competitors like Lyft and SideCar; the company is still at the top.
Brand recognition is the one thing that you just can’t buy. The best way to gain it is to be the early adopter. Being the first in the market will leave more space of trial and error resulting in better connectivity with the target audience.
Minimize dependency and maximize profit
Uber’s customers are getting good deals and drivers are earning better than traditional drivers. Have you ever thought where is the company adjusting these expenses? The major reason for Uber’s growth is its simple infrastructure requirement. Basic infrastructure helps the company to adapt to the changes smoothly.
The best way to reduce your expenses is to check where we can save money. Instead of depending on outsourcing tasks try to hire an in house team. Whether it is for marketing, maintenance or technical support. An in-house team will help you to communicate efficiently and you will get quick results.
Understand the market as per the consumer’s perspective
Before jumping into any business; read and understand the market thoroughly. Try to learn every aspect of the niche. This will help achieve long term and short term goals. You need to be prepared for the changing market and customer expectations.
The customer’s application of Uber is built entirely by keeping in mind different types of users. A user of any age group can operate the basic features of the app easily.
The expectations of consumers depend on every generation. For example; the younger generation might need a quick solution, they don’t care how difficult is the app’s usability. On the other hand, the older generation will prefer a user-friendly app even if it takes time to serve.
Consider all possible ways of doing business
Never settle for limited options. Keep looking for new ways for expansion. Look out for new ways to add value to your existing business. Uber begins its journey from the ride-sharing app, and now it is serving food delivery services, boat hiring services, chopper ride services, trucking service and soon it is going to introduce grocery delivery service as well.
Play as safe as possible
Always plan how you are going to handle any scandal or legal battle. As your company begins to grow, you should be prepared for worst-case scenarios.
Uber has always maintained its public image. Even though there were some major scandals and cases which were thrown to discard its brand name. The company had weathered every storm smoothly. Whether it is negative publicity, PR battle, or allegations from companies like Google and Apple.
Challenges Faced by Uber
Decentralized system
Micromanaging can affect your company’s growth as the number of employees increases. Decentralizing will transfer the burden from one employee to a few other employees. This will make them feel important and able to make decisions that are beneficial for the company. When a company has more employees it is necessary to divide the teams and let the managers take the decision.
Uber has its central headquarters in San Francisco. All the data from different countries and cities is collected at the headquarters. This data affects every major decision and change in policy introduced by the management. But for decisions like hiring, offers and discounts the company leaves it on the local offices.
International expansion
This is a major challenge for any business. As your company expands, you need to create offices in multiple cities or countries. Setting up your presence in international territories is a risk worth taking. Along with better resource management, you will earn consumer trust as well. Make sure to hire the best minds to plan out the entire process of setting up the office, hiring the right resources and maintaining the customers.
As per an article, Uber has a separate strategy for its Asia Pacific Accreditation Cooperation (APAC). The company has initiated localization as the main ingredient to win the regional battle.
Keeping up with the trends
If you want to lead in the race of entrepreneurship then you need to be updated about what’s trending. The best way to keep updated with the trends is to introduce new features. A well-maintained app shows that you care about your consumers. Plus, The average cost of making an app is not much as compared to loosing your loyal consumers.
Introducing new features has been a norm for Uber since the beginning. The company always tries to keep up with the competition by introducing better features for the drivers and the customers.
Sustaining the employees
As the company grows you need to make sure to keep your eye on employees’ needs. Employees are the most important resource at every stage. Try to understand what they need and serve them in an environment where they can work freely.
Uber has around 22,263 employees from all over the world. The company always tries to offer new streams of income and flexible schedules to its employees. This is an attractive takeaway and a solid reason to stay.
Are you inspired by the success of Uber?
Transform your dream Startup into a successful business by following the footsteps of Uber. The ingenious model created by Uber is an important lesson for every budding entrepreneur. No doubt that Uber has few huge failures, but most importantly it has raised from failures and developed one of the most successful businesses in history.
Wrapping everything in five points; here is what you need to keep in mind from the journey of Uber.
Try to own fewer commodities. Uber has just partnered with the cab drivers, it does not own any cab.
Instead of waiting for the opportunity to come to you, look out for opportunities. Uber has served discounted rides and even free rides for its users at the beginning.
Do not overstuff your business. Uber had introduced only cab-hailing in the beginning and then slowly introduced other businesses like Uber eats, Uber Freight, etc.
Your customers are the most important aspect of your company. Uber always provides new offers, discounts, and features for the customers.
Instead of being afraid of the failures, take the risk. Figure out the best way you can solve the major problem of your city and work towards it. Don’t forget the popular quote by Steven Pressfield “Start before you’re ready.”
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