![]() ![]() While sometimes underappreciated, drivers still have a choice to participate or not. This fact is best demonstrated by the fact that Uber accelerates supply when they enter a new city. Indirect network effects (crucial to the business model) do not kick-in without a critical mass of drivers. This is not just a static consideration but also at peak traffic times, when events are on, etc. ![]() It is essential to have a sufficient number of them to be able to provide the customer proposition (timely pick-up at low cost). Hence knowledge you gain here will be transferable to many other areas.Ĭrucial key partners are the participants on the supply side:ĭrivers: The drivers are on the supply side of Uber's business model and they can join or leave at a moment’s notice (or multi-home on an ongoing basis with other ride-hailing businesses). Similar business models are used by transport platforms, urban mobility platforms, vehicle / ride sharing, mobility-as-a-service, food / goods delivery, service sharing, home sharing, things-on-the-go sharing and more. These monetise on physical assets owned by the supply side and/or services provided by them. ![]() Uber falls into the sharing economy platforms. The revenue model and service charges are more complex in this case and have led to an aggregate take rate of 18.1%-20.6% in the same period. Uber Eats enables transactions between restaurants, drivers and takeaway diners. Their aggregate take rate (=commission) on Uber Mobility/Rides was between 23.5%-28.9% in Q1’22-Q1’23. And Uber makes money by taking a commission of 25% on each such transaction. Uber creates value by enabling and managing transport services provided by a supply side (drivers) and a demand side (riders). Uber is one of the most prominent digital platform businesses of the last decade. ![]()
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