Uber: A Revolution of Mobile-App

“Uber” is a great business plan discovery made possible by a simple mobile-app. It is basically an American international company and its headquarter is based in San Francisco, California. It is a mobile-app based hire car network, founded in the year of 2009. Uber has generated around $US 40 billion in less than last 6 years. It is a huge success. It is getting popular among masses, as of now it is operating in 55 countries and in more than 200 cities all over the world.

Uber hire car service is beneficial for both riders and the drivers. Riders get the benefit of comfort and less fare charges as compared to a taxi. On the other hand, drivers earn good income through offering their services. Drivers can work part-time and at any hour of a day as it suits them best. Uber has three different categories. You can choose while asking for their hire car service through using their mobile-app. Their mobile-app goes by the same name that is “Uber”. The different categories include “Uber X”, “Uber XL” and “Uber Black”. “Uber X” is the cheapest of all in respect to fare. It is even cheaper than a normal taxi/cab. This is why it is such a game changer in the area of car transportation network.

 

Hire care

Credit: Phillymag

 

The “XL” and “Black” categories mentioned above are more expensive on fares than the “X” category. “XL”is generally an SUV type car having much space for luggage and stuff and is a bit expensive than “X” category. The “Black” category service is a luxury service and fare charges are charged accordingly higher from the riders. Same goes for the drivers of the car as they get an exact increase for their provided services, depending on the range of expensive car they are driving.

The important question arises that how this company runs? So the answer is a mobile software application, which is installed on both of the riders/passenger and the drivers’ cell phones. Whenever rider/passenger wants to get a ride, a simple request is sent by the rider through that application. A driver who is nearer to that rider’s location gets a “job request”. The driver gets the pickup directions and some of the rider’s details through the app. The driver then picks up the rider using the navigation of the same app and then drops off the rider/passenger to its asked destination. The money is automatically deducted from the riders bank account as bank card details provided by the rider on signing up for the app. And driver’s money is transferred to his bank account after deduction of 20% commission fees from the “Uber” company. There is no fuss of exchange of cash money for the service. This 20% fee from a driver is the profit “Uber” is generated from every driver working for them with the help of one mobile application. Uber is making around $US 500 million a year with the help of this amazing mobile app.

Taxi Service Vs Uber

Taxi and hire cars

Credit: nydailynews

 

This revolutionized transportation service has caused a huge setback for taxi/cab companies and their drivers in many cities. The taxi companies and their drivers in Melbourne, Australia are¬†greatly affected by this service. There is even a legal case lodged in court from the “Taxi Service Commission” against Uber. The main reason for this is that Taxi drivers goes through a long and hectic process of passing all the tests and then gets qualified for driving a taxi. They lose hundreds of dollars while acquiring a taxi driving permit. But,”Uber” drivers on the other hand just install an app on their cell phones and sit in their car and are ready to make some bucks. One of the main restriction is that the year of car manufactured should be at least 2006 or later. Some cities do have restrictions of 6 months being passed on their local car driving license. “Uber Black” needs special vehicle plate and a “hire car accreditation” license to operate.

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