Uber launched its app at the SF AppShow in 2010. It was the first-of-its-kind mobile application for the most widely used on-demand service on the planet—taxis.
What Is Uber for X and How Does It Work?
Uber for X is a universal name for an on-demand service that uses Uber’s business model. Various services adopted this model to establish themselves in their industries, including food delivery, dog walking, tutoring, or, similar to its founder, taxis. Here and there you hear about startups that call themselves something like Uber for lawn mowing or Uber for cargo delivery, and so on. The formula turned out to be so flexible and easy to customize that it suits almost any business you can think of. The business model itself is quite simple. Any Uber-like app is basically a two-sided market where clients who want a service can find people who can offer that service. The platform itself acts as a facilitator, providing a comfortable and easy-to-use platform on which the two sides can conduct business.
The steps may vary slightly from service to service, but generally, here is how it works:
- The client places a request on the app.
- The provider sees the request and decides to take the job.
- The client agrees if they are satisfied with the offered price.
- The provider completes the job.
- Payment is conducted via the app.
So, how do Uber for X businesses earn money if they do not participate in the service firsthand? You will be surprised to see that the revenue model for Uber for X is quite solid and has stood the test of time.
- Order fee – Whatever a job conducted on the platform might be, X% always goes to the Uber-like company for providing a platform for communication.
- Flexible rates – Usually, when there are external factors that make the demand higher than usual, the rates also go higher; for example, a taxi is more expensive on a rainy day.
- Partnerships – The Uber-like platforms usually do not hire anyone. Instead, they partner with individuals and organizations of various sizes so they can reach their audience through the platform.
Why It’s Good for Startups and Local Businesses
Uber’s business model leaked from the taxi industry into every possible on-demand service niche that people did not even know they needed and found their target audience. Everything you can think of—food delivery, house chores, healthcare, beauty, pet care—has been transitioning to an Uber-like format for the last decade or so.Why? The answer lies in the numerous advantages of this model.
A Bullet-Proof Formula of a Business That Works
With an Uber-like model, the parts you need to piece together are already known and tested. You don’t have to go through trial and error multiple times until you find the right ratio or the right components. Once you have an app for customers, an app for providers, and an admin console to rule them all, you are good to go.
Versatility
You don’t have to start your business in a niche you don’t like because it is the only thing that works. Flower delivery, surprise parties, car services, cake-baking, or boat rides—whatever your dream business is, you can turn it into an Uber for X.
Stable Revenue Flow
Once you get your business up and running and start gaining an audience (make sure to research your market), you get X% from every order conducted through your platform. Word spreads fast and ads bring in new people, so you get better prices on your platform and an abundance of jobs. Later, other companies might approach you and offer mutually beneficial partnerships. You never know!
Don't Forget Your Local Market
While it is great to dream big and aim for worldwide success, you need to remember that your local market might be the sweet spot where you can flourish. Maybe you live in a city near a lake or river, and boat rides are the on-demand service that people want. Or perhaps your town is really famous for its amber and you want to bring together tourists and those who mine or collect amber pieces or make jewelry. It’s always important to analyze your local market (you most likely will start there anyway) and see what people need or would possibly like, taking into consideration what’s already popular or, on the contrary, something entirely new.
What Does It All Mean?
There is no denying that Uber for X is a trend that, despite some people speculating otherwise, is not going anywhere in the foreseeable future. It is a solid and profitable business model if you can hit your target audience—and that takes a lot of time and research. On the other hand, the Uber for X ecosystem itself does not take as much time to build. It only took us nine months to build a fairly complex five-part Uber for Trash that has become a very successful startup in its niche and is now marketing in the United States. Startup on-demand services and the Uber for X concept were made for each other. They are transforming the world in every possible industry and will continue to do so for years to come.