4 Business Lessons We Can Learn From Uber
At only six years of age, global transport app Uber has experienced astronomical success since inception. It has taken the transport industry by storm and is continuing to expand into new cities at a rapid pace. With an estimated value of $50 billion, it is clear that there are a number of lessons we can take away from this global success story – see below for our top four.
1. Develop resilience
In Australia alone, Uber has experienced its fair share of challenges with both governments and industry associations. Throughout all of the negative media coverage and issues, Uber has remained resilient and true to their core values throughout. Every business will experience negative feedback, criticism and challenges along the journey, so this is an important lesson to take away. If you are passionate about your offering and are committed to its success, resilience will help get you through some of the more challenging times.
2. The future is online
For those who haven’t used Uber before, it is entirely based online with all transactions made through the app. This means that there is no shop front – business is purely conducted via a smartphone. While a completely online business is not possible for all organisations, Uber is a great example of entrepreneurs utilising the technology of modern times. The online world will only continue to grow, with companies such as Uber setting the trend of business via applications.
3. People are your priority?
As a frequent customer of Uber, one thing which stands out most is that the business model supports its people. Rather than the standard 50/50 split of taxi fares in Australia, Uber gives its drivers 80% of the fare, keeping 20% for themselves. This profit margin is not standard for businesses – as we know, most retail stores mark-up at least 50% on products. Putting its people first has certainly paid off, as Uber has no shortage of both staff and customers.
4. It’s all about innovation
When Uber first began, it offered a simple transport experience in only one city – San Francisco. To date, Uber operates in more than 300 cities around the world as it continues to innovate and grow. It also offers a variety of transport options to suit the style and budget of the rider. These range from ‘UberX’, which uses everyday cars and is marketed as ‘cheaper than a taxi’, all the way to ‘UberLUX’, boasting ‘the finest cars with prices to match’. Despite business going very well, Uber has not become complacent and has continued to make innovation a priority.
What do you think?
Can you suggest any other business lessons which we can learn from Uber? I’m interested to hear what you admire most and why. Comment below and share your views.
This article was written by Laura Hutton on behalf of the Australian Institute of Business. All opinions are that of the writer and do not necessarily reflect the opinion of AIB.
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