During the last few years, we’ve witnessed an enormous rise in ride-sharing startups. There is a reason for that rise, as this business model has proven to be quite effective. If you’re thinking about starting your own ride-sharing business, you just might be onto something, but you need to keep in mind that running such a business can be quite challenging.
When you say ride-sharing, the first company that probably comes to mind is Uber. You’ve probably heard about loads of difficulties Uber had and still has in various countries all over the world. There is a lot to learn from the way they’ve dealt with some of the challenges they’ve encountered along their way to success. That’s why we’ve come up with this short guide through Uber’s growth. So, let’s get straight to it.
Have Safeguards to Avoid Scandals
Even though Uber has quite a reputation all over the world, some of the things most people think about, when they mention this company, are numerous scandals that followed its success. There were stories about sexual assaults, rumors about cheating customers, as well as many more. Some stories turned out to be true, others were utter nonsense, but Uber has sent a strong message every time they’ve found themselves in this situation. They had the determination, dedication, and they were ready to face difficult PR clashes and numerous allegations. If you want to run a successful startup, you have to be ready for everything, you must think proactively, and you must have a plan on how you’re going to deal with anything that might come in your way. Burying your secrets can do much more harm than you might think.
Consider All Possible Expansion Potential
If you want to grow your business, you have to expand into new markets. It’s as simple as that. Now, when it comes to expanding, you have to follow some specific steps. You have to find new customer demographics, reach new markets or regions, grow you repeating customers’ base, and expand what your service entails. When Uber started their geographical expansion, they started operating their business in China, even though that market was very difficult to master. Eventually, China banned ride-sharing services, and Uber left, but not before they’ve made a huge impact on general Asian ride-sharing market. When you think about other services they provide like UberMoto and UberFleet, it’s very clear Uber does their research and focuses on every possible aspect of business expansion. This should be a key takeaway for anyone thinking about starting up their own ride-sharing business.
Keep it Simple
Let’s stop and think about what makes Uber so popular. Apart from the fact that the company came in the best possible moment, and that they were the first company who started ride-sharing, what makes their business model so special is the fact that it’s fairly simple. They had a simple idea, based on a simple need. Every startup should avoid unnecessary complexity and try to make their business work on a simple model. If Uber has taught us anything, it’s that you need a clear vision, transparent communication and sufficient training for your employees, internal control, and a lot of monitoring of customer feedback. These elements will help any startup devise a simple, but effective business model.
Minimize Infrastructural Expenses
When you’re trying to expand and grow your business as a startup owner, you’re facing higher expenses. Sometimes it can be a lot more than you can chew, so you need to understand how to keep a reduced infrastructure in place. When you compare Uber with traditional taxi companies, you start realizing that they don’t have similar overhead expenses. Less complex infrastructure can help their business adapt and go through changes with ease. Uber first started saving resources on hiring non-commercial drivers. Even though Uber started at higher prices than other cab companies, they’ve managed to change their business model, and now they are cheaper than any taxi company in the USA. You must find the way to minimize your expenses while maximizing your cost-effectiveness at the same time. Whether you make an arrangement with affordable auto mechanic Carlingford professionals or you make a deep dive into the world of rules and regulations to find what can help you save more resource – this step is crucial if you’re to succeed with your startup.
Focus on Word of Mouth
According to the research from 2011, Uber grew almost solely based on the word of mouth. Since then, they have invested a lot of resources into marketing, but to this day, word of mouth is one of the biggest ways Uber gets new customers. It’s quite natural that people trust their peers more than they do advertising, and there’s the best thing about this way of promotion. It has almost endless advantages; it comes free, based solely on your service, and it creates closer relationships with your clients and customers. Satisfied customers are always the best brand ambassadors. They can get you quite far on your path to success, just find the way to meet their needs, and satisfy them.
Uber is one of the biggest companies in the world, and it started as a simple startup almost a decade ago. They have created something completely new, and they have changed the way people are looking at cab services and driving services in general. They had quite a lot of bumps along the way, but they are one of the most successful companies all around the world. Use their knowledge and learn from their mistakes, and your startup will reach success. You just need some time, effort, and a lot of dedication.