Business Model Canvas UBER

Key partners Key activities Value proposition Customer relationships Customer segments
Traditional vs micro
- Drivers - Remove friction from For drivers: - To drivers & riders: segmentation
- Investors transactions - Income generation safe, secure, fair
- Lobbyists / supporters - Scale beyond critical mass - Flexible work hours - Public: communal / Drivers:
- Engage the participants - No boss social footprint - Demographic
Other partners: - Refine value proposal - Ease of joining - Regulator: compliance, - Socio-economic
- Specialised technology - Analyse data & improve - Low idle times taxation, transparency - Micro-geographic
providers - Issue resolution - Behavioural
- Maps, GPS - Situational
Key resources Channels
- Payment For customers/riders:
- Analytics - Fast pick-up Customers/riders:
- Network effects - Social media channels - Usage patterns
- Specialised APIs - Lower cost
- Data & analytics - Word of mouth - Type of usage
- Financing driver cars - Fare estimate
- Skilled staff - Local campaigns - Demographic
- Insurances - Convenience
- Apps, architecture - Media - Socio-economic
- many other - Easy transactions
- Venture capital - Apps / app stores - Micro-geographic
- Rating system
- Brand - Comms channels

Cost structure
- Customer acquisition cost, CAC
- Weighted average cost of
capital, WACC
- UberPool driver costs, no other
drivers are a “cost”(!)
- Legal and settlement
- Lobbying
- Technology development, R&D
Revenues
- Total booking fares FY 16: ~$20b
- Net revenue Q4 ‘16: ~$3b (28%
QoQ growth)
- Net loss Q4 ‘16: $991m (ex China)
- Revenue model: transaction fees
- Cost saving to taxis:
- Asset capital cost
- No license fees
- Employee entitlements

Understand Uber’s business model: www.innovationtactics.com/business-model-canvas-uber/