Uber's Inspiring Journey and What You Can Learn From It | ATOM Mobility | Technology for shared mobility (2023)

May 11, 2023 r

ATOM mobility team

In 2010, a company called Uber made a splash in San Francisco by changing the way people greet cabs. Currently, the company is growing rapidly all over the world. Over the years, Uber's valuation has skyrocketed and it has evolved from a ride-sharing service into a major company competing in the food delivery and rental car markets.

Uber's evolution from tiny start-up to giant is an extraordinary story of visionary business practices that revolutionized the entire industry. Let's take a look at how Uber achieved its success.

What if you could rent a ride using just your phone?

Garret Camp, one of the co-founders of Uber, had, for example,first hand experienceproblems with conventional taxi services in San Francisco, where he often had trouble finding reliable transportation.

For decades, San Francisco had a limited number of taxi licenses. Demand for taxis has exceeded supply, resulting in poor service and long waits. Still, cab drivers and fleets in San Francisco vehemently opposed any attempt to increase the number of licenses, as they were determined to keep competition to a minimum.

Camp came up with the idea of ​​creating an on-demand car service that passengers could track using their phones. Given San Francisco's notoriously unreliable cab service, Camp's idea made sense because it provided a solution for increasing the number of rides available and informing customers of expected wait times.

Camp saw a new iPhone app store as a means of making this a reality. Using the phone's accelerometer, it could charge passengers by the minute or kilometer, like a taximeter. Working with fellow entrepreneur Travis Kalanick, they came up with an innovative concept: What if customers could effortlessly request a ride using their smartphones?

Uber officially launched in San Francisco in 2010. The app was an instant hit because of its ease of use: customers could request a ride, locate their location via GPS, and the fare was automatically charged to their account.

Rise of the World's Most Valuable Startup: Key Milestones

Uber's valuation skyrocketed to $51 billion after the 2015 funding rounds, making it a world leadermost valuablelaunch at this time. Below are some other significant milestones in the company's history:

• 2010: Uber received its first major grant of $1.3 million
• 2011: Uber launches in New York and France. The company also closed another funding round earlier this year, which valued it at $60 million.
• 2012: Uber expanded to 20 locations worldwide.
• 2013: Uber continued to grow rapidly, opening over 40 new locations worldwide.
• 2015: The company obtained additional funding from investors such as Microsoft and Bennett Coleman & Co, which increased its valuation to over $51 billion.
• 2016: The company raised an additional $3.5 billion from Saudi Arabia's sovereign wealth fund to further fuel its expansion.
• 2019: Uber went public in an initial public offering (IPO) with a market cap of $75.46 billion, making it one of the largest IPOsin history. The company raised an additional $8.1 billion through its IPO.

What made Uber successful?

While Uber's success can be partially attributed to its founder's innovative idea, there are other important factors that have contributed to the company's achievements. Without the right strategy and implementation, the company would not have reached such heights.

• light asset base

Uber owes much of its rapid growth to its asset-based business model, which allowed it to easily enter many markets. While sales teams and translation work were essential to break into new markets, the software - their app - was the main asset they offered. Because drivers brought their own vehicles and passengers used their own smartphones, Uber didn't have to make large capital investments to operate in these markets.

Furthermore, it is estimated that Uber's technology platform cost less than$2 millionto develop, a relatively small investment compared to the company's current valuation. By focusing on creating a simple and user-friendly app, Uber has been able to create a scalable platform that can efficiently meet the needs of riders and drivers alike.

For ATOM Mobility customers, the app is available now – and highly customizable to ensure it fits your business and target market. So you won't have to invest months and millions of reais to create yours from scratch.

• Emphasis on customer acquisition

Uber's revenue model appears to be based on customer habits rather than brand loyalty. While it's true that many people use Uber regularly, the company's marketing tools rely more on discounts and price increases than traditional branding.

using uberprice increaseis a good example. By adjusting prices during periods of high demand, a company can maximize its margins while undercutting competitors' prices when demand is low.

Despite the lack of a traditional brand loyalty program, Uber has managed to gain a foothold in many markets around the world. Its simple and efficient application, combined with competitive prices and constant promotions, have helped many consumers to choose it.

As an ATOM Mobility user, you can also adjust your prices and/or offer discounts to your end users. Thanks to the built-in functionalities, this can be done in a few seconds.

• Solving a real problem

Uber's success can be attributed to its ability to solve a real problem that existed in the transportation industry. In the past, finding a taxi in some areas was a difficult task, and conventional taxi services were often unreliable and inconvenient.

One of the co-founders of Uber, Garret Camp, was familiar with these difficulties from his experience with San Francisco's transportation system. As such, he knew exactly what he wanted as a customer – a reliable way to rent a car anytime, anywhere in the city, without the hassle of money and phone calls. Uber's rapid growth can be attributed to the fact that it provided a solution to a real problem for a large number of its customers.

Now ask yourself – what is the thing that bothers you the most about the transport system in your area, city or country? If it's a problem for you, it could be a problem for others too. And maybe this can be solved with a shared mobility solution.

• Continuous innovation: additional transport services

Uber has not rested on its laurels after the success of the ride-sharing service. At an early stage, the company recognized the potential to provide additional transport-related services. In fact, Uber's food delivery business is the company's biggest source of revenue, while the trucking business generatesthe biggest profit.

The company has explored other business areas, such as:

• Uber Eatsbecame a standalone app in 2016, offering food delivery from a restaurant to the user's home. It has since expanded to over 6,000 cities in 45 countries.
• Uber rental, launched in 2017, allows users to rent vehicles and electric bicycles/scooters directly from the main app.
• Firmy Uber FreightThe digital marketplace connects shippers with carriers, allowing them to find and book loads with real-time tracking of shipments.

Lesson learned? Even if you've already built a successful venture, look for new business opportunities. Do you have a scooter sharing business? Perhaps you could add other vehicles to your offering or run a ride-hailing solution in partnership with local taxi drivers like Uber. You have an idea.

Uber's bumpy road to the top

Uber's journey was far from smooth. The company met with manycontroversiesboth internally and with authorities in different countries. As Uber's experience has demonstrated, maintaining team morale and momentum when trying to dominate an established industry is no easy task.

Yet at its core, the Uber story is an inspiring one. The company's impact was significant and groundbreaking and serves as an iconic story of pioneering attitude and determination for aspiring entrepreneurs looking to solve transportation problems. As a co-founder of Kalanick Succinctlyhe said"I want to press a button and get a ride." And this is exactly the service they came up with.

And that's exactly the service you can offer your local community.ATOM mobility software.

PS For more inspiration, check out Uber's first showcase -https://www.slideshare.net/kambosu/uber-pitch-deck