Updated: Aug 25
Uber has become a monster!
It is a multi billion dollars company and has raised a ridiculous amount of money. But, because it has become so massive, it has become bloated. And that is great news for you!
So, you can start a business like uber.
You see when a company becomes so big they miss out on certain services, and that’s where you can come in and sweep up niches that have been overlooked or done poorly by Uber.
But before we get started, let me give you a little information about the industry. Uber is in the ridesharing market segment. They use online platforms and apps to match drivers to passengers, and for this service the company receives a commission. This business model has earned a revenue of $17,191 million in 2018 and is expected to grow 15% to $30,329 million by 2022.
This segment is growing because it is so convenient. If you have ridden uber or other similar rideshare services then you know, it’s super convenient.
And the thing to remember is that the technology used by Uber has become available for you to use. So, what do you need to know to begin. First, you need to know that because the rideshare segment is growing you have a lot of resources at your disposal. When Uber began this technology was fairly new, but now it is more readily available.
What does this mean for you?
You can launch your business faster.
Here are some things you need to know
You need to plan for and consider certain things when starting a business like Uber:
Begin by researching your area. What needs or gaps do you see? What value can you provide? How will you differentiate yourself from Uber?
Decide on creating your platform from scratch or getting a rideshare app license. You can hire someone to develop your platform or buying a template and adapting it to your needs. Either way I suggest you need ire a developer. If you are an app developer then this obviously won’t be an issue for you, however I still advise hiring someone just because you'll be busy on the business side.
Build it as a business not a side job you’re going to do. This is important because if you need financing and want to present this to investors or partners you need to show them that this is a viable business idea and not just another app. Look at it as a business.
Look at the legal requirements you’ll be needing. Did you know that you need liability protection, insurance, to register with the Transportation Network Company TNC, in your state, among other things. Here you really need to do your research, especially if you don't know too much about this industry in your area. I would even consult a lawyer. And every state is different. Some states aren’t allowing certain types of rideshare business anymore. So, do your homework.
Lastly, make a business plan. Planning is key here! And it is very important. The business plan will help you when it comes to who to hire, what the market looks like, what marketing strategy to adopt. It’s validates your idea.
Some more tips
Don't try and compete directly with Uber. They were one of the first to the market and they are a big company. But you can find their weakness, or a niche that has not been tapped by them.
Starting a rideshare business is not cheap! If you are not a millionaire you are going to need a business loan, investment, or partners.
Something you can do to keep costs relatively low is, rather than creating the full platform, begin with a demo. Don't go all in, start with one module then once you have entered and have a few drivers and passengers then create another module. This way you can keep costs relatively low and test out your business.
And lastly, if it seems discouraging to start a business like Uber because there is so much competition in your area there are other avenues you can explore, like bicycle ridesharing. Or if you don't want to deal with passengers, you can do delivery.
Do your research and plan this out. There are niches out there that can be perfect for you!
I hope this helped and gave you a better idea of what is needed to start a business like Uber.
And if you have any questions, leave a comment or check out my strategic call service.