The Business Model of Uber
Uber provides a smartphone-based service allowing individuals and companies to book rides in selected cities offered by a large pool of local drivers. Once the mobile app is downloaded, users can easily request a ride at any time by setting the location and choosing the desired car. Based on this information, Uber finds the nearest available driver. Uber sets the prices with fare quotes being based on the city where the ride is requested, distance, car type, and demand period, with premium prices for rides during peak demand times. Users pay Uber for the service and the company splits the revenues generated from the rides with the drivers.