Uber disrupted the taxi industry in a big way, and it continues to expand its market share by the day even with the rising competition. The ride-sharing app has crossed U.S. borders and is used in over 60 countries. Its success in providing commuters with a convenient mode of transport is the reason it as grown in demand. Uber is yet to go public, so buying shares is out of the question. The only way to invest in Uber is to work as a driver or a businessperson with a fleet of vehicles.
Either way, you get to capitalize on the popularity of the taxi-hailing application. Because Uber is available in different countries, it provides numerous investment opportunities. Before you invest in Uber though, understand how the business operates and the money-making avenues available.
Details and Overview
The concept of Uber was born in 2008 by Travis Kalanick and Garrett Camp when the two had trouble finding a cab. In 2010, Uber became a reality that has revolutionized the taxi industry. Uber Technologies Inc is a tech company that developed the Uber app, which allows users to request rides automatically. Just touch a button, and you can:
- Get the nearest driver;
- Know the estimated cost of a ride;
- Leave a review of the experience.
Whether it’s a ride from the grocery store, the absence of a designated driver after a party, or you just need to get to work early, Uber has become the go-to solution for many people. For a driver or entrepreneur who wants to invest in Uber, it’s not just about buying a car and subscribing. As with any other investment, know the profit margins and some of the challenges to expect.
Uber Investment Explained
If you wish to invest in Uber, it helps to know the steps to creating a partnership. Uber has a signup form that drivers must fill to begin the process of driving for the ride-sharing app. For a driver to qualify as an Uber partner, you must have a new model car. Note that the accepted vehicle model depends on the type of service. There is Uber X, Uber XL, UberBLACK, Uber SUV, and UberSELECT. A prospective Uber partner must also have a valid police background check. Uber also conducts interviews with its drivers. The applicants also have to learn about how the driver app works, the payment process, and other details.
For an entrepreneur with a fleet, there is a different signup form to become a fleet partner. Uber requires the vehicle documents, valid driving license, certificate of good conduct, and proof that your run a current business. An UberFLEET app lets you track and manage your vehicles and drivers. However, the registration requirements may vary by city or state, so check with Uber before applying. The company takes 20% of the revenue, so factor that in when calculating your potential income before you invest in Uber as a driver or fleet partner.
The Pros and Cons of Investing in Uber
As with all investments, there is the good and the not so good that you should learn if you are to invest in Uber.
- Uber allows riders to request a driver when they need to. The advantage to drivers is that they don’t have to fight with other drivers to land customers. Additionally, because drivers don’t have to deal with traditional dispatchers, there are no issues of favoritism.
- The safety of not having to carry cash around is another reason to invest in Uber as a driver or fleet partner. You don’t have to fret over your drivers getting waylaid for their daily earnings.
- Because drivers own their vehicles or pair up with partners who do, there are no long-term contracts to worry about. If a driver wants to switch partners, he/she can do so through the right process.
- The flexibility that comes with driving for an E-hail app is another reason you may want to invest in Uber. Drivers don’t have schedules, which gives them time for other activities. In fact, a good number of Uber drivers have regular jobs and only drive to supplement their incomes.
- The low prices that have made the app valuable can also be the reason you reconsider your choice to invest in Uber. Low transportation charges mean that drivers don’t earn as much as traditional taxis. So, drivers may need to work long hours to reach their targets.
- Uber drivers and fleet partners must have the latest car models, which can cost a fortune for most people. They also have to observe high standards of vehicle maintenance. Because riders can leave reviews, neglecting your car’s maintenance can cost you.
Uber Customer Service Reviews
Before you invest in Uber, you want to know how other drivers or entrepreneurs feel about partnering with the ride-sharing app. If one of your drivers had trouble with a customer, whom should you contact? What if there was a problem with driver payments? Drivers can access customer support directly on the app, which most of them appreciate because it simplifies the process.
The company has support platforms for local drivers, which most people appreciate because they know exactly where to go. Alternatively, you can send emails if your concerns need a bigger platform. Uber assigns tickets to all complaints and then follows them up. However, some drivers and riders raise issues with the time it takes for Uber’s customer care to respond to a problem.
Steering the Wheel
Uber is steadily cementing its place in the ride-sharing app market. Although new applications are sprouting from all over the globe, Uber has already established its dominance and doesn’t look to be letting up. For this reason, an entrepreneur may see the company as an excellent way to earn an income.
Uber allows that by partnering up with drivers and business owners with multiple vehicles. Have you worked with Uber as a partner or driver? If so, how was your experience?