Uber Business Model Innovation Explained

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Uber: Your Ride, on DemandDiscover how to innovate YOUR Business

with the 55 Business Model Patterns

Based on the St Gallen Business Model Navigator

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Did you know that 90% of the most

successful companies are based on

only 55 Business Model Patterns?

That means that innovation is mostly

built on the recombination of

already existing ideas.

Let’s learn now how you can

innovate on

YOUR business!

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But First, What is a Business Model?

A Business Model defines….

WHO your customers are

WHAT you are selling

HOW you produce your offering

WHY your business is profitable

What?

How?Why?

Who?

*St Gallen Business Model Navigator™ (2013)

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Therefore, a Business Model Pattern is…

If your dog chases the mailman every morning, you’d

say it is a pattern: it is something that happens

regularly and is predictable

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Therefore, a Business Model Pattern is…

Now, if a business model is regularly repeated by more

than one successful company, we call it a Business

Model Pattern

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Therefore, a Business Model Pattern is…

A pattern is innovative when there is a distinct novelty

in at least two components of the Magic Triangle

(What, Who, How and Why)

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Easy, right?

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Now, let’s Make it Even Easier With an Example

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First, Take a Look at how cab Rides Normally

Work

WHO WHAT

HOW WHY

- People in need for quick,

short-distance transportation

- Mostly in city centres, airports

& points of interests

- Transportation to specified

location

- To be found at specific

locations, on-demand or in

the streets

- Cab license needed for

operation

- Centralized cab office to

provide information on travel

requests

- Fixed monthly sum to be paid

to office

- Higher fare prices to reach

quotas and make profit

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Now, Meet Uber!

WHO WHAT

HOW WHY

- Conventional cab-taker

- Unwilling/unwanting to pay

excessive fees for poor

service

- On demand, cashless &

transparent transportation

- Easy-to-use app with

integrated payment, tracking

and customer services

- Platform that connects

independent drivers and

customers looking for

transportation

- No own cars

- Costs kept low as solely

platform provider

- Revenue-sharing formula:

80% of fare to driver, 20% to

Uber

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But HOW did Uber innovate?

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To Find out, let’s see Which Patterns Were Used

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#37 The Peer to Peer Pattern

HOW UBER DOES IT: Uber provides anonline platform and the necessary tools for car owners to offer rides to other users of the app

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#14 The Experience Selling Pattern

HOW UBER DOES IT: Uber offers a cab rider a whole new experience: convenient, cashless and with additional services like customer service, ratings and direct connection to Spotify. Furthermore, the user can choose between different levels of service – from Uber Pop to Uber X and Uber Black.

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#41 The Revenue Sharing Pattern

HOW UBER DOES IT: Uber shares its revenues directly with its drivers. While it provides the platform and the marketing, it does not own cars. The symbiotic relationship with the drivers is mutually beneficial and helps to keep the costs low

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WANT TO LEARN MORE?

Yes, we know, we only

gave you a small taste

of what’s to come!

And that was a piece of

cake, wasn’t it? Easy,

but delicious!

If you’re still hungry for

more…

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Visit www.bmi-lab.ch and discover more about Business

Model Innovation!

PS.: No real cake included! But more juicy information ;)

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WHERE DOES IT ALL COME FROM?

Of course, there was a

lot of research behind

the pattern cards

The result of it is this

book to the right: The

Business Model

Navigator!

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