Not Just Uber for X : On Demand Business Models of the world!
Uber has been a revolutionary concept in many ways, literally defining what on demand business models are. The larger than life goal of providing a reliable and efficient alternative transportation system in every place in the world has impacted many lives. The impact of the model has led to disruptive ripple effects with new platforms emerging to streamline value chains across industry verticals. These platforms that position themselves as “Uber for X” have been constantly in news for the last few years viz. a viz. bullishness shown by investors, asset light growth focussed on better utilization of existing assets and apprehensions viewing the entire thing as a bubble.
Let’s dig deeper. Semil Shah defines On Demand Mobile Services (ODMS) as “apps which aggregate consumer demand on mobile devices, but fulfill that demand through offline services.” Often this ODMS definition has been generalized and characterized as “Uber for X”. While this does give some insights into on demand business models but there are many key variables that might be different when compared to Uber.
The point that I want to bring forth through the analysis is that ODMS as a business model bridging offline and online is a super set that finds application across business verticals. There are some key variables that are different depending on the vertical and geography. Based on those variables an AirBnB for Y or Postmates for Z, etc. characterization might be more applicable than Uber for X.
Important Variables for On Demand Business Models
- Degree of Commoditization
Number of variables associated with a service or a product in question that consumers care about. Lesser the variables more commoditized a product/service. For instance Uber as an ODMS platform is highly commoditized with consumers only deciding the type of car while for AirBnB the user cares about the date of booking, number of days, location of the listing, facilities available, rent, etc.
- Relationship of the supply side with the platform
A business model might involve aggregating existing small businesses or freelancers or contracting the supply. Former is easier to scale while in the latter’s case the platform is responsible for training and fixing the rules.
- Price Control
Singular pricing structure defined for the whole platform based on some variables or the one that changes with the choice of the service provider is a core consideration that goes on to define a business model. Generally the choice depends on the level of commoditization as discussed earlier. More the difference in quality of service/product based on the choice of the service provider, more difficult it becomes to impose a pricing control on the platform.
- Instant vs Scheduled
One of the driving trends making the value proposition for On Demand platforms is clearly the convenience they bring to the end consumers. But a common misconception goes on to equate this convenience with instant provision of goods/services. Depending on the nature of the product/service scheduled can be an equally convenient and viable option.
- Stakeholders
Most On Demand platforms have to deal with 2 stakeholders at the minimum. The involvement of more number of stakeholders outside the roles performed by the platform also goes on to impact the business model. For instance Uber and AirBnB deal with 2 key stakeholders while Postmates, Instacart, etc. which don’t own the infrastructure for goods to be delivered have a 3rd key stakeholder who provides the groceries or prepared meals.
Based on the variation possible on account of the above variables, let’s try to create more granular parallels for the broader On Demand landscape.
Uber for X
The term was the finalist in this year’s Forbes Jargon Madness competition [https://www.forbes.com/sites/briansolomon/2015/04/06/jargon-madness-final-four-will-uber-for-x-win-it-all/] This goes on to show how popular and unavoidable the term has become in the startup circles.
But what is Uber for X? 
Circling back to our previous discussion, while it is clearly a subset of broader On Demand platforms attempting offline-online integration by closing the DISCOVERY – BOOK – TRANSACT – PAY – REVIEW loops involved in customer -supplier value chains, it is also characterized by –
- highly commoditized nature of the transaction involved
- direct involvement of end service providers (taxi drivers)
- airtight price control due to low variation in the quality of service from one driver to the other
- instantaneous nature of the service to the point that optimizing the ETA is one of the most important consideration involved in the mind of the end consumer.
- two stakeholders
The above characteristics make Uber for X based platforms a “Supplier Pick” model whereby the customer requests a service (not a service provider) and the service provider accepts the request.
Related Reading for ‘Uber for X’ on demand business models – 7 factors that will make your Uber for X startup a success
AirBnB for Y
An equally popular jargon that is associated with unbundling of CraigsList into individual vertically aligned marketplaces. While the offline -online and closed loop characterizations apply, the platforms are distinctly different from Uber for X counterparts in that, they are based on a “Buyer Pick” model.
Related Reading – Airbnb business model – How Airbnb Works | Insights into Business & Revenue Model
- lot of variables that differentiate one service provider from another
- Most listings on Airbnb are now aggregated.
- Price varies
- Instant or scheduled, both are viable models
- Two stakeholders
- each service provider has its own individual existence.
While Uber for X and Airbnb for Y find a lot of applicability, number of stakeholders involved as discussed above lead to further variations. Here are some examples –
On Demand food requires 3 major steps to close the loop –
COOK – ORDER – DELIVER
Stakeholders being restaurants or kitchens; end customers and delivery people. While some platforms take care of both the 2nd and 3rd step by owning the virtual centralized kitchens – read Munchery, SpoonRocket (true Uber for Food Delivery) some others like Postmates, DoorDash, BiteSquad just take care of the delivery aspect relying on aggregating existing restaurants to cook the food. Instacart does something similar by relying on existing supermarkets to provide the grocery while they do the delivery bit.
Related Reading – Food On Demand : Business Models of Meal Delivery Startups
Flywheel for Z
Flywheel is an On Demand app for taxi companies. It helps taxi companies provide an Uber like experience by providing an On Demand interface.
Why this warrants a separate characterization is because these platforms directly aggregate the existing businesses instead of freelance service providers. Many such platforms aggregating cleaning companies, plumbing companies, car wash, salons, etc. are taking roots.
- Commoditization of the service
- Businesses are aggregated and contracted, and they have their own service providers
- Prices can be variable for each business or fixed by the platform
- Instantaneous nature of service
- Three stakeholders
While the model can be supplier pick or buyer pick based on the vertical, the above distinction is enough to visualize this as a distinct business model, making it one of the unique on demand business models.
Postmates for W
“Postmates is an On Demand Delivery platform that delivers virtually anything – food, groceries, office supplies, etc.”
- Very low commoditization as each business has a different offering
- Businesses and Service providers are either aggregated or contracted.
- Variable price, set by each business
- Instantaneous nature of service
- Three Stakeholder
Munchery for V
A recent and successful addition to on demand business models is the Munchery business model. “Munchery Chefs make delicious meals that they then deliver directly to customers from their kitchens in San Francisco, New York, Los Angeles and Seattle.”
- Highly commoditized nature of transaction involved.
- Direct involvement of service providers
- Fixed prices due to highly commoditized nature of service
- Instantaneous nature of service
- Two stakeholders.
Related Reading – Munchery Business Model – How Munchery Works: Comprehensive Business and Revenue Model
We recently launched an On Demand Phlebotomists platforms, Iggbo. Iggbo is a 4 sided marketplace that involves doctors (prescribing the tests), end customers searching for the laboratories to do the tests, phlebotomists responsible for getting the customer’s blood drawn and laboratories doing the test. Again, while Iggbo’s categorization as Uber for Phlebotomists won’t be too far fetched but I have created a different category nevertheless to bring home the importance of the stakeholders in impacting the various decisions that go on to define the business model.
This analysis is not intended to promote the use of Postmates for Z or Flywheel for W parallels. It was intended to have a deeper look at the variables involved in deciding the contours of On Demand business models. I believe whether it is an existing business looking to leverage the On Demand trends or a completely new platform trying to provide a full cycle treatment to the existing value chains, On Demand is the future. The only thing that is left to be decided are the various winners in different verticals and geographies trying to attempt the various on demand business models.
If you are interested in knowing how to build the next big thing in the on demand economy, get in touch with us today!
Need a übe type app
Need app like Uber
Hi Shaw. Thank you for your interest. Our sales team has sent you an email. You may take it forward from there. Cheers!
I want to develop an uber like app
Hi Arrjay. Thanks for reaching out. Our sales team will be in touch with you over the email.
You may take it forward from there.
Further, I would recommend you to check out this post – http://juggernautlive.wpengine.com/blog/uber-business-model-canvas-what-led-to-uber-success/ I have listed the strategies followed by Uber and how they got the world to talk about them. It might help you form a user acquisition strategy for your startup. Cheers!
Hello
Please give me a call i need help in the development of an app same like uber.
Hi Shah, Thanks for reaching out. Our team will be in touch with you through an email.
I have business model for transportation and have the leverage
I wan’t uber like platform but for another kind of business. real estate?
Hey Curtis,
Uber for real estate business seems to be an interesting idea. We already have startups coming up on the same model as Airbnb (Read – Airbnb Busienss Model here – http://juggernautlive.wpengine.com/blog/airbnb-business-model-canvas-how-airbnb-works-revenue-insights/ ) But I guess you have something more valuable in your mind. Feel free to get in touch with us at [email protected]. We’ll be glad to sign a NDA as we get into discussions and take thing further from there.
Cheers!
hi I want to build uber like app
Hi, I need app like uber but with little changes
Hi Pac,
Thanks for getting in touch. We can customize the app according to your preferences. Let’s talk about it. Our sales team will be in touch with you over the email. You may take it forward from there. We’ll be glad to help you develop the technology for your idea 🙂
Cheers!
Hey,
I need an app such as uber but for a complete different industry.
Hi Sergio,
Uber like apps have already covered a lot of industry segments. Check some industries here: http://juggernautlive.wpengine.com/blog/on-demand-economy-industries-being-disrupted/
Your plan seems to be a disruptive one for a new industry segment. Cheers to that. We can guide you in the process and help you develop the technology part. Feel free to reach us at [email protected].
Uber like app for delivery service
Hey Shane,
Uber like app for delivery service seems to be a great idea. Someone from our sales team will be in touch with you through email. You may take discussions forward from there.
Cheers!
Hi Ajay – What assurances one has that the app developper would not simply take an inovative idea and create its own app? An NDA, despite its loopholes, is a legal instrument that prevents the “Disclosure” not the copying or the taking over of an idea. Your open mindness on this delicate matter is appreciated.
Cheers,
Antoine
Hi Antoine,
We value intellectual property very highly. As and how it may be required, we are open to discussing transparent and clear clause/s that would prevent us from developing similar application for a time period. The developers working at our organization are hired after a verification process and are legally bound not to indulge in any such activity. Further, we have sent you a copy of our NDA. You may go through that and reply to the email. Rest assured, Juggernaut will be your best choice to develop an app like Uber in any industry segment. Let’s take it forward.
Cheers!
Hi Ajay, I came across your articles…I really like what you write about on demand tech..very helpful and inspiring…about this point specifically I’m so interested to know more.can you send me a copy of your NDA.
We might discuss something even more interesting starting from this point
My regards,
Ahmed
Hi Ahmed. Glad that you liked our content. We focus on providing value to our readers. Our team has sent you an email. Just reply back to take the communication further.
you guys are world class
Thank you for the compliment, Tony. Stay tuned for more.
Cheers!
Hi Ajay,
I need an app same as Uber. what will be the cost? and can you show me if you have any such app on itunes?, so that i can download and try.
Milind
Hi Milind,
Being a leader in on-demand space, we have developed a number of apps in various business verticals for both android and iOS platform. Our sales team will get in touch with you through email and provide you with all the required info.
Cheers!
Do you guys do projects for the Middle East?
Hey Wafir, of course we do!
In fact, the Middle East region is booming with startups in the on-demand sector. We’d love to work on your project. Just sent you an email to initiate the conversation. Let’s take it forward through that.
Cheers!
hi need a app like uber let me know
Hi,
Need an app like Filld On Demand Gas Delivery.
But with no payement option for now since that needs a lot of security and will be expensive. I’m bringing Filld’s business model to Africa.
Are you guys involved in developing all kinds of apps or its just limited to the apps like uber?
Hello, I would like to get more information on developing an app similar to Uber but for providing a standard service. It is a very saturated industry and simplifying access to such service I think can very well find its way in the mobile App world. As like previous comments left I too am concerned and question if my idea can be taken or copied.
Thanks for your time and eager to hear your response.
Can you send me a copy of your NDA? I am most concerned with this and how it works and what is the time line of the NDA?
My idea revolves pretty much around UBER and but is not related to rides.
Hi AJAY or juggernaut , am interested in developing an app which is as complex as uber or a little more complex but nothing like uber. would like to get in touch with you via email. so reach out to me lets discuss. thanks.
Hey William, Thanks for getting in touch. Just sent you an email. You may take it forward from there. Cheers!
Hey Juggernaut, I’m interested in developing a service within the On-Demand economy, with some added variables that could prove difficult to navigate, but can definitely be done with the right expertise. Really in the ideas stage at this point, but I can definitely see a road to success and I’d love to talk with you guys regarding my options and so on. Thanks.
please give the ideology and working of the app,and how to develop an app like uber for autos and taxi which could be affordable for all class of people
Hi Sumit, Thanks for getting in touch. We have just sent you an email with required information. You may reply back to the email to initiate the discussion.
Hello Ajay, I have an idea for a transportation app but have no finances nor the expertise to pull it off, I have made a thorough research on it and its big, please contact me via email to discuss it.
Kind regards,
Hi Ajay:
Do you have a uber alike plataform already? I’ll be interested on getting such a service from you and your team
Thanks
Hi Ajay,
I am looking to outsource (hire or partner) the development of a new business idea that can use this kind of structure. Would your team shoot me an e-mail so that I can assess whether Juggernaut may fit into the picture? Thanks!
Hi Ajay,
Looking for a Uber like app in RSA, also have concerns about NDA, costs and durations.
Please could you send me a copy of your NDA and any other info that may assist me in my choice of Developer.
Please also send me through a direct contact so that i may contact by telephone if possible.
Thanks Jon
Hi, i want to start a business on GPS based. It likes UBER r OLA but not in transportation mostely deals with FMCG. Can u please email me the details.
Thanks for this….i also like to develop Uber type of apps. Please inform me what is the exact cost to develop in India.
i need an app developer just like uber..
can u help?
I would like to have an estimat for uber like platform thanks
Hi im interested in an app with similar UBER features
I need to be able to have clients send their location to a computer at our office so we can send a car to them,
Would like to make an app please contact me
Hi Ajay, I have an app in my mind same as Uber and I would like to discuss it further. Hope to hear from you soon.
What are your rates and can you refer me to a source to develop a solid NDA and IP lawyer before we get the ball rolling?
I’m interested in an uber like app. Can you help? Thanks!
I need a app like uber county base
Hi Ajay,
I have a business idea/proposal and need to work out how much it will cost to develop an app like uber (but also maybe have some sort of video link too). I plan to pitch to investors by Q316 so am working on the Financial model now.
What credentials do you have in this field and could you also let me know what guarantees you can provide in terms of ensuring that any plans I share with you are confidential? Thanks in advance!
Interested in UBER-like app with some changes. Please contact me with NDA. Thank you.
Thank you. Very informative and well-structured article. I think it would be helpful for everyone. Maybe you should try to add it to the Wiki page about Uber: http://getsmall.link/6eb1a0e8
Thank you, Mark. We’ll look forward to it.
HI, I ALSO WANT TO KNOW THE COST AS I WANT TO CREATE A SAME APP, LIKE OLA PLEASE REACH ME ASAP
Hi I want to app like uber
We are in los angeles trying to start ul a bussiness like uber can you guys helps out.
What does it do? Can’t wait to use your app
Hi
We like to get an estimate on an Uber like app. Would you be able to email me a ball park estimate on development cost, timeframe and on after sales service/enhancements.
Hi Barkaat,
Thanks for reaching out. Our sales team will be in touch with you through email and you may take the discussions forward from there.
Cheers!
hi,am in east africa, am planing on setting up abusiness more like uber hope we can discuss more
Hi Mugambe,
Thanks for reaching out. Our sales team will be in touch with you through email and you may take the discussions forward from there.
Cheers!
Hi Im interested in developing an app like uber for another service but same concept as uber can you please provide me with costs thank you
Hi Stephanie,
Thanks for reaching out. Our sales team will be in touch with you through email and you may take the discussions forward from there.
Cheers!
Hi Team,
I want to ask about the details of a program like Uber, but of course on a much lower scale (10-20 cars), including the cost and the maintenance fee , and if there is any fixed sets to be fixed in the cars.
Hi I also want to know about the cost of making such an app
Hi Ajay
I am thinking to make website like uber but it will be little different then uber. It will be like pre reservation in app and customer can track their car. It will be limousine service but all pre refer action through app. Nothing else.
We are in NJ. And we like to start company like Uber or lyft can u guys helping out by telling what the cost for the app and start the company
Please call me to discuss my concept for development.
David
9173646218
Hi
I will like to get an estimate on an Uber like app. Please email me a ball park estimate on development cost, timeframe and on after sales service/enhancements.
Hello,
I am looking to develop an app similar to Uber but will carter a totally different service.
I like what I read on this page and will love to touch base with somebody in your company.
We would like to get an estimate on an Uber like app. Would you be able to email me an estimate on development cost, timeframe and on after sales service/enhancements.
Reply
Hi
We like to get an estimate on an Uber/ola/porter like app. Would you be able to email me a ball park estimate on development cost, timeframe and on after sales service/enhancements.
i need to detail about this uber/ola/porter application
who make this type of application?
its application total estimste and how to operate?
Hi I need help trying to making a app like the uber app but we have our taxi company already it will be more easy if we have an app can you help please