One of the biggest start-up success stories of the 2010s is one you probably use on a weekly basis- Uber. After launching in 2010, Uber has been able to all but replace taxis as a preferred way of calling a car. The popularity of Uber has even inspired millennial in major cities to forgo owning a car and instead rely solely on the ride sharing business.
So, how can you learn from this massive start-up? Uber’s business model was able to revolutionize the taxi business and provide a variety of benefits to its customers. It’s number one improvement – simplification.
Uber was able to simplify the car service process to match other phone-based processes people will already used to. Everything from ordering, to tracking the car, to payment is handled in app. Making it simple to do business with your company is the best thing you can do for growth.
Look through your own company or business plan and see where you can simplify. Could you streamline your purchase steps for your online store? Make it easier to make an appointment? Provide more in-app benefits to encourage users to use it more? In the digital age, simplicity is key.
Making your business simpler can also help make your product cheaper, another benefit of Uber. Rethink outsourcing parts of your business, or if you really need to own all the equipment. Uber’s lean business model means they don’t actually have to own any cars to provide rides to customers. Is there a similar element you could cut out of your own business?
One of the biggest take-aways from Uber is the speed of their growth. While they could have launched slowly without spending much on marketing and focusing on one city at a time, they would not have been able to dominate the market as efficiently. Uber’s basic service is easily and cheaply replicable. In fact, it’s been copied hundreds of times in various countries around the world, in many cases with less than a million dollars of investment capital. Uber has been able to beat all of these competitors, however, due to their wide-spread popularity. For Uber to succeed over the long term, it has had to grow at a phenomenal rate in order to shut out its rivals.
While Uber could have launched without raising money from investors, they needed it to expand quickly and beat out the competition. If it wasn’t for that fast growth, they may have been overtaken by someone else. Take a look at the market for your business and see if others are developing similar ideas. Launching quickly and going big could be the boost you need for continual growth.
Be a fierce competitor. As much as you need to keep your head down and focus on your business, you also need to be strategic. Beat out your competition at the beginning, and they won’t be a problem down the line. An aggressive business model is a necessity, especially with so many web-based businesses launching every day. Don’t count on your business being the only one of its kind, so do your part to stand out from the start.