Uber is among the top players of the online ride-hailing business. Spread among more than 700 cities and 80 countries worldwide, Uber is among the most trusted ride-hailing companies. According to online data, in the first quarter of 2020, Uber generated adjusted net revenue of almost 3.3 billion U.S. dollars worldwide.

Every entrepreneur who is looking to build an app like Uber wants to know how Uber works.

So let’s discuss the business model of ride-hailing business’s behemoth:-

Uber works of three primary modules :-

  • Driver App
  • Rider App
  • Admin Panel

Multiple cabs with driver profiles are listed in the platform which are managed by the owner of the business through the admin panel. Uber has certain rules and guidelines for drivers to list themselves on the platform.

Ride-hailing businesses like Uber are highly dependent on GPS technology. Riders can request a cab from a specific/current location which is sent to the driver of a nearby location.

The driver available in the nearest location will get the request and has the option to accept it or reject it. The driver has to reach the mentioned location of the rider after accepting the ride.

The ride completes when the driver takes the rider to the drop location mentioned in the application by the rider. The payment can be through cash, wallet , debit or credit card and third party payment platforms.

Uber cuts a certain percentage of commission from rides and rest is paid to the driver.