Uber for X inspired many entrepreneurs and everyone wanted to start a business like Uber. Eventually, there was a significant rise in Uber for X businesses starving to taste success. Apparently, they were missing something. However, it was not that simple to become Uber and those who did not do their complete homework ended up failing drastically.
The human need of comfort and convenience is growing day by day and on-demand business startups are evolving rapidly to fulfill the constantly changing customer needs. Uber for X is here to stay, a lot longer than you can think. The main reason why Uber is flourishing is the unlimited funding. Many investors and venture capitalists are ready to invest if your business idea is convincing enough. You have all the help you need at your end, many organizations are building Uber for X business applications and you just have to think about a convincing idea, rest everything will be taken care of.
As I mentioned before, your idea needs to be convincing. You need to be sure about the niche that you are going to work on and how your business idea will resolve a certain problem at a large scale. Here are a few pointers that you cannot afford to miss:
- Replicating the exact same model is not going to help:
Making another Uber would not get your business anywhere because it already exists. Uber for X refers to an on-demand solution for X industry, in case of Uber it is ride hailing. Thus, X can be anything such as Uber for Laundry, Uber for Food Delivery, Uber for Beauty etc. Your unique niche will be converted into a business using and analyzing the successful business model of Uber and customizing it as per specific business requirements of your chosen niche.
Every business model is based on business-specific factors such as market insights, customer problems, target audience and many others. According to your business needs, you will have different market insights, a different customer problem to focus, and a different set of audience to focus. Copying the exact same business model will leave you all confused at the end, and let us not forget the unending list of Uber for X businesses that have failed in recent times.
Therefore, analyze your market, the cause that you are going to focus, and the reasons why your business would be irresistible for people. Then follow the steps according to the Uber business model and embark your journey towards disruption.
- Technology is something but not everything in Uber for X businesses:
People say that they have the best application for their businesses so there is no way that their business would fail. Well here is a reality check. If your business is evaluated on different levels of importance out of 100 then the niche you chose, market analysis and marketing strategy you work on, managing the logistics, managing the suppliers, and managing financial transactions among the stakeholders is 70-80% important and mobile app is just 30%.
Think twice before jumping to the conclusion that Uber for X is just about mobile applications. Every usual business aspect needs to be analyzed and implemented in a sorted manner so that, it creates a balance, and your ship sails smoothly.
However, this does not mean that you should not put efforts in mobile applications; your mobile applications should be as attractive as your business, providing some value that your competitors are lacking.
- Your niche is of utmost importance:
Choosing a niche for your business plays a lot more crucial role than you would have ever thought. It has not been a long time since we started preferring comfortable Uber rides over local transport. Uber changed the way we travel. Your niche should be a go-to solution for the public needs and an answer to people’s prayer just like Uber. With specific niche comes a specific market segment that is to be focused on. In the beginning, focusing on one problem statement at a time is your key. Try to solve some important issues that people have been facing for a long time. This will help you define your target audience beforehand.
However, if your business is a hit, you might have to fight your competitors so that your customer’s do not ditch you. You must have heard of on-demand businesses like Swiggy and UberEats. Both are serving the same purpose that is of food delivery but both are fighting a competitive battle. At such times customer experience matters; if customers are not satisfied, they will choose another service provider.
- Make sure your venture capitalists are ready to invest a huge amount:
The cost of building a business like Uber is not economical. It is not at all cheap and you require a huge amount of funding that is possible only if your venture capitalists are convinced with your idea. Many of us have heard about UrbanClap, an Uber for X business that provides services for other niches, mainly focusing on beauty services, which was funded by three different venture capitalists before it started to grow. Many startups failed because they started expanding their services and ran out of cash.
As you are spending so much money on building the business, you may think that by keeping the cost of your products high, you would earn it back. Well, remember there is another service provider who is willing to give the same services cheaper than you are. So, this method would be a complete fail.
Gradually growing your areas of expertise will help in creating a successful Uber for X business. Scaling too fast can be dangerous for your business, but not growing at all will ensure your failure too. The on-demand businesses are based on thin margins and they rely on high volume transactions to meet the requirements. Scaling might be a problem for business where actual human labor is required.
You can succeed by increasing transaction rates from existing customers. Any business that wants to succeed should focus on acquiring new customers as well as retaining them equally.
