2021 REVENUE MODEL OF UBER: Does Uber only provide cab services ?

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Don’t own a car?

Don’t wish to switch multiple trains in the metro?

What is the first thing that comes into your mind when you don’t own a vehicle and yet, want to travel comfortably without having to walk too much?

YES, you’re right! A CAB.

Does Uber sound any familiar?

Do you know that Uber generated almost $14 billion in revenue in the year 2019? And as of March 2020, Uber commanded almost 70% share of the ride-hailing market.

Does it interest you to know the secrets behind the earning? Let’s dig into the revenue model of Uber.

But first, let’s know what Uber actually is.

Uber Technology, generally known as Uber, was founded in 2009. It was initially a cab service provider. But now, it is not only helping people ride from one place to another but, also delivering food and helping businesses grow up by handling their work of ground transportation. It has its headquarters in San Francisco, USA, and is one of the most popular cab services globally.

It provides an electronic cab service by the means of a smartphone application which is, by the way, a 24/7 available service. But, as said before, this is not the only service included in the revenue model of Uber. Let’s take a look at the other services too.


Uber rides:

Uber allows non-professional drivers with their own vehicles to work as uber drivers. They help people with their transportation within the urban areas. The Uber application counts for the convenience and the cheapest fare possible according to the number of people traveling.

Their features involve UberGo/ UberX/ GoSedan allowing up to 4 people, UberXL allowing up to 6 people. You can also book cabs according to per Km charges if you wish to travel intercity or book the cab for a whole day.

Recently, In India Uber has also started with Uber Auto services, which are somewhat cheaper than the above mentioned.

Uber Eats:

Uber Eats is a fast-growing food delivery service and was launched in 2014. Through the smartphone application, you can order food online from a nearby restaurant that has partnered with Uber Eats. In India, it is a good competition for the food delivering services Zomato and Swiggy. Though, Uber has also partnered with Zomato for a few restaurants. Quite a strategy for the revenue model of Uber, isn’t it?

Initially, the most ordered food from Uber Eats within Australia was chips. Isn’t that amazing? Well, it is. Now, Uber does not only deliver chips but all sorts of food from any restaurant.

Uber Freight:

Uber freight is another free application provided by Uber Tech. That connects shippers and carriers. The app allows the freight shippers to find certain transportation such as truckers, trains, aircraft, ships, etc. By this, the shippers can easily track the status of their freight conveyance. Also, the carriers to get to know the exact amount they’ll get paid with after the trip.

Uber Freight has grown much since it was launched, especially in the time of such a pandemic. It has made sure all the safety facilities and helped with the transportation of emergency relief, hospital beds, doctor kits, food, and water, etc. Many of these services were booked at zero profit, but it sure did create a brand name for itself.

Uber for Business:

Uber for Business, as the name suggests, helps businesses and companies manage the transportation of their employees. It includes the day-to-day trips of the employees with automated billing and proper reporting. Not only that, but it also helps book cars for the pick and drops of the clients as easy service to them.

Apart from that, Uber for business is also used to transport goods that are around 50-60 pounds. Or even, delivering food to the clients or employees to keep them well-fed during their trips and workdays.


By now, when you know a few of the major services provided by Uber, you might have gotten a slight idea into the revenue model of Uber. It is not just the cabs but also other small but required services provided by Uber that count for its revenue.


  1. Revenue from cabs: As obvious as it is, most of the revenue generated by Uber is from its cab services. Uber charges 20% of the total payment per ride from the customers and the rest 80% goes to the driver. As much as small the amount just 20% sounds to you, it becomes much larger when counted for more than a million rides a day globally. This counts for the main source of the revenue model of Uber.


  1. Advertisements: Ever seen an advertisement pop-up while booking a ride or even after when you have completed a payment? That is a form of paid advertisement. Multiple advertisers and marketers pay Uber to display their ads within their applications. Since Uber has multiple Applications, the chargers increase and differ according to the apps chosen by the advertiser.


  1. Lite app: Uber has launched its lite applications, for now, only for cab services in India. The lite apps use fewer internet data and have lesser advertisements. This makes it accessible to people with low internet connections or services to be able to book rides from their areas. This is certainly a good addition to the revenue model of Uber, as it only increases the number of customers.


  1. Separate applications: One more amazing strategy comprising the revenue model of Uber is that it doesn’t have just one single app for everything. Uber has separate applications for each and everything. Separate apps for customers for each service, drivers, restaurant partners, freight transportation.Different apps, different sources of revenue. This way Uber is paid according to the number of downloads, the number of people using the apps from the internet data usage, and the source from where the apps available.


  1. Other services: The other few services in the revenue model of Uber would include Uber eats, uber freight, and uber business. But, there are other several small-scale services provided by Uber. These might or might not be available yet in India. They include services such as Uber Pets for pet transportation. Uber Kids with kids safety seats in the cabs. Uber Rush a courier delivery service. They add up little but enough to the revenue generation of Uber.



From the above information, it is very clear that Uber is not only a cab service provider. It almost provides every service required to sustain a business may it be delivering or riding etc. The revenue model of Uber contains many services that are taken place efficiently with well-organization.



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