uber-mission-statement

A Quick Glance At Uber Mission Statement

Uber’s mission statement is to ignite opportunity by setting the world in motion.

A short analysis of the Uber business model

uber-business-model
Uber is a two-sided marketplace, a platform business model that connects drivers and riders, with an interface that has elements of gamification, that makes it easy for two sides to connect and transact. Uber makes money by collecting fees from the platform’s gross bookings.

Uber’s business model has become one of the most mentioned in the business world, as it managed to change the way mobility works.

While Uber still represents a small percentage of the global mobility market, it is still an incredible case to look at.

When you build a new industry, market, and a whole new business model, you need to tweak it over and over to find a balance, which aligns value creation, with value capturing.

Uber now has expanded and stretched its business model, via Uber Eats

uber-eats-business-model
Uber Eats is a three-sided marketplace connecting a driver, a restaurant owner, and a customer with the Uber Eats platform at the center. The three-sided marketplace moves around three players: Restaurants pay commission on the orders to Uber Eats; Customers pay the small delivery charges, and at times, cancellation fees; Drivers earn through making reliable deliveries on time.

So far Uber’s business strategy leverages Liquidy Network Effects, which focuses on tightening its margins to broaden its network.

liquidity-network-effects

A Moonshot thinking approach

moonshot-thinking
Moonshot thinking is an approach to innovation, and it can be applied to business or any other discipline where you target at least 10X goals. That shifts the mindset, and it empowers a team of people to look for unconventional solutions, thus starting from first principles, by leveraging on fast-paced experimentation.

Google is famous for having popularized a moonshot thinking approach. Uber also uses a bold mission to drive its business strategy.

This bold mission starts from:

Our mission is to ignite opportunity by setting the world in motion.

The ambition of Uber’s business strategy emphasized first creating a whole new market (ridesharing).

And then take over the mobility market itself.

As pointed out in its financial prospectus Uber “just got started” with only 2% of the population in the 63 countries where it operates the company looks to expand further.

Several factors drove the Uber phenomenon.

In the letter to shareholders in 2019, CEO Dara Khosrowsha pointed out how Uber got there and where’s going next!

uber-letters-to-shareholders-part-1 uber-letters-to-shareholders-part-2

Source: Uber Financial Prospectus

The foundation of the Uber platform moves around a few key elements:

  • Massive network: consists of tens of millions of Drivers, consumers, restaurants, shippers, carriers, and dockless e-bikes and e-scooters, as well as underlying data, technology, and shared infrastructure
  • Leading technology: proprietary marketplace, routing, and payments technologies
  • Operational excellence: extensive market-specific knowledge to rapidly launch and scale products in cities
  • And product expertise: contextual, intuitive interface, continually evolving features and functionality

That’s how Uber brings people from point A to point B, which is the unit of the Uber business model.

Based on its mission Uber formulated eight cultural norms:

  • We do the right thing. Period.
  • We build globally, we live locally.
  • We are customer obsessed.
  • We celebrate differences.
  • We act like owners.
  • We persevere.
  • We value ideas over hierarchy.
  • We make big bold bets.

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