example of a business model for a innovative businessSolutio

example of a business model for a innovative business

Solution

Uber is the best example for innovative business model and it is a fast-moving business by disrupting longstanding taxi market by changing old-style business model. It is an on-demand taxi service operated through smartphone application by a User. Uber business gets some percentage (e.g. 20%) of the fare on each fleet while drivers of the taxi make use of fully owned cars for taxi service. Uber has kept the entire process as simple as that, where registered user can request the taxi service through smartphone app by providing the fleet’s location and makes easy to reach the desired destination and various payment methods such as cash, credit card etc. used for the payments. Uber does not hire any taxi driver or retains any cars for the taxi service but connects the people who are in the need of the taxi service. Lastly, the innovative business model of Uber comprises of five elements such as the passenger, the taxi driver, fare / payments, sharing the profit and investments for the future business growth.