  {"id":610,"date":"2015-12-01T21:58:12","date_gmt":"2015-12-02T02:58:12","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/have-you-ever-tried-to-become-a-uber-driver\/"},"modified":"2015-12-01T21:58:12","modified_gmt":"2015-12-02T02:58:12","slug":"have-you-ever-tried-to-become-a-uber-driver","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/have-you-ever-tried-to-become-a-uber-driver\/","title":{"rendered":"Have you ever tried to become a Uber Driver?"},"content":{"rendered":"<blockquote><p><strong>Have you ever tried to become an Uber driver? <\/strong><\/p><\/blockquote>\n<p>Yes, you most likely have used an Uber but are you curious how Uber finds, vets, and hires 150,000 drivers within 3 years?\u00a0 The answer to this question is innovation, which is illustrative of how Uber has perfectly aligned its business and operating model.\u00a0 Uber has built every facet of their business with efficiency in mind.\u00a0 From adding drivers to high utilization of their assets, Uber has built effective processes into a competitive advantage.<\/p>\n<p><strong>Operating Model:<\/strong><\/p>\n<p>Let us take a deeper look at Uber\u2019s operations \u2013 starting with driver\u2019s seat.<\/p>\n<p><strong>Signing 160,000 drivers and counting<\/strong><\/p>\n<p>&nbsp;<\/p>\n<figure id=\"attachment_600\" aria-describedby=\"caption-attachment-600\" style=\"width: 300px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Driver.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-600 size-medium\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Driver-300x253.png\" alt=\"Driver\" width=\"300\" height=\"253\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Driver-300x253.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Driver-600x506.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/Driver.png 643w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-600\" class=\"wp-caption-text\">(Solomon 1)<\/figcaption><\/figure>\n<p>Without drivers, Uber would cease to exist.\u00a0 At the same time, signing and verifying drivers \u2013 especially at the magnitude Uber does \u2013 takes up significant resources.\u00a0 Facing this immense challenge, Uber innovated.\u00a0 The entire sign-up process can be completed in 20 minutes.\u00a0 At no point, does the prospective driver even talk to an Uber representative but merely uploads his or her documents (picture of license, insurance, and car).\u00a0\u00a0 Even after the documents are uploaded, no person views them.\u00a0 In fact, Uber has developed a proprietary algorithm that can decipher the picture and match the information to the various databases (DMV, Criminal, etc).\u00a0 Once approved, the only thing left is for the new driver is to watch a 15 minute video.<\/p>\n<p><a href=\"https:\/\/www.youtube.com\/watch?v=GWX9UoJbbJw\">https:\/\/www.youtube.com\/watch?v=GWX9UoJbbJw<\/a><\/p>\n<p>Hundreds of Millions Served<\/p>\n<figure id=\"attachment_601\" aria-describedby=\"caption-attachment-601\" style=\"width: 300px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/67-countries.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-601 size-medium\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/67-countries-300x160.png\" alt=\"67 countries\" width=\"300\" height=\"160\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/67-countries-300x160.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/67-countries-1024x546.png 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/67-countries-600x320.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/67-countries.png 1366w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-601\" class=\"wp-caption-text\">(Uber 3)<\/figcaption><\/figure>\n<p>Many people are more familiar with the consumer facing side of Uber.\u00a0 At over 1 million Uber rides a day (Hue 2), Uber has clearly succeeded in implementing a convenient and well working operating model.\u00a0 Merely download Uber\u2019s app, take a picture of your form of payment, and book your first ride with your personal drive.\u00a0 Total time from idea to booking is under 5 minutes.\u00a0 <strong>Less waiting time, less money, and better service.\u00a0 <\/strong><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Business Model<\/strong><\/p>\n<p><strong>Giving customers a better product for less money and paying employees more<\/strong><\/p>\n<p>This is the Holy Grail for new businesses yet very few achieve it.\u00a0 As Uber shows, a business model must be in absolute sync with its operating model to realize this goal.\u00a0 Uber accomplished this objective by creating tremendous value.\u00a0 Uber is only able to sign up hundreds of thousands of drivers because of its business model.\u00a0 Not only is it easier to work for Uber, but also more lucrative with Uber drivers making on average 25-50% more than their counterparts (See Below).<\/p>\n<figure id=\"attachment_602\" aria-describedby=\"caption-attachment-602\" style=\"width: 385px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/earnings.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-602\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/earnings-300x193.png\" alt=\"earnings\" width=\"385\" height=\"248\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/earnings-300x193.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/earnings-600x386.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/earnings.png 719w\" sizes=\"auto, (max-width: 385px) 100vw, 385px\" \/><\/a><figcaption id=\"caption-attachment-602\" class=\"wp-caption-text\">(Solomon 4)<\/figcaption><\/figure>\n<p>&nbsp;<\/p>\n<p>In addition to creating value for the drivers, consumers also save big bucks.\u00a0 While there are a variety of factors that go into ride costs (mileage, idling, tipping), it is safe to conclude that Uber is on average 25-50% cheaper than traditional taxis.<\/p>\n<figure id=\"attachment_603\" aria-describedby=\"caption-attachment-603\" style=\"width: 300px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/taxi.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-603 size-medium\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/taxi-300x203.png\" alt=\"taxi\" width=\"300\" height=\"203\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/taxi-300x203.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/taxi-1024x691.png 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/taxi-600x405.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/taxi.png 1200w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-603\" class=\"wp-caption-text\">(Business Insider 5)<\/figcaption><\/figure>\n<p>Multiply these savings by the hundreds of millions of rides given and you can extrapolate the billions of dollars Uber saves customers.<\/p>\n<p>Of course, Uber captures value as well.\u00a0 By offering a more innovative and better product, Uber is rewarded with 20% revenue per ride.\u00a0 Leaked financials of Uber shows the company generated close to $70M in one month at 4 locations.\u00a0 While the extent of Uber\u2019s profitability is classified, we are aware that the company was most recently valued at over $51B from private funding sources.<\/p>\n<figure id=\"attachment_604\" aria-describedby=\"caption-attachment-604\" style=\"width: 300px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/revenue.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-604 size-medium\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/revenue-300x225.png\" alt=\"revenue\" width=\"300\" height=\"225\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/revenue-300x225.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/revenue-1024x768.png 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/revenue-600x450.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2015\/12\/revenue.png 1200w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-604\" class=\"wp-caption-text\">(Shontell 6)<\/figcaption><\/figure>\n<p>Uber has gone from an idea to a $51B company in three years due to the company\u2019s alignment of its business and operating model.\u00a0 To reach its current market penetration, Uber made a better product that costs less and pays its employees more.\u00a0 However, Uber\u2019s effective use of its capital, intellectual property, and R &amp; D has allowed the company to expand rapidly and solidifying its competitive advantages.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p>Footnotes:<\/p>\n<ol>\n<li><strong> Solomon, Brian. &#8220;The Numbers behind Uber.&#8221; <i>Forbes<\/i>. Forbes Magazine, 2015. Web. 01 Dec. 2015.<\/strong><\/li>\n<li><strong>Hue, Ellen. &#8220;Uber Says It Does 1 Million Rides&#8230;&#8221; <i>Forbes<\/i>. Forbes Magazine, 2014. Web. 01 Dec. 2015.<\/strong><\/li>\n<li><strong>&#8220;Uber.&#8221; <i>Uber.com\/cities<\/i>. Uber, 2014. Web. 1 Dec. 2015.<\/strong><\/li>\n<li><strong>Solomon, Brian. &#8220;The Numbers behind Uber.&#8221; <i>Forbes<\/i>. Forbes Magazine, 2015. Web. 01 Dec. 2015.<\/strong><\/li>\n<li><strong><i>Businessinsider.com<\/i>. N.p., n.d. Web. 1 Dec. 2015<\/strong><\/li>\n<li><strong>Shontell, Alyson. &#8220;LEAKED: Internal Uber Deck Reveals Staggering Revenue And Growth Metrics.&#8221; <i>Business Insider<\/i>. Business Insider, Inc, 20 Nov. 2014. Web. 01 Dec. 2015.<\/strong><\/li>\n<li><strong>&#8220;Uber Is worth Way Less than $51 Billion: Expert.&#8221; <i>CNBC<\/i>. CNBC, 16 Oct. 2015. Web. 01 Dec. 2015.<\/strong><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Uberify your business and operating model<\/p>\n","protected":false},"author":562,"featured_media":611,"comment_status":"open","ping_status":"closed","template":"","categories":[164,8],"class_list":["post-610","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-transportation","category-uber"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/the-tom-challenge-tom-winners-and-losers-assignment\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Have you ever tried to become a Uber Driver? - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/have-you-ever-tried-to-become-a-uber-driver\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Have you ever tried to become a Uber Driver? 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