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JUL.26, 2022

Uber Business Plan Sample

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Uber Business Plan Sample

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Table of Content

    Uber taxi business plan for starting your own business

    Do you want to create ease for people on every road they go and every turn they run? You must start an uber business then. By starting this business, you will become a part of the global transport network. You will be using the software and setup that has already been created. And thus starting it would not be much difficult.

    To embark on this journey, the first step is to research what is uber business model and then create an extensive strategic business plan. Since this startup would be a lot different than others, we are providing a sample business plan for uber for an uber startup in Manhattan.

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    Executive Summary

    2.1 The Business

    Charles Ben will be running the uber business franchise in Manhattan. The business will initially operate in just one city. However, within two months, the network will be expanded to the neighboring cities as well.

    2.2 Management of uber taxi business

    If you are starting an uber business, you do not have much to decide on your own. It is because you will have to comply with uber operating model and your choices would be limited. So to manage the business and make sure that the business operates in line with the set guidelines, you will need to make uber business plan.

    Ben did the same, He studied uber business models, undertook an exhaustive research on how does uber for business work before creating uber business plan for a franchise.  In this uber business plan pdf we will be giving the uber business model explained and developed by Ben free of cost for everyone’s benefit.

    2.3 Customers of the uber taxi business

    The customers of uber business will the same as are mentioned in taxi business plan and transport business plan. They are:

    • Students
    • Senior Citizens
    • Tourists
    • Professionals

    2.4 Business Target

    Our long-term target is to expand to at least one more location within a year. The short-term goals include attaining a CSAT score of more than 90 and increasing the no. of customers by 5% every month for the first year. The financial targets are given as:

    Franchise Business Plan
    Helps the franchisee get business case approval from the franchisor

    Uber Business Plan - 3 Years Profit Forecast

    Company Summary

    3.1 Company Owner

    Charles Ben will be the owner of the uber franchise in Manhattan. Charles is an MBA from a prestigious institute in the U.S. He initially decided to start a bus transportation business. But later, he went for purchasing a franchise.

    3.2 Why the uber taxi business is being started

    Ben started the uber business because of his special interest in transportation businesses. Upon thorough research, he figured out that the uber business will be both easy to run and profitable for him as compared to the bus business. 

    3.3 How the uber taxi business will be started

    To start the uber business, the first thing to do is to understand what is uber for business, how the uber model works, and how does uber make money. After that study uber type businesses and follow the following steps.

    Step1: Develop Uber Taxi Business Plan

    Making a business plan of an uber will be your first toward entering this venture. To help you in this we are offering uber business plan sample for the franchise Ben acquired. According to your agreement with the uber company, you may also access uber original business plan. 

    Step2: Market Your Venture

    Getting to your customers will be the next step. For this, you will have to carry out an exhaustive marketing strategy. In this uber cab business plan we will list the sales strategy adopted by Ben to use online and offline media in his favor.

    Step3: Web Presence is a Must

    Since the business activities will depend on your online presence, establishing a strong website is a must as you enter this venture.

    Step4: Recruit and Serve

    The last step is to reach the drivers and make your package attractive for them so they join you and service the customers in their best interests.

    Uber Business Plan - Startup Cost

    Any questions? Get in Touch!
    Start-up Expenses  
    Legal $122,400
    Consultants $0
    Insurance $22,120
    Rent $31,400
    Research and Development $12,000
    Expensed Equipment $51,200
    Signs $3,400
    TOTAL START-UP EXPENSES $242,520
    Start-up Assets $222,400
    Cash Required $182,200
    Start-up Inventory $35,100
    Other Current Assets $224,000
    Long-term Assets $212,400
    TOTAL ASSETS $876,100
    Total Requirements $1,118,620
    START-UP FUNDING
    Start-up Expenses to Fund $242,520
    Start-up Assets to Fund $876,100
    TOTAL FUNDING REQUIRED $1,118,620
    Assets
    Non-cash Assets from Start-up $1,133,600
    Cash Requirements from Start-up $124,100
    Additional Cash Raised $52,000
    Cash Balance on Starting Date $35,000
    TOTAL ASSETS $1,344,700
    Liabilities and Capital
    Liabilities $14,500
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $62,520
    Other Current Liabilities (interest-free) $0
    TOTAL LIABILITIES $77,020
    Capital
    Planned Investment $1,118,620
    Investor 1 $0
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    TOTAL PLANNED INVESTMENT $1,118,620
    Loss at Start-up (Start-up Expenses) $149,060
    TOTAL CAPITAL $1,267,680
    TOTAL CAPITAL AND LIABILITIES $1,344,700
    Total Funding $1,118,620

    Services of uber taxi business

    Since the uber franchise will not operate in an isolated fashion, it is important to realize that you will be providing only those services that come in the sphere of uber operating model. In this uber driver business plan all those services will be listed.

    Note

    Moreover, the personnel required to maintain the operations will also be given in this uber business plan template. Thus, your queries regarding what is the uber business model will be addressed.

    Like the global uber network, services of the uber franchise started by Ben will provide the following services:

    • Standard Rides

    As per the uber car service business plan, the foremost service will be the provision of standard rides. They will be affordable for daily use and routine commute. This service will provide rides on Hatchback and Sedan cars mostly.

    • Premium Rides

    For use in VIP events and weddings, we will also offer rides in luxurious cars and SUVs.

    • Pickup & Delivery

    One of our major services will be the offering of pickup and delivery options to our customers. Our drivers will procure the desired food items from any location in Manhattan to deliver them to the consumers. For more details, you can also visit business plan uber eats.

    Besides food, the pickup service for shifting house and office appliances will also be provided.

    • Bike Rides

    We will also provide the facility to ride bikes that can carry two people.

    To reach a maximum of people, we will provide packages and discounts on special festivals and events. In this uber partner business plan we will specify the discount strategy adopted by Ben in his business plan uber. 

    Marketing Analysis of uber taxi business

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    If you are wondering how to open an uber franchise you are in the right space. After going through the initial procedure to get an uber taxi franchise you should study who your customers and riders are going to be. This will help you evaluate the uber franchise cost. While carrying out the market analysis for how to start a business with uber you should also study other uber type businesses to know how others are doing in the domain.

    In this business plan of uber, we will be answering all your queries regarding uber starting such as how to franchise uber taxi or uber is from which country. You will also discover uber strategies and ideals for setting up an uber cabs company.

    5.1 Market Trends

    The market trends for uber business are promising. According to IBISWorld, the ride-sharing services and uber business are expected to increase over the next five years i.e. from 2022 to 2027. Due to ever-increased awareness of the environment and air pollution, people are opting for using public transport and uber in shared rides instead of owning a car. 

    5.2 Marketing Segmentation

    The customers of uber business will belong to various lifestyles and ages. Major customers will be the ones who do not either possess the capability to own a car and parking space or prefer to not drive themselves.

    The groups of target customers as identified by Ben are given in this uber business plan.

    Uber Business Plan - Marketing Segmentation

    UK Start-Up Visa Business Plan

    5.2.1 Students

    This is the category that does not own their cars and cannot do so. This will be our biggest group of target customers as students have to move from their home space to the educational institute on day to day basis.

    5.2.2 Senior Citizens

    The second biggest category of our target customers includes senior citizens. They are expected to use uber because they prefer to not drive even when they own a car to avoid anxiety and tension.

    5.2.3 Tourists

    The third category comprises tourists who cannot own a vehicle as they move.

    5.2.4 Professionals

    People who do jobs usually possess a car or any vehicle for the commute. However, still, some of them are expected to avail themselves of uber services.

    Market Analysis
    Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
    Students 37% 39,200 47,040 56,448 67,738 81,285 10.00%
    Senior Citizens 32% 30,100 36,120 43,344 52,013 62,415 10.00%
    Tourists 19% 22,400 26,880 32,256 38,707 46,449 10.00%
    Professionals 12% 10,230 12,276 14,731 17,677 21,213 11.00%
    Total 100% 101,930 122,316 146,779 176,135 211,362 10%

    5.3 Business Target

    Setting business targets help you in devising the future course and strategy. The goals as per business plans for trucking company and logistics business plans are usually related to the fiscal benefits. Ben, however, went for a different approach as he focused also on customer satisfaction and retention in his transportation business plan.

    The business targets of the Uber franchise as started by Ben are as follows:

    • Acquire a CSAT score of 90+ within a year of the launch
    • Expand the customer base by 5 percent every month for the first year
    • Start making at least $30k in monthly profits by the end of the first five years 

    5.4 Product Pricing

    The pricing will be based on the Uber guidelines and will be set as such to make the rides more and more affordable for the people.

    Marketing Strategy of uber taxi business

    After you have known how to start a uber business and you fulfill all the requirements to start a uber cab franchise, you should start looking for marketing ideas. Uber startup is distinct from other transport businesses or tipper truck business plan. Therefore, you will have to advertise two ways to gain the target customers as well as drivers.

    6.1 Competitive Analysis

    • We will be offering many types of packages and discounts.
    • We have an excellent sales marketing team who will market how safe it is to travel with us. 
    Any questions? Get in Touch

    6.2 Sales Strategy

    The advertisement techniques as per uber business strategy are given here.

    • Advertising the business on social media and through newspapers and magazines
    • Creating awareness of how using Uber is both more affordable and convenient than buying a car
    • Offering regular packages on a monthly and weekly basis to customers who use Uber on a daily basis
    • Offering a 20% discount on standard rides on festivities and cultural events

    6.3 Sales Monthly

    Uber Business Plan - Sales Monthly

    6.4 Sales Yearly

    Uber Business Plan - Sales Yearly

    6.5 Sales Forecast

    Uber Business Plan - Unit Sales

    Sales Forecast      
    Unit Sales Year 1 Year 2 Year 3
    Standard Rides 85,000 90,100 95,506
    Premium Rides 45,000 47,700 50,562
    Pickup & Delivery 40,200 42,612 45,169
    Bike Rides 35,000 37,100 39,326
    TOTAL UNIT SALES 205,200 217,512 230,563
    Unit Prices Year 1 Year 2 Year 3
    Standard Rides $12.50 $14.50 $16.82
    Premium Rides $30.00 $34.80 $40.37
    Pickup & Delivery $15.00 $17.40 $20.18
    Bike Rides $10.00 $11.60 $13.46
    Sales
    Standard Rides $1,062,500.00 $1,306,450.00 $1,606,410.92
    Premium Rides $1,350,000.00 $1,659,960.00 $2,041,086.82
    Pickup & Delivery $603,000.00 $741,448.80 $911,685.44
    Bike Rides $350,000.00 $430,360.00 $529,170.66
    TOTAL SALES $3,365,500.00 $4,138,218.80 $5,088,353.84
    Direct Unit Costs Year 1 Year 2 Year 3
    Standard Rides $4.00 $4.40 $4.62
    Premium Rides $10.00 $11.00 $11.55
    Pickup & Delivery $5.00 $5.50 $5.78
    Bike Rides $3.00 $3.30 $3.47
    Direct Cost of Sales
    Standard Rides $340,000.00 $396,440.00 $441,237.72
    Premium Rides $450,000.00 $524,700.00 $583,991.10
    Pickup & Delivery $201,000.00 $234,366.00 $260,849.36
    Bike Rides $105,000.00 $122,430.00 $136,264.59
    Subtotal Direct Cost of Sales $1,096,000.00 $1,277,936.00 $1,422,342.77

    Personnel plan of uber taxi business

    While creating uber strategy and planning, you have to outline a list of the personnel you will need to run your business. In this uber business plan pdf we are providing the personnel plan of the uber franchise of Ben.

    Any questions? Get in Touch

    7.1 Company Staff

    Under this business plan for uber, these positions will be hired for:

    • 1 Operation Manager
    • 1 Social Media Manager
    • 1 Sales Executive
    • 2 Software Manager
    • 2 Customer Care Executives
    • 1 Business Consultant

    7.2 Average Salary of Employees

     Personnel Plan      
    Year 1 Year 2 Year 3
    Operation Manager $42,000 $46,200 $50,820
    Social Media Manager $33,500 $36,850 $40,535
    Sales Executive $33,500 $36,850 $40,535
    Software Managers $63,500 $69,850 $76,835
    Customer Care Executives $63,500 $69,850 $76,835
    Business Consultant $33,500 $36,850 $40,535
    Total Salaries $236,000 $259,600 $285,560

    Financial Plan of uber taxi business

    If you are considering uber for startups you must want to know how much you can build in return for your investments. As you can see in this uber business plan pdf Ben started making huge profits within only three years of the launch. Therefore, if you manage the business successfully you can make your way through it too.

    The cities in which uber makes an immense profit might make you wonder why is uber so successful there. The fact is, the better you market and convince the users to use your service, the more you are going to earn.

    The financial details of the uber franchise started by Ben are given here:

    8.1 Important Assumptions

     General Assumptions      
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 8.12% 8.20% 8.26%
    Long-term Interest Rate 8.40% 8.44% 8.47%
    Tax Rate 24.03% 24.21% 24.60%
    Other 0 0 0

    8.2 Break-even Analysis

    Uber Business Plan - Break-even Analysis

     Break-Even Analysis  
    Monthly Units Break-even 5340
    Monthly Revenue Break-even $132,500
    Assumptions:
    Average Per-Unit Revenue $231.00
    Average Per-Unit Variable Cost $0.62
    Estimated Monthly Fixed Cost $163,800

    8.3 Projected Profit and Loss

     Pro Forma Profit And Loss    
    Year 1 Year 2 Year 3
    Sales $3,365,500 $4,138,219 $5,088,354
    Direct Cost of Sales $1,096,000 $1,277,936 $1,422,343
    Other $0 $0 $0
    TOTAL COST OF SALES $1,096,000 $1,277,936 $1,422,343
    Gross Margin $2,269,500 $2,860,283 $3,666,011
    Gross Margin % 67.43% 69.12% 72.05%
    Expenses
    Payroll $236,000 $259,600 $285,560
    Sales and Marketing and Other Expenses $145,000 $148,000 $156,000
    Depreciation $2,300 $2,350 $2,500
    Leased Equipment $0 $0 $0
    Utilities $2,900 $3,000 $3,100
    Insurance $2,100 $2,100 $2,100
    Rent $2,900 $3,000 $3,200
    Payroll Taxes $24,000 $25,000 $27,000
    Other $0 $0 $0
    Total Operating Expenses $415,200 $443,050 $479,460
    Profit Before Interest and Taxes $1,854,300 $2,417,233 $3,186,551
    EBITDA $1,854,300 $2,417,233 $3,186,551
    Interest Expense $0 $0 $0
    Taxes Incurred $370,860 $483,447 $637,310
    Net Profit $1,483,440 $1,933,786 $2,549,241
    Net Profit/Sales 44.08% 46.73% 50.10%

    8.3.1 Profit Monthly

    Uber Business Plan - Profit Monthly

    8.3.2 Profit Yearly

    Uber Business Plan - Profit Yearly

    Any questions? Get in Touch

    8.3.3 Gross Margin Monthly

    Uber Business Plan - Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    Uber Business Plan - Gross Margin Yearly

    8.4 Projected Cash Flow

    Uber Business Plan - Projected Cash Flow

     Pro Forma Cash Flow      
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations
    Cash Sales $51,000 $55,080 $59,486
    Cash from Receivables $22,000 $23,760 $25,661
    SUBTOTAL CASH FROM OPERATIONS $73,000 $79,570 $85,936
    Additional Cash Received
    Sales Tax, VAT, HST/GST Received $0 $0 $0
    New Current Borrowing $0 $0 $0
    New Other Liabilities (interest-free) $0 $0 $0
    New Long-term Liabilities $0 $0 $0
    Sales of Other Current Assets $0 $0 $0
    Sales of Long-term Assets $0 $0 $0
    New Investment Received $0 $0 $0
    SUBTOTAL CASH RECEIVED $74,000 $79,000 $85,000
    Expenditures Year 1 Year 2 Year 3
    Expenditures from Operations
    Cash Spending $42,000 $42,000 $45,000
    Bill Payments $27,000 $28,000 $31,000
    SUBTOTAL SPENT ON OPERATIONS $69,000 $70,000 $76,000
    Additional Cash Spent
    Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
    Principal Repayment of Current Borrowing $0 $0 $0
    Other Liabilities Principal Repayment $0 $0 $0
    Long-term Liabilities Principal Repayment $0 $0 $0
    Purchase Other Current Assets $0 $0 $0
    Purchase Long-term Assets $0 $0 $0
    Dividends $0 $0 $0
    SUBTOTAL CASH SPENT $69,000 $74,520 $80,482
    Net Cash Flow $21,000 $23,000 $25,000
    Cash Balance $27,000 $30,000 $33,000

    8.5 Projected Balance Sheet

     Pro Forma Balance Sheet    
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $275,000 $308,000 $338,800
    Accounts Receivable $24,000 $26,880 $30,213
    Inventory $4,300 $4,816 $4,900
    Other Current Assets $1,000 $1,000 $1,000
    TOTAL CURRENT ASSETS $282,000 $315,840 $355,004
    Long-term Assets
    Long-term Assets $10,000 $10,000 $10,000
    Accumulated Depreciation $19,400 $21,728 $24,444
    TOTAL LONG-TERM ASSETS $24,400 $27,328 $30,744
    TOTAL ASSETS $294,000 $329,280 $370,440
    Liabilities and Capital Year 4 Year 5 Year 6
    Current Liabilities
    Accounts Payable $18,700 $20,944 $23,541
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $19,000 $21,280 $23,919
    Long-term Liabilities $0 $0 $0
    TOTAL LIABILITIES $15,000 $16,800 $18,883
    Paid-in Capital $30,000 $30,000 $31,000
    Retained Earnings $53,000 $57,770 $63,547
    Earnings $193,400 $210,806 $231,887
    TOTAL CAPITAL $285,000 $310,650 $341,715
    TOTAL LIABILITIES AND CAPITAL $300,000 $329,280 $370,440
    Net Worth $293,400 $319,806 $351,787

    8.6 Business Ratios

     Ratio Analysis        
    Year 1 Year 2 Year 3 INDUSTRY PROFILE
    Sales Growth 7.25% 8.03% 8.90% 3.00%
    Percent of Total Assets
    Accounts Receivable 9.21% 10.20% 11.31% 9.80%
    Inventory 5.39% 5.97% 6.62% 9.90%
    Other Current Assets 2.11% 2.34% 2.59% 2.40%
    Total Current Assets 149.80% 151.00% 152.00% 158.00%
    Long-term Assets 11.55% 11.60% 11.64% 12.00%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.90% 4.94% 4.98% 4.34%
    Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
    Total Liabilities 7.59% 7.65% 7.72% 7.38%
    NET WORTH 100.45% 101.25% 102.19% 110.00%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 94.60% 97.15% 99.87% 99.00%
    Selling, General & Administrative Expenses 93.56% 96.09% 98.78% 97.80%
    Advertising Expenses 1.52% 1.56% 1.60% 1.40%
    Profit Before Interest and Taxes 41.50% 42.62% 43.81% 33.90%
    Main Ratios
    Current 34 35 36 32
    Quick 33 33.8 34.645 33
    Total Debt to Total Assets 0.18% 0.18% 0.17% 0.40%
    Pre-tax Return on Net Worth 74.08% 74.89% 75.00% 75.00%
    Pre-tax Return on Assets 96.30% 101.12% 106.17% 111.30%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 33.56% 34.60% 35.67% N.A.
    Return on Equity 55.80% 57.53% 59.31% N.A.
    Activity Ratios
    Accounts Receivable Turnover 7.7 7.8 7.8 N.A.
    Collection Days 100 100 100 N.A.
    Inventory Turnover 32.4 34.02 35 N.A.
    Accounts Payable Turnover 15.6 16 16.3 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 2.5 2.5 2.6 N.A.
    Debt Ratios
    Debt to Net Worth -0.04 -0.03 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital $244,000 $257,664 $272,093 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.85 0.87 0.89 N.A.
    Current Debt/Total Assets 1% 0% 0% N.A.
    Acid Test 29 29.12 29.16 N.A.
    Sales/Net Worth 2.1 2.2 2.2 N.A.
    Dividend Payout 0 0 0 N.A.

    FAQ

    • How do I start the Uber business?

    To start an uber business you have to follow the steps that are mentioned in detail in this uber taxi business plan. They include making an uber cab business plan for your own business/ franchise, hiring the staff, arranging the stuff, and marketing your venture.

    • What is Uber’s business model?

    The Uber business model is that you provide a platform for the drivers to connect with the people who want to take a ride. As the business owner, you have to ensure that the drivers fulfill the criteria of licensing, national identity, etc. Moreover, you will be responsible for making the experience safe and affordable for your users. For further information, you can visit uber original business plan.

    • How do I open an Uber office?

    You have to first meet the legal requirements and licensing pre-requisites that are unique to your locality and service area. Then, you have to enter the legal agreement with uber to start a franchise and make further arrangements. The further steps can be studied in detail from this uber partner business plan. In this uber business plan in we have provided all details on how Ben started his Uber office successfully in Manhattan.

    Download Uber Business Plan Template in PDF

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