Uber Business Plan Sample

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.

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

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.

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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.

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

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.

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. 

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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

6.4 Sales Yearly

6.5 Sales Forecast

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.

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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

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

8.3.2 Profit Yearly

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8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 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.

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