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 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 other, we are providing sample business plan for uber for an uber startup in Manhattan.
Executive Summary of Uber
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 neighbouring 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 Uber taxi business
The customers of uber business will the same as are mentioned in taxi business plan (https://www.ogscapital.com/article/taxi-business-plan/) and transport business plan. They are:
- Senior Citizens
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:
3.1 Company Owner
Charles Ben will be the owner of uber franchise in Manhattan. Charles is an MBA from a prestigious institute in 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 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 understanding what is uber for business, how does the uber model work and how does uber make money. After that study uber type businesses and follow the following steps.
Step1: Develop Uber Taxi Business Plan
Making business plan of uber will be your first towards 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 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 favour.
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 the best interests.
|Research and Development||$12,000|
|TOTAL START-UP EXPENSES||$242,520|
|Other Current Assets||$224,000|
|Start-up Expenses to Fund||$242,520|
|Start-up Assets to Fund||$876,100|
|TOTAL FUNDING REQUIRED||$1,118,620|
|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|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$62,520|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,118,620|
|Loss at Start-up (Start-up Expenses)||$149,060|
|TOTAL CAPITAL AND LIABILITIES||$1,344,700|
Services of Uber taxi business
Since uber franchise will not operate in an isolated fashion, it is important to realise 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.
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 Uber franchise started by Ben will provide the following services:
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.
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 it 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.
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
Great service. Good turnaround time and quality work.
If you are wondering how to open an uber franchise you are on the right space. After going through the initial procedure to get uber taxi franchise you should study who your customers and riders are going to be. This will help you evaluating the uber franchise cost. While carrying out the market analysis for how to start 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 wll 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 the 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 environment and air pollution, people are opting for using public transport and ubers 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 one 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
This is the category that do not own their personal cars and do not have the capacity to 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 include senior citizens. They are expect to use uber because they prefer to not drive even when they own car to avoid the anxiety, tension, and hussle.
The third category comprises of the tourists who cannot own their personal vehicle as they move.
People who do jobs usually possess a car or any vehicle for commute. However, still some of them are expected to avail of uber services.
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
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 (https://www.ogscapital.com/tag/logistics-travel-business-plans/) are usually related to the fiscal benefits. Ben, however, went for a different approach as he focused also on the customer satisfaction and retention in his transportation business plan.
The business targets of Uber franchise as started by Ben are as follows:
- Acquire CSAT score of 90+ within a year of the launch
- Expand the customer base by 5 per cent 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 uber cab franchise, you should start looking for marketing ideas. Uber startup is disctinct from other transport businesses or tipper truck business plan(https://www.ogscapital.com/article/dump-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.
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 on how using Uber is both affordable and conevenient than buying a car
- Offering regular packages on monthly and weekly basis to customers who use Uber on 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
|Unit Sales||Year 1||Year 2||Year 3|
|Pickup & Delivery||40,200||42,612||45,169|
|TOTAL UNIT SALES||205,200||217,512||230,563|
|Unit Prices||Year 1||Year 2||Year 3|
|Pickup & Delivery||$15.00||$17.40||$20.18|
|Pickup & Delivery||$603,000.00||$741,448.80||$911,685.44|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Pickup & Delivery||$5.00||$5.50||$5.78|
|Direct Cost of Sales|
|Pickup & Delivery||$201,000.00||$234,366.00||$260,849.36|
|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 uber franchise of Ben.
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
|Year 1||Year 2||Year 3|
|Social Media Manager||$33,500||$36,850||$40,535|
|Customer Care Executives||$63,500||$69,850||$76,835|
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 to 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 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 uber franchise started by Ben are given here:
8.1 Important Assumptions
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.12%||8.20%||8.26%|
|Long-term Interest Rate||8.40%||8.44%||8.47%|
8.2 Break-even Analysis
|Monthly Units Break-even||5340|
|Monthly Revenue Break-even||$132,500|
|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|
|Direct Cost of Sales||$1,096,000||$1,277,936||$1,422,343|
|TOTAL COST OF SALES||$1,096,000||$1,277,936||$1,422,343|
|Gross Margin %||67.43%||69.12%||72.05%|
|Sales and Marketing and Other Expenses||$145,000||$148,000||$156,000|
|Total Operating Expenses||$415,200||$443,050||$479,460|
|Profit Before Interest and Taxes||$1,854,300||$2,417,233||$3,186,551|
8.3.1 Profit Monthly
8.3.2 Profit Yearly
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 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|
|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|
|SUBTOTAL CASH SPENT||$69,000||$74,520||$80,482|
|Net Cash Flow||$21,000||$23,000||$25,000|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$282,000||$315,840||$355,004|
|TOTAL LONG-TERM ASSETS||$24,400||$27,328||$30,744|
|Liabilities and Capital||Year 4||Year 5||Year 6|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$19,000||$21,280||$23,919|
|TOTAL LIABILITIES AND CAPITAL||$300,000||$329,280||$370,440|
8.6 Business Ratios
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||2.11%||2.34%||2.59%||2.40%|
|Total Current Assets||149.80%||151.00%||152.00%||158.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||93.56%||96.09%||98.78%||97.80%|
|Profit Before Interest and Taxes||41.50%||42.62%||43.81%||33.90%|
|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.|
|Accounts Receivable Turnover||7.7||7.8||7.8||N.A.|
|Accounts Payable Turnover||15.6||16||16.3||N.A.|
|Total Asset Turnover||2.5||2.5||2.6||N.A.|
|Debt to Net Worth||-0.04||-0.03||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$244,000||$257,664||$272,093||N.A.|
|Assets to Sales||0.85||0.87||0.89||N.A.|
|Current Debt/Total Assets||1%||0%||0%||N.A.|
- How do I start Uber business?
To start 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, arrange the stuff and market 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 fulfil 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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