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Uber & Airbnb

 

Founded in 2008 and 2009 respectively, Airbnb and Uber are two American companies notorious for robust marketing strategies and efficient business models and philosophies. Uber’s business differs from Airbnb in that Uber relies on mobile platforms via their app being easily accessible while also using algorithms and the GPS of a phone to determine where customers drop, pick, or choose a destination to where Uber’s drivers can take them. According to Katariya (2024), Uber takes full advantage of the MaaS (Mobility as a Service) concept through a series of easily approachable steps: The user needs to: register, enable location sharing, find a driver, confirm and execute a ride, and process the overall payment with Uber’s app.

Airbnb’s business model operates by charging both guest and host fees when renting or purchasing a house through the Airbnb app. According to Sridharan (2022), the host fee ranges from 3% to 5%, including commissions, compared to the guest fees, which can range from zero to a whopping 20%, including guests who make a reservation. As a result, Airbnb can meet the needs of both hosts and guests, as both frequently interact with the app, ensuring that Airbnb provides the best experience for customers worldwide.

Both companies have benefited from their respective business models and the changes they brought to themselves and their customers. Since both companies prioritize mobile platforms and audiences through their respective apps, it aids in benefiting customers to great results, and the simplicity and accessibility of their apps allow Uber and Airbnb to reach mass global appeal worldwide. Moreover, both companies analyze data through algorithms, which helps with tracking what specific needs customers want while using their apps, and increase trust in the companies’ brands, products, and services.

References

Katariya, J. (2024, December 18). Home Blog Uber Business Model Uber Business Model Explained: How Uber Works and Earns. Moon Technolabs. https://www.moontechnolabs.com/blog/uber-business-model/

Larsen, R. (2024, February 19). The Uber business model: Explained and revenue streams unveiled. Untaylored. https://www.untaylored.com/post/the-uber-business-model-explained-and-revenue-streams-unveiled

Goel, S. (2022, March 29). How does Airbnb make money: Business model. The Strategy Story. https://thestrategystory.com/2022/03/29/how-does-airbnb-make-money-business-model/

Sridharan, M. A. (2022, May 28). Airbnb business model. Think Insights. https://thinkinsights.net/digital/airbnb-business-model#:~:text=Airbnb%20generates%20revenue%20by%20charging,who%20reside%20there%20(guests).

 

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