Review of Uber’s innovation and diversification

What makes Uber successful ?

Uber works because of its peer-to-peer business model running on a digital platform. This means that Uber is connecting people who offer a service with people who have a need.

But let’s take a step back and look at what exactly a business model is. You’ll be surprised that there is actually no universal definition of a business model. According to the St. Gallen University in Switzerland, a business model (see figure 1) provides answers to the following four questions.

1. 
   Who is your target customer?
   
2. 
   What do you offer to the customer?
   
3. 
   How is the value proposition created?
   
4. 
   How is revenue created?