6 ways cloud computing underpins Uber’s business model

According to the International Data Corporation (IDC), the mobile workforce in the US is expected to grow from 92 million in 2015 to an estimated 105 million by 2020. Cloud computing-driven workplaces are becoming regular and commonplace.

At the forefront of this technological revolution is Uber: an app-based travel service that promises to be “the smartest way to get around”. Consumers with smartphones submit a trip request via the app, which is then sent to the Uber driver nearest to the consumer, providing the driver with the customer’s location.

As of August 2016 the service was available in over 507 cities worldwide – and its successes find a direct correlation with its cloud-based operations.

So why is cloud computing so appealing to Uber and businesses like them?

1) Agility: Uber drivers have instant connectivity with Uber’s cloud-based network at any time, from any place. This allows Uber to instantly deploy drivers and respond in real-time to demand – meeting their promise to be “Always on, always available”.

2) Low-cost: Cloud computing cuts out the high cost of hardware. Uber drivers get the convenience of BYOD (Bring Your Own Device). Drivers simply install the app on the mobile device of their choosing. They are then able to use their personal vehicle, as opposed to a specifically marked ‘taxi’. As a result, there is no need to provide equipment or training, meaning that Uber has minimal costs for adding new drivers.

3) Security: Drivers’ devices aren’t major security threats. No private Uber data is stored on drivers’ mobile devices, meaning that lost/stolen devices don’t pose a security risk to the company or its clients.

4) Reliability: Uber’s cloud-based service has significantly less risk of interruption, so drivers don’t have to worry about being stuck without access to Uber’s servers. This is similarly beneficial for the customers, who trust in the ready availability of the service.

5) Practicality: Drivers can quickly return to work if they get a new mobile device, or if their device is lost or stolen – without losing days or weeks of productivity. On the flip side, clients can easily use their account to call for a lift from whichever device they have at hand.

6) Competitiveness: Cloud technology also allows smaller businesses to act faster than big, established competitors. Pay-as-you-go service and cloud business applications mean small outfits disrupt the market, while remaining lean and nimble. As such, Uber has been able to take on the established taxi services as an innovative alternative to traditional city travel options.

Uber is just one of the many examples of businesses building their business model around cloud services. The cloud offers an exciting prospect for businesses looking to disrupt existing industries and offer something new and innovative to the market.

Want to take inspiration from Uber’s successes and discuss how cloud technology can re-invent your business operations? Get in touch with one of our technical team today. 

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