The most significant thing behind the creation of something new has been the birth of an idea.
This idea when executed after careful planning has resulted in the genesis of new enterprise in the area of business and commerce. Similar has been the case with UBER, a taxi app service which has become the biggest company in the world in its area of operation. In fact, this has led to the development of many similar ideas where there have been attempts to replicate the same model of business. This leads us to introspect on how anyone can start a company like UBER, OLA or LYFT.
The emergence of an idea:
The first step is the birth of an idea which has probably germinated in you by now. In fact, the most important challenge will be to take on the major challengers as they are already operating in this area of business. As you shall be competing with them the solution lies in finding your own target audience and devising ways to retain your customers. This is the first step in finding out how anyone can start a company like UBER, OLA or LYFT.
Technologically speaking, you shall have to create an application which has a mobile component and is compatible with different types of mobile software and platforms. In terms of the time spent, developing an iOS or Android app should take anywhere between 150 to 160 hours( a ballpark figure ) while the development of the backend application for both systems should consume another 100 hours approximately. The total time spent on the development of the whole application should roughly be anywhere between 250 to 260 hours. Needless, to say this includes the entire process of software development life cycle. You shall have to go to the design board first in order to draw the architecture for the proposed system, identify the technologies to be used, do the coding, bring on test engineers to do the testing and then roll out a beta version. Well, as we try to find out how anyone can start a company like UBER, OLA or LYFT, one thing is clear — it does involve a tidy sum of money.
CAPITAL needed so that anyone can start a company like UBER, OLA or LYFT:
The first step in developing the app shall be creating the design of the proposed system. It shall have to be a combination of mobile apps and a desktop application which caters to the needs of those who want to access the system ( customers ) and those who shall be providing the services to the customers ( service providers ). The apps shall have to be designed such that it is available for both Android android and iOS platforms while the desktop application must be a more comprehensive system with database support. Also, there has to be a facility of inclusion of a customer relationship management system within the application so that it is capable of handling customer requests. This is a well-established model in software architecture which has also been incorporated in a couple of our client projects which had map-based tracking requirements, for eg Tripin2, Kranq and Drive2Advertise. As we are a software product company, one of our most valued product — PAUSA which has been developed to take care of housekeeping services has also been modelled on the same architectural pattern. Well, as we try to find out how anyone can start a company like UBER, OLA or LYFT it is worth mentioning here that the same software architecture has been replicated across diverse industries.
The application should be scalable to take care of the increase in the number of customers which is bound to happen if the application becomes a hit with subscribers. As we figure out how anyone can start a company like UBER, OLA or LYFT we realise that the application has to gain popularity in order to attract more customers. It shall definitely be an advantage if one can get access to low-cost quality programmers as that in itself shall greatly reduce the cost of execution of the project and consequently the cost of developing the application.
As, with all developmental activities, the development of the application shall be following a modular approach with modules and functionalities being gradually added in phases. This shall lead to the formation of the MVP. Once the minimum viable product has been developed, then one can take feedback from necessary quarters and add on the final features to give rise to the entire application.
Cohesive team – Important so that anyone can start a company like UBER, OLA or LYFT:
The second step lies in building a strong team. If there is a proper team in place, anyone can start a company like UBER, OLA or LYFT. Team building is, in fact, a systematic process which involves problem-solving and decision making by which one overcomes challenges while moving towards a goal. It is thanks to the motivated team members at Vyrazu Labs that we were able to come up with our most talked about and successful product HRMS. Also, the importance of human resource management systems and their advantages have been covered in details in our blog posts.
All business apps whether they are of the Uber type or not have to go through a period of evolution before reaching a threshold frequency. This can be reached once you have a detailed business plan which includes the following:
Anyone can start a company like UBER, OLA or LYFT provided the idea is backed by all of the elements mentioned above.
Getting the necessary funding:
The third step is the most important part. This means getting funding for your project which means going to venture capitalists who will take the ultimate decision of whether to or not to fund your business. Well, just anyone can start a company like UBER, OLA or LYFT provided he has an appropriate idea and the necessary funding. By the way, the most important points which VC’s, in general, consider before deciding can be narrowed down as:
Here the people behind the team matter the most. It may sound to be a cliche, but it is really important to have an honest goal-oriented team where everyone understands their own role in attaining the objective.
It is essential that each member of the team is a contributing member to the process and is not present just for the sake of creation of the team. Each of the team members should be capable of taking the business to the next level in his/her domain.
Statistics have shown that less than 1 percent of companies based in the USA ever received any finance from VC’s. So, you have to ensure that your idea is really something unique and a stand out from the crowd. In theory, anyone can start a company like UBER, OLA or LYFT but in reality, you can see that it is going to be a tough job.
VC’s look at business propositions which make a difference to the lives of people in general. If the business proposal is such that a large part of the population shall be benefited, then it is a great head start from the point of view of VC’s. If the VC’s are ready to back someone, then anyone can start a company like UBER, OLA or LYFT.
From an investor point of view, the business model should be such that it has a long- term viability. In short, the shelf life has to be really large. Anyone can start a company like UBER, OLA or LYFT provided the business model is sustainable.
Well, at the end of the day it is after all business, so the business proposition has to be viable for the venture capitalist so that he can recover his earnings and then make a handsome profit in the long run. The potential of the project to bring in enough monies for the VC is something which shall be the final parameter. If this criterion is taken care of anyone can start a company like UBER, OLA or LYFT.
Well, if you feel you have ticked all the above boxes then you can make your plans to start a company like UBER, OLA or LYFT. Better still, we have a viable option for visionaries like you. We have an incubation laboratory for startups called STARTUP LAB. You are invited to join us for a cup of coffee where we shall have a brainstorming session to turn your idea into reality. There shall be robust non-disclosure agreements in place in order to safeguard your interests. If it is a viable business plan, we have the team and the technological acumen to make it work.
The fourth step involves identifying the market for which you want to propose the service and target your customers. Once this has been identified you have found your niche. By our own experience, we can safely say that anyone can start a company like UBER, OLA or LYFT provided he has an idea of the market that he plans to target.
Development of the tool:
The fifth step involves designing the architecture, identifying the technologies required to develop the system and after development getting test engineers on board for performing all sorts of tests. After the QA team has given the necessary go ahead you can proceed further for the Go Live phase of the system. ( This is being briefly described here, as it has been covered earlier.) This part is one of the most crucial elements of the entire process. An important factor to be kept in mind by which anyone can start a company like UBER, OLA or LYFT is to develop an user-friendly app which meets the requirements of the user. We can say this from the experience we gathered while developing similar applications like Maid2Order, PlanMyad and ShareYourMove. These applications were developed at our development centre and involved using almost the same technological frameworks used in the UBER app but on a smaller scale.
The sixth step involves acquiring the users who shall be using the application and shall be your customers. Well, you have already covered what can be said to be a tough part of the journey but here comes the hardest part. Acquiring users needs some planning and effort. As this is the initial phase, it is the best time for you to devise a strategy and acquire the maximum number of subscribers. This shall allow you the luxury to start operations on launch day itself. If anyone can start a company like UBER, OLA or LYFT and operationalise from the first day itself, there can be nothing better than it.
The final step:
Well, I like this quote about business by Victor Kiam “ In business, the competition will bite you if you keep running, if you stand still, they will swallow you.” Lastly, anyone can start a company like UBER, OLA or LYFT but in order to survive, one has to plan, execute, replan, execute, take feedback, be open to criticism, build stronger teams and always think of being ten steps ahead of one’s competitor. Hope we have have been able to give a glimpse of how anyone can start a company like UBER, OLA or LYFT.