Uber Technologies: A New Business Model for Online Laundry Services

This report discusses Uber Technologies' new business model for online laundry services, including its core benefits, capabilities, resources, and online and offline integration. The report also explores the use of Google Maps, scheduled pickup, and price estimates in the service.

Running Head: Entrepreneurship
Uber Technologies
Entrepreneurship

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Table of Contents
1.0 Introduction................................................................................................................................2
1.1 Idea of new business..............................................................................................................2
2.0 Core benefits..............................................................................................................................3
3.0 Capabilities to benefits..............................................................................................................5
4.0 Resources to capabilities............................................................................................................6
5.0 Ability to deliver........................................................................................................................6
6.0 Resource System........................................................................................................................7
7.0 Online and offline integration....................................................................................................7
7.1 Business Canvas Model.........................................................................................................9
8.0 Conclusion...............................................................................................................................10
9.0 References................................................................................................................................11

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1.0 Introduction
Internet is an empowering tool which has not just changed the life of an individual but it has also
empowered other sectors also such as data analytics, social media, smartphones, mobile
applications, mobile operator companies, etc. (Adams, 2017). All these sectors have acquired an
effective place in the global economy as the primary benefit linked with these attributes is job
creation. All these sectors have generated employment opportunities through which number of
jobs has been generated. Internet has created number of jobs, connectivity, reachability, etc.
(HuffPost, 2018). Apart from this, major benefit linked with internet sources is the generation of
income and this has increased the scope for business. Market development, growth opportunities
and various benefits are linked with the introduction of internet. Ultimately, all these sources
contribute a big share in the gross domestic product which has enhanced individual as well as
global economy. Internet is revolutionary and this has converted the whole era. Currently, it is a
digital age, an age of sharing, online shopping, online food delivery, and what not. Internet has
astonishingly affected as well as facilitated every single aspect modern life. The way internet has
set up an effective and significant image in the position in everyone’s life, imagining life without
internet is bit difficult (Entrepreneur Staff, 2017).
1.1 Idea of new business
The new business model is online laundry business. This business idea will bring revolutionary
change because till the time, there are number of services which are available over internet such
as food, grocery, cosmetics, clothes, taxi and what not but laundry services are still not available
over internet. With regards to this, Uber Technologies Inc. has decided to launch their new
product i.e. Uber Laundry services. Company is a multinational corporation and engaged in taxi
cab, food delivery and transportation networking services. All these services are rendered
through internet via mobile application and website. In order to expand the business along with
providing another essential daily life services to the people, laundry services will be rendered
under the brand name of Uber (Taxistartup, 2018). This service will also work in the same
manner as company’s other services are working. As Uber’s other services such as taxi cab and
food delivery has generated number of jobs in different parts of the globe, laundry service will
also help the unemployed people to get a respectable job through which they could earn fancy

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amount which will ultimately impact over thee GDP. Internet will also play vital role in
rendering laundry services and with this regard, it could easily be summed up that companies
like Uber, Amazon, etc. have significantly utilised internet in order to enhance the market
opportunities, growth opportunities, etc. (The State of Queensland, 2018).
The report will discuss about the new business model and its main components will be core
benefits of the business, capabilities of the new business i.e. Uber Laundry services and these
capabilities will be linked with the benefits of the business. Further, the report will aim over
linking resources in terms of capabilities followed by the platforms on which the new business
will run and through which public would be able to avail the services. The last part of the report
will focus on creating resource system for the new online business through which public will be
notified concerning to the services, offers, discounts and for other updates. In addition to the last
part of the report, online and offline integration will also be discussed through which company
will reach to its target audience along with convincing them to avail the services of new business
idea.
2.0 Core benefits
Online business facilitates individuals in various ways and with regards to this, it is necessary for
the organization to promote their business in an appropriate manner so that the position could be
set up amongst the target audience. In this scenario, Uber has introduced laundry services in the
market and these services will provide various benefits to different segment of people.
Unmarried people will be the major target audience for Uber laundry because these live
independently and in relation with this, they are required to do the essential stuffs of the daily life
by themselves or they get it done from the market by paying for the same (Edkent Media, 2018).
For laundry, people used to go out and search for nearby outlet through which they could be able
to get their clothes washed and ironed. In this process, lot of efforts are required and in the era
where internet has made the life simpler, people are habitual for finding everything on internet
i.e. from taxi cab, clothes, and grocery items to food, cleaners, etc. Thus, introduction of Uber
Laundry will bring revolutionary change in the industry and this service will also grow as per
Uber’s other services have been grown (Hayes II, 2017). Following are certain other core
benefits linked with the Uber Laundry business:

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 Convenience and Quick Services: Internet has various advantages such as providing
information about almost every aspect, improves knowledge, learning and develops
interest of an individual. Apart from these benefits, there are lot more benefits of
internet such as connectivity, sharing, communication, shopping, work from home,
global access, etc. (Long, 2017). Laundry services will also provide huge benefits to
the target audience and the major benefit which will be availed through which this
services will easy washing and ironing without putting many efforts. Uber Laundry
will work as same as their other services like Uber Taxi and Uber Eats (food delivery)
are working. Uber Laundry will also run on website as well as over the mobile
application under which all nearby laundry stores will be displayed as per customer’s
location (Tukker & Tischner, 2017). After finding the nearby washing store,
customers could place a request to the store for picking up the clothes and again place
request for availing the services like washing, ironing, etc. After placing the request
for picking up the services, with ease and convenience, customers will get their
clothes washed as well as ironed as soon as possible (Dyson, 2017).
 Easy to use and understand: It has been observed and analysed from the market
surveys that using Uber is really easy and stress free. The applications which are
running under the brand name of Uber are quite user friendly which becomes easy to
signup, use as well as for understanding. While placing the request to the nearest dry
cleaners and washing stores, one of an Uber Executives will accept the customer’s
request and after accepting the services, customers will get the notifications with
regards to the executive’s details and the time which he will take to reach to your
place for collecting the clothes (Martin & Loudenback, 2017). In addition to this,
customers would also be able to track the live location of Uber Executives. Apart
from the pickup service, Uber will also provide an additional option to its customers
which will be self-pickup after getting the washing and ironing done by the washing
store. With this option, customers could pick up their clothes from the store as per
their convenience (Kim & Min, 2015).
 Secure payments: Availing Uber Laundry services will bring another revolution
change in the market and this will also generate various job opportunities. While
placing the request for the picking up the clothes, customers will be asked to share the

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details regarding number of clothes, type of cloth i.e. special instructions for washing
or dry cleaning, type of service requires to be availed, etc. This will make clear
picture amongst the customers and washing store and if still there will be doubt
regarding the special instructions regarding a [articular cloth, customer will get a call
from the store to clear such doubts (Iansiti & Lakhani, 2014). After giving clear
instructions and other information, customers will required to pay and with regards to
this, as Uber is providing number of payment options in its other mobile applications
and websites, customers will also the same, safe and secure payment method.
Payment options will also be provided to the customers under and from the available
options, customers can choose to pay through their debit/credit card, wallet payment,
through Uber Credits, etc. Along with this, customers could also choose the later on
payment option under which payment will be made at the time of collecting the
clothes from washing store or when the delivery executive will deliver the clothes at
customer’s doorstep (Pearson, 2017). All these payment methods are safe and secure
enough on which customers could share their confidential credentials without getting
afraid of data theft, hacking and through other risk factors.
Apart from the customers, secure payments will also benefits the washing stores in
terms of enhancing customer base, increasing revenues, etc. Customers will pay
through different payment mediums such as wallets, online banking, mobile banking,
debit/credit card, etc. (Hirt & Willmott, 2014). Nowadays, cash dealings have been
reduced and in relation to this, wallet payments, bank transfers, etc. have been
increased. This will help the merchants to be no cash premise which will help the
merchants to acquire wide customer base as dealing in cash have been reduced from
customer’s end only (Ottman, 2017).
 Fair pricing system: Uber is known as a platform which provides essentials at low
prices such as taxi cab, food delivery, etc. In addition to the organizational services,
laundry service has been introduced so that people who live independently, people
who do not have enough time for washing their clothes and for other customer
segments also. Charges for laundry services will be on the basis of per cloth and there
will be no minimum charge which customers will be required to pay. For example, if
customers will provide 11 clothes to the washing store, customer will be required to

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pay for those 11 clothes only which will include all the services such as ironing,
washing, any special instructions given to the store executive, etc. On top of that,
Uber does not charge any delivery or pickup service charge neither in taxi service nor
in the food delivery services. Thus, their laundry service will also be free from such
additional charges which will ultimately help the customers to avail these services at
fair prices as well as in time (Deng & Wang, 2016).
 Updates/notification: When customers will request for picking up the clothes for
washing, ironing and dry cleaning, they get a notification from the washing store
regarding the time which will be consumed for cleaning their clothes. Apart from this
notification, customers will also get appropriate updates and notifications regarding
the process of their service (Ovans, 2015). It will help the organization to build
reliable image amongst the customers because regular updates will keep the
customers engaged with the organization. As soon as the clothes will be done as per
the customer’s request for service, they will get the notification to select the medium
between self-pickup and delivery to the doorstep. Further, the request will be
processed and on the basis of customer’s requirements, clothes will be delivered to
the customers (Setiyaningrum & Peranginangin, 2018).
3.0 Capabilities to benefits
The new service which will be soon introduced in the market will lead the organization to
expand its business along with enhancing their revenues, profitability and sales. Apart from this,
it will also help the organization to build an effective brand image amongst the target audience as
their main motive is to enhance customer satisfaction and for this, they render their services at
fair pricing system. The new service is another set of essentials for the public which has huge
benefits to both customers as well as to the merchants (Aithal, 2015). Apart from this, job
opportunities will also be generated from the introduction of this service. Following are main
capabilities linked with the benefits of the laundry service:
 Google Maps: The application and website of Uber Laundry will use Google Map
service for providing relevant information to the consumers in relation with the nearest
stores available to their place. Uber’s other two services i.e. food delivery and taxi cab

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are also using Google Maps as this platform is sufficient enough to provide clear and
authentic information (Dörner & Edelman, 2015). In addition to this feature, Uber
Laundry service will also provide live location feature through which consumers will be
able to track the delivery executive’s location (Hope, 2015).
 Scheduled pickup: Consumers will get the option to choose pick up time for their
clothes as per their convenience. For example, if a consumer is raising a request for
picking up their clothes from somewhere else to its home location, he/she would get the
option to schedule the pickup time as per their convenience. Along with this, application
will also notify the customers regarding their pickup so that they could be ready with the
clothes which need to be cleaned (Macht & Weatherston, 2014).
 Price estimate: When consumers will raise the request for pickup, nearest merchant
store along with a delivery executive will be allocated to the customer with their contact
information and the same sort of information will reach to the merchant and delivery boy
executive as well. While raising the request for the pickup, consumers will be required to
fill details in relation to their products. This will provide a rough estimate to the
consumer as well as to merchant in relation with the charges as per the per cloth but the
final prices will be estimated after cleaning because consumers could also select the add
on option for services other than washing like dry cleaning, stain remover, special
instructions for particular cloth, etc.
 Other features of application:
 User friendly
 Various payment options
 Help centre (Cavusgil & Knight, 2015).
 Feedbacks and suggestion to improve the services
 Regular notifications
 All closest merchants will be available on Uber laundry.
4.0 Resources to capabilities
Uber has sufficient sources through which plans could be converted into reality. Following are
some of the crucial resources available with Uber through which organization could easily
introduce their laundry services in the target market:

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 Physical resources: Uber has linked up with all the washing and dry cleaning stores in
order to provide multiple options to the consumers. Uber is known for customer
satisfaction and the main attribute which will help in enhancing customer satisfaction in
terms of laundry services is the availability of stores nearby to the customers’ location.
Apart from this, Uber has sufficient physical resources through which the plans could
easily be executed along with delivering high quality services to the target audience at
reasonable prices (Nogueira, 2016).
 Financial resources: Uber is a multinational corporation, thus, they have various
resources through which they can arrange funds for launching new products and services.
Growth rate of Uber is the main attractor for investors and shareholders through which
sufficient funds could be arranged. This helps the organization to successfully launch the
new services along with targeting wide customer base through which customer
satisfaction could easily be attained (Jansen, 2017).
 Human resources: Uber is immense pool of human talent and with regards to this;
organization could easily execute its tasks in an effective and in efficient manner.
Hierarchy of Uber is effective enough to execute the functionalities which ascertain
various ways to acquire market share, increasing revenues, sales and profitability. Thus,
these will help the organization to gain competitive advantage (Helfat & Peteraf, 2015).
5.0 Ability to deliver
Uber Laundry is an online business model which will render services through mobile application
and website. Mobile application will be available for both Android as well as for the iOS users
and website will be available on all internet browsers. In order to render services to the users,
organization has tied up with various washing and cleaning stores across the target market. This
will help the organization to provide quick services to the users. All these stores will be rated on
the basis of the quality of service rendered by them and customers will get an option to provide
feedback with regards to their services along with suggesting the merchants for improving their
services (Jansen & Clausen, 2017).
Ratings provided by the users who have already availed the services will help the organization to
approach to other customer segments also. Ultimately, organization will be able to target huge

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customer base. Apart from this, mobile application is sufficient enough to provide all
information which is necessary for the users. Organization will also provide the option to the
users to select weekly, monthly as well as yearly plan and in relation with these plans, users will
not be required to raise request for the services like washing and ironing. As the number of users
will be increased for the mobile application demand for new washing stores will also be
increased, thus, it will generate another employment opportunity and it will help the organization
enhance customer satisfaction along with widening customer base (Scarborough, 2016).
6.0 Resource System
Resource system of Uber Laundry will operate through mobile application on both the platforms
i.e. iOS and Android. Apart from mobile application, consumers will also be able to place the
request for the pickup of their clothes through website. As soon as users will raise the request for
picking up the clothes from their doorstep or from other places, merchants and delivery
executives will get the notification to arrange the services for fulfilling customer’s expectations
and for collecting the clothes from user’s given address respectively. Every single step will be
linked with each other through which organization would be able to provide updates and
notifications to its users after every stage (Kolvereid, 2016).
For example, consumers will be first notified when the clothes will be received by merchants.
Further, after every stage such as washing, dry cleaning and ironing, consumers will be notified.
In between these stages, consumer will also get the notification for extra charges which will be
levied as per the special instructions given for particular cloth. Then consumer will get the
notification when their clothes will be ready and the final notification will be a question under
which users need to select that whether they are picking up their order or they want it to be
delivered (Smaliukiene, Chi-Shiun & Sizovaite, 2015).
7.0 Online and offline integration
Online integration and offline integration are two crucial aspects for an online business model.
Uber Laundry is a new business model which will provide laundry services such as washing, dry
cleaning, ironing, etc. to the consumers. In relation with this, it is required for the organization to
spread awareness amongst the target audience with regards to their new service. For approaching

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to the target audience, organization requires to adopt both online as well as offline media
channels through which large customer base could be targeted along with generating the demand
for their new service amongst the target audience (Amran, Ooi, Mydin & Devi, 2015).
In relation with generating demand amongst the target audience and for spreading awareness,
role of traditional media mix plays key role. Traditional media channels are newspaper,
magazine, pamphlets, bill boards, television, radio, etc. These channels will ultimately help the
organization to build demand for these services amongst the target audience (Melis, Campo,
Breugelmans & Lamey, 2015). Apart from this, it is required for the organization to use effective
messages for promoting their new service through available media channels. This will essentially
set up an effective image amongst the target audience which will help to attain set goals and
objectives (Gallino & Moreno, 2014).
Apart from the offline integration, organization could also move towards the use of online media
mix as it also plays vital role in terms of promoting organizational services and products amongst
the target audience. Primary mediums of online media are social media, search engines, third
party websites, email marketing, etc. With the help of these platforms, organization would be
able to acquire wide customer base along with generating the demand for their products and
services (Herhausen, Binder, Schoegel & Herrmann, 2015).

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7.1 Business Canvas Model
Key Partners Key activities Value
Proposition
Customer
relations
Customer
segments
Two founders
Head of Sales
team
Head of Marketing
Research and
Development
department
Washing
Ironing
Dry cleaning
Stain removing
Delivering high
quality services
Customer
satisfaction
High brand value
in the
international
market
Immense
knowledge about
customer’s
requirements
Large number of
investors are
available
Relationship
building
Regular
notifications will
be provided to
users
Feedbacks and
suggestions will be
asked to improve
quality of service.
Local customers
Unmarried people
Independent
people
People with busy
schedule.
Key Resources Channels
Physical
Financial
Human
Traditional media
mix:
Newspaper
Magazine
Pamphlets, etc.
Non-traditional
media mix:
Social media
Email marketing
Search engine, etc.

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Cost Structure Revenue Structure
Fixed cost
Delivery executive’s salaries
Commission paid to merchants
Rewards and incentives for motivating
delivery boys and merchants
Variable Cost:
Promotion expenses
Adding new features in the Mobile
Application
Fees paid by consumers
8.0 Conclusion
From the aforesaid information, it can be concluded that Uber is a peer-to-peer ridesharing, food
delivery, and taxi cab and transportation network company. With regards to expansion of
business, laundry services will be introduced in the market. Currently, Uber is operating in more
than 633 cities worldwide with more than 12,000 employees. Uber is known for making
revolutionary changes in the industry, thus, it has been referred to as Uberisation. This report
includes introduction of new service i.e. laundry service and as per the organizational past
records, this service will also bring certain significant changes in the industry along with
providing certain benefits to the consumers. This report has concluded core benefits of the new
business model and along with this, capabilities, resources, ability to deliver, resource system
and business canvas model has also been discussed.

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