The development of technology not only changes our lives but also opens up new business opportunities. A prime example would be the marketplace, an online platform where consumers can compare and purchase products or services from different vendors.

The owner of the marketplace, unlike the owner of an online store, does not sell anything - he only provides space for someone else's business, provides traffic and marketing support, and receives a sales commission.

The world-famous Uber taxi call service, which does not own any car, is now estimated at $ 65 billion.

Such success stories inspire not only newbies but also experienced entrepreneurs to create an app like Uber. The marketplace model of service apps like Uber is relevant for many industries, so more and more businessmen are looking for an Uber open source alternative.

How to start a company like Uber

When Uber began its journey, taxi markets in many countries were distinguished by high prices and low customer focus. This gave the company the opportunity to compete for customers and win market share. Moving from point A to point B is often a repeated need. Therefore, having obtained a client once, Uber received repeat customers, while benefiting from the network effect: the efficiency of the business model and cost recovery due to the growing number of customers and drivers.

If you want to start your own Uber you should keep in mind that service apps like Uber have five tasks to solve:

  1. Creating value by building interaction between the parties and sharing information. How to ensure: keep the balance of supply and demand when you start a company like Uber. So, the Blackberry platform has collapsed without creating long-term customer value. The product easily entered the market, but could not evolve in time and follow new trends. As a result, in 2016, the production of Blackberry smartphones was completed.
  2. Market capture and growth is possible due to the network effect. Easy access is important when you start a company like Uber. That is why Threadless crowdfunding platform has become popular. Any artist can create a print on clothes, and a consumer can order it. When Google entered the market, they focused on creating an internal file system to simplify and speed up the deployment of web applications. At the same time, Yahoo decided to introduce NetApp external storage system, which eventually caused a temporary gap in the development and mastering of new applications.
  3. Use virality as a tool to stimulate company growth. Only a pull strategy based on interaction with the end user, when the supply itself generates an increase in demand, works with service apps like Uber.
  4. Monitoring the quality of the platform through supervision is obligatory, but in the case of a negative response, it can lead to negative network effects (loss of participants' confidence in each other). It is important to warn the parties about the consequences of distorting product information.
  5. Focus on the value unit. drivers in service apps like Uber receive ratings from passengers, and if there are many negative reviews, the car owner will no longer be able to use the platform.

What are Uber open source alternatives?

If you have a great idea to start a company like Uber the first thing to do is choosing the right service marketplace software. But how much does Uber app development cost?

As for CS-Cart Multi-Vendor it has a perfect price/functionality ratio, which means you can quickly launch fully functioning service apps like Uber without spending a lot and test MVP. You can check the pricing page.

Besides CS-Cart Multi-Vendor is open source and there are tons of ready-made add-ons, so you can scale your service apps like Uber the way you need it.

If you start your own Uber with CS-Cart you will get 90 days of free technical support and you'll be able to get assistance any time after these initial 90 days. Our support team will help you set up your Uber open source alternatives, maintain, and upgrade.

Just try fully-functional CS-Cart Multi-Vendor free demo hosted on our server.

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