Gett Business Model: An exciting alternative to Uber
During the last few years, car-hailing service booking apps for mobile phones have become prominent in the transport sector. It has become possible for people to book rides on a couple of clicks. There are apps such as Lyft, Uber, and Didi that are competing in the market and have transformed the face of the traditional taxi service industry.
If you look at the country of Israel, you will find that the Gett business model has arguably become the most popular one among smartphone users. It has achieved massive success within a short time period. Let’s take a closer look at how the Gett business model canvas works and how the Gett revenue model works.
Some facts about Gett
Gett is a popular taxi service application that was founded in 2009 by Israeli entrepreneurs Roi More and Dave Waiser. The app allows the users to book a cab from one point to another with fare estimation and probable arrival time. It is also possible to split the cost of the ride with other passengers.
All this can be done by following some easy steps within the app. The organization entered the transport sector in 2009 as a unicorn that was valued at $79.6 billion. The Gett business model is an expert in providing affordable rides to passengers.
Gett: Workflow for its Users
The Gett workflow is pretty simple. All you are required to do is follow some simple steps and there you are. Here are the steps.
- Riders are asked to request a car from the Gett app or site.
- The nearby drivers will get notified with the ride details such as location.
- The driver arrives at the user’s location.
- The user or the customer makes his payment from the alternatives available to him.
- The customers and drivers will rate the service based on their experience with Gett.
Gett Business Model
The company follows a pretty simple business model. It is similar to Uber, connecting consumers with the drivers to book a ride. The drivers that are willing to offer a ride-hailing service at their convenience can pick the offer.
Gett will receive their income in the form of a commission for all the completed rides. The key elements of the Gett business model are drivers, customers, and investors. Some of the activities performed by Gett include managing daily rides, managing relationships with customers, managing finances, and handling marketing and sales sites.
How does the Gett business model work?
The Gett business model provides an excellent facility to two of its significant segments which are drivers and customers.
- Users: For the app users, Gett provides a fully online solution. The users may book nearby taxis at any time they need to travel and also get specific discounts for special occasions during their rides. There are some powerful features available with the Gett app such as multiple payment alternatives, ETA, split fare, social login, and several more. All this makes it simple for the customers to book a ride immediately. The pricing structure used by Gett is normally less expensive than other normal taxi fares.
- Drivers: Gett gives out fully functional mobile apps to their drivers. This allows them to accept or reject a ride request at their convenience. Before they offer their services, the drivers need to upload some documents for their verification process. After their profile is approved, they can offer their rental services. By using the Gett business model, the drivers can make extra income and at the same time, they can work flexible hours. Gett also ensures that it is providing fast customer support if there is any issue.
Also read: PickMe: Success story of a customer centric strategy
The Gett Revenue Model
The revenue model used by Gett is pretty straightforward. The major source of revenue for the company is commission. But the revenue model used by the company also includes other resources such as revenues generated from ride cancellation, surge pricing, and advertisement of other products on their site and app. Let’s take a closer look at the important revenue sources and basically how does Gett make money?
- Commission from rides: Gett will keep some amount of the fare when customers book a ride. Gett has decided on different percentages for the entire city. Apart from that, this fare also depends on the location and choice of the vehicle.
- Surge pricing: The company raises the price according to the demand and the situation at hand. For example, Gett is capable of making additional income and boosting its profit at the time of peak hours and amid the festive season.
- Ride cancellation charges: In case a passenger cancels a ride after he or she has booked, they need to pay ride cancellation charges.
- Endorsement revenue: As Gett has developed a powerful customer base, it has also developed its name in the UK and other European cities. This is an opportunity for other businesses to promote their services and products on their infrastructure. For this, Gett charges some amount and it has become an important revenue source for the company.
Investor funding and other facts
Gett is the latest serious competition for Uber and Lyft. In one of their recent activities, Gett raised $100 million in terms of investor funding. This has brought their cumulative investor funding up to a staggering figure of $750 million. Although the company is primarily focused on the ride-hailing industry they are setting its sights on other businesses such as travel.
Gett offers more than just ride-sharing though. It is more pro-taxi than a private car. It is like an Uber for taxis. Gett has already become operational in Europe, Russia, Israel, and North America.
Also Read: Lyft Business model: Disrupting the ride sharing industry
The Gett business model is also trying to get into providing convenience for business travelers that are looking to travel from one point to another and do not wish to use Uber or other kinds of ride-sharing service. The Gett business model includes targeting big corporations and providing them specific attention in terms of services. Some other ride-sharing businesses have been trying to target companies such as Ola and Uber. However, Gett was able to achieve a foothold in the market by partnering with one of the top Fortune 500 companies to be exact.
How much will it cost to create an app such as Gett?
Developing an app such as Gett has become one of the more in-demand activities. The app allows users to book a taxi at their significance. For entrepreneurs that are looking to invest in developing an app such as Gett, you can get in touch with Jungleworks.
Having an app like Gett will allow you to not only automate your business and generate sales opportunities, but also offers plenty of golden opportunities for business growth. In case you are a novice to the online taxi-hailing business and looking to develop a pocket-friendly solution, you will need a white-label solution. This will allow you to customize the app according to your needs.
Or, if a tight budget is not a constraint for you and you wish to get all the modern features integrated into the app, you can think about using a custom app solution. Both these alternatives come with pros and cons. What you need to do is discuss your needs with the professionals. They can assist you with your requirements.
The Gett business model offers pricing that is predictable and transparent. The app will let you know the cost of your ride up front. This also includes an estimate for traffic jams and rides of more than 3 miles. The app can adapt to different travel policies.
Gett is also looking to adopt corporate travel policies to make sure that they have the trust of all concerned. Gett also offers employee travel data to corporate clients to improve their accountability and efficiency. All their expenses are automatically reported and their rides are paid monthly invoices.