How Uber was made

How Uber was made

Hardik Gandhi   January 05, 2018

Uber has transformed the world. Indeed, its inconceivable to think of a world without the convenience of the innovative ride sharing service. Tracing its origins in a market which is constantly being deregulated, Uber has emerged triumphant. Operating in over 58 countries and valued roughly at US$ 66 billion, Uber has rapidly expanded to established branches in over 581 cities in over 82 countries with the United States, Brazil, China, Mexico and India being Uber’s most active countries.

If that wasn’t impressive enough, in 2016 the company completed a total of 2 billion rides in one week. When you consider the fact that the first billion rides took Uber 6 years, and the second billion was garnered in a mere 6 months, it’s not surprising to see Uber emerge as a global business leader. This worldwide phenomenon is built on a simple idea, seductive in its premise - the ability to hail a car with nothing but your smartphone.

It took the problem of hailing a taxi and gave everyone an equitable solution while further capitalizing on the emerging market. And smart people are asking the right question: How do I build an app like Uber for my business needs?

Humble Beginnings

It all started in 2008, with the founders of Uber discussing the future of tech at a conference. By 2010, Uber officially launched in San Francisco. In 6 months, they had 6,000 users and provided roughly 20,000 rides. What was the key to their success? For one, Uber’s founders focused on attracting both drivers and riders simultaneously. San Francisco was the heart of the tech community in the US and was thus the perfect sounding board for this form of technological innovation to thrive.

In the beginning, Uber spread their App through word of mouth, hosting and sponsoring tech events, and giving participants of their events free rides with their app. This form of go-to-marketing persists today - giving 50% discounts to new riders for their first Uber ride. This initial discount incentivized users to become long term riders, and the rest was history. As more and more people took to social media to tell the world about this innovative new App - the sheer brilliance of their marketing strategy paid off.

Product Technology Cohesion: How Uber Works

What makes Uber, Uber? For one, it’s the ubiquitous appeal, or the way in which they streamlined their product, software and technology. It was, at the start, fresh, innovative, and had never been seen before. So if one were to replicate the model, they’d need to look at Uber’s branding strategy.

To use Uber, you have to download the app, which launched first on iPhone, then extended to Android and Blackberry.

Uber’s co-founders, Garret Camp and Travis Kalanick, relied heavily on 6 key technologies based on iOS and Android geolocation. What really sold it though, was its clear core value - the ability to map and track all available taxis in your given area. All other interactions are based on this core value - and its what sets Uber (and will set your app) apart from the crowd. To build an App like Uber, you’ll need to have:

1. Registering/Log-in features: Uber allows you to register with your first name, last name, phone number and preferred language. Once you’ve signed up, they’ll send you an SMS to verify your number, which will then allow you to set your payment preferences. Trip fares are charged after every ride through this cashless system.

2. Booking features: This allows drivers the option to accept or deny incoming ride requests and get information on the current location and destination of the customer.

3. The ability to Identify a Device’s location: Uber, via CoreLocation framework (for iOS platforms) obtains the geographic location and orientation of a device to schedule location and delivery. Understanding iOS and Android geolocation features is crucial for this step, because that’s what your App is running on.

4. Point to Point Directions: The Uber App provides directions to both the driver and the user. Developers of the Uber App use MapKit for iOS and Google Maps Android API for Android to calculate the route and make directions available. They further implemented Google Maps for iPhone and Android, but cleverly adapted technology from other mapping companies to solve any logistical issues that might come up.

5. Push Notifications and SMS: You get up to 3 notifications instantly from Uber when you book a ride.

• A notification telling you when the driver accepts your request
• One when the driver is close to your location
• One in the off chance your ride has been cancelled

You further get the full update on your driver’s status, down to the vehicle make and license number, and an ETA on the taxi’s time of arrival.

6. Price Calculator: Uber offers a cashless payment system, paying drivers automatically after every ride, processed through the user’s credit card. Uber takes 25% of the driver’s fare, making for easy profit. They paired with Braintree, a world leader in the mobile payment industry, but other good options avaible are Stripe, or Paypal, via Card.io.

Here are few more much sought after features for the user’s side of the App:

• The ability to see the driver’s profile and status: Your customers will feel safer being able to see your driver’s verification, and it’s makes good security sense to ensure you know who’s using your App for profit.
• The ability to receive alerts: Receive immediate notifications about the status of your ride and any cancellations.
• The ability to see the route from Their Phones (An In built Navigation system): This is intrinsically linked to your geolocation features, you want to be able to direct your taxis to the quickest, most available routes.
• Price calculation: Calculating a price on demand and implementing a cashless payment system.
• A “spilt fare” option: Uber introduced this option wit great success. It allows friends to spilt the price of the ride.
• Requesting previous drivers: It’s a little like having your favourite taxi man on speed dial, and is a good way of ensuring repeat customers.
• Waitlist instead of surge pricing: Avoid the media hassle of employing surge pricing by employing a wait list feature, so your users can be added to a waiting list rather than be charged more than they should, and to keep them from refreshing the App during peak hours, reducing the resources required by your backend infrastructure.

Another key to Uber’s success, that should be noted by potential developers of similar Apps, is the way in which Uber operates. They tap into more than one market which equates to more riders, more drivers, and more business for the company. Uber has mastered the art of localization - the ability to beat out pre-existing markets and competitors, which further retains their customer base by improving their own business strategy.

They’ve taken local context and circumstances into consideration. For example, they partnered with Paypal in November 2013 to provide as many people in Germany don’t use credit cards, and switched to services based on SMS messages in Asia as there are more people but fewer smart phones per capita. This helps them cater to various markets and and optimize profits.

The Uber marketing strategy isn’t static - it’s dynamic. Expansion was necessary, and the business model reaps profits from saturating the taxi market with their customers and drivers, driving their exponential growth. What aspiring App developers can take from this is that you need to design your App for flexibility.

Design your App in a way that’s going to let it take a hit and roll with punches. Having a system in place that allows you to build and integrate changes effectively within the App and allows team members to communicate effectively is of paramount importance.

What made Uber so successful was its ability to reshape how we think about technology and its operation. Indeed it made the market a better, more efficient place through the innovative on-demand service.

What Technology is Uber Built on?

The tech side of the App is written largely in JavaScript which is also used to calculate supply and predict demand. With the real time dispatch systems being built on Node.js and Redis. Java, as well as Objective-C is used for the iPhone and Android apps. Twilio is the force behind Uber’s text messages, and push notifications are implemented through Apple Push Notifications Service on the iOS platform and Google Cloud Messaging (GCM) for the Android App.

How much does Uber make?

Actually, it’s a lot less than you think. The $66 billion valuation, after the 25% commission (which rounds out to about $0.19 per ride) mostly goes towards credit card processing, interest, tax, compensation for employees, customer support, marketing, and various anti-fraud efforts.

How much does it take to build Uber?

Uber’s not just one App, it’s two - one for the rider and one for the driver. The cost of developing an App like Uber is dependent on a number of factors

• the cost of building an MVP
• product development and acquisition
• getting the economics of marketing sorted
• the constant cost of building on and improving your App’s analytic capabilities

When you make an App like Uber, you’ll invest a fair bit into design services, backend and web development, project management, not to mention Android and iOS native app development. The total man hours round out to around 5000 hours for similar on demand taxi Apps, which puts the cost of developing such an App to around $50,000 (assuming that your team works for $50 dollars an hour). However, since hourly rates roughly range from $20 to $150, median costs could be higher or lower.

Conclusion

To wrap up, Ubers success was due to several factors, including a clear business model and interaction based features, and not the other way around combined with a marketing strategy focusing on attracting users.

The question on everyone’s mind of course is how can you reduce the overall risk of failure by making sure that your idea and product are viable when you’re developing an App?

One way is to use a Mobile App development partner (such as Octodev) that has worked on many such Apps and understands the processes involved. An advance of using such a partner is they’ve worked on many such App development projects and have the practical experience in product development to avoid the pitfalls and make the most of your vision.

Octodev App Development Process

Another important part of ensuring that your App development project is swiftly and smoothly executed is having a clear road map and regular communication during the project. There are many approaches to achieve this and we, at Octodev, use a consultative approach to App development. We draw from our successful App implementations. Get in touch with us now if you want an accurate cost for your own Uber like App idea.

This article was originally published on the Octodev Blog.

I Was Supposed to be an Architect

I Was Supposed to be an Architect

Hardik Gandhi   January 04, 2018

I’m leading a VR development studio, but the truth is I’ve been navigating a series of epic career learning curves that have taken me far outside of my comfort zone, and I wouldn’t have it any other way.

Mainstreet, Mall or Modem

On my quest to start sharing more about our process and lessons learned on the virtual frontier, I thought I’d start with a bit of background on how I arrived here in the first place.

I studied and practiced architecture, but I’ve been fascinated with virtual technologies as far back as I can remember. In fact, my architectural thesis project in grad school (image above) focused on how VR and digital technologies would someday revolutionize architecture — specifically retail architecture. This was 17 years ago, when VR was very expensive, and largely inaccessible, but the brilliant pioneers at work innovating in this field were demonstrating the massive potential. It was only a matter of time before VR would find a way to mainstream.

Like so many other physical manifestations, from music to books and beyond, I believe buildings are subject to a similar digital transcendence. It’s already happening in a pretty big way, and this is just the beginning of a major architectural transformation that might take another decade or two to fully surface, but I digress… I’m saving this interest for a future pivot, and almost certainly another epic learning curve to go with it.

I tried using Everquest to visualize architecture.

I had a level 47 Dark Elf Shadow Knight in Everquest, but spent most of my time wandering around, exploring the environments. What I really wanted to do was import my own architectural models to explore them inside the game.

If they could have such elaborate dungeons and forts to explore in Everquest, with people from all around the world working together in the game virtually, why couldn’t the same technology also be used to visualize a new construction project, with the architect, building owner, and construction team exploring or collaborating on the design together?

This quest to visualize architecture in a real-time world became a ‘first principle’ in my career path that I’ve been chasing ever since.

I met my amazing and tremendously patient wife, Kandy, in grad school, and after studying architecture together in Europe and graduating, we practiced architecture for some time before starting our own firm, Crescendo Design, focused on eco-friendly, sustainable design principles.

Then one day in 2006, I read an article in Wired about Second Life — a massively multi-player world where users could create their own content. Within an hour, I was creating a virtual replica of a design we had on the boards at the time. I had to use the in-world ‘prims’ to build it, but I managed.

I was working in a public sandbox at the time, and when I had the design mostly finished, I invited the client in to explore it. They had 2 young kids, who were getting a huge kick out of this watching over their parent’s shoulders as they walked through what could soon be their new home.

The Naked Lady, the Sheriff Bunny, and Epic Learning Curve #1.

We walked in the front door, when suddenly a naked woman showed up and started blocking the doorways. I reported her to the ‘Linden’ management, and a little white bunny with a big gold sheriff’s badge showed up and kicked her out. “Anything else I can help with?” Poof.. the bunny vanished and we continued our tour. That’s when I realized I needed my own virtual island (and what an odd place Second Life was).

But then something amazing happened that literally changed my career path, again.

I left one of my houses in that public sandbox overnight. When I woke up in the morning and logged in, someone had duplicated the house to create an entire neighborhood — and they were still there working on it.

Architectural Collaboration on Virtual Steroids

I walked my avatar, Keystone Bouchard, into one of the houses and found a group of people speaking a foreign language (I think it was Dutch?) designing the kitchen. They had the entire house decorated beautifully.

One of the other houses had been modified by a guy from Germany who thought the house needed a bigger living room. He was still working on it when I arrived, and while he wasn’t trained in architecture, he talked very intelligently about his design thinking and how he resolved the new roof lines.

I was completely blown away. This was architectural collaboration on virtual steroids, and opened the door to another of the ‘first principle’ vision quests I’m still chasing. Multi-player architectural collaboration in a real-time virtual world is powerful stuff.

Steve Nelson, Jon Brouchoud, and Carl Bass delivering Keynote at Autodesk University 2006

One day Steve Nelson’s avatar, Kiwini Oe, visited my Architecture Island in Second Life and offered me a dream job designing virtual content at his agency, Clear Ink, in Berkeley, California. Kandy and I decided to relocate there from Wisconsin, where I enjoyed the opportunity to build virtual projects for Autodesk, the U.S. House of Representatives, Sun Microsystems and lots of other virtual installations. I consider that time to be one of the most exciting in my career, and it opened my eyes to the potential for enterprise applications for virtual worlds.

Wikitecture

I started holding architectural collaboration experiments on Architecture Island. We called it ‘Wikitecture.’ My good friend, Ryan Schultz, from architecture school suggested we organize the design process into a branching ‘tree’ to help us collaborate more effectively.

Studio Wikitecture was born, and we went on to develop the ‘Wiki Tree’ and one of our projects won the Founder’s Award and third place overall from over 500 entries worldwide in an international architecture competition to design a health clinic in Nyany, Nepal.

These were exciting times, but we were constantly faced with the challenge that we weren’t Second Life’s target audience. This was a consumer-oriented platform, and Linden Lab was resolutely and justifiably focused on growing their virtual land sales and in-world economy, not building niche-market tools to help architects collaborate. I don’t blame them — more than 10 years after it launched, it still has a larger in-world economy of transactions of real money than some small countries.

We witnessed something truly extraordinary there — something I haven’t seen or felt since. Suffice it to say, almost everything I’ve done in the years since have been toward my ultimate goal of someday, some way, somehow, instigating the conditions that gave rise to such incredible possibilities. We were onto something big.

Apple Apologizes for iPhone Speed Cuts to Prevent Crashing

Apple Apologizes for iPhone Speed Cuts to Prevent Crashing

Hardik Gandhi   January 03, 2018

Apple Inc. apologized to customers for software changes that reduced the performance of older iPhones in order to extend their battery life, while saying the company hadn’t intentionally set out to shorten the life of the products.

Aging batteries in the older iPhones contributed to the performance issues after a software update about a year ago, the Cupertino, California-based company said in a statement posted online. In response to customer complaints, Apple said it’s cutting the price of replacement batteries for iPhones no longer covered by warranty.

Apple has been confronted by a slew of lawsuits over the software tweak, which had led to noticeably slower performance in iPhone 6 and iPhone 6s models. Some accused Apple of intentionally slowing older iPhones to encourage consumers to replace them with newer, more expensive models. The retail price of the iPhone X, which went on sale last month, starts at $999.

“We have never — and would never — do anything to intentionally shorten the life of any Apple product, or degrade the user experience to drive customer upgrades,” Apple said in the statement. “We’ve always wanted our customers to be able to use their iPhones as long as possible.”

Apple said it introduced the software in late 2016 because phones with older batteries were prone to shutting down when more energy intensive processes created greater power demands than the batteries could handle. That fix reduced the demand on the batteries, and limited the shutdown issue, but Apple said in recent months users found the slowness of their iPhones had become intolerable.

Anyone with an iPhone 6 or later will be able to replace the battery for $29 instead of the current $79 beginning in late January, Apple said. The company also will roll out an update to the iOS operating system that lets users see whether their battery’s condition is affecting performance.

The End of the E-Commerce is just around the corner

The End of the E-Commerce is just around the corner

Hardik Gandhi   January 01, 2018

How Augmented Reality will change E-Commerce into A-Commerce

There’s no doubt that Augmented Reality is the next big thing in the technology world. I’m not saying this because of being a Black Mirror fan, but because every other week there’s a new AR app released and what used to be a futuristic dream seems to be finally coming true.

During the past two years, AR moved from being the new tech kid on the block with the release of Pokemon Go, to becoming the battlefield where most of the tech giants want to grab their bite.

Regarding software frameworks, Apple made the most significant move by releasing ARKit earlier this year, followed by ARCore from Google. While in the hardware world companies are fighting head to head to launch the best AR glasses.

There’s a tremendous roar for AR everywhere in the tech world, and many industries are exploring different ways of applying AR to enhance their businesses. However, among all the sectors where augmented reality has landed, E-Commerce is maybe the one that will generate the most disruptive impact on our society.

Moving from E to A

Despite the fact that online shopping has grown at a colossal pace for the past two decades, brick-and-mortar stores are still as important as ever. This is mainly because the online store experience still fails to give the user a real contact with the product to be sold.

This is why it’s frequent to see a customer start shopping in one channel and finish the purchase through another one.

Consumers need to feel confident about their purchase decisions, and mere flat images, dimensions or specs can’t replace the intimacy generated by trying the products in real-time, in the customer’s real environment.

Enter Augmented Reality. AR brings realism to the purchase scenario by familiarizing online shoppers with products that were only photos in the E-Commerce experience.

An accurate omnichannel retail approach is to create a seamless customer experience across all mediums. AR helps to bridge those gaps through a tangible presence in the online shopping process.

This is the simple but still incredible thing about AR that completely revolutionizes the E-Commerce Industry: it merges both worlds (online and offline).

Let’s then welcome the Augmented-Commerce terminology (aka A-Commerce), which will soon replace the E-Commerce term. Through AR, retailers can now offer a more interactive and personal experience that will shift the way we shop forever.

Of course, brick-and-mortar stores won’t disappear just yet. But for sure we are coming closer to see that happen one day.

Here’s a selection of four recently released A-Commerce examples:

1-IKEA Place

With the recent release of iOS 11 and Apple’s ARKit, Ikea has released its AR app to aid customers to visualize what their furniture might look like in their own homes.

The user can easily swipe through its most popular collections, or filter by types of products like “Baby & Children,” or “chairs and desks.” The app is free to download from the App Store.

2-Amazon

Following IKEA’s lead, Amazon launched a new AR feature recently, letting users test how any given product would look in their home or workspace before ordering it.

Called AR View, the feature is activated by clicking on the camera icon in the Amazon app and selecting from thousands of products across categories like home decor, kitchenware, and furniture.

3-Sephora

In the latest update to its iOS app, Sephora included a feature that lets users try virtual makeup on.

The feature scans your face, figures out where the lips and eyes are, and lets you try on different looks.

Right now, the user can only play with lip colors, eyeshadows, and false lash styles. The app also offers “virtual tutorials” showing how to apply the makeup, overlaying on the user’s face.

4-Ray-Ban

Looking for the perfect pair of sunglasses may be a real pain, especially when you’re not Brad Pitt nor Angelina Jolie. Ray-Ban’s new app lets you try all the different sunglasses from the brand, with the comfort of never leaving your home nor having to stand in front of a mirror for hours.

“Virtual Try On” App lets you create your Virtual Model thanks to advanced face mapping technology and see yourself in any pair from multiple angles. The

app is available both for desktop and mobile.