Does the subscription model work?

Does the subscription model work?

Yes, yes, yes, you just have to work out how to use it for your business.

Recently Uber have announced that they will offer a subscription model in 5 US cities.  They are offering a monthly subscription of only $24.99 a month. They intend to eventually roll it out across the States and then throughout the world.

What has triggered this change of direction?

Some say it is because a much smaller rival Lyft began offering 30 rides for $299 a month, but that is not it.

Uber is building up for a stock market launch, therefore to maximise their value they need to show a sustainable regular income stream, which is what a subscription model provides.

When you think that Netflix, Amazon Prime and Sky all use a similar model and look how they have grown in the last few years.

Now, if you could do it, maybe you could have the same benefits.  It has given these companies a sustainable regular income, which is allowing them, now, to dominate the media space.

Therefore, you need to start thinking creatively, you need find a way to move your business to a subscription model.

It may not give you the Perfect Business, but you will have the benefit of regular cash flow.

 That’s Think Cash!

(c) Tony Dalton
author of Cash Management
published by A & C Black ISBN 978-1-4081-3984-4
Buy it at www.think-cash.co.uk/the-book