The Business Model of Uber. Uber is a smartphone app which provides on-demand service to users. It connects willing passengers to taxi cab drivers. Taxi drivers use their own cars when providing taxi service and Uber gets 20% of the fare.The total process is very simple, registered Uber users asks for a taxi using the Uber app, an Uber driver then dispatched to the passengerâs location and assist the passengers to reach his destination. The Passenger-Registered Uber users download the Uber app to their phones and if they need a taxi, they call a taxi via the Uber app. 2  They can also track the taxi on their phone as it approaches. 3  This service is convenient for the passengers, provides them relatively low cost comfortable service.