How do facebook,uber,airbnb and alibaba make money?

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Didn’t this info graph question you how are they making their banks full and investors happy at the same time ?

 

Let us find out here.

 

Alibaba

No one ever thought a school teacher from china would become fourth richest Asian and one among in the planet man. Yes, JackMa it is. His giant Chinese e commerce startup is now pouring millions into Ma’s account after a jaw dropping IPO setup in America. Alibaba is now valued of $228 billion which exceeds amazon and eBay. Alibaba is as a mix of Amazon, eBay and PayPal with a Chinese touch  it has different companies under it to serve different people like Alibaba.com(a platform for sales and purchase of whole sale goods)-usually changes money from the retailers and also subscription costs annually. Taobao (for local shopkeepers and customers)-all sales/purchases are done for free unlike alibaba.com but they generate revenue through advertising in their website. Tmall (an online store of international brands) they charge from customers directly because the customers are high profiled and are able to pay.

Apart from this they get their income through several sources such as

Alipay, an online payment system similar PayPal

Juhuasuan, a flash sale site similar to Groupon (GRPN)

Alibaba Cloud.  ComputingAliwangwang, an instant messaging serviceLaiwang, a messaging application competing with Tencent’s WeChat

Large stakes in Sina Weibo, the Chinese equivalent to Twitter, and Youku Tudou, the Chinese version of YouTube

A film business, a football team, and a mutual fund

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Uber

 

Travis Kalainck’s San Francisco based 40$ billion cab company is among the 50 smartest companies of 2015. Uber is a smartphone ride sharing app that connects potential customers to a dedicated cab drivers. Drivers for this company utilize GPS or similar navigational technology to locate clients and determine the best route to both retrieve these clients, and to deliver them to their desired destinations. These clients then share a ride in the vehicle as they are driven to their requested drop-off locations. Uber makes its money primarily by charging clients for their rides, much the same as a taxi, although it also derives advertising revenue from its website. Unlike a taxi service, the hiring of the driver/vehicle and the payment for the reserved ride is handled entirely through Uber rather than with the driver. Uber is known for its high prices though these prices depict the timely and luxurious service they provide. Uber roughly charges 20% of the fare depending on its variants like uberX, taxi, black, SUV, and lux. Uber is now in around 136 countries. Uber recently announced that its drivers earn more than the traditional cab drivers i.e. a rough $6 more than them .They also stated that its drivers own around $90k every year but many criticized these statements as uber won’t pay for the car’s maintenance, gasoline, insurance and the car itself and should be paid by the driver himself.

iaube

 

World’s 50 most innovative companies by MIT:

 

 Captur8e

 

Facebook

Social networking sites like Facebook do make a lot of money. In fact they charge money directly from your pockets. It gets its own revenue from advertising and non-advertising means. Advertisers are attracted by two key things on Facebook; firstly, its massive reach with around 1.2 billion monthly active users, and secondly the ability to target ads with “relevance” based on the information individuals share with the website. Revenue from advertising was $2.96 billion, representing an increase of 64% over third quarter 2013 advertising revenues. Revenue from mobile advertising was 66% of overall revenue and was up 49% from third quarter 2012 mobile advertising revenues. Revenue from payments and other fees were $256 million, representing an increase of 13% from the same quarter in 2013.

Non-advertising revenue on Facebook comes from payments for games on the site, mostly for games made by Zynga. The social network game development company is responsible for games such as CityVille, FarmVille, Empires & Allies and ZyngaPoker. One of the most popular Facebook games FarmVille allows users to harvest a virtual farm by planting and growing crops and trees, and buying livestock. Gamers are given virtual coins to set up their farm and they earn more from matured crops. But gamers who are eager to progress through the game can buy extra virtual coins with real money. Facebook takes a 30% cut of Zynga’s revenue, and a roughly similar cut from other companies.

 

Captur3

 

Airbnb

 

Founded in 2008, Airbedandbreakfast.com by Nathan Blecharczyk, Brian Chesky and Joe Gebbia is among the fastest growing companies ever. Airbnb is a website for people to rent out lodging headquartered in San Francisco, California, the company is privately owned and operated by Airbnb, Inc. It has over 800,000 listings in 33,000 cities and 192 countries. Users of the site must register and create a personal online profile before using the site. Every property is associated with a host whose profile includes recommendations by other users, reviews by previous guests, as well as a response rating and private messaging system. Airbnb is currently values upto 2.5$ billion. It is believed that its revenue would cross 20$ billion mark in 2015.It has its own revenue model by charging the fees from the guests before they check-in i.e. after they are done with the reservation and paying back the amount after taking their commission to the hosts 24hrs after the guests checkout. The primary source of Airbnb’s revenue comes from service fees from bookings Depending on the size of the reservation, guests are required to pay a 6% to 12% non-refundable fee. Airbnb also charges hosts a 3% host service fee.

 

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The table above says that Airbnb almost hit $4 billion in gross booking for 2014, on a revenue estimate of around $423 million, and that the revenues will cross the half billion mark, to about $675 million by end of the year, a

big 55 percent jump over last year.

Airbnb is the second most valuable travel startup, ranking behind Uber’s $41 billion valuation. Airbnb closed a $475 million round in April 2014 at a $10 billion valuation. It has raised nearly $800 million since its founding in 2008.

 

references: forbes , business insider , ft ,investopedia , moneymorning.com .

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One comment

  1. MyTreeTV · July 5, 2015

    Reblogged this on Tree-Magazine !.

    Like

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