Uber has made a rating system that assist customers to rate their riding experience as well as the motorist. With all of the challenges that Uber faces the future and direction of the company is unclear. My point is, just because a new product or a new service enters an established market, there is nothing unfair about it. Member of the HUBER group > Headquarters > Service > Aftermarket Sales. Taxis may do well during this pandemic, we’ll have to see. The Current and Future State of the Sharing Economy, Designing for Labour: Uber and the On-Demand Mobile Workforce, Labor Platforms and Gig Work: The Failure to Regulate. A few weaknesses are that the relationship between Uber and the drivers is ethically questionable. Competition drives businesses to push harder for more employees and Uber has the most simple way of doing everything, especially when some taxi drivers are not loyal to their customers by taking up the clock unnecessarily. Uber only allows payment using debit and credit card and there is no cash operation and Uber gets 20% of the charge. I enjoyed reading your post. Some people have had scary experiences with drivers trying to kidnap them and not take them where they are supposed to go. The AB5 law defined what kind of work is done in the state of California to make workers either self-employed (independent contractors) or employees. Authorities cited one major flaw in Uber’s system which allowed unauthorized drivers to sneak onto Uber. Although Uber has some amazing strengths, it is not foreign to having some weaknesses as well. I think it helps the employees in California, but it is unfair to the rest of the drivers in the other states. Rates vary based on time of day and if rides are in high demand. It is a necessary advancement and shows creative destruction at work. Uber and Lyft Disrupted Taxis — Now They Must Disrupt Themselves Disruption seems to be synonymous with innovation in the tech world. I think there are pros and cons to this law. When landline manufacturers were peaking and in the growth stage in its product life cycle, nobody claimed it to be unfair when cell phones started entering the market. Visit us. Is it fair that taxi drivers and companies are losing business? Newsletter. Member of the HUBER group. The current system Uber has in place is not only beneficial to the company but is also beneficial to their drivers who do not use their services as their sole source of income. It’s strengths are convenience and lower prices. It is also more cost efficient than a taxi service because of the fixed rate you receive when you order the ride instead of a variable, time-based rate you would get in a taxi. Is it fair that taxi drivers and companies are losing business? The next step is to link the rider to a driver who is also put through a background check to make sure the ride would be safe. And it provides the drivers a safe way to be able to know where they are going to pick the customer up and where they are dropping them off. What is the Uber business model? Drivers can do it on their own time and do not have to answer to a boss. Banning Uber from cities could be a hit or miss on the aspects of economic gain and the job market. Some of their strengths are it has a high standard of service, verified drivers and cars. At Aurora, we are driven by our mission to deliver the benefits of self-driving technology, and guided by our values, including focus, setting outrageous goals, and creating a culture where we win together. Using your smartphone to call a ride has made is exceptionally easy and beneficial for the passengers as well as drivers. 2. By them doing this they can possible find themselves competing with Uber and Lyft. I understand that it would ruin the business model for the drivers to become employees of the company, but do you think there are other ways to keep passengers safe while still holding drivers accountable? 3. Huber representatives. I believe companies like Uber and Lyft should treat drivers as employees rather than independent contractors because the driver works hard for the businesses operation and for themselves to operate as an algorithmic matchmaker to find them some customers. The first is based on the concept of book-lending libraries, where goods and services are provided for free or low costs. Overall, Uber services reduces customers journey steps and makes everything easier and faster. Some other things to keep in mind are pricing and payment, splitting and paying out proceeds from the rides, turning the revenue into profits, and reinvesting the profits to grow the business. From there the driver transports the rider to the destination and by then the payment is made and the driver and rider go their own way. However, the policy changes were not enough. In 2017, Uber’s license was revoked for poor oversight of drivers. This is because, most people forget that what set Uber apart from other car transportation services is that they let their contractors the opportunity to work whenever they felt like it and if the state takes this privilege away then the Uber service in California is likely to decline because they wont have contractors willing to work for the service. Additionally, the medallion thing… I mean, you can’t just get rid of them, I guess, because of how much is invested in them, but that system needs a kind of overhaul. The owners don’t have to do much with the company accept run checks and balances on trips and such, but mainly keep the application running successfully. Since people prefer Uber, taxis and transport services are losing money. Yes, I agree with the California State law. I feel that it definitely possible to for the system of Uber to remain the same due. Amazing job with your discussion post! Ubers business model is designed to be where you can have a ride in any city or state that you live in or are visiting. Great work! Uber is so successful today because of the Business Model Innovation. This is just the way capitalism works, companies fight for their share in the marketplace, which benefits the consumer. Developing self-driving technology is one of the biggest technical challenges of our time. Contatti interni; Uber utilizes an exclusively mobile business model. I completely agree with The State of California’s verdict adhering major conglomerates like Uber and Lyft to classify their drivers as actual employees instead of independent contractors. Uber’s business model was to create an app that connects you to drivers if you need a ride somewhere. Extensive user conveniences described above come for a little cost for the company, thanks to the app that integrates innovative features and capabilities. It allows people to make quick and easy money that they want to make when they want to. -I agree with most aspects of the california state law: to me, without the law, it became an issue of liability: essentially it was like saying uber was not responsible for its drivers and what they do, which led to major issues. Uber will appeal the decision, Transport of London, which is responsible for regulating taxi and private services, said Uber did not meet the “fit and proper” standard required to hold a taxi license, This highlights Uber’s overall struggle to enter European markets such as Germany, Spain, Italy, and Denmark because of stricter regulations, This is not the first time Uber has had their license revoked in London. Taxi companies are outdated and inconvenient. 2. Uber claims that there is a misperception between how much Uber, and other companies in the gig economy, affect the American workforce market. With the workforce, employers are now seeking people who balance work and play, and who work at what they are passionate about, are often more focused and productive. The European Court of Justice ruled that Uber should be viewed as a transportation service and not just a middleman for the passenger and driver. In this case, the company Uber has control or say of what will be done and how. The London transportation authorities decided to not extend its taxi operating license due to safety issues with Uber. If Uber saw their employees as independents they wouldn’t be held liable in a number of circumstances and would likely cut their employees short of wage. Is it fair that taxi drivers and companies are losing business? It is so simple that a person can call an Uber from anywhere and within minutes someone comes to pick you up. I feel that Uber should be welcomed into other cities if it causes such a major disruption that renders cab drivers obsolete, then so be it that’s how competitive business works. ( Log Out /  It is argued that Ubers expenses may have been much larger than its revenues.