|Type of paper:||Research paper|
Today, people live very busy and keep moving to somewhere without any rest as machines. Some people may think that their endless work makes people feel more overworked. However, I want to say this is a "passion" which is driven remarkable development to the present. Science and technology had an impact on the development of human society and made our lives more convenient in many ways such as communication, transportation. Some people cannot even imagine living life without transportation, and even people take their car or public transportation far from just a few miles. In 2009, the app "uber" which is a convenient, inexpensive and safe taxi service was launched in San Francisco, and it gives a big effect on other transportation services later. Now, Uber also started another system which is a food delivery system, and Uber app keeps maintaining ranked #1 on travel part in an apple store and top30 on the overall app. Rank History shows how popular Uber is in the app store. I wonder that "Does Uber destroy an ecosystem like bullfrogs which are one of the main animals of the destruction of the ecosystem. Therefore, I want to research "Uber" and how they affect customers, taxi service, and society.
Since 2009, Uber is an international company founded in San Francisco. The cooperate developed an application which is a ride-sharing for searching and paying for private drivers or a taxi. Uber is an inspiration company, not only because Uber was the first ride-sharing company, but rather because the company was founded on a grand vision of bringing people together and connecting cities. Their mission statement is "make transportation as reliable as running water, everywhere, for everyone.
According to the statistics from www.statista.com, 41.8 million people took an uber on March 2018, and at least 38million customers use uber app monthly and have over 77% of US ride-hailing market. What are the reasons so many people used to choose uber?. The first reason is "Fast trips any time, almost anywhere." From the customer perspective, public transportation doesn't run, and not all taxi companies available to use 24 hours a day. Some customer who is out and after regular hours, for example, people who are working night and late night shoppers, they usually use Uber to get home when other public transportations are shut down. I believe that someone will say that it is possible to take a taxi during the late night for other people, however, sometimes the taxi drivers would complain that the low fare customers pay for short distance trips, creating an inefficient cycle for taxi companies. The second reason is safety, through the website www.investopedia.com, it said that "Riders choose Uber over other transportation methods for safety reasons. The company experienced serious incidents in the past, such as drivers attacking riders, so Uber now requires all prospective drivers to submit to motor vehicle and criminal background checks. The company runs background checks that date back seven years, which includes a search of multi-state criminal databases, motor vehicle records and a review of the National Sex Offenders Database." The third reason is a avoid the cost of owning a personal vehicle, people paid approximately $8,600 to own and run their cars in 2015. People who are in the city do not own cars and have access to a range of transportation methods can also save money on the cost of a car by using Uber. According to the article "These Animated Charts Tell You Everything About Uber Prices In 21 Cities" from www.businessinsider.com, it shows that comparing taxi pricing and uber pricing in different 21cities through the graphs. For this analysis, this website used from UberX, the service is provided from drives use their cars. Taxi's charge riders per mile when moving, and per minute when idling. Assume the trip is 5mile and takes 10 minutes, and they assume that there is no waiting time.
The column labeled 'Taxi/Uber" shows the taxi fare relative to the Uber fare. If the ratio is over 1, it means that uber is cheaper than a taxi in most cities except New York. Until surge pricing reaches higher fares when rush hour time which depends on current traffic status, an Uber car is cheaper for this sampling trip even with surge pricing up to 1.7times than taxi fare. The last reason why a customer like to use Uber is post-party rides, and it may be difficult to persuade taxi drives to pick up riders who have had too much to drink in obscure parts of town late at night. With around 1 million drivers in 300 cities worldwide, partygoers rely on being able to find available Uber drivers through their apps in the wee hours of the night. These are the biggest reasons why people like to choose Uber than other public transportation.
It is an undeniable truth that Uber has affected other public transportation, especially, it Uber gave a lot of effects on the taxi industry. The taxi industry has long been one of the primary forms of transportation in many cities around the world. By the late 1930s, most cities had placed government regulations on the taxi industry to combat the oversupply of taxis. This was meant to stabilize prices, ensure the safety and quality of taxis, and give drivers a livable wage. The reason why taxi companies have been taking benefit from a lack of competition in the transportation market until recently. The primary challenge that the taxi industry faced currently is the technological innovation of ride-sharing applications. Since 2009, Uber company started to gain market share in the United States and worldwide. Uber which is the biggest and first ride-hailing services company only operates a few years, but the taxi industry is being destroyed by other ride-hailing company. In 2014, ride-hailing was 8% of the transportation market, while rental cars were 55% and taxis were 37%. Uber has been increasing for the last four years, ride-hailing companies have 70.5% of the market, with rental cars getting 23.5% and taxis just 6% of the transportation market.
Many researchers are studying the "Uber effect" on the labor market and its economic impact in major metropolitan areas. Uber is creating 50,000 new jobs for drivers around the world every month. Nearly a quarter of drivers nationwide were unemployed before driving with Uber.
According to Forbes magazine, an article done by Adi Gaskell on the impact of uber in the taxi industry states that despite the worldwide protest over the invasion of uber in the taxi industry it has created a lot of jobs in the industry. Gaskell reports that despite there being a reduction of about 10% in income for the salaried driver there was over 50% increase in self-employed drivers who subscribed to uber. Uber has created more jobs than the so believed destruction of the taxi industry. A paper done by Carl Benedikt Frey form martin school oxford states that the uber flagship project is to create a shared economy not to destroy the already existing economy. He says that even in the shared prosperity the traditional jobs have not been displaced.
Research has shown that Uber drivers are earning more than traditional drivers because they can optimize their services and time. They can spend more time with their customers due to capacity utilization compared to the conventional taxi drivers who spend less time with their customers. As much it is believed that the uber drivers are taking income from the traditional drivers I think it is because uber has increased their market size especially in peak hour where the traditional drivers tend to have slacked and failed terribly.
The other effect uber has had is the increase in innovation. The competitor has led to more change. For instance, in some countries like Kenya, there is the development of other uber like services including motorbike services which is a common transport in developing countries. The strengthening of other e-hailing services will eventually lead to an increase in better services for the customer. It can be believed that despite the protest that uber has destroyed the traditional taxi industry there is more growth in the economy compared to the previous years. The emergence of self-driving cars is also an innovation that has come up as a result of uber.
Despite all the positives impacts of brought about by uber in the taxi industries, it has brought about bad blood among the uber drivers and the traditional ones. There is a lot of blood, and there are demonstrations and court orders in some countries to stop the uber drivers from infiltrating the industry. Politics has also been involved to stop uber services in some countries, which does not create a good atmosphere for shared businesses. The strikes affect the economy and the society at large.
There has been a range of debates of whether the introduction of uber in the society is a good thing or a bad thing and it can be agreed that it both has good, adverse effects in the community. Uber has created a more efficient transport system one that is reliable. Unlike the traditional taxi system where you only had to wait for a taxi for a long time, uber is always a minute away and never disappoints. Be it in bad weather or whichever weather. Uber reduces the, and it is not easy for drivers to hike and poach drivers since the customer can track their journeys through the App.
Uber is a big plus to the society it is cheap, and everyone can afford. Unlike the traditional one where the driver determined the fare and only a few class of people could provide the service. Uber has created more employment compared to their counterpart, therefore, creating more jobs and addressing the issue of unemployment in the society. It has also ensured that the organization runs smoothly without fear that their economic activities will stop. Uber has assured that time is kept and customers enjoy the value of their money for excellent service. The society is a bit safe because one can trace the uber car if anything ever happens to them, unlike the other taxi services where if anything happens to the passenger one cannot locate them.
Uber has seen the rise of an economy that can operate 24 hours. This is because wherever people are despite the time and place, they can be able to access these services and therefore have no worry of conducting businesses and going places any time.
As much as uber has all the positive effects on the society it also has some very adverse effects in the community. There is the issue of safety for those who are traveling it has been reported that there are attacks on both uber drivers and their passengers. It creates an unsafe environment in society, and people can be afraid to travel. The community may be affected by creating animosity between people.
It has been reported that uber has been used by thugs to reach their destinations and conduct their evil businesses without being traced. These create a society where evil and attacks can be planed, and no one can be determined. Since the uber driver never question who they have carried and for what purpose they can be used to participate in crimes without their knowledge
In conclusion, with the introduction of uber, it best believed that despite the negative issues that have been raised about uber. It has brought tremendous changes in the transportation industry. To the customers, it has created a safe atmosphere for people to travel without fear. Customers get value for their money and can move without fear of attacks and fare hikes. Uber has created peace of mind and peace since customers know that no matter the time they can access uber anywhere. The economy has grown since people have time to work than worry about how they will get home. To the taxi industry, more work has been created without ousting the existing taxi industry.
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