I mentioned how since Uber is obligated to do certain things for their employees this will, of course, be costly on their end which in turn Uber will raise charges. This rating system helps to find the best drivers and monitors the performance of the drivers. Uber appealed and was granted a 15-month license and agreed to more government supervision, and multiple policy changes. Uber ’s self-driving unit, Advanced Technologies Group (ATG), is being acquired by its start-up competitor Aurora Innovation, the companies announced Monday. I really enjoyed reading your post as I too agree with your third bullet. 1. Following the definition, by the IRS the California state law is in check and is in scope for enforcing. Member of the HUBER group > Headquarters > Service > Aftermarket Sales. 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. That is exactly what happened with the taxi industry, people would rather not have to deal with cash and have the ability to get a ride right at their fingertips. Innovation and value-creation chains are becoming progressively globalised. I think that competition is not bad to have and it can help motivate taxi companies from creating new ideas that will set them apart from Uber and Lyft and revolutionize the way transportation services are done. Uber Technologies, Inc. develops and operates proprietary technology applications primarily in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. Is Uber disruptive innovation? Print. If taxi driver feel that they are losing business then they should maybe reconsider taxi services and work directly for Uber. The driver knows where you want to go because you enter the address on your smartphone and the app has the credit card number for people to make the payment. It’s strengths are convenience and lower prices. Uber has looked at faults within the taxi business and made those changes to give customers a better riding experience. The Uber business model follows a well-defined step by step procedure of what their operations are and where their money flows from start to finish. 2) Do you agree with The California State Law which now requires companies like Uber and Lyft to treat their workforce like employees as opposed to independent contractors? This new law grants contractors the edibility to have basic protections like minimum-wage requirements, health benefits, and social security. Share. If not, what range of responsibility should Uber, and other companies like Uber, have on their workforce? Using your smartphone to call a ride has made is exceptionally easy and beneficial for the passengers as well as drivers. There are too many stories flying around about how people are being attacked by rogue drivers for the sake of keeping the business model under the “independent contractor” employee model. Is it fair that taxi drivers and companies are losing business? 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. Uber has been engaged in many lawsuits and that has hurt them quite a bit. Another major strength of Uber, is that it has lower prices compared to other ride sharing corporations. Some strengths consist of the user-friendly Uber app with minimal glitches. 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. People like the availability of Uber (and the prices, usually), so perhaps the taxi companies should continue to evolve their own platforms to have more availability and price transparency. Banning Uber from cities is “absurd.” It makes no sense to take away a decently run company that is creating steady jobs and incomes for consumers who want some extra quick and easy money. Uber Technologies Inc (NYSE:UBER) Share Price and News. Do you think more cities should ban Uber from entering the transportation market or let Uber run in their cities? Yes I do agree with California’s law because in the end, independent contractors are solely responsible for themselves and the work they do. Ubers business model is a smartphone app that connects you to a service of drivers. You can find an Uber in most locations and even if you are far from the closest Uber driver available, they can still come get you, where as certain taxis can not be found everywhere. The first is based on the concept of book-lending libraries, where goods and services are provided for free or low costs. 2. A large majority of uber drivers do it as a side hustle to earn some supplemental income. They provide this kind of car-matchmaking service without having to provide the cars, fuel costs, or other incidentals to the drivers, and while also avoiding having to pay for other employer-related costs, such as healthcare and other benefits, retirement benefits, sick days, etc. It is exactly what competitive innovation is all about and that is no different in this situation. I guess the best way to try and address that would be to try and have a system where gig workers can “opt in” or “opt out” of “employee” status. I would say Uber’s weaknesses are that they have a very unpredictable business model, there are many privacy concerns, and lastly we hear many scary experiences that people have with Uber and similar companies. I also think that they should allow companies like Uber and Lyft into cities. They also have different types of Ubers so it can accommodate for either one person, a small group, or a large group. Print. Through a strategic partnership with Uber, Aurora paves a path for delivering the Aurora Driver broadly. Authorities cited one major flaw in Uber’s system which allowed unauthorized drivers to sneak onto Uber. Since it is an app, you can track exactly where the Uber is supposed to go and make sure they are taking you the right way. Uber has designed a perfect strategy for the user experience. I disagree with treating Uber drivers as employees because I think if there was a way that the drivers can have a flexibility with the way they want to be listed that would be a really good idea. I love the analogy you added which ultimately shows how people have invented new things as technology advances. The imputed value for Uber was $17 billion. What are it’s strengths and weaknesses? Subscribe. A lot of the Uber drivers I have had say that they Uber as a side job. The prices for Uber are lower compared to traditional taxi operators. What is the Uber business model? Despite the new law in California Uber and Lyft drivers did not become employees in that state. I also agree that Uber should not be ban from entering the transportation market. 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. In order to maintain ones place in the workforce you have to be adaptable/ And now that companies such as Uber and Lyft exist, taxi drivers are becoming obsolete. This would inevitably affect the amount of available drivers, raise prices, things that would destroy the pros of Ubers entire market. I believe taxi drivers should also enable features like Uber where a person can make their payment cashless and see the driver’s rating and experience with driving. If not, what range of responsibility should Uber, and other companies like Uber, have on their workforce? But its weaknesses are signal strength and reliability. 3. Maybe if they adopt these new services then taxis driver will not lose their business and will have a chance to compete with Uber. Uber is more preferable transportation than the Taxi industry in many ways. The company, which is Uber in this case, also receives a cut of compensation that each driver earns. 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. Both Uber and Taxis have their own pros and cons. Uber business model resembles that of a GPS tracker. 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 article is about a woman who works as a Taxi driver in New York City and is talking about the economic hardship that Uber and its competitors have conflicted on conventional drivers in New York and other cities where its competitors have taken over. On the other hand, some weaknesses consist of the legal and liability side of uber. Our main focus is liquid/solid separation in general and headworks equipment in particular. Research and Innovation. 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. 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. I also think that Uber drivers really liked being able to create their own schedules, so hopefully they can find some middle ground with Uber to still have some type of aspect of that even if they are considered employees. Tony, Personally removing these services like Uber and Lyft is absurd and should not even be a factor when it comes to city transportation. 3. 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. 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. 2. Using the GPS technology from your mobile device, Uber is able to locate where you are, locate an available driver near you, and send directions to your desired destination. Citing, Uber had 17 months to comply with the conditions of their temporary license and have continually put Londoners at risk by letting drivers on the road who are not licensed or insured, Critics of the decision claim that this decision will put a financial burden on Uber drivers who rely on that income. Uber also isn’t obliged to pay Social Security taxes, unemployment insurance, or worker’s compensation either because of how they identify their employees as independent contractors. Overall, its one of the best independent contracting jobs in the market right now, and as long as safety is a priority for Uber, it will continue to succeed. Change ), Sharing economy is a way of purchasing goods and services that is different from the traditional business model of corporations hiring employees to produce products to sell to consumers, Two main forms of capitalist sharing economy enterprises. Do you think more cities should ban Uber from entering the transportation market or let Uber run in their cities? Academia.edu no longer supports Internet Explorer. This would allow for the drivers to maximize their earning and could open up a few different advantages for Uber itself. This is the daily operation and where the money comes in. The flexibility provided by the gig economy has created exponential growth due to the prevalence of the Internet. Business is business in a sense that there is always something new or innovative being developed and it’s unfortunate that the taxi industry is losing business, but simultaneously its not any one person or company’s fault. One notable weakness Uber has directly impacts their drivers and becoming an increasingly ongoing problem that is forcing drivers to leave the app entirely. I also happen to agree with everything you said in your answers to the questions. Innovation is in our DNA at Uber; we thrive on finding ways to constantly improve and refine our technology to provide safe, reliable rides. The cities restrict entry into the market and in return, they regulate the prices that cabs can charge their customers. This has caused many taxi drivers to go out of business and face bankruptcies, foreclosures and evictions. One of Uber’s biggest strengths is its colossal and highly reputable brand name. Some people have had scary experiences with drivers trying to kidnap them and not take them where they are supposed to go. These medallions can cost anywhere from $60,000 to $700,000! Lyft and Uber disrupted the taxi industry by giving riders a way to hail a ride and pay their driver with their smartphones. -The business model is providing a customer in needs of transportation to a certain location. In my opinion, obviously it’s not “fair” that this market is losing business. Things that must be reconsidered for the future of work: disappointingly low minimum wage, lax overtime rules, weak collective-bargaining rights, and excessive unemployment. Uber is just so much more accessible than trying to pursue a cab, if the Taxi drivers and the company they work for cannot move with the changing times, they should start doing Uber and Lyft. Is it fair that taxi drivers and companies are losing business? It a company like taxi is struggling then they need to do a better job to adapt to the new style of business for their specific industry. Uber’s business model was to create an app that connects you to drivers if you need a ride somewhere. But, if they do meet the requirements and Taxi companies are suffering strictly from lack of innovation, I think it is unfair to restrict Uber. Trying to find a loophole or a way to cheat the system was pretty pathetic in my opinion because it makes no logical sense. Uber Technologies Inc. as the camouflage of disruptive innovation is so significant that in case its belligerent cost- cutting strategy and convenience offering … One main issue remained. Taxi should just work with or for Uber if they feel they are losing business. If the taxi business wants to continue to be a part of the ride sharing industry then they should make the changes necessary to appease their clients. Contatti . My point is, just because a new product or a new service enters an established market, there is nothing unfair about it. https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee. 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