In my opinion, more cities should not ban Uber from entering the transportation market. Contatti interni; As for banning these services much like Uber was banned in London in 2017 due to safety procedure and not meeting the requirements for a taxi license is a different story and I feel that since it is much like a taxi service, they companies should be held to the same standard is a taxi license is required in that area. ( Log Out / I don’t think it would be fair for cities to ban Uber from entering the transportation market because a lot of people rely on Uber for various reasons. Uber drivers can make their own schedules and turn on their driving/availability on when and where they want. Weaknesses on the other hand include the slow-growing profits and the risk of staying alive. Companies work based off a supply and demand system so if the taxi services are not meeting the demands of the customers then it is on them if they are loosing business. That isn’t right for Uber and Lyft avoiding having to pay their due diligence. If not, what range of responsibility should Uber, and other companies like Uber, have on their workforce? -The business model is providing a customer in needs of transportation to a certain location. Also, if people want to do this as a full-time job, Uber may be able to offer them benefits and more things than they would have gotten as an independent contractor. Uber and Postmates have since sued the state of California claiming that the law is unconstitutional and irrational. Another major weakness of Uber, is that the brand of Uber is heavily dependent on its behavior of its drivers and when its unpredictable, the company name is tarnished every time a story leaks and gains traction. Some people have had scary experiences with drivers trying to kidnap them and not take them where they are supposed to go. Again, mixed feelings on this one. I also think that they should allow companies like Uber and Lyft into cities. Well done! This new law grants contractors the edibility to have basic protections like minimum-wage requirements, health benefits, and social security. You do not need money on you, since it is already connected to your card it automatically takes the money out of there when you order a ride and it is completed. Yes, I do agree with this law because Uber drivers need to be held more accountable. So, I do not think Uber should be banned, but I do think the ride-shares should be as regulated as the taxis. 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. EU-China scientific cooperation is governed by the Science and Technology Cooperation Agreement signed in 1998. Also, company and its customers have no bonding. Some strengths with the Uber business model are that their ride service has pleased many people. Competition is competition regardless, and that’s good for business and the economy of each city. The Uber business model is that everyday people can utilize their own cars as taxis without having to work for a taxi company. 1. 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. This is like any other business or industry, when the current system in place is not working then a new business comes in and takes some of their cliental and revenue and if the original business does not change to meet the needs and demands of clients then they usually die out. Thanks Todd! At Bacancy Technology, we firmly believe that great ideas must be repeated again and again, Just have a look at the mountain behind Uber Technology: A powerful opponent of Uber from an Estonian named Taxify raises $100K; Cabify, another opponent of Uber from Spain and Latin America takes in $8M; a Berlin-based setup, Talixo also raises millions to help cabs compete with Uber. This is what i believe but I’m not 100% sure. Uber’s business model utilizes the gig economy. but, to have something like the california state law in effect for whatever cities permit uber to be allowed in. Great work! For example, Uber allows its drivers to work their own hours and operate whenever it is most convenient for them. Competition is not a bad thing, it is how the world creates new innovations and technology to create something even better than it was before. The primary market that Uber is targeting is the. While I think this is a very good point, I also believe it is important to note that some of their drivers want to be independent contractors as it is a side hustle and not their full-time job. If not, what range of responsibility should Uber, and other companies like Uber, have on their workforce? 1) What is the Uber business model? Overall, Uber services reduces customers journey steps and makes everything easier and faster. In a capitalist market that is absolutely absurd. I think the company should allow their drivers to choose if they want to be employees or independent contractors. Uber reported its 2019 fourth quarters earnings with a loss of 1.1 billion. What are it’s strengths and weaknesses? I also happen to agree with everything you said in your answers to the questions. I love your answer to question number 3, I couldn’t agree more. In this case, the company Uber has control or say of what will be done and how. What are its strengths and weaknesses? 2. Convenience is a major advantage that Uber has. It can also lead them to figuring out new ideas to improve their service and it can revolutionize the way this service is given out to customers. Since people prefer Uber, taxis and transport services are losing money. I think just defeats the purpose of having the Uber service. Let’s highlight Uber who is part of the sharing and gig economy. 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. 3. Zona Produttiva Vurza, 22 Pineta di Laives 39055 Laives (BZ) Italia +39 0471 590107 +39 0471 594280 info hubertec it huber pec.hubertec it. You were very thorough with your answers and I was very intrigued to everything you had to say for each question. With that being said, I don’t think cities should ban Uber from entering the transportation market. Uber’s business model is not like the Taxi business. I also believe that competition is a drive for economic growth for cities. This has caused many taxi drivers to go out of business and face bankruptcies, foreclosures and evictions. It is argued that Ubers expenses may have been much larger than its revenues. 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. The prices for Uber are lower compared to traditional taxi operators. Share. It is going to be hard for Uber to dominate the market, due to its competition with the limo and taxi business. HUBER INNOVATION – Waste Water Solutions. And, there is a divide between the workers who want to remain as independent contractors and the others who want to be recognized as employees. On the other hand, this also has bough concerns as to how safe it is for just anyone to be a driver. There was someone out there who thought of a much better idea and form of transportation than just having taxis. The schematics of this service seem flawless. Uber is good competition for other taxi companies around the country, and it so happens to be what the consumers want and just happens to be better than everyone else. L’espressione “disruptive innovation” appare per la prima volta in letteratura in un articolo di Clayton Christensen e Joseph Bower, “Disruptive technologies: catching the wave”, pubblicato nel 1995 sull’Harvard Business Review. These “taxi drivers” use there own cars when providing the service and Uber gets 20% of the fare. Once the ride is requested the driver is then sent a notification that someone needs a ride and where they are located. The major weakness I recognize is the exclusively digital platform can compromise the overall security of the service. Ubers business model is a smartphone app that connects you to a service of drivers. Some of their strengths are it has a high standard of service, verified drivers and cars. What is the Uber business model? By innovating new services, taxi driver and companies will not lose their businesses. It is a necessary advancement and shows creative destruction at work. 2. China is a key partner country. The strengths for drivers include flexibility to drive on their own terms, better income, assistance in getting vehicle loans, etc. It is an independent contracting business, and for the people who are the drivers, it works out great for them in the company’s business model. A great example of this is in London through 2017 where they were not eligible to drive and obtain a taxi license due to safety issues. That to me, is the best way for many people to make quick and easy money when they want to make it, or need to make it. Uber was built off the idea that drivers are their own boss. Another emerging strength of Uber, lies within its global and continuously expanding international reach that expands to more than 50 countries and with a user market of over 80 million people. Huber representatives. -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. I agree with that fact that Uber should be allowed in other cities because, as you said, “competition is competition regardless.” Even if it isn’t Uber, companies like Lyft are also a competitor. 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. 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. Its weaknesses however are the lack of connection between Uber and its employees and that their business model is highly unpredictable as Uber is working in a highly regulated market. Do you think more cities should ban Uber from entering the transportation market or let Uber run in their cities? Of course, the pickle there is that companies like Uber may make only a certain amount of “employee” jobs available, may not seek candidates who want to be “employees” – or, opposingly, only hire those willing to be “employees”. Are the business aspects of the worker’s job controlled by the payer? All the steps can be done in just one smartphone. The estimated base case valuation for Uber is $5.895 billion. I believe Uber should be allowed in other cities as long as they are following the cities guidelines. As we have previously discussed in What is Innovation, the ideal definition for innovation is: Even though it is a great law to be put into place to ensure their employees are treated ‘fairly’ and have the security like many other workers do, this can backfire to the customers. Global challenges and innovation opportunities have to be tackled by cooperation with international partners from science and economy. This entire economy promotes the freedom of the individual as well as the organization and is constantly growing. I think there are pros and cons to this law. The drivers deserve to be paid for the work they do just as someone who works for a Taxi company. Very similar to most modern products and services, Uber gives consumers the convenience of consuming its service from their smartphones and other mobile devices. I think this will have a domino effect. The behavior of its drivers has been unpredictable and has damaged the image of the company.”. Change ), You are commenting using your Facebook account. 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. In 2017, Uber’s license was revoked for poor oversight of drivers. I agree with your point about life being fair, but there are other reasons to shut down transportation companies just like shutting down traditional taxi services. I also see this as a demand from society as they were not getting what they wanted from the taxi industry so they choose Uber instead. It is basically like the company wants the benefits of treating its drivers like independent contractors without assuming any of the responsibilities. One of Uber’s biggest strengths is its colossal and highly reputable brand name. I personally enjoy using taxi’s over Uber in the first place because at least the drivers are employed by a company that personally takes the time to hire their employees and gives them a company car that is more traceable. This combined with other variables cannot reassure investors. 3) Do you think more cities should ban Uber from entering the transportation market or let Uber run in their cities? 1.What is the Uber business model? Uber is great for locations that do not have taxis located at every coroner and allows for an easy request for a ride as you pay before the ride even gets to you. So, by simply acting as a liaison, and collecting their commission from the fares received, their revenue is minimally impacted by employee-related costs and liabilities. 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. Uber has stated that the decision is “extraordinarily and wrong” and have since closed that loophole, To help with the safety of drivers and passengers, Uber announced a series of new safety procedures including enhanced safety training for drivers and a “discrimination button” which allows drivers and passengers to report any abuse, Despite Uber’s efforts, the London transportation authorities stood by their decision to revoke Uber’s license. According to the reading, increased traffic congestion due to Uber (and probably other ride-shares) has slowed traffic in New York City by 8%. It just means that if taxi and limo services want to keep their business, they need to think of something bigger and better to compete against Uber and other companies like Uber. You don’t ban a new product from the market just because it is better and more profitable. Unfortunately, life isn’t fair. ( Log Out / The one weakness of the business model is its lack of safety, Uber does not look deeply into who it is hiring to be their drivers and many people are scared of being attacked by a rogue Uber driver. What is the Uber business model? Also, it is okay for people to create new products or services that differentiate themselves, that is exactly what happens in a competitive market. This allows for a lot of malicious perpetrators to remain incognito. I really liked you post! If that means that taxi companies die out, then so be it as they are outdated and outperformed by modern companies like Uber and Lyft. 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. I think you bring up a great point as it pertains to Uber considering its drivers employees. Uber has little debt, or fixed commitment. The court established a test and said that workers can be labeled independent contractors if they were free from the control and direction of the company, engage in work outside the company’s main business, and already work independently from the company, doing the same kinds of things as the company. Amazing job with your discussion post for this weeks group. Pay, etc. ) Uber business model was to create an app where drivers sign in. 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