Uber

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Introduction.

Taxiservices are essential means of transport enabling people run errandsfast and in a convenient manner as opposed to the use of publictransport. is the new wave sweeping the taxi industry byproviding convenient, safe, and cheap taxi services (Macmillan 7). Itworks through an application on Android and iOS and connectspassengers and drivers directly through the touch of a button. Thefuture of seems bright because besides embracing technology,their services offer convenience at a relatively lower price. Thetraditional taxis have to devise tactics to compete against forthem to remain relevant in the market. This paper will build on theseissues to come up with a research work explaining , how itoperates, its future, and how taxis can compete against .

is a technology company founded in 2009 in San-Francisco and itsresult is an evolution in the manner the world moves (Elliot 1). Atthe center of the organization is an application available on Androidand iOS and helps connect drivers and passengers directly without theneed to hail at a car in the street or going to a centralized bookingoffice. The company is one of the most valuable startups in the worldand is worth more than sixty billion. Since its inception, hasbeen expanding at a high rate across the world. However, hasfound itself in deep conflicts in the public limelight with somecases resulting in violent protests.

Theoperations of are through a web browser or a smartphoneapplication, which makes it possible for a user to request a ride andbe in a position to track it real time (Tangel 16). When desiring theservices of , opening the app displays the current location ofthe user and the drivers available in that area. The driver and therider can see each other’s profile picture on the applicationrequiring the two parties to accept one another before an arrangementfor the ride is made. Once the passenger requests for a car, there isa booking request send to to identify the nearest car available.The reservation is accepted with a subsequent allocation of a car tothe booking request. The application then makes use of GPS asguidance for the driver to pick the passenger, and also to theirdestination. In most cases, the passenger and the driver are nearbyand thus the picking of the passenger is usually in a few minutes.

Thecalculation of the estimated fare for the trip is done ahead of time,and money transfer is done electronically with no exchange of hardcash (Nathan 2). This payment means as well ensures that thepassengers do not skip out paying the fare. There is a charge of basefare of 2.50 Pounds to the passenger alongside a cost of fifteenpence for every minute and 1.25 pounds per mile. The minimum fee isset at five pounds. then takes its share while the rest goes tothe driver, and pays for maintenance and fuel. has severallevels of cars including the standard X, BLACK, and TAXI(Tangel 17). The operations of the TAXI are almost similar tothat of a traditional taxi. The drivers of TAXI should havelicenses and certified cabbies as well as commercial taxis foroffering the rides (Nathan 2). On the other hand, the BLACKrequires professional chauffeur for a driver with possession of acommercial auto insurance and license. The driver should also be inpossession of town car, a black sedan, or an SUV with seatsaccommodating four to six passengers. Lastly, the X can have anydriver as long as they have attained twenty-one years and have apersonal auto insurance and a four-door sedan which is wellmaintained. The drivers are only subjected to a police backgroundcheck after which they are free to make money from the service.

looks forward to a bright future which is conflict free. Since itsinception, has been fighting endless legal and regulatory battleacross the world (Kadet 11). However, the future of will bebrighter when the management addresses the issues resulting incontroversies. There is a need to introduce taxi licenses for all drivers. The regulation of the drivers should be treatedwith strictness to promote accountability of the drivers and safetyfor the passengers. This control will end the controversiesassociated with and hence smooth running of their operationswith subsequent implementation of expansion plans in the future.

is investing in the mapping process tailored for the organization toensure that future services are more efficient for the passengers anddrivers as well. made a major announcement that it is planningto improve its mapping capabilities from a partnership with DigitalGlobe, a satellite imagery company. This partnership will improve theprecision of the existing maps making it easier for the drivers totrack their clients in the shortest time possible. The street imagescaptured by the mapping cars will help in the improvement of thecore elements such as the most appropriate pick-up and drop-offpoints as well as the best routes in the future. There are plansunderway to introduce and expand the imagery collection efforts toall countries using services.

Besidesthe improved precision from imagery collection efforts, looksforward to replacing their fleet of human drivers with self-drivingvehicles in the future (Tangel 19). The company understands thatmapping for driverless vehicles requires high-level density andinformation, which is achievable in the long-term. In the nearfuture, the accurate maps will help the drivers to figure out theexact point a passenger is waiting and their destination as wellimproving convenience.

Dueto the low pricing and convenience associated with the use of services, the traditional taxis face tough competition. However,there are several ways through which these taxis can compete against such as the maintenance of the safety regulations, flexibilitywith fares, easing the grip of medallion taxis, and increasing theusage of boro taxis. The regulation of services is a hotly debatabletopic in the taxi industry. The traditional taxis can make use ofhigh standards maintenance regulations to compete against . Forinstance, does not take fingerprints during background checkswhile the taxis do. The taxis also adhere to requirements, such aspossession of active insurance policies, which the driversadhere to with less strictness. The implication is that the taxipassengers are adequately covered, which could not be the case with. The taxis can use these standards as a measure of safety thuscompeting against .

Thefare differences between and taxis are crucial in thecompetition for clients. is well known to charge very low pricesto the extent of charging half the price of the taxis. The taxis relyon the prices set by the city which is in most cases unnecessarilyexpensive. The taxis have the option of charging relatively fairprices to compete with . Once the taxis are able to chargerelatively lower prices, they may increase their base clientelebecause low prices is one of the driving force of people opting for taxis.

Theuse of medallion taxis is holding back the taxi industry all over theworld. Medallions are the rights government issues to a car owner togrant him the rights to operate taxi services. Due to the regulationsand high charges associated with medallions, the taxis end upcharging high fares to the passengers (Tangel 20). Loosening the gripon the medallion taxis could enable the taxis to compete profitablywith because taxi drivers will be able to operate taxis withrelatively lower charges.

Theboro taxis mainly found in New York are unique taxis and theirsuccess presents a potential solution to the traditional taxis in thedesire to compete against . The creation of the boro taxis was toreach the areas the medallions could not reach. In comparison to themedallions, the licenses for boro taxis are slightly cheaper.Increasing the use of boro taxis implies that taxis would belocalized and passengers would not need to obtain the expensivemedallion taxis. An increasing use of boro taxis would enable thetraditional taxis to compete against effectively since the taxischarge lower prices.

Conclusion.

Althoughpeople look out mainly for safety and convenience, prices alsodetermine the demand for the services of a taxi. presents asolution to the high fares charged by traditional taxis by coming upwith a relatively cheap taxi services. Besides, is moreconvenient since getting a taxi is through the touch of a button.Despite the controversies surrounding the services, they stillmanage to grow their client base rapidly with plans of expanding theprogram to come up more precise images identifying the locationclearly and self-driving cars which will offer more convenience inthe future. The traditional taxis have to apply various strategies,such as low pricing, maintaining safety regulations, and increase useof boro taxis instead of medallions for them to be able to competeagainst the wave of in the taxi industry.

WorksCited

Elliott,Josh. “ Ride Share: Taxi or Tech Company?” CTVNews. 1,1-2. 2014. Print.

Kadet,Anne. “Taxis Taking on in a Battle of the Apps.” WallStreet Journal – Eastern Edition. 2,10-15. 10thOctober, 2015. Print.

Macmillan,Douglas. “ Cuts Some Prices on its App to Hail Taxis.” WallStreet Journal – Eastern Edition.1, 7-9. 10thJan, 2014. Print.

Nathan,Elias. “Strong Safety Rules for Taxis and .” NewYork Times. 2.25thDec, 2014. Print.

Tangel,Andrew. “Trading Taxis for , Drivers Riding a Boom.” WallStreet Journal. 1,15-21. August 2015.

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