Essays on Why Has the Emergence of Uber Disrupted the Taxi Industry Globally Case Study

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The paper “ Why Has the Emergence of Uber Disrupted the Taxi Industry Globally? ” is an exciting variant of the case study on business. One of the tech startup companies that have gained tremendous success is Uber Technologies Inc. The company provides ridesharing services by enabling a connection, using an app, between riders and drivers who work as independent contractors. In essence, Uber has expanded globally from the USA where it was first introduced to 58 countries globally (Taschler and Fellow, n.d. ). as the writers point out, the success is attributed to tremendous profitability as the organization is currently valued at USD 41 billion.

The main factor for success has been its cheaper services compared to traditional taxis, which has enabled Uber along with similar riding services to upend the taxi industry. Its resounding success has fueled domestic and international expansion. Just like any other startup business, Uber is currently facing regulatory, social, legal, and technical barriers. For instance, the taxi industry is voicing its concerns that the company is succeeding because of its unfair advantage emanating from licensure (Boyle.

and Peterson, 2015). The claims revolve around the assertion that the company does not face similar licensing requirements as other taxi operators do. Others claim that the company does not vet for its driver thereby subjecting the customers to potentially dangerous situations, such as rape. For example, as Johnston et al. (2015) reported, Uber was outlawed in Victoria following the realization that one of Uber’ s drivers operating in Melbourne was found guilty for driving a hire car that was not licensed or accredited by a Melbourne magistrate. Regardless, the company is currently facing numerous praises by giving its contractors and partners a money-making opportunity for as long they have a car while also providing convenient services for clients, usually at cheaper rates compared to the competitors.

However, since the business also faces competition in the numerous cities it operates in, it needs to address various issues, including legal actions taken against its drivers for not having being licensed, the question as to whether they ensure rider and driver safety, lack of adequate insurance, and safety of client and driver information (Feeney, 2015).

References

Anderson, D.N., 2014. “Not just a taxi”? For-profit ridesharing, driver strategies, and VMT. Transportation, 41(5), pp.1099-1117.

Boyle, P. and Peterson, C., 2015. Taxi drivers rally against Uber. Green Left Weekly, (1069), p.4.

Davies, B., 2014, Competition Policy Review Submission, Australian Taxi Industry Association (ATIA), p1-16

Dempsey, P.S., 1996. Taxi industry regulation, deregulation, and reregulation: the paradox of market failure. University of Denver College of Law, Transportation Law Journal, 24(1), pp.73-120.

Feeney, M., 2015, Is Ridesharing Safe?, Cato Institute, 767, pp 1-14

Hudson, K., 2015, What Uber tells us about disruption. The Sydney Morning Herald. Media Release, viewed 21 March 2016 http://www.smh.com.au/it-pro/business-it/what-uber-tells-us-about-disruption-20150905-gjg0ln.html

Johnston, M., Schulz, M., & Dunn, M., 2015, Uber acting illegally, landmark case finds, Herald Sun. Media Release, Viewed 21 March 2016

Marsden, P., n.d., The Uberfication of everything-The psychology of digital disruption. WPP. Media Release. Viewed 21 March 2016 < http://wpp.com/wpp/marketing/digital/the-uberfication-of-everytshing/>

Schneider, A., 2015. Uber Takes the Passing Lane: Disruptive Competition and Taxi-Livery Service Regulations. Elements, 11(2).

Taschler, E. and Fellow, S., n.d., A Crumbling Monopoly: The Rise of Uber and the Taxi Industry’s Struggle to Survive. Institute for Consumer Antitrust Studies. Pp1-8

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