Relevant Facts about Uber Taxi - Case Study Example

Policy Paper Insert Insert Summary of Uber taxi economic policy It is required of all the cars operating under the Uber umbrella to heed and subscribe into an insurance cover. The standards of the state require that one to provide a policy for $1 million. It has been claimed that signing up for an Uber taxi is giving up one’s life for the ride. The controversy has stirred a debate over the economic importance of the insurance and the safety of the customers and people using their services (Rossman, 2015). The company has an advantage of the Uber taxi app, which put them ahead of their competitors. Relevant facts about Uber taxi sign up insurance policy This is a transportation industry in America, San Francisco, California. The industry has a mobile app named the Uber mobile app, which enables client’s forward trip request to the industry, and a driver is allocated the request. By 2015, the uber taxi service was available in 300 cities and 58 countries in the world (uber.com). Though the venture has higher revenue returns, licensing of its drivers, disability act compliance, local regulations and insurances is still an issue. The government requires them to sign up to an insurance policy while their idea of ridesharing, which has no insurance cover, is still a debatable objective. Local Regulations: the local government and the county council require that Uber Company operate under the stated rules and regulations. The enacted licensing policies have been put in place to ensure lawful services to consumers and eliminate unfair practices from the company. The laid down policies laid down by the local government include the company must have a genuine license for operation, be insured by a recognized insurance company and rates to be paid is controlled by the local government so that the consumer will not suffer high rates by the company. The drivers are required to have a genuine driving license and the cars to be used as taxi are to undergo regular inspection. Some companies fail to follow these laid down regulations like the uber taxi company whose drivers are only required to have a regular driving license they don’t require a commercial license for one to operate. The uber taxi prices change according to demand and is a feature needed for profitability (Cooper, Murphy & Nelson, 2012). To ensure taxi services are offered to the people while meeting quality, it will demand that operation be standardized to boost confidence and the number of people who sign up. Insurance: all Uber drivers must own an insurance cover from a renowned insurance company. The company must acquire a cover that covers the customer, the car and the driver in case of an accident. The uber taxi company offers liability insurance plans for drivers alone leaving out the customers meaning in the case of an accident the passenger will not be covered. This assertion is detrimental to customers who use the service. The company perceives that the insurance policy is expensive and unwanted (Davis, 2009). As much as it will increase enrollment, the cost it comes at may impact the business negatively. Airport Policies: the airport authorities require taxi companies to obtain a permit in order to work in their jurisdiction. The taxi companies have to pay to be given a chance to offer taxi services to the people going to or from the airport. This is to prevent overcrowding of taxis at the airport, and this is to ensure only best taxi industries are allowed to operate and carry the airport customers. This policy also helps prevent unrated pickups and drop off which can bring in unwanted customers including terrorists who could use this chance of uncontrolled drop offs anywhere at any time (Rossman, 2015). Congestion at the airport will be controlled through this policy, and revenue collection will be easy since all curbs are registered. The taxis that have no permit will be arrested for trespassing and a huge fine imposed on the company hence reduced cost. The san Francisco international airport invented the airport policy, and a breach will see the drivers being arrested for trespassing. Disabilities Act Compliance: the uber taxi company, is required to put in place a friendly environment for the disabled. The taxis must be wheelchair friendly, to disable people with wheelchairs, and this is to be done at no extra cost. The drivers must be trained on how to handle the persons with disability to lawfully meet the need of their consumers with a disability. This is to enhance sign up and beat competition while ensuring all people are onboard (Rossman, 2015). It will enhance profitability. Policy Options Policies put in place by the government must be put in place for smooth operations for the Uber taxi company. Ridesharing policy will allow cabs to operate without transportation licenses though it is a risky venture it is cheaper since no insurance cover is required for ridesharing (Fleisher, 2014). The Disabilities Act Compliance policy is important especially to the disabled persons in the society. They feel loved and recognized by the society. The policy is to some extend a disadvantage to the uber taxi company since the company needs to put in more money to ensure the requirements are met especially creating a wheelchair carrier cub (Rossman, 2015). Local Regulations policy will ensure customers are satisfied, and the government gains revenue from the uber taxi company with ease. The regulations put in place will face out the unfair competition, and only the best company will be allowed to operate at fixed price. The disadvantage remains too much control leads to fewer operations thus lowering revenue income (Fleisher, 2014). An insurance policy is another important policy since when the customer is covered, it will build confidence for the Uber taxi company, but the cost of cover will be high to the company. Recommendations 1. Economists currently have identified a number of problems related to Uber debate policies put in place. The uber company has not implemented most of the stated policies due to the expenses involved, yet they have to implement the ridesharing policy. Ridesharing policy is believed to be the best option by the uber taxi; it is cheaper and reliable. Jobs created will go a notch higher since more taxis will be acquired meaning more drivers employed. Some cities have given in to the ridesharing policy as long as the company ensures clients safety. 2. The ridesharing model does not require the company to acquire their own taxis but any driver owning a taxi and is interested can walk into the Uber taxi offices or sign up online and work for the company. This is because the ridesharing policy does not require commercial insurance or a license. 3. Uber Taxi Company will be up and running on the ridesharing policy in markets where the governments in stage approve of it. In markets with no approval for the ridesharing policy, the uber taxi company will only run the ridesharing on demand but must ensure it. The company must ensure the driver offering the ridesharing is strictly observed not all drivers will be allowed ridesharing unless the background of the driver is well known (Davis, 2009). 4. The Uber taxi company ridesharing policy is well managed since the client can choose a driver whom they like and the type of car the wish to ride on since all details are stated on the app. The alcohol consumers are happy for this venture since the uber taxi is always available due to ridesharing; they can never lack a driver or a cab to drive them home when drunk. Most customers believe that private cars are better managed than normal taxis hence a better option to be pursued. For security purposes on a rideshare, a receipt is issued where rating can be done by the customer, this ensures better services and security for clients (Rossman, 2015). The issue of no cash on the ride is the best option especially for parents; they can pay for the ride for their children and tracking can be done using the receipt issued. 5. The idea has provided part-time jobs to many people, and the company must uphold this policy. It is he highest source of revenue for the taxi company, and the customers are satisfied at all times. The issue of using private cabs enables all classes of people to use the uber taxi services since no one can suspect that you used a taxi since the cab is not colored by the standard taxi colors, which show the taxi. 6. The use of technology has made more customers accept the idea of rideshare since the services are offered at your convenience as long as you have the app. The drivers are given the mandate to pick and drop a client at the designated destination following the orders and at last, the driver will receive his/her payment from the company. No need to the fear of not being paid by the customer. 7. To get a job as a ridesharing driver is simple only the state of your cab and driving license matters (Cooper, Mundy, & Nelson, 2012). The job offer can be done over the internet no contact with the company is required. This deal is quite good for all citizens in need of cheaper and efficient taxi services around the world. The ridesharing deal given chance will definitely change the taxi business and take it to the next level where no other policy could. Local governments and the jurisdiction where uber taxi operates must and should allow the ridesharing policy to be carried out as a trial at least for a period of say two months than if the policy fails, it must be done away with but if the policy becomes successful, it must be given a chance to run. Conclusion Modernization and consumer safety are at the core values of Uber Taxi Company. The ridesharing policy is to be upheld by the company if the regulatory authority accepts the deal. Until then the policy is just but a dream since engaging on this policy with such risk in this market was crucial. Rules must be put in place where everyone the government and the customers would agree that safety and welfare were taken care of while the supervisory body catch up to the innovation they are letting thrive. References Cooper, J Mundy, R & Nelson, J 2012. Taxi! Urban Economies and the Social and Transport Impacts of the Taxicab. Ashgate Publishing Limited: Farnham Davis, F 2009. ‘The cab driver and his fare: Facets of a fleeting relationship, American Journal of Sociology, pp. 158–165 Fleisher, L 2014. ‘Thousands of European Cab Drivers Protest Uber, Taxi Apps, Wall Street Journal, 11 June Rossman, S. (2015). Uber debate is about insurance, safety. Tallahassee Democrat. Retrieved 8 June 2015, from http://www.tallahassee.com/story/news/2015/04/03/uber-debate-insurance-safety/25268657/ Read More