The paper "Social Changes Leading to Rising in Uber" Is a great example of a Management Case Study. In Australia, this ride-sharing application has made a very significant entry into the market despite being considered illegal in majority parts of the country (James, 2015). The author attributes this to the fact that UberX offers qualities that other taxis could not compete with, for instance, it is cheaper, friendlier, cleaner, and more efficient therefore making it more likable to its clients. However due to the aggressive nature of entrance into any markets local taxi industries normally influence their government into standing in the way of this mode of transport using their significantly huge influence over their governments. According to James (2015), since the service was launched in Australia as much as 11% of the population in its capital, Sydney, have used the service during its first six months of its operation.
However, the author points out that the NSW Transport Department had been taking UberX drivers to court for breaking the law requiring drivers and cars to be licensed. According to Nassim (2015), governments have a levy on consumers buying milk when dairy reforms were introduced in NSW and ACT so the same should apply to the taxi industry whenever new players such as UberX enter the market. Discussion Are Reforms By Act And Nsw Sufficient It is first important to know how Uber affected the taxi business in Australia necessitating the reforms by ACT and NSW.
According to James (2015), whenever Uber is introduced in a given geographical area it is detrimental, for instance in San Francisco it contributed to a 65% decline in average trips per taxi.
According to the author analysis by a personal blog known as Pocketbook, came to the conclusion that in every $12 spent on taxis in Australia, $1 of its goes to Uber. According to ACT (2016), the new reforms are supposed to offer economic benefits to the territory in the sum of $3.5 million per annum after five years. The Australian Capital Territory (ACT) proposed regulatory frameworks which will also include a rank of vehicles or drivers authorization documents and a function which is based on the notifications by respective services to address the following risks in the industry: taxis will operate in rank, hail as well as booked sector either independently or through a booking service, secondly hired cars will only provide booked services but can either operate independently or through a transport booking service and lastly ridesharing will be able to work as a booked service through a transport booked service. The reforms are to be delivered in two phases (ACT, 2016).
In the first phase which is an interim stage that will allow any authorized ridesharing service such as Uber and any other such innovatory service aiding in booking to following the strict guidelines already placed.
For instance, all drivers must do a criminal history search and drive history checks. This stage which officially began on 30th October 2015 will also see an immediate reduction in fees for anyone to hire or for taxis. In the second stage which is concerned with the introduction of new laws into Legislature for the introduction of full suite reforms such as driver accreditation and reduced regulation for taxis and hires a car.
ACT Government. 2016. 2015 Taxi Industry Innovation Reforms. Sourced from http://www.cmd.act.gov.au/policystrategic/regreform/2015-taxi-industry-innovation-reforms/additional-background-information/supporting-analysis
Eugene, S. 2014. History of Taxi Industry. Retrieved from https://taxistartup.com/blog/6-key-success-factors-behind-uber-growth/
Georgios, P. 2016. Uber and the Economic Impact of Sharing Economy Platforms. Retrieved from http://bruegel.org/2016/02/uber-and-the-economic-impact-of-sharing-economy-platforms
James, L. 2015. UberX versus Taxis: Why the time for taxis is over. Retrieved from http://www.news.com.au/finance/business/travel/uberx-versus-taxis-why-the-time-for-taxis-is-over/news-story/cb1e2d9dc77aa29dd88646cbae1d5d4e
John, M. 2015. Uber is Winning the Australian Taxi Lobby. Retrieved from http://m.smh.com.au/business/the-economy/uber-is-winning-its-war-with-the-australian-taxi-lobby-20151220-gls80m.html
Uber. 2016. Our Story. Retrieved from https://www.uber.com/our-story/
Nassim, K. 2015. Uber Arrival May be Ground for Compensating Taxi Industry: Harper. Retrieved from http://m.smh.com.au/business/the-economy/ubers-arrival-may-be-grounds-for-compensating-taxi-industry-harper-20150414-1mkrdx.html
Nathan, M. 2015. Here’s How Uber got its Start and Grew to Become the Most Valuable Startup in The World. Retrieved from http://uk.businessinsider.com/history-of-uber-and-its-rise-to-become-the-most-valuable-startup-in-the-world-2015-9?r=US&IR=T
NSW Taxi Council 2016. NSW Taxi Council Responds to Point to Point Reform. Retrieved from http://www.nswtaxi.org.au/news/nsw-taxi-council-responds-point-point-reform
The Guardian. (2015). Uber to be Legalized in NSW, with compensation for Taxi drivers – reports. Retrieved from https://www.theguardian.com/technology/2015/nov/23/uber-legalised-nsw-compensation-taxi-drivers