Uber Will Not Kill Taxi
Uber, being a startup, is leading to transformations in the transportation industry. It is a company that only started in the year 2009, and covers up to 425 cities. Several other companies are such as Apple and Tesla are fast moving into investing in the autonomous vehicle industry. Self-driving cars are entering the market with a bang, making them more accessible and cheap. With the decline in the number of car ownership, the amount of space needed for packing will be on the decline. The emerging evolutions in technology mean Uber is bound to be faced out. If Uber becomes an integrated part of the urban infrastructure, then it could be more taxed or even more regulated. The bottom line is that is as much as Uber is dominating and revolutionizing the transport industry, it is bound to be phased out with other upcoming companies. The article suggests the possibility that Uber may come and go, leaving the market to taxis.
The main issue that the article mentions include the fact that Uber is dominating and changing the mode of transportation in the industry for many. Uber has come to change the mode of operation for normal taxis. The new technology that it has introduced makes it difficult for the normal taxis to be competitive in the market. The article also mentions the fact that the industry is fast changing. There is the possibility of the entry of self automated cars into the industry, which could possibly alter industry entirely. The self-automated cars could also phase out Uber.
The issue at hand is of importance since when it comes to the ridesharing race, Uber has emerged as the winner. The cars have dominated South Africa, Australia and even Europe. They do not seem to be going any where any time soon. For the taxi drivers, Uber seems to offer an opportunity to alter the bureaucracy of the local authorities as as well as the taxi companies. Uber has also managed to significantly cut down the cost of operation. It is a threat for the taxi firms based in the major cities. It seems to be stealing their drivers as well as their customers. The only plausible course of action would be to take legislative action and proceed to stop Uber. The only other source of hope would be the incumbents that are providing services that would rival the Uber experience. The taxi firms have resorted to collaborate and come up with applications that serve as competition for Uber. Such applications are inclusive of My Taxi.
As much as the company is a threat in the industry, the company is also facing its own share of limitations. For instance, there have been a number of scandals that have implicated Uber drivers. Such are inclusive of a hit and run accident that took the life of a young girl, and an attempted kidnapping. Regardless of the protective measures that Uber has applied, they cannot hold a candle to the checks which the conventional taxi drivers have to manage. Some applications have come up that enable for unprofessional taxi drivers to be reported.
The main argument by the authors is that Uber is revolutionizing the taxi business. Nonetheless, the authors suggest that Uber may not be here to stay. The authors are making a number of assumptions. Some of the assumptions are inclusive of the fact that small and big companies are taking note of the potential of self-driving, electric cars, that can be summoned upon demand. Companies such as Google, Apple and Tesla are preparing to enter the market. the authors also assumes that Self-driving services enhance the trends introduced by ride-hailing. It will enable the young as well as the old to be able to get to the locations that they want. The autonomous vehicles are also bound to cut down the needed number of cars by about 90%. As the number of cars owned declines, the number of space used for parking will be used for housing and parks.
The authors also assume that Uber is not capable of winning in the ride-hailing business, considering that self-driven cars, cannot out smart human driven cars. But in as much as there are new entries into the market, they do not have the same experience and knowledge of customer behavior patterns that Uber has. They also suggest that the companies that pioneer new technologies are not the companies that stay at the top. If Uber managed to be part of the urban infrastructure, then Uber could end up being highly regulated or highly taxed. In a world of self driving, then Uber would need to have its own set of cars. The future for Uber might be bleak.
The authors point of view is justified since the future of Uber could be under threat, considering the fact that Uber lacks any vehicles. Their model of business is dependent on the drivers and their own vehicles as their partners. Essence, Uber is out sourcing the labor and the assets to individual and companies that may be willing to subscribe their application. The company does not have substitutes for the individual drivers. The company also faces intense competition from rivals. Drivers still have the option of selecting between Uber and the traditional taxis or rival companies. The drivers are not liable to any other expenses, since they are the owners of everything, with an exception of the App. Such factors allow the driver to retain the bargaining power. Such is not to say that Uber lacks power. Considering the fact that there are several drivers. Uber retain the power to determine the bargaining rates and terms. Considering all the above factors, suppliers have limited ownership to affect the profits of Uber.
All facts considered, I am in agreement with the information presented by the authors. The majority of the companies that are the pioneers in the industry, may not be the company that will emerge on top. As much as Uber is the pioneer in the industry, it may be edged out by the upcoming competition. The company may not be able to survive in the industry. The authors are justified in their mode of thought. Unless Uber makes drastic changes, there will be no place for it in the future to come. The assumptions by the authors may be harsh, but they are reasonable. As technology continues to evolve, so should the functioning of companies.
A major strength of the article it is short and precise. It is easy for the reader to keep track of what the authors are communicating. Another highlight is that with each main point, the author provides examples that are easy to follow and make connections. A limitation of the article is that the information lacked credibility since there was little reference to academic sources. Furthermore, the main argument of the authors was not clear. One needed to read the article thoroughly to understand what the author was attempting to communicate. All factors considered, the recommended course of action for Uber would be for it to adapt and consider the incorporation of automated driving services. If Uber manages to change, then there is a strong possibility that it might have a fighting chance in the industry.