A Tale of Two Ride-Sharing Services
Taxis were once a seemingly unrivaled staple in the western world. The yellow-and-black Crown Victorias of New York City and the bulbous black cabs of London are instantly recognizable on the silver screen. The taxi business is lucrative and a plethora of seemingly identical companies transport millions of people each year. Carpooling just couldn’t compete; it was far too convenient to dial a number and pack your bags while the taxi made its way to your door.
Taxi drivers have held recent protests to combat a relatively new threat to their business. A seemingly sturdy enterprise has been shaken by the phenomenon known as “Uber”, a ridesharing service where customers can submit a trip request via smartphone to an Uber driver. In theory, it is brilliant; Uber is typically less expensive than using a taxi and a customer can monitor the driver’s position with Uber’s mobile app. Essentially anyone can register to be an Uber driver, collecting money as he or she takes more customers. As Uber vehicles are privately owned, there is a reasonable chance (with UberSelect or UberBLACK) that the vehicle will be far more luxurious than the cleanest taxi. Uber has been used by celebrities including Kristen Bell, who accidentally requested UberPool. She incorrectly deduced that the “Pool” was a “fun summer reference” and perhaps felt that the vehicle would be fitted with some sort of Jacuzzi. In reality, UberPool refers to carpooling, where two Uber customers travelling in the same direction travel in the same vehicle for a lower rate. The whole affair was, as it always is, meticulously documented on Twitter. The millennial appears to have found an answer to the low-tech taxi, complete with the ability to rate one’s driver instantaneously using the app.
Before Uber, the average person would not dream of entering the car of a stranger. People were likely suspicious of the poorly regulated cars at first, though as popularity grew and the name “Uber” showed itself across social media, customers assumed that if no one else was being mugged on a regular basis, perhaps this could be a worthy alternative to the taxi, a service for which we have been overpaying. The service is certainly attractive, bragging its connectivity and swanky vehicles. One wonders, however, if the fact that drivers are untrained and inexperienced will prove problematic. Surge pricing is also worrisome, as some customers have paid ridiculous rates during times of peak service. It is also not a requirement that the vehicles are insured by Uber, which is bad news for the drivers. Intoxicated or grumpy customers can easily give an honest driver negative reviews which will put his Uber career in jeopardy.
The fact that Uber is changing the taxi industry is irrefutable. For taxis, prices have been lowered and unpopular laws have passed giving Uber drivers the right to provide their attractive services. Taxi rates are higher, but the cars are insured and the drivers are trained. Perhaps we are getting what we pay for.
Photo Credit: businessofapps.com
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