Uber’s Impact on the Transportation Industry Rideshare services are rapidly integrating in cities across the United States and internationally. Uber is revolutionizing the transportation industry, specifically in connecting a rider and a driver. A similar business would be a taxi service but more technologically advanced. Uber is not an entirely new concept, however, it is only from their new advancements and advancement in technology did Uber become a true player in the transportation industry.
Uber has had both a positive and negative impact on the transportation industry; Uber provides ides efficiently, cost effective and fulfills a need, alternatively, traffic related deaths have increased and safety with necessary protections are nonexistent. Uber has over 500 employees, independent contract workers, and is steadily growing in size within the United States and internationally. At the base Uber is a technology company that offers a free software that connects people looking for a ride with people who are available to provide a ride.
What Uber has been able to do versus a standard taxi service is efficiently match a rider with a rider. The common problems of taxis taking long time after having a taxi dispatched, expensive and trouble locating riders. Uber’s software has found a way to locate a potential passenger through GPS, even if the potential passenger does not know their exact location. Essentially, Uber’s software locates the potential driver, connects them with an available driver and shortly thereafter the driver is picking up their rider.
During this process the potential rider is able to see when the driver will arrive and see a picture of the driver for safety precautions. The technology basis of Uber is also illustrated in the way in which payments are received. Once the ride is complete the rider is charged for the ride plus a tip, if they choose. The riders receipt is emailed to them detailing the trip and the amount charged to their credit card that was provided at signup. In this day and age, technology and convenience sells and that is exactly what Uber has on the market. Thus Uber takes the guesswork out of a rider locating themselves and shortens the wait time.
Uber has been able to revolutionize the transportation industry through its market of contract workers in various different cities. Uber gives taxis and other rideshare ervices a run for their money. Uber has managed to reduce and almost eliminate the cost of searching for riders, which has proven to be very expensive. taxis force their rider to call a dispatcher and wait, which often times takes too long for the rider so they grab a cab that is already near their area. This causes taxi services to lose riders due to the fact that if taxis are scarce the riders will not look for the service at all.
On the other hand, Uber allows the rider to know when the driver is arriving and who will be there driver. Likewise, the Uber software onnects the driver and rider so that other drivers cannot pick up a driver’s rider (Dong, et al. , 2004). Previously if a rider wanted to find a driver to take them to their destination they had to contact a taxi service either through calling a dispatcher or hailing a taxicab. These riders would have to know their exact location as well as be within a popular area to receive service. Uber has found a way to reach areas that would otherwise not receive service.
A study of the city of New York in New York compared Uber to taxi services. Very few taxicabs area included areas outside of Manhattan or utside city airports. Uber has found a way to service these areas. Also, New York population is 50% Black and Latino or Hispanic. In these homes almost 20% of Blacks and 14% of Latino households do not own a car. There has also been an increasing trend of jobs moving outside the city, areas not serviced by taxis. Approximately 45% of the jobs in the 98 largest metro areas are located more than 10 miles from the city core, areas with little to no public transportation (Alley, 2016).
The same idea illustrated in New York can be replicated throughout the country in various cities of all sizes. Including cities like Montgomery, Alabama that do not offer a taxicab service and do not have elaborate public transportation systems. Therefore, Uber provides transportation to an otherwise unserved area and population. Along with efficient transportation and servicing a greater area, there is Uber’s ability to be cost effective. taxis and Uber are similar in their price structure including base rate, charging per mile and charging per minute. axicabs charge by mile when moving and per minute when idle.
While Uber chargers per mile and minute simultaneously. Uber advantage is when the speed is over 20 miles per hour and taxicabs are more effective with increased idling. A survey in New York showed that in a 10 minute and 5-mile trip Uber cost was $17. 75 while a taxi was $18. 60. In a 20 minute and 20-mile trip Uber cost $32. 50 whereas a taxi was $42. An additional benefit with Uber is that riders wait an average of 2. 25 minutes versus five to nine with taxis.
Additionally, the rider does not have to pay for fuel, insurance, maintenance and any additional car related expenses. This saving amount to approximately $1,400 per year (Alley, 2016). Uber may be popular with consumers, however, it also has flaws. Uber has been met with complaints from incumbent taxi drivers, taxi commissions and government officials. It is argued Uber is a taxi service yet they do not have to have licenses, insurance or follow the same regulations. Uber has been met with resistance in every city, this is combated with gaining public support via social media platforms.
These items Uber finds loopholes to get around are ways of tracking the drivers and ensuring the vehicle has proper insurance to protect themselves and the passengers (Dong, et al. 2004). Uber negatively impacts the city which it is located, specifically in regards to traffic related fatalities or injuries. Traffic fatalities are one of the leading causes of death in the United States, in 2003 there were 33,000 deaths and 2. 3 million injured. A study was completed exploring the relationship between traffic fatalities and the number of Uber drivers in an area. Total traffic fatalities with Uber in a county were higher than without.
The drunk driving, as well as weekend and holiday fatalities were higher with Uber areas. Therefore, Uber may be beneficial at roviding transportation for those in need in exchange for money, however, the benefit does not outweigh the facts that show Ubers in an area increases traffic related fatalities (Brazil & Kirk, 2016). Uber has revolutionized the transportation industry across the United States and internationally. Uber’s technology has benefited the consumer, the area it is located, driver and the business as a whole. Unlike traditional services Uber does not have employees or actually provide transportation services.
Instead its software connects the rider and driver, collects ayments, and provides a sense of security. In exchange the rider is provided transportation. While the driver receives payment minus the cost for utilizing its software. In doing this Uber has found loopholes which have led to Uber drivers not being protected and necessary insurances are not obtained, in addition, traffic related deaths and injuries are higher than in cities without Uber. Despite the negatives Uber has managed to become a more efficient transportation service, provide a broader range of service area and reduce the cost of transportation.