Last modified on August 16th, 2016 at 6:07 pm

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How Uber Is Disrupting Transportation, Ride Sharing and Leasing Industry

An overview on Uber’s growth strategy and ride sharing future.

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Last updated on August 16th, 2016 at 06:07 pm

Invented by the ancient Sumerians, man’s greatest invention, the wheel brought a modulation to the field of transportation and has indeed given it a new perspective. Uber Technologies Inc. is one such transportation company that has revolutionized the idea of traveling.

With its headquarters in San Francisco, California the Uber Technologies Inc. commenced the Uber application that allows its users to place a request for a cab from their smartphones while at their home. The request is further routed to the Uber drivers who use their own Uber transportation to provide a comfortable journey to their users.

Uber was founded by Travis Kalanick and Garret Camp in the year 2009 as the “UBER CAB”. Since then Uber has been a total success for the two gentlemen and by 2014 it was ranked as the world’s 48th most powerful company and by the year 2015, it is estimated to be of $62.5 billion.

Living in the twenty-first century where our lives are mainly dominated by the modern day technology Uber brings along the comfort of having a cab waiting for you just a tap away. Uber has numerous pros but the major one being the reduced rate of road accidents because of careless and drunk driving.

Not having to wait for taxis for long hours Uber reduces the number of drunk drivers on the road by providing them a safe and a comfortable journey to their destination. Be it a luxurious or an accessible ride for wheelchairs Uber has a wide range of rides to choose from. It also brings along the unique feature of car-pooling never offered by any other. The feature enables the user to share the ride and the fare with anyone else heading the same destination.

Another reason which I believe has contributed to the increasing popularity of Uber is that it is comparatively much cheaper, friendlier and efficient than getting a taxi this means that people no longer have to wait for a cab in the dark streets during late hours with the fear of perhaps being robbed, it also eases the customer with the trouble of waiting for long extensive hours that can be very tiring and exhausting.

The reason why Uber is disrupting the car, ride-system, and taxi industry is because it somehow contributed to the reduction in the rate of pollution. With Uber, people can have any car that they wish to ride in waiting for them at their doorstep within a few minutes away from just a single tap on their cell phone. This means that people now having the facility of having a car just when they need it are encouraged to not carry the heavy burden of car loans or bank loans etc on their backs for years now.

Because of the fare that is within their limits of the range, they are convinced and satisfied by the service provided by Uber and thus the people do not feel the need of buying a car and bearing the heavy expenses of the insurance and taxes that come along with it. The Uber application also ensures a safe journey. The customers no longer have to worry about the mysterious behavior of the cab driver while traveling late in the night. It also means that girls traveling alone in the night no longer have to worry.

Uber ensures a safe and a comfortable ride to its customers. People being content with Uber and its services means that people are convinced to buy fewer cars which mean less emission of harmful gasses into the environment and it, therefore, contributes to decreasing the rate of global warming in the environment.

However, Uber does has a darker side and contributes to the concept of “sharing economy” which has put a burden on the traditional suppliers, manufacturers and service providers. People buying fewer cars and other means of transportation puts a great burden on the manufacturers of big car industries and provides a tough competition for them. Uber and its growing business have caused the business for the taxi drivers to fall down drastically. For private taxi owners and drivers, it has become very difficult to find someone willing to ride in their vehicle, this has caused them many problems such as unemployment.

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With the growing popularity of Uber and other such franchises, it has become increasingly difficult for the taxi drivers to support their families and bear the normal day to day expense. Thus, the traditional yellow cabs are disappearing from the streets of the world and are replaced by the new more advanced Uber cabs.

Uber has therefore disrupted the system in which “things were normally done”. Offering rides in much lower prices people usually prefer to ride in Uber cabs and this creates a tough competition for the taxi and other car sharing industries. These apps have undoubtedly increased the size of the market for taxi and car services.

Taxi apps have become a rising topic in the tech industry, not only among users but among investors and entrepreneurs also. Companies have come up with taxi apps like Hailo, Careem, Lyft, etc. that have yet again created a tough competition for the taxi drivers.

“Uber’s entry into the market was a wake-up call for an industry that was not meeting consumer expectations.” – the spokesperson told new.com.au.

The Taxi drivers, however, view Uber’s new policies as rather unsafe and comment, “Ride-Sharing is a for-profit enterprise that provides illegal taxi services. It places the public at risk through the lack of proper government-backed checks and compliance measures for drivers and vehicles, and it directly undermines the efforts of hardworking and law-abiding taxi drivers, operators and owners.” The council said in response to the IPART report.

“Operating under the guise of the ‘shared economy’, ride-sharing, and specifically UberX, are exposing both drivers and customers to increased risk through (but not limited to) noncompliance with the law, including the non-adherence to the government required checks for authorities and licenses; inadequate or no insurance; no workers.’ Compensation insurance; no industrial relations arrangements; and the insidious practice of surge piercing.”

However, there has been much of a positive response from the Uber drivers who are quite content with its service and packages. At Uber, the drivers are paid for the hours they work in whereas in a yellow cab the driver gets to keep what he earns and it mainly depends on a chance of luck. The drivers are offered good amount of pay and apart from that another advantage which they have at hand is that they can easily choose the time slots for which they wish to work for, this means that it creates a source of employment for the part-time, workers, too and also attracts many yellow cab taxi drivers into the Uber because of the stable salary which they wouldn’t have received if they worked as a yellow cab driver. This yet again contributes to the reason why Uber is disrupting the car, ride-sharing, and the taxi industry.

Uber is “changing car ownership for drivers, with flexible options that allow people to get access to a car when they want to earn extra income,” says Andrew Chapin, a former Goldman Sachs banker who now runs Uber’s vehicle solutions group. But of course, as with anything related to Uber, there’s controversy. Drivers approved for the program pay around $120 to $160 a week, and the money is deducted automatically from their earnings. At $600 a month or so for many drivers, that’s a hefty lease, leading critics to claim that the terms are predatory. Uber also continues to drop its ride prices, making it harder for some drivers to keep up.

Another main concern that comes up with Uber is that of the economy. With the yellow cab taxi drivers and other industries setting up new vehicles running in the streets of the country, the government did manage to get some of the money to the country by having some government owned taxis and hired taxi drivers. However, with Uber, the money goes into private hands which are yet again a major loss to the government, the country, and its economy.

Thus, it can be concluded that Uber has disrupted the car, Ride-Sharing, and taxi industry in many ways. Uber and its increasing popularity have attracted many investors who have added it to its successful reputation that it bears today.

Uber and its charm have somehow repulsed the loan and leasing industry providing it a tough competition in the market. Uber, where lifestyle meets logistics has truly taken into account the atoms and bits of the world and has brought in a way like no one other and has left no bit or atom unturned to create industries that serve people.

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Written by Zulfiqar A.

Zulfiqar A. is the Founder & Editor-in-Chief for TimelyBuzz. Currently based in Abu Dhabi, UAE, he is a software engineer by profession and loves to write about trending stories.

His passion for machine learning and digital storytelling has led to forming TimelyBuzz. He believes technology can elevate digital media and storytelling.

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