Uber: A Replacement for Taxis?
Unless you’ve been living under a rock, you’ve likely heard quite a bit about driving Uber by now. If not, I’ll provide a brief explanation of what the uber company is and isn’t – and how driving for uber works.
Basically, Uber is an Internet-based company that connects drivers and riders for mutually beneficial ridesharing agreements. But unlike most taxi services, Uber allows its drivers to use their own cars and largely determine their own work schedules.
But the experience is different on the customer end as well. Instead of standing on a street corner hailing a cab or Uber car, uber riders use the Uber app on their mobile phones. Once they request a ride, Uber drivers in the area are notified so they can offer to provide the ride and earn some cash. Uber technology is simply the platform that brings these two pieces of the transaction together.
Since Uber does nearly all of the heavy lifting, the result is an unnaturally seamless interaction between the customer and the uber driver. And with profit-hungry taxi companies essentially being removed from the equation, the rides Uber negotiates are generally much less expensive than the alternative (except during times of uber surge peak demand and when uber drivers are scarce, such as during a snowstorm).
Much to the chagrin of the big taxi lobby and local hackney departments, lower prices are a big win for consumers who rely on cheap and easy uber drivers transportation to get around.
Of course, that doesn’t mean that Uber isn’t making any money. A corporate document recently leaked shows that the company plans to generate as much as $10 billion annually in the next few years. Of course, recent reports also show that Uber is currently losing money despite their rapid growth. By all accounts, however, this is due to Uber’s reinvestment in the company. By spending money now, they hope, they can gain more market share and make even more money down the line.
Become a uber driver.